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The EU Internal Energy Market for the 21st Century
Energy Efficiency – the shale gas of Europe
Randall Bowie
European Council for an Energy Efficient Economy eceee Joint Committee Meeting
European Parliament - National Parliaments17 December 2013, European Parliament, Brussels
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What are the problems?• A problem of rising energy prices
• A fear of worsening competitiveness
• A problem of dangerous climate change
• A problem with high unemployment
• A problem to ensure citizens' health & welfare
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Ways to solve the problems• A need to reduce energy costs (≠ price): efficiency
• A need to consider what competitiveness really is
• A need to reduce GHGs & address climate change
• A need to ensure economic growth & investment
• A need to increase productivity of labour & capital
• A need to reduce pollution, improve health-comfort17 December 2013 The EU Internal Energy Market for the 21st Century 3
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Tools to solve the problems• Completion of the internal energy market (IEM)
• Start by completing the IEM for energy efficiency
• Sun, wind, geothermal & tidal are our near future; shale gas not viable in most of EU, nor necessary
• “Unconventional fuels” still fossil fuels, with GHG
• Innovation, resource efficiency, “front-runners” &
high quality best, not competing with low prices
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Completing the internal energy market
• Respect principle of trias energetica by first reducing energy demand with savings, then RES
• Develop capacity markets, tariff structures,
demand response, storage, for intermittent RES
• All RES, large & small needed: interconnectors & distributed/local generation both required
• Buildings (40%) part of our infrastructure, like grids
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EU standardisation work: critical & global• EU standardisation, a prerequisite for the internal market
• EU standards are being used more & more outside the EU
• Standards energy-using products, min. perf., CE-marking,
essential reqmts., RES, measurement methods, safety, health, fire resistance, sustainability, etc.
• European Norms (ENs) become ISO (global) standards
• EN ISO 50001 (Energy management schemes - EMS)
• pr EN 16247-1 (Energy audits); promoted in Energy Efficiency Directive Article on Audits & EMS
The EU Internal Energy Market for the 21st Century
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Why more EU regulation & harmonisation?
• Single market: harmonisation; no trade barriers; no dominate players; economies of scale, demand loci;
• Traded, competitive, energy-efficient goods & services, certification, mutual recognition, educat. & training; EUco-financing key
• Best practice, R & D, information shared; SME support
• Co-operation not same as collusion (EU comp. laws)
• Long-term regulatory framework, goals promote investmnt
• Binding targets (energy efficiency, RES, GHG) = flexibility
The EU Internal Energy Market for the 21st Century
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A closer look at energy efficiency
• Existing cost-effective energy-efficient, technolo-gies can cut EU energy consumption by 41% 2030¹
• Energy consumption in EU residential bldgs can be
cut by 61%, industry by 26%, transport by 41% 2030
• By 2050, EU bldg stock can save 80%² of its energy
consumption by increasing renovation rate from 1% to 3%/year; with “deep”renovations of factor 5
¹Fraunhofer, ² Ecofys
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The Multiple benefits of energy efficiency
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ENERGY SAVINGS – OUR FIRST FUEL
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Denmark: 2013 Assessment Green taxes
• Economic effects of green taxes tracked by different indicators
• Calculations show total production in private sector not influenced by green taxes with no significant influence on employment, private consumption or balance of payments.
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The Danish Case
• Clean energy technology sales are 3% of GDP - highest in the world.
• Though small, Denmark is home to large clean tech companies, such as Danfoss, Vestas, Grundfos, Novozymes, Rockwool, Siemens Wind Power, & Velux, & suppliers & consultants for green tech.
• Energy technology represents 10% of total Danish exports of goods, with green energy technologies constituting the largest share.
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Denmark: 2013 Impact of Green taxes
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Let’s review the solutions
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EU energy import dependency
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Savings potential high in iron/steel industry
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Savings potential high in cement industry
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Savings potential high in chemical industry
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Energy price gap closed by cost cuts
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Some conclusions
• The EU internal energy market needs to address problems with investments in energy efficiency and renewable energy to ensure competitiveness
• Green, low-carbon jobs & growth should be EU priority, otherwise they will develop elsewhere
• EU can & should be a “front runner” & leader
• Energy efficiency & binding energy savings target should be a first key element in completing IEM
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Putting it all into perspective: it is up to us
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Juno probe observes Earth-Moon dance at a distance of 1Mkm as it is sling-shot towards Jupiter
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Thank you for your attention.