2007 - 2009: shaping EU energy policies for the next decades

by Claude Turmes, MEP

Vice-president of EUFORES

The March 07 EU Heads of States decisions

• 20% reduction of GHG EU by its own

• 30% reduction of GHG EU if others join

• 20% increase in energy efficiency

• 20% share of renewable in overall energy mix of which 10% minimum in transport and “nuclear is not a renewable”

• Effective unbundling of power production and grids (pipelines)

Despite all rhetoric, huge opposition against March decisions

• Big energy oligopolies want to change the agenda decided by EU Heads of States– From 30% GHG reduction to 20% with high

use of buying CO2 credits from China&India– Energy efficiency and renewables not as full

stand alone but as sub-targets of a 20% GHG– Dilution of renewables target

• From 20% of primary energy to 20% final energy• Nuclear or CO2 reductions under ETS or CDM to

be accounted

Source: Platts, EWEA

0

10

20

30

40

50

60

70

GW

1997-2001 35.0 13.8 8.7 2.6 1.3 1.6 6.1 2.7

2002-2006 59.9 30.9 6.2 3.5 2.6 1.8 0.3 0.5

NATURAL GAS WIND COAL FUEL OIL LARGE HYDRO OTHER

RENEWABLESNUCLEAR OTHERS

Wind and gas turbines dominate energy investments

What happens to the structure of EU energy policy if…?

• Input:– 20% raise in energy efficiency until 2020– 20% overall renewables in 2020

• Results (modelling with PRIMES, DG TREN) – CO2 down over 20% in 2020 just from efficiency and

renewables in EU (no need for Kioto flex mecs)– Coal down (306 Mtoe to 124 Mtoe in 2030)– Nuclear down (237 Mtoe to 73,5 Mtoe in 2030)– Liquid Fuels down (634 Mtoe to 529 Mtoe in 2030)– Gas stable (376 Mtoe to 394 Mtoe in 2030)

Consequences of a 20% efficiency and 20% renewables policy

• EU can achieve a 30% reduction in climate change

• EU will be worldwide leader in renewables technologies and create thousands of jobs

• The domination of big energy oligopolies is broken– Windfall profits from old base load power plants will

be reduced (base load concept will disappear)– Wind will reduce peak prices on stock exchanges– New actors through investments in gas& renewables

Do they like competition?

Destroying successful EU renewables: the UK gov. case

• UK secret strategy to dilute EU renewables target (full document from Guardian leak)

• Theory:– Renewables are undermining EU ETS– Renewables will not deliver– Renewables are too expensive

• Practice:– Alliance with France to count nuclear as renewables– Undermine the German&Spanish feed-in laws by

promoting a obligatory 100% trade model for Renewables

2007 - 2009: The decisive years

• Achieving 20% raise in efficiencyEU efficiency action plan, national efficiency action plans, transposition of numerous EU directives, minimum standards for cars

• The NEW directive to promote electricity, heat and fuel from renewables

• EU climate targets (international, national and the caps for EU ETS)

• Internal market (unbundling, access to the grid for decentralised, transparency, powers of regulators notably gas&electricity release programs)

Join us!

• EUFORES and “energy efficiency watch” offer– A network of committed Members of the EU

and national Parliament from all relevant political parties

– Political and technical expertise by leading academics and policy makers

– A link with relevant NGO and industry actors