EU ENERGY UNION Lucas Maurer DG Energy, European Commission

OVERVIEW Energy Security, Solidarity and Trust 1. INTRODUCTION – OBJECTIVES OF EU ENERGY POLICY 2. PROGRESS ALONG THE 5 DIMENSIONS OF THE ENERGY UNION Energy Security, Solidarity and Trust An Integrated Internal Energy Market Energy Efficiency Decarbonising the Economy Research, Innovation and Competitiveness 3. OUR LATEST PROPOSALS – THE CLEAN ENERG FOR ALL EUROPEANS PACKAGE 4. CONCLUSION

Energy Union: Strategy «  «  I want to reform and reorganise Europe’s energy policy in a new European Energy Union. Jean Claude Juncker Energy Union Strategy

AN ENERGY UNION BASED ON FIVE MUTUALLY SUPPORTIVE AND INTERLINKED DIMENSIONS Summer 2015: ETS Directive Energy Labelling Nov 2015; Feb 2017: 1st and 2nd State of the Energy Union Energy Security, Solidarity and trust A fully integrated internal energy market Energy Efficiency Decarbonisation of the economy Research, innovation and competitiveness February 2016: SoS Regulation; IGA Decision; Heating and Cooling; LNG November 2016: Clean Energy for all Europeans package (RED, EE, MDI, Governance) July 2016: Effort Sharing (GHG) LULUCF Low-emmission mobility 2017 Mobility packages

 - 40 % Greenhouse Gas Emissions 27 % Renewable Energy Agreed headline targets 2030 Framework for Energy and Climate -20 % Greenhouse Gas Emissions 20% Renewable Energy 20 % Energy Efficiency 10 % Interconnection 2020  - 40 % Greenhouse Gas Emissions 27 % Renewable Energy  27%* Energy Efficiency 15 % Interconnection 2030 * To be reviewed by 2020, having in mind an EU level of 30%

MONITORING OF IMPLEMENTATION OF ENERGY UNION INTRODUCTION MONITORING OF IMPLEMENTATION OF ENERGY UNION Implementation needs close monitoring, full transparency and involvement by the European Parliament and the Council. Main objective: "Annual reporting to the European Parliament and the Council on the state of the Energy Union in order to address the key issues and steer the policy debate." 11/2015: first State of the Energy Union 02/2017: second State of the Energy Union Assesses the progress since the first report and identifies the next steps 2017: year of implementation Autumn/Winter 2017: third State of the Energy Union

PROGRESS ALONG THE 5 DIMENSIONS OF THE ENERGY UNION ENERGY SECURITY, SOLIDARITY AND TRUST Net import dependency [%] In 22 Member States, total net import dependency decreased The European Union still imports more than half of its energy Gas interconnections between Member States and access to Liquefied Natural Gas (LNG) terminals have and will continue to improve energy security

PROGRESS ALONG THE 5 DIMENSIONS OF THE ENERGY UNION ENERGY SECURITY, SOLIDARITY AND TRUST Share of Russian gas in total gas consumption in 2015 0 – 20% 20 – 40% 40 – 60% 60 – 80% >80% Source: IHS, EC

PROGRESS ALONG THE 5 DIMENSIONS OF THE ENERGY UNION AN INTEGRATED INTERNAL ENERGY MARKET Electricity interconnection (10% target in 2020 and 15% target in 2030) [%] 11 Member States have not yet reached the 2020 electricity interconnection target of 10% By mid-2015 most electricity markets are coupled to one or more neighbours Wholesale prices for gas and electricity decreased, but retail prices for electricity increased mainly due to taxes and levies

PROGRESS ALONG THE 5 DIMENSIONS OF THE ENERGY UNION ENERGY EFFICIENCY EU 28 – Primary energy consumption and GDP trend Economic growth is decoupled Primary energy consumption decreases 2020 target is expected to be reached 30% target

PROGRESS ALONG THE 5 DIMENSIONS OF THE ENERGY UNION DECARBONISING THE ECONOMY Renewable energy share in the European Union [%] In 2015: 25 Member States exceeded their indicative national trajectory Decarbonisation (1990 to 2015): GDP: 50 % GHG: 22 %

PROGRESS ALONG THE 5 DIMENSIONS OF THE ENERGY UNION RESEARCH, INNOVATION AND COMPETITIVENESS Strategic Energy Technology (SET) Plan to accelerate decarbonisation by making technologies cost-effective and better-performing Ambitious R&I targets set by national governments, industry and research actors have set Considerable progress in all priority areas European Union joined the global Mission Innovation Global initiative of 22 governments: Pledge to double their public clean energy R&I investment over five years The Clean Energy Industrial Competitiveness Forum is planned to be convened before the end of this year

REMAINING CHALLENGES Member States should accelerate the preparation of their Integrated National Energy and Climate Plans Main tool to reach the Energy Union objectives Certainty and predictability for investments Further diversification of energy sources including reduced import dependencies are needed Step up efforts to improve infrastructure (e.g. interconnectors, LNG terminals …) The investment challenge (implementing the Smart Finance for Smart Buildings initiative) about EUR 379 billion investments are needed each year over the 2020-2030 period Need to unlock private financing Consumer empowerment while tackling energy poverty

CLEAN ENERGY FOR ALL EUROPEANS – PACKAGE ADOPTED ON 30 NOVEMBER CREATING JOBS & GROWTH, BRINGING DOWN GREENHOUSE GAS EMISSIONS, SECURING ENERGY SUPPLY WHAT ARE OUR GOALS? Putting energy efficiency first Demonstrating global leadership in renewables Delivering a fair deal for consumers 15

2050 2030 WHY DO WE NEED THIS PACKAGE? THE ENERGY SYSTEM OF TOMORROW WILL LOOK DIFFERENTLY 2030 50% of electricity to come from renewables 2050 Electricity completely carbon free Thanks to the EU - ambitious energy and climate commitments With leadership comes responsibility Unique opportunity to modernise our economy and to boost competitiveness create the growth and jobs we need

THE REVISED RENEWABLES DIRECTIVE – MAIN OBJECTIVES Investment certainty Cost-effective deployment Collective target achievement Promoting innovation incl. in transport Tapping heating and cooling potential Contributing to the EU political priority of becoming world number 1 in renewables & Achieving the at least 27 % EU-level binding renewables target cost-effectively

ACHIEVING THE BINDING 30% ENERGY EFFICIENCY TARGET BY 2030 Performance of Buildings Clear vision for a decarbonised building stock by 2050; Smart & Efficient buildings through use of Information and Communication Technologies and Smart Technologies; Smart Finance for Smart Buildings initiative: More effective use of public funding Aggregation of funds De-risking Protect vulnerable groups & address energy poverty. Ecodesign Working Plan 2016-2019 List of new product groups; Outline on how ecodesign will contribute to circular economy objectives; Specific measures on air conditioning; Guidelines on voluntary agreements. Energy Efficiency Directive Binding 30% energy efficiency target for 2030; Create 400,000 new jobs; Reduce gas imports by 12%; Save € 70 billion in fossil fuel imports; Empower consumers by granting access to information on their energy consumption.

OVERARCHING OBJECTIVES OF ENERGY UNION GOVERNANCE A ROBUST GOVERNANCE TO MEET 4 OBJECTIVES Meet Energy Union objectives (notably the 2030 targets, including a 2050 perspective) Promote Better Regulation and reduce administrative burden Enhance investor certainty and predictability Ensure compliance with the EU's international climate commitments

GOVERNANCE - TIMELINE Final Plans (2021-2030) Final update (of 2030 Plan) Final Plans (2031-2040) Draft Plans (2021-2030) Draft update (of 2030 Plan) Draft Plans (2031-2040) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Progress report Progress report Progress report Progress report Progress report Biannual Commission assessment and recommendations Measures to close gaps to 2030 targets Regional cooperation

A FAIR DEAL FOR CONSUMERS NEW MARKET DESIGN A FAIR DEAL FOR CONSUMERS BETTER INFORMED EMPOWERED PROTECTED Access to fit-for-purpose smart meters Certified price comparison tool Clearer energy bills Entitle individuals and communities to generate electricity and to consume, store or sell it back to the market Easier switching conditions Reward demand- response Monitoring of energy poverty (governance) Information on alternatives to disconnection Secured electricity supplies Sound data management

CONCLUSIONS To be successful, the Energy Union related legislative proposals presented in 2015 and 2016 need to be addressed with urgency Maintain overall coherence and ambition of the Energy Union As important: Speeding up the implementation of facilitating measures and ensuring compliance with the existing rules e.g.: implementation of energy and climate diplomacy priorities set up the investment platforms for financing of energy efficiency and renewable energy projects Only when concrete progress on the ground is made, the multiple benefits of the clean energy transition will become visible jobs, growth and investments

THANK YOU! 24 #EnergyUnion