Energy EU policies on energy efficiency and renewable energy Seminar on Energy security dimension in the EU CSDP 12–13 September 2013 Vilnius Krzysztof Gierulski Directorate-General for Energy Energy Efficiency

Energy Europe imports the equivalent of EUR 406 billion (3.2% of GDP) of oil, gas and coal every year and its dependence is expected to grow

Energy Europe depends on a few suppliers

Energy World energy demand is on the rise

Energy Greenhouse gas levels Energy consumption Renewables in energy mix ca % achieved -20% 100% +20% The EU policy: Where are we today? -20% ca % achieved ? ?

Energy Renewable sources accounted for 13% of the EU final energy consumption in 2011

Energy Increasing global investments in renewable sources

Energy On track but…  Administrative barriers are still significant  Electricity grid barriers still significant  Growing industry, growing trade, growing tension… International trade & resource competition  Sustainability Biofuels: monitoring underway (ILUC) Future biomass sustainability regime?  Financing! Renewable Energy - Challenges

Energy Member States shall introduce in their building regulations and codes appropriate measures in order to increase the share of all kinds of energy from renewable sources in the building sector. By 31 December 2014, Member States to require the use of minimum levels of energy from RES in new buildings and in existing buildings that are subject to major renovation (can be fulfilled e.g. through district heating/cooling with a significant proportion of RES). Renewable Energy Directive (2009/28/EC) – Article 13(4) ref. to the armed forces

Energy The requirement on RES in buildings applies to the armed forces, only to the extent that its application does not cause any conflict with the nature and primary aim of the activities of the armed forces and with the exception of material used exclusively for military purposes. Renewable Energy Directive (2009/28/EC)

Energy Renewable energy and the defence sector Major potential to exploit locally available renewable energy sources (esp. in buildings and on the land administered by the armed forces) Solar thermal, photovoltaics, wind energy, biomass, biofuels  Potentially significant contribution towards national and the EU 2020 target for renewable energy  Impact on the improvement of security of supply  Reducing operational costs of the defence sector

Energy Large untapped potential for energy efficiency across the world

Energy Greenhouse gas levels Energy consumption Renewables in energy mix ca % achieved -20% 100% +20% The EU policy: Where are we today? -20% ca % achieved ? ?

Energy Encouraging recent developments but more results in the '2014 progress review' *Gross inland consumption minus non-energy uses 2020 EU ENERGY EFFICIENCY TARGET 1483 Mtoe 1853 Mtoe

Energy Security of supply CompetitivenessSustainability Reduce EU’s energy bill by about € 200 bn annualy in 2020 Create up to 2 million new jobs by 2020 Boost R&D & markets for EU global leadership Reduce EU’s energy dependence Reduce investments in energy infrastructures Improve the energy trade balance Reduce CO 2 emissions Limit environmental degradation BENEFITS 2020 EU ENERGY EFFICIENCY TARGET WHY TAKING THE EFFORT?

ENERGY EFFICIENCY DIRECTIVE ADOPTED AND IN FORCE Directive 2012/27/EU. Publication in OJ: 14 November Entry into force: 4 December April 2014 – new National Energy Efficiency Action Plans. Main Transposition: 5 June

. Key provisions of the EED: » Article 3: national energy efficiency targets » Article 5: renovation of central government buildings » Article 6: public procurement » Article 7: energy efficiency obligations (or alternatives) » Article 8: energy audits and energy management systems » Articles 9-11: improved metering and billing » Article 14: energy efficiency in district heating and cooling » Article 15: grids and demand response issues » Article 19: analysis and removal administrative barriers to financing energy efficiency investments » Article 24: monitoring (incl. National Energy Efficiency Action Plans) ENERGY EFFICIENCY DIRECTIVE KEY PROVISIONS

PUBLIC SECTOR TO LEAD BY EXAMPLE (Article 5)  Annual renovation target of 3% for central government buildings above 500 m² (250 m² as of 2015) which do not meet minimum energy performance requirements set in application of Directive 2010/31/EU  Member States may decide to exclude buildings owned by the armed forces or central government and serving national defence purposes, apart from single living quarters or office buildings for the armed forces and other staff employed by national defence authorities  Member States to require that central government buildings with the poorest energy performance be a priority for energy efficiency measures, where cost-effective and technically feasible. ENERGY EFFICIENCY DIRECTIVE KEY PROVISIONS

PUBLIC SECTOR TO LEAD BY EXAMPLE (Article 6)  Central government purchasing under the public procurement directive should (with exceptions) be limited to products, services and buildings with high energy efficiency performance.  This requirement shall apply to the contracts of the armed forces only to the extent that its application does not cause any conflict with the nature and primary aim of the activities of the armed forces.  It shall not apply to contracts for the supply of military equipment as defined by Directive 2009/81/EC on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security. ENERGY EFFICIENCY DIRECTIVE KEY PROVISIONS

 Member States must ensure that energy efficiency obligation schemes or alternative policies achieve 1.5% annual new and cumulative end-use savings over period (based on average final energy +/- transport for )  Member States to designate obligated parties amongst energy distributors and/or retail energy sales companies operating in its territory  Energy savings must be additional (above existing minimum requirements e.g. eco-design regulations); prioritising long-lasting savings  Some experience with existing obligation schemes (France, Italy, Denmark, UK, region of Flanders, Poland and many states in USA) shows potential to boost the market for energy service companies (ESCOs) and energy performance contracting in public buildings  Examples of alternative measures could include dedicated energy efficiency funds addressing specific sectors (e.g. defence sector) ENERGY EFFICIENCY OBLIGATIONS (Article 7) ENERGY EFFICIENCY DIRECTIVE KEY PROVISIONS

 Member States are required to evaluate and remove regulatory and non- regulatory barriers to energy efficiency including: (…) legal and regulatory provisions, and administrative practices, regarding public purchasing and annual budgeting and accounting, with a view to ensuring that individual public bodies are not deterred from making investments in improving energy efficiency and minimising expected life- cycle costs and from using energy performance contracting and other third- party financing mechanisms on a long-term contractual basis.  Such measures to remove barriers may include providing incentives, repealing or amending legal or regulatory provisions, or adopting guidelines and interpretative communications, or simplifying administrative procedures. The measures may be combined with the provision of education, training and specific information and technical assistance on energy efficiency. SOLVING ADMINISTRATIVE BARRIERS (Article 19) ENERGY EFFICIENCY DIRECTIVE KEY PROVISIONS

. Commission support to Member States for transposition and implementation: » EED Committee for Member States » Guidance documents on key articles of EED (currently in the process of adoption) » COM Implementing Decision establishing template for National Energy Efficiency Action Plans adopted on 22 May 2013 (2013/2882) » Concerted Action on EED to help with sharing experience WHAT NEXT?

. Need for better exchanges of knowledge/experience between the Member States and the Commission as regards » Better implementing EU energy efficiency/RES legislation taking into account the specificity of the defence sector » Developing dedicated instruments, programmes and projects (e.g. to save energy in buildings and infrastructure, to train relevant administrators and managers, etc) NEED FOR MORE (DEFENCE SECTOR)

Energy Thank you for your attention Krzysztof Gierulski