energy efficiency and cohesion in an eu energy policy perspective
DESCRIPTION
Energy Efficiency and Cohesion in an EU Energy Policy perspective. Dr. Tudor Constantinescu Principal Advisor European Commission - Energy. Energy. European Energy Policy. Objectives & Targets. Technology. Legislation. External. Cohesion. Decarbonisation. Internal Market. - PowerPoint PPT PresentationTRANSCRIPT
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EnergyEnergy
Energy Efficiency and Cohesionin an EU Energy Policy perspective
EnergyEnergy
Dr. Tudor ConstantinescuPrincipal AdvisorEuropean Commission - Energy
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EnergyEnergy
Decarbonisation
Technology
Ext
ern
al
LegislationC
ohes
ion
Internal Market
Objectives & Targets
European Energy Policy
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EnergyEnergy
• Energy strategy 2020 – Five priorities
• Efficient use of energy
• Integrated energy market
• Secure, safe and affordable energy for consumers
• Technological leadership
• Strong international partnership
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EnergyEnergy
Meeting our “20-20-20 by 2020” goals
Reduce greenhousegas levels by 20%
Increase share of renewables to 20%
100%
Reduce energyconsumption by
20%
-10%Current
trend to 2020
-20%
20%
Current trend
to 2020
Current trend
to 2020
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EnergyEnergy
A NEW ENERGY EFFICIENCY DIRECTIVE
ServicesEnergy supply
House-holds
Industry
Generalmeasures
promoting EE
New EED
Sectoral measures
Monitoring & Reporting
Indicative national EE targets
Public sector
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EnergyEnergy
Supported by multiple scenario analyses, to show how to reach the 80 % / 95 % goal while at the same meeting other policy objectives (Competitiveness and Security of Supply) Containing robust assumptions for all
possible scenarios
Looking to the future - Energy Roadmap 2050
•Basis: 20/20/20 objectives of the EU energy policy•Roadmap 2050: Cutting GHG emissions until 2050
down to 80 – 95 % below the level of 1990•The Energy Roadmap 2050: the basis for the
elaboration of a low carbon 2050 strategy
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EnergyEnergy
Fuel Ranges (primary energy consumption)
0%
25%
50%
75%
RES Gas Nuclear Oil Solid fuels0%
25%
50%
75%
RES Gas Nuclear Oil Solid fuels
2030 2050
2005
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EnergyEnergy
Conclusions and “no regret options”
•Energy efficiency gains throughout the system•Major role of renewables•But all options can contribute
EE, RES, Nuclear, CCS, Gas
•Act in time and together – timely investments cost less
•Gas – important role until 2030/35- more uncertainties after that period
Contribution after 2030 depends on (delayed) CCS
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EnergyEnergy
European funding mobilised
• Structural funds/ERDF (incl. JESSICA)• Intelligent Energy – Europe Programme• ELENA Facility • European Energy Efficiency Facility • Smart cities • (within the 7th Framework programme for Research)• Public Private Partnerships• (within the 7th Framework programme for Research
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EnergyEnergy
Cohesion Policy 07-
13
(€ 347 billion)
European Regional
Development Fund
(ERDF)
Cohesion Fund
European Social Fund
(ESF)
DG REGIO DG EMPLOYMENT
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EnergyEnergy
Cohesion Policy
Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective.
Regional competitiveness and employment objective.
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EnergyEnergy
Functioning of Cohesion Policy
• European Commission & Member States negotiated / agreed National Strategic Reference Framework (NSRF) and Operational Programmes (OPs) at national and/or regional level for 2007-2013.
• Member States alone select and implement the projects in line with priorities of the OPs (principle of ‘shared management’).
• Major Projects: Investments of more than € 50 million are submitted and approved by the Commission.
• EU funds always completed by national, regional, EIB funds.
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EnergyEnergy
EnvironmentalRulebook
€54 bn
Low Carbon
Economy€48 bn
Eco-Innovation
€3 bn
= €105 billion 30% of Cohesion Policy funding
“Green economy” investments 2007-2013
Renewables €4.8 bilion
Energy Efficiency €4.4 billion
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EnergyEnergy
Petroleum products2%
Natural gas6%
Electricity (TEN-E)3%Electricity
3%
Natural gas (TEN-E)3%
Wind7%
Solar 10%
Biomass17%
Hydroelectric, geothermal and other
10%
Energy efficiency, co-generation, energy
management39%
Cohesion Policy allocations to Energy
2007-2013 total = € 11 billion (3 % of total)
€ 9.2 billion EE & RES plus € 1.8 billion traditional energies & interconnectors.
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EnergyEnergy
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EnergyEnergy
Energy Efficiency in the “Recovery Package”
• Amendment to ERDF regulation (May 2009)
• Up to 4% of the national ERDF allocation can go to energy efficiency and renewable energy in housing, potentially € 8 billion
• Member States define eligible categories of existing housing, to support social cohesion
• June 2010: Further regulatory amendment to facilitate the use of innovative financial instruments in this area, in addition to JEREMIE and JESSICA (JESSICA initiative also delivering EE & RES investments in the urban context)
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EnergyEnergy
Uptake of the regulatory amendments
• Only EL making immediate use of the new financial engineering opportunity by establishing a revolving fund of EUR 300 million to provide repayable assistance for energy efficiency in housing.
• However, it seems like the amendment has triggered further MS interest, as the set-up of additional financial engineering instruments with an energy efficiency and/or renewable energies component is currently considered in BG, DE, HU, SK, UK.
• Also eight JESSICA funds with energy component set up in seven MS: EE, LT, ES, IT, PL, PT, UK.
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EnergyEnergy
18
Refurbishment of social housing (FR)
• Investments of € 320 M of ERDF in whole country• Average support by ERDF = € 2,886 per dwelling (14% of total needs)• Impacts:
• generated over € 1 billion in investment in energy performance in social housing in FR
• helped to create and maintain 15,000 local jobs & potentially 31,000 with measures in the pipeline
• 50,000 households with modest incomes supported to fight energy poverty (heating costs reduced on average by 40%)
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EnergyEnergyEuropean UnionCohesion Policy
│ 19
Proposed EU budget 2014-2020
"Ambitious but realistic" proposals issued by the Commission in June 2011 for a Multiannual Financial Framework 2014-2020
Cohesion Policy
33% (€336 billion)
Connecting Europe Facility
4% (€40 billion)
Other policies(agriculture,
research, external,…)63% (649
billion)
MFF 2014 - 2020
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EnergyEnergy
European UnionCohesion Policy
│ 20
Concentrating resources to maximise impact
Less developed regionsMore developed & transition regions
Concentration of ERDF investments on: energy efficiency & renewable energy
research & innovation competitiveness of SMEs
flexibility – different regions have different needs special arrangements for ex-convergence regions
60%
20% 44%
6%
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EnergyEnergyEuropean UnionCohesion Policy
│ 21
How will funding be allocated?
68,7%
11,6%
15,8%
0
10
20
30
40
50
60
70
80
90
100
119.2
72.4
307.1
0
50
100
150
200
250
300
350
400
450
500
Budget allocation (in %)
Population covered
(in millions)
Less developed regions/MS Transition regions More developed regions
Cohesion Fund¹ 68.7
Less developed regions 162.6
Transition regions 38.9
More developed regions 53.1
European Territorial Cooperation
11.7
Outermost regions and sparsely populated areas
0.9
Total 336.0
¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility
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EnergyEnergy
ROMANIA, NSRF 2007-2013 (http://www.fonduri-ue.ro/)Energy Efficiency in ERDF Operational Programmes 2007-13: 100 MEUR
• Large enterprises/SMEs (Increase of the Economic Competitiveness programme)
• Total allocation: 100 M€ (245)• Implementation: European Regional Development Fund supports investments in installations/ equipments of
industrial operators leading to reducing the energy consumption.• Calls: on going
• Public buildings for Regional, Local and Municipal Authorities (Regional operational programme)
• No separate energy-efficiency measures are taken.• European Regional Development Fund supports the rehabilitation of public buildings (schools, hospitals, social
buildings); the projects are required to comply with reinforced energy efficiency national legislation;
• Housing
• Total allocation: 0 M€ • Implementation: this was not a priority for the Romanian authorities and no programme included this type
of projects. • Discussions are on-going on the possibility and opportunity to set up a financing scheme for energy efficiency
projects in housing under the Regional Operational programme.
• Contacts• Intermediate Body for Energy from the Ministry of Economy, Trade and Bussiness Environment, http://oie.minind.ro, Tel: (+40 21)
202 53 88.• Managing Authority for Regional Operational Programme from the Ministry of Regional Development and Tourism
http://www.inforegio.ro/, Tel: (+40 37) 211 14 09.