September 8, 2004SVSE Praha1 SVSE Energy Conference EU Energy Policy: an industrial user’s view Peter CLAES President Ifiec Europe
September 8, 2004SVSE Praha2 Energy policy : a trilemma ? Security of supply Affordable prices Industry competitiveness Environment Climate Policy
September 8, 2004SVSE Praha3 Security of supply Dependency on extra-EU supply: 50% today 70% in 2030 increasing gas imports from Russia 45% of oil < Middle East ...
September 8, 2004SVSE Praha4 Security of supply
September 8, 2004SVSE Praha5 Security of supply Diversification of primary energy sources: oil (price volatility) natural gas (increasing imports from Russia) coal (CO 2 -emissions) nuclear energy (safety – waste) renewables (technological potential – cost) Strategic storage Infrastructure requirements and maintenance
September 8, 2004SVSE Praha6 Climate Policy “Whatever’s the problem, Kyoto is not the solution...” Kyoto is a short-term solution to a political problem. What we need is a long-term approach to an issue involving science and economics.” Prof. R. Schmalensee (MIT)
September 8, 2004SVSE Praha7 Climate Policy What will the effort of the EU do to Climate Change ? EU = 15% of worldwide CO 2 -emissions Rest of world : 25% increase Impact on global competitiveness? Internal distortions of competition Burden sharing agreement subsidiarity (ET, renewables, surcharges,...)
September 8, 2004SVSE Praha8 Climate Policy What can industry do to reduce GHG ? Energy efficiency improvement Improvement in processes (e.g. N 2 O) No reduction of CO 2 unless through reduction of activity... What is asked from other actors (households, transportation) ?
September 8, 2004SVSE Praha9 Climate Policy Impact of climate policy measures on industry cost of energy efficiency improvement (voluntary agreements, legislation) rising cost of electricity (renewables, nuclear, ET,...) organisation of electricity markets (surcharges, windfall profits,...)
September 8, 2004SVSE Praha10 Liberalisation of electricity market Oligopoly on the production side + further unbundling needed Dysfunctioning of wholesale markets Unefficient use of interconnectors – tariffs Lack of crossborder capacity Political interference (national interests, surcharges)
September 8, 2004SVSE Praha11 Liberalisation of gas market No gas-to-gas competition yet... Need for gas release programme Ownership unbundling Correct conditions for acces to grid and storage Transparent and fair tariffs