1. EUROPEAN PHOTOVOLTAIC INDUSTRY ASSOCIATION EU Energy Policy – where do we go from here? Frauke Thies, Policy Director EEB Annual Conference Brussels, 18 October 2013

2. Strange things are happening... Page 2 EC 2050 Energy Roadmap Dec 2011: No-regrets options: Energy Efficiency, Renewables, Smarter Infrastructure EC on 2050 Roadmap in Sep 2013: No-regrets options: Energy Efficiency, Smarter Infrastructure, Gas

3. Renewables opposition raising its voice Page 3

4. Jon Wellinghoff, chairman of the US Federal Energy Regulatory Commission (FERC): “Solar is growing so fast it is going to overtake everything,” “Our markets were made up for a very centralised system, very large plants and plants that were distant from loads. We’re moving to a much more distributed system that also has consumers participating as resources with their load.” Stephen Chu, former US Energy Secretary: “Now, if you’re a utility company, you’re going to be very worried about that. (…) So I’ve been telling them there’s another business model.” Source: REneweconomy Renewables uptake means changing business Page 4

5. No doubt that renewables will break through in the end Page 5 PV Parity project : 2012 Declining costs Modular character People want it! BUT: Without the right regulatory framework and without early technical adaptations of the power system, it will be hard... and too late for the climate

6. Making it happen smoothly and fast Page 6 Active adaption instead of scaremongering and delay Re-thinking Europe’s energy system 1.A flexible power mix and transmission 2.An active distribution system, energy services & aggregation 3. Service provision by renewables 4. Different market products and rules

7. What does it mean for policy? Page 7 Set a strong and binding renewable energy target An „ETS-only“ approach cannot be enough to drive the structural change! Re-think market rules and regulations to accomodate renewables Refrain from narrowly-focussed capacity mechanisms for fossil fuels Drive flexibilisation of the power system and mix Network codes, power plant requirements New focus on distribution level: Energy services and aggregation New metering and communication strategies Communitybuilders.net

8. European Photovoltaic Industry Association Renewable Energy House Rue d’Arlon 63-67, 1040 Brussels - Belgium T +32 (0)2 465 38 84 - F +32 (0)2 400 10 10 info@epia.org - www.epia.org www.epia.org THANK YOUR FOR YOUR ATTENTION This document was presented by Frauke Thies f.thies@epia.org