Energy issue and EU energy policy

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Th i dThe energy issue and the EU energy policythe EU energy policy

Why energy policy matters for Europe

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Why energy policy matters for Europe

•EU pays 2.5% of its annual GDP to import energy: € 270 bn for oil, € 40 bn for gasEU pays 2.5% of its annual GDP to import energy: € 270 bn for oil, € 40 bn for gas

•Several Member States rely on a single supplier for gas

•EU = 20% of world energy use & largest global energy importer: EU will increasinglycompete for energy sources

•Energy represents 80% of EU GHG emissions

•Investment challenge around € 1 trillion by 2020 (mostly private sector)

•Energy costs are an important and increasing part of households' and businesses' expenses (40% energy consumption due to building construction and managment)

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Global demand is on the riseGlobal demand is on the riseEffects on energy security and climate changeGrowth in primary energy demand (in Mtoe), IEA 2011

India and China accounting for 50% of growth: the EU will increasingly compete for energy resources

Source: IEA, World Energy Outlook 2011

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Energy supply security

> 75 %

% of missing gas supply– 300 mcm/d for 14 days6-20 January 2009

Energy supply security

50 - 75 %

25 – 50 %

25%< 25%

0%

The January 2009 gas crisis showed the lack of physical interconnections and the poor

Source: European Commission

The January 2009 gas crisis showed the lack of physical interconnections and the poor functioning of the EU internal market, with several Member States facing severe energy shortages for several days.

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

The 20-20-20 Eu Energy Policy by 2020

Reduce greenhousegas levels by 20%

Increase share of renewables to 20%

Reduce energyconsumption by 20%

gy y y

gas levels by 20% renewables to 20%100%

consumption by 20%

-10%Current trend to

2020-20%

Current trend to

2020 20202020

20%Current trend to

2020

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

EU is not on track to meet its 20% energy saving gy gtarget by 2020

1900

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as usual

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e

1800

1850

1900

y co

nsum

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1750

1800

mar

y en

ergy Mtoe today

1600

1650

GA

-20% objective1474 Mtoe

Prim

1500

1550AP

2020

j1450

2005 2010 2015

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

The 20-20-20 Eu Energy Policy by 2020gy y y

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Achieving an energy-efficient Europeg gy p

. Implementation of the Energy Efficiency DirectiveEnergy efficiency obligation schemesEnergy efficiency obligation schemesExemplary role for public sector (buildings)Smart metering and billing

. Pursuing eco-design and energy labelling measures

. Reinforced financing schemes and programmes. Reinforced financing schemes and programmes

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

A new energy efficiency directive (27/12/UE)

Services Energy House- IndustrySectorialPublic

gy y ( )

Services supplyholdsIndustrymeasuressector

Generalmeasures

New Di ti

Indicative national EE measures

promoting EEDirective

27/12national EE

targets

Monitoring & o to g &Reporting

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Energy performance of buildings directive gy p gEPBD (recast – 31/10/UE)

Includes:

• All new building to be “nearly zero-energy buildings” as of 2020 (public sector: 2018).

• Minimum energy performance requirements for new buildings and renovations to be set at cost-optimal levels

• Strengthening the role and the quality of energy performance certificates

• Strengthening the role and quality of HVAC inspections• Strengthening the role and quality of HVAC inspections

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

The investment challengeg

Total investment needs in the electricity and gas sectorbetween 2010-20: over € 1 trillionbetween 2010-20: over € 1 trillion

P ti € 500 b T i i d di t ib ti € 600 bPower generation: ~ € 500 bn Transmission and distribution: ~ € 600 bn

Di t ib ti € 400 bR bl € 310 370 b Distribution: ~ € 400 bn

Transmission: ~ € 200 bn

Renewables: ~ € 310-370 bn

Investments of over € 1 trillion will be needed by 2020 to replace obsolete power plants to modernise and adapt infrastructure to the latest technologies and to caterplants, to modernise and adapt infrastructure to the latest technologies and to cater for demand for low carbon energy.

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Driving technology innovationg gy

Strategic Energy Technologies (SET) plan to be updated:Strategic Energy Technologies (SET) plan to be updated:

new priorities including renewable energy integration (incl. storage), advanced materials and manufacturing for renewable;

2014-2020 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"Horizon 2020 (R&D): €6.5 billion for Secure, clean and efficient energy

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

The Energy Roadmap 2050 as a basis for gy pdeveloping a long-term policy framework

. EU objective for 2050 – GHG . Give more certainty to

European Council Aim of the Roadmap

emissions down to 80-95% below 1990 levels. Looks forward to elaboration

governments and investors. Explore routes towards a low-carbon energy system by

of a low-carbon 2050 strategy – a framework for longer-term action in energy and related sectors

2050 which improve competitiveness and security of supply

and related sectors . Basis for developing the 2030 policy framework and concrete milestones with MS, EP and stakeholdersEP and stakeholders

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

The climate change challengeg gReduction of GHG emissions by 80-95% by 2050

Efficient pathway (GHGemissions) in

100% 100%

Power Sector emissions) in “Low-carbon economy Roadmap”:60%

80%

60%

80%Current policy

Power Sector

Residential & Tertiary

-40% in 2030

-60% in 204040% 40%

Industry

Transport

0%

20%

0%

20%

Non CO2 Other Sectors

Transport

Non CO2 Agriculture

0%1990 2000 2010 2020 2030 2040 2050

0%2

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

2050 Energy Roadmap: Renewable Energy as gy p gy"no regrets option”

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".

Kick Off Meeting, 2013-02-26 Ing. Giuseppe Desogus (DICAAR)

Future European energy networkFuture European energy network

Kick Off Meeting, 2013-02-25 Ing. Giuseppe Desogus (DICAAR)

THANK YOUTHANK YOU FOR YOUR ATTENTION