Energy 2020: A Strategy for competitive, sustainable and secure energy

A key sector for the economy and a major source of emissions EU Total Final Energy Consumption in 2008 Share of greenhouse gas emissions in 2008 Total = 1168.63 Mtoe Source: European Commission & EEA 2010

Uncompleted internal market: recent gas crises are illustrative > 75 % 50 - 75 % 25 – 50 % < 25% 0% % of missing gas supply – 300 mcm/d for 14 days 6-20 January 2009 Source: European Commission

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

Meeting our “20-20-20 by 2020” goals Reduce greenhouse gas levels by 20% Increase share of renewables to 20% Reduce energy consumption by 20% 100% Current trend to 2020 Current trend to 2020 -20% -10% Current trend to 2020 20% 5

ENERGY STRATEGY 2020 5 PRIORITIES Efficient use of energy Integrated energy market Secure, safe and affordable energy Technological leadership Strong international partnership

Priority 1 : achieving an energy-efficient Europe  Priority 1 : achieving an energy-efficient Europe Action 1: Comprehensive national Energy Efficiency Actions plans Action 2: tapping into the biggest energy saving potential – buildings and transport Action 3: reinforcing the competitiveness of our industry Action 4: reinforcing efficiency in the supply side

Priority 2: building a pan-European integrated energy market  Priority 2: building a pan-European integrated energy market Action 1: timely and accurate implementation of the internal market legislation Action 2: establishing a blueprint of the European infrastructure for 2020-2030 Action 3: removing technical and regulatory obstacles to infrastructure developments Action 4: providing the right financing framework

 Action 1: making energy policy more consumer-friendly Priority 3: protecting consumers and achieving the highest level of safety and security Action 1: making energy policy more consumer-friendly Action 2: continuous improvement in safety and security

Priority 4: extending Europe’s leadership in energy technology  Priority 4: extending Europe’s leadership in energy technology Action 1: implementing the European Strategic Energy Technology Plan (SET-Plan) without delays Action 2: launching four new, targeted, large scale European projects Action 3: ensuring long-term EU technological competitiveness

Priority 5: strengthening the external dimension of EU energy policy  Priority 5: strengthening the external dimension of EU energy policy Action 1: integrating energy markets and regulatory frameworks with our neighbours Action 2: establishing privileged partnerships with key supplier and transit countries Action 3: promoting the EU global role for a low-carbon energy future Action 4: promoting legally-binding nuclear safety, security and non-proliferation standards worldwide

 NEXT STEPS New proposals from the Commission in 2011: Infrastructure Instrument, with list of European priority infrastructure projects and analysis of needs and possible sources of finance for these projects (July) Energy Efficiency Action Plan (March 2011) Communication on an external energy policy (3rd quarter 2011, public consultations) 2050 Energy Roadmap (complementary to low-carbon and transport Roadmaps) (3rd quarter 2011) Proposal on smart grids for end 2011 So what can we look forward to in 2011: Full implementation of existing legislation is top priority; Speedy adoption of proposals on the table, particularly REMIT; Council has urged Commission to continue work on strategic technologies and on monitoring position of consumers in the internal market; In addition, the Commission will present a number of new initiatives in 2011: Infrastructure Energy efficiency External policy 2050 Roadmap Smart grids ENERGY 2020 12