Presentation to Dublin Chamber's Brussels study mission on DG Energy’s strategy for stimulating growth and jobs in the renewable energy sector by Tom Howes, Directorate General for Energy. The study mission was kindly supported by KBC Bank.

1. l
European renewable
energy policy
Tom Howes
08/11/2011
EUROPEAN
European Commission
COMMISSION

2. l The European energy strategy
. EU policies working in tandem to provide a stable long term framework:
» Europe 2020 strategy, resource efficiency – Renewables 20%
» The creation of competition and the single market in energy
encourages new, smaller entrants, including renewables producers.
» The development of European infrastructure helps integrate the
single market and a growing share of renewable energy.
• – budget proposals
» Europe's R&D programme also contains the Strategic Energy
Technology Plan, helping develop new energy technology.
• – budget proposals
» Energy Efficiency Plan & Directive, March-June 2011
» Future policy work – decarbonisation: 2050

3. l Massive modernisation investment is needed
Total investment needs in the electricity and gas sector
between 2010-20: over € 1 trillion
Power generation: ~ € 500 bn Transmission and distribution: ~ € 600 bn
Renewables: ~ € 310-370 bn Distribution: ~ € 400 bn
Transmission: ~ € 200 bn
Investments of over € 1 trillion will be needed by 2020 to replace obsolete
power plants, to modernise and adapt infrastructure to the latest technologies
and to cater for demand for low carbon energy.
Source: Commission calculations

4. l NEW ENERGY EFFICIENCY DIRECTIVE
Public Energy
Services Industry
sector supply
• Purchase of products, • National energy • 10-year national heat & • Member States to
services & buildings efficiency obligation cooling plans: transparency, create incentives for
scheme for utilities predictability & alignment SMEs to undergo
with high energy
efficiency of policies for investments energy audits
• Obligation for
performance individual energy • Dissemination of best
• Annual renovation meters, reflecting • Waste heat recovery practices on benefits of
target of 3% for public actual consump. & (CHP) obligation for new energy management
buildings above 250 information on actual and existing power & systems for SME
m² time of use industrial plants businesses
• Ensure accuracy &
• Network tariffs design to
frequency of billing
• Local energy efficiency encourage offering services • Mandatory audits for
based on actual
plans and introduction for consumers allowing large companies &
consumption
of energy them to save energy & incentives for the
management systems • Appropriate control consumption implementation of
information with the recommended
bill providing • National annual inventories
measures and the
• More systematic use comprehensive of generation installations to
introduction of Energy
of Energy account of current monitor efficiency levels
Management Systems
Performance energy costs
Contracting

5. l Progress to date…
EU renewable energy shares
50,20%
50%
40%
36,80%
29,20% 29,80%
30%
25,70%
22,70%
21,60%
19,70%
20%
17,50% 16,90%
13,00% 12,40%
11,60% 11,50%
9,50% 10,00% 9,70%
9,40%
10% 7,80%
8,50% 7,90%
5,10%
4,20% 3,80% 3,80%
2,80% 2,90%
0,70%
0%
EU MT LU UK NL BE IE CY HU IT CZ PO GR SK DE BG ES FR SI LT DK EE RO PT AT LV FI SW
2005 2009 (provisional) 2020 target
Eurostat

6. l
ktoe
Technology Results from the National Renewable Energy Action Plans
250000
200000
Heat pumps
Biomass
150000
Wind
Tide, wave, ocean
100000
Solar
Geothermal
50000 Hydro
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

7. Renewable energy in heating & cooling in Ireland
l Growth by sector 700
600
in Ireland 500
400
Geothermal Heat
Solar Heat
ktoe
300 Heat pumps
Biomass Heat
200
100
Renewable energy in transport in Ireland 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
600 year
500
Hydrogen
400
Other Biofuels
ktoe
300 Electricity in transport
Bioethanol
200
Biodiesel
100
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Renewable energy in electricity in Ireland
year
16000
14000
Tide, wave, ocean
12000
Solar electricity
10000 Geothermal Electricity
GWh
8000 Hydro
6000 Biomass electricity
offshore
4000
onshore
2000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
year

8. l National Renewable Energy Action Plans indicate:
• Planned growth to 2020 leading to 20.6% by 2020
• Majority of MS will reach the targets by domestic
production, 2-4 MS partly rely on cooperation
mechanisms
• Total renewable energy consumption will double from 99
Mtoe (2005) to 245 Mtoe (2020)
• Combined EU renewable energy shares in the 3 sectors in
2020 (projections):
• Electricity from renewable sources – 34%
• Heating & cooling from renewable sources– 21.5%
• Transport from renewable sources– 11%

9. l Cost estimations
• Total investments in renewables are currently at a level of
approximately € 35 bn/y
• Most analysis predict this has to double to reach our 2020
targets
• Unit cost of renewables, contrary to other forms of energy,
are declining; for certain technologies sharply
• PV module costs around €500/kW
• Producing (and generating) renewables where most cost-
efficient offers significant potential for lowering overall cost

10. l Low-Carbon Economy Roadmap (Mar 2011)
100% 100%
Basis of scenarios Power Sector
80% domestic 80% 80%
Current policy
reduction in 2050
Residential & Tertiary
60% 60%
Industry
Efficient 40% 40%
pathway:
-25% in 2020 Transport
-40% in 2030 20% 20%
-60% in 2040 Non CO 2 Agriculture
Non CO 2 Other Sectors
0% 10
0%
1990 2000 2010 2020 2030 2040 2050

11. l 2020/2050 Key Challenges
» Increasing importance of RES increases
requirements on:
• Capacity and flexibility
- of electricity grids,
- of power plants,
- of energy storage
- of demand side management (~smart)
. » Energy Roadmap 2050 – preparation
Priority of Danish Presidency
http://ec.europa.eu/energy/strategies/2011/roadmap_2050_en.htm - see “Energy
Roadmap 2050 - State of Play”

12. l you for your attention
Thank
http://ec.europa.eu/energy/renewables/index_en.htm

13. l Investments in renewable energy at global level
Europe
Billion Dollars
China
United States
Brazil
Other America
Other Asia
and Oceania
India
Middle East
and Africa
In 2009, investment in renewable energy fell in the EU by 10% in the context
of the economic crisis, while it increased by more than 50% in China.
Source: International Energy Agency