internal (energy) market achieving our 2030 renewables ... · internal (energy) market achieving...
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Internal (energy) market
Achieving our 2030 renewables & efficiency objectives
Thomas PELLERIN-CARLIN, Research Fellow, European Energy Policy Jacques Delors Institute 19 November 2015, Vrije Universiteit Brussel
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Jacques Delors Institute An European Think-Tank Founded in 1996 by
Jacques Delors Two offices: Paris
(since 1996) and Berlin (since 2014)
Launched the Energy
Union idea in 2010 (Buzek, Delors, Padoa-Schioppa)
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Setting the scene The four freedoms I – Internal goods market and
energy efficiency II – Internal capital market matters
for RES & EE III – Building a genuine EU electricity
market
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Internal (goods) market and energy efficiency
Thomas PELLERIN-CARLIN, Research Fellow, Jacques Delors Institute 19 November 2015, Vrije Universiteit Brussel
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Goods & energy efficiency
• Label & ban:
– Direct or – Indirect (e.g. car emissions)
– Most efficient policies on: • Oil, • Security of gas supply.
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Goods & energy efficiency Energy efficiency does work !
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Goods & energy efficiency
• Key Limits: – Lack of political support:
• EU level: uncertain support (Ševčovič vs. Timmermans),
• National level: narrow vision of the national interest,
• Businesses (esp. ‘old’ energy utilities and car manufacturers).
– In ETS sectors, EE does not reduce EU GHG emissions
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Internal (capital) market RES & EE
Thomas PELLERIN-CARLIN, Research Fellow, Jacques Delors Institute 19 November 2015, Vrije Universiteit Brussel
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Capital: ensuring low interest rates Lower interest more RES & EE
Sources: Andreas Rüdinger, IDDRI 2015
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Capital: helping ‘crisis countries’
Sources: Diacore
Estimated cost of debt for wind projects
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Capital: ensuring low interest rates • Trans-sector policies:
– Capital Market Union (for all EU-28), – Eurozone policies (for ‘crisis countries’), – Crowdfunding (Commission’s
communication).
• Energy-specific policies: – EFSI targeting on RES & EE, – Network of EU/National public banks: EIB,
KfW, CDC, CDP etc.
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Internal (electricity) market
Thomas PELLERIN-CARLIN, Research Fellow, Jacques Delors Institute 19 November 2015, Vrije Universiteit Brussel
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A single electricity market Why? • To better integrate RES, and • Deliver low electricity prices
(excluded taxes).
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A single electricity market How ? ‘United in diversity’:
• Diversity
– of RES production levels – of Electricity demand patterns
• Unity – of back-up capacities – of storage capacities
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Diversity of RES production
Electricity generation from wind turbines at the local, regional, national, macro-regional and european level
Sources: Fraunhofer 2015
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Diversity of electricity demand patterns Diversity of cultures diversity of electricy demand peak: • Intra-day:
– Germany: ± 11h – France: ± 19-20h – Spain: ± 21-22h
• Yearly: – EU Southern countries peak in summer – EU Northern countries peak in winter
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Unity of back-up/storage A back-up capacity (gas, battery, hydro) in south-east of France can produce at: • 11.00 for DE peak • 19.00 for FR peak • 22.00 for ES peak
Link our ‘natural batteries’ (i.e. mountains)
An EU-wide electricity market enhances cost-efficient security of electricity supply for all
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The needed hardware Interconnections
Pan-European significance investments post 2019 Source: ENTSO-E, 2014
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The needed software Electricity Market Design fit for a 2030 market w/ 50% of electricity coming from RES. It entails: • Develop demand side management:
– real-time pricing, – liberalisation of DSOs, – consumer empowerement.
• A European approach to security of electricity
supply articulating: – EU level and, – NUTS II level (< 3Million inhabitants)
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Conclusion & Recommendations 1. Go further and faster on energy
efficiency of goods, esp. buildings, cars & trucks
2. Lower interest rates, esp. for RES & EE projects
3. Develop an EU-wide electricity market to better integrate RES
4. Further reduce ETS quotas to anticipate EE & RES development
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Back-up Slides
Thomas PELLERIN-CARLIN, Research Fellow, Jacques Delors Institute 19 November 2015, Vrije Universiteit Brussel
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Jacques Delors Institute An European Think-Tank Founded in 1996 by Jacques Delors One Mission: produce original & independent
policy proposals Two offices: Paris (since 1996) and Berlin
(since 2014). Donors:
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EU Energy Mix (in mtoe)
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EU Energy Objectives
Sources: Jacques Delors Institute
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Goods & energy efficiency
• Conclusion: – Regulating goods’ energy efficiency does work
• Recommendation, more regulatory action from the Commission: – Implementation of existing legislation (esp.
Buildings), – Push on car energy consumption, then trucks, – Further reduce ETS quotas to anticipate EE
gains, – Wait after Brexit to go further on the rest.
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Transport
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• Juncker, EPP candidate, 16 April 2014
• Energy Union communication, 25 February 2015
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Juncker’s U-turn on EcoDesign
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Capital: ensuring low interest rates • Lower interest more RES & EE
Sources: Andreas Rüdinger, IDDRI 2015
0%10%20%30%40%50%60%70%80%90%
100%
Gaz Charbon Nucléaire Eolien Solaire
Coût d'investissement Maintenance
Combustible CO2
121€ 133€ 158€
201€ 232€
-
50
100
150
200
250
2% 3% 5% 8% 15%Taux d'intérêt
Capital emprunté Cumul des intérêts
Gas Coal Nuclear Wind Solar Investment cost
Fuel cost Estimated CO2cost Maintenance Loan
Euros
Cumulated interest paiements (on 20 years)
Interest rates
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Unity of storage Example of links between Europe’s ‘Big Natural Batteries’
Sources: mappsite.blogspot.fr
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Interconnections
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Swedish RES cheaper than PL coal
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The needed software for electricity market reform • Implementing the existing legislation
• Electricity Market Design for a 2030 market w/ 50% of
electricity coming from RES
• Develop demand side management (real-time pricing, liberalisation of DSOs, consumer empowerement)
• Energy poverty communication
• A European approach to security of electricity supply
• Capacity mechanisms have to be thought at: – EU level and/or, – NUTS II level (< 3Million inhabitants)
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DSOs concentration
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