energy union & regional policy - european...

Source: Directorate-General for Energy Source: Directorate-General for Energy

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Energy Union & Regional policy

Integrated, Interconnected, Resilient and Secure


I want to reform and reorganise

Europe’s energy policy

in a new European Energy Union.

Jean-Claude Juncker

«

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Energy in the EU: Results achieved

to be improved

• Greenhouse gas emissions fell 18% (1990-2011)

• Energy efficiency savings: 15.5 % (2013)

• Share of Renewables: 15.0% (2013)

• European renewable energy businesses have a combined annual

turnover of €129 billion, employing over 1 million people

• EU: the largest energy importer in the world

• Competitiveness of energy prices (higher than in the US)

• Internal energy market not yet completed

• 12 Member States still insufficiently connected

• Transparency of gas markets

• Overdependence on single supplier

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The way towards:

The Energy Union

Where we want to go: A secure, sustainable, competitive, affordable energy for every European

What this means: Energy security, solidarity and trust

A fully integrated internal energy market Energy efficiency first

Transition to a long-lasting low-carbon society An Energy Union for Research, Innovation and Competiveness

How we want to reach it:

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Our vision of an Energy Union

• True solidarity and trust; speaking with one voice in global affairs

• An integrated continent-wide energy system • Sustainable, low-carbon and climate-friendly

economy • Strong, innovative and competitive European

economy • Citizens taking ownership of the energy transition

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1 Secure supplies

We have to become less dependent

on energy from outside the EU

This means increasing transparency on gas supply; diversifying sources, supplies and

routes; working together on security of supply and developing a stronger European role in

global energy markets.

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Secure supplies

Concrete actions

Revision of security of gas supply regulation

Comprehensive LNG strategy

Develop alternative suppliers, including

Southern Gas Corridor and with the

Mediterranean

Revision of the Decision on

Intergovernmental Agreements

EU Energy and climate policy diplomacy and

trade policy

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Energy should flow freely across

the EU – without any technical

or regulatory barriers

2 Internal energy market

This means connecting markets through interconnections and implementing and

upgrading the internal market's software while enhancing regional cooperation and

empowering consumers.

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Internal energy market

Concrete actions

Implementation of major infrastructure

projects (PCIs)

Energy Infrastructure

Forum

Legislation on security of supply

for electricity

European electricity market design

Reinforced European regulatory

framework

Guidance on regional

cooperation

Analysis of Energy prices and costs

Vulnerable consumers protection

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Rethink energy efficiency as an

energy source in its own right

3 Energy efficiency

This means increasing energy efficiency, in particular in the building sector, and

promoting an energy-efficient and decarbonized transport sector as well as efficient

products.

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Energy efficiency

Concrete actions

Review the Energy Efficiency Directive

Review the EPBD

Review the Energy Labelling and

Ecodesign Directives

Strengthened financial instruments

to support investments in

energy efficiency

EU strategy for Heating and Cooling

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An ambitious climate policy is an

integral part of our Energy Union

The next challenge will be to enforce the 2030 energy and climate framework, while becoming

the number one in renewables.

4 Emissions reduction

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Emissions reduction

Concrete actions

Legislation to achieve the 40% GHG reduction target (both in ETS and non ETS)

Renewable Energy Package: RES directive

revision, best practices for self-consumption and

support schemes

Comprehensive road transport package

Increased deployment of alternative fuels and clean

vehicles

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Developing EU technological

leadership in low carbon

technologies This will reduce energy consumption, empower consumers, create huge industrial opportunities and boost growth and jobs.

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Research & innovation

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Research & innovation

Concrete actions

Integrated SET Plan, including smart cities and

smart financing

Strategic transport research and innovation R&I agenda

Initiative on EU global technology and innovation

leadership

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Delivering the Energy Union: A dynamic governance

The Commission will launch a dynamic governance process for the European Energy Union

Successful implementation depends on the political commitment of all actors concerned, including EU institutions and Member States!

Integrated energy and

climate governance

Streamlined planning and

reporting

Deepen MS cooperation,

improved data analysis and intelligence

Annual reporting to the EP and

Council

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What about regional policy?

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Cohesion Policy Sustainable 2014-2020 Energy

• ERDF and CF to allocate € 38 billion to investments in low-carbon: energy efficiency and renewable energy, smart distribution grids and sustainable urban mobility, including research and innovation (only ERDF) in those areas in complementarity with Horizon 2020.

• ERDF support also, mainly in less developed regions, to remove bottlenecks in key network infrastructures, including smart energy distribution, storage and transmission systems, in complementarity with the Connecting Europe Facility. Some € 2 billion expected.

• ESF support to ensure that people can adapt, through acquiring appropriate skills and through lifelong learning opportunities, to new challenges such as the transition to a low-carbon and more energy-efficient economy.

• The other ESI Funds, European Agricultural Fund for Rural Development (EAFRD) and European Maritime and Fisheries Fund (EMFF), also to invest almost € 8 billion in low-carbon.


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Cohesion Policy: Doubling of low-carbon economy investments

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TO 4: Low-carbon economy ERDF and CF

• Promoting production and distribution of renewable energy (RES)

• Promoting energy efficiency (EE) and RES use in enterprises

• Supporting EE, smart energy management and RES use in public infrastructures, including in public buildings, and in the housing sector

• Developing and implementing smart distribution systems at low and medium voltage levels

• Promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multi-modal urban mobility and mitigation relevant adaptation measures

• Promoting research and innovation in and adoption of low-carbon technologies (ERDF only)

• Promoting the use of high-efficiency co-generation of heat and power based on useful heat demand


TO 7: Removing bottlenecks in key network infrastructures ERDF

• Improving energy efficiency and security of supply through the development of smart energy distribution, storage and transmission systems and through the integration of distributed generation from renewable sources (ERDF only)


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Implementation

• Ensure that public funding complements private investment, leveraging it and not crowding it out, in accordance with State aid rules

• Consider creating value for energy savings through market mechanisms before public funding

• Financial instruments, such as loans, guarantees or equity, to be used for projects with revenue generation or cost savings potential

• Grants to be used primarily for social objectives, to support innovative technologies and investments going beyond legal minimum energy requirements, thus making sure that energy savings and greenhouse gas emission reductions are above those with "business as usual"

• Financial instruments and grants can be combined in the same project


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Financial Increased Instruments role

• Possibilities for using financial instruments have been extended and facilitated for 2014-2020

• The Commission encourages use of financial instruments to shift from a grant-based approach and increase leverage and revolving effects

• The Investment Plan recommends Member States to deliver 20% of the ESI Funds allocations to low-carbon through financial instruments

• The Roadmap for the Energy Union includes an action point to strengthen the targeted use of financial instruments to support investments in energy efficiency


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Ex ante conditionalities (ExACs)

• Pre-conditions on the spending to improve the effectiveness of investment.

• If relevant criteria are not fulfilled at adoption of programme - action plan. Interim payments can be suspended if there is no fulfilment by end of 2016.

• If the Commission considers that non-fulfilment leads to 'significant prejudice' - suspension of interim payments at the stage of adoption of a programme.

• Four ExACs related to Energy:

• ExACs 4.1 energy efficiency, 4.2 co-generation and 4.3 renewable energy: Several Action Plans, mainly for 4.1, linked to Energy Performance of Buildings Directive

• ExAC 7.4 energy infrastructure: Two Actions Plans (of which one has already led to subsequent fulfilment of the ExAC)


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ERDF and CF common output indicators: Low-carbon economy

• Additional capacity of renewable energy production (MW)

• Number of households with improved energy consumtion classification

• Decrease of primary energy consumption of public buildings (kWh/year)

• Number of additional energy users connected to smart grids

• Estimated annual decrease of greenhouse gas (tonnes of CO2 equivalents)


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• Cohesion Policy 2014-2020 playing a strong role in delivering the Energy Union on the ground, with significant opportunities for sustainable energy

• Commission support includes:

• EMA Network of Energy and Managing Authorities to support the best possible use of the funding

• Smart Specialisation Platform on Energy

• Advisory platform for financial instruments, fi-compass

• Off-the-shelf financial instruments, including 'Renovation loan'

• Guidance documents, workshops

Conclusions


#EnergyUnion

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