Energy Tom Howes DG Energy European Commission Europe's renewable energy strategy

Energy The European energy strategy overall:  Renewables Directive: mandatory targets, national plans grid rules…  ETS, reflecting a carbon price to achieve the cap.  National (non ETS) emissions reductions strategies and measures  3 rd package: unbundling, harmonised grid operation rules, network codes etc.  TEN-E priorities and project support  Infrastructure package: CEF proposal, planning reforms  Smart grids  Energy Efficiency Measures (including ESCOs)  SET plan/R&D/CCS  Institutionally: ENTSOs, ACER, CEER…  Longer term framework: 2050, 2030…

Energy Any pathway to "decarbonisation" requires a renewable energy share of between 55% and 75% by 2050 This compares to 12% today and 30% under "business as usual" Energy Roadmap: Renewable Energy as "no regrets option" %

4 Share of renewable energy (% of total energy use) 2020 national target2009 performance % But what needs to happen to get to 2020?

5 Growth by sector in the UK

6 Easy market entry is good for renewable energy producers Regional markets are slowly coming together Creating the single market: The bigger the balancing areas, the easier it is to integrate wind and solar power

7 Cooperation and trade between the EU and with third countries Increases the European and regional market for renewables and so improves the cost effectiveness of renewables.  Guidance on cooperation  Creating the appropriate legal framework for the Southern Mediterranean

8 The patchwork of support schemes is not optimal: Greater consistency, transparency and predictability would improve the investment climate  Guidance on support scheme design and reform will help improve cost effectiveness

9 Technology "push" necessary as well as the market's "pull": Strategic Energy Technologies (SET) plan to be updated (reflecting on new priorities including ocean technologies, renewable energy integration (incl. storage), advanced materials and manufacturing for renewables financial framework "green energy" EU funding: - Cohesion funding of €17 billion to energy efficiency and renewable energy - Horizon 2020 (R&D): €6.5 billion for "Secure, clean and efficient energy" Driving technology innovation

10 Renewable energy policy post-2020: business as usual is not an option Policy options analysed in the impact assessment: 1.Decarbonisation without renewable energy targets 2.Binding national renewable energy targets and coordinated support 3.EU renewable energy target and harmonised measures A supportive framework post 2020 is needed: structure to be determined

11 Next steps. Guidance on support schemes & reforms. Guidance on the use of the cooperation mechanisms. Measures to facilitate trade in renewable energy in the Mediterranean. Autumn Communication on Internal Energy Market to discuss electricity market arrangements Communication on energy technology. Reports/proposals to further develop the EU's sustainability framework. Start preparing proposals for a post-2020 renewable policy energy regime

12 Thank you for your attention Tom Howes DG ENERGY

13 Empowering Consumers Opening of retail markets to ensure consumer choice Micro-generation & smart meters creating "consumer- producers" reduced dependence on grid electricity/heat/suppliers can enhance acceptance of renewables