Perspective on the changing European energy landscape · 2017. 9. 20. · Heating and Cooling strategy A new market design, 2016 Energy efficiency, 2016 Renewables package 2016-2017

Energy

Perspective on the changing European energy landscape

Tudor Constantinescu, PhDPrincipal Adviser

European Commission – Energy

Emden, GASSCO seminar, 7 September 2017

Climate and energy: where do we stand?

Developments since the 2009 Energy and Climate change package

Renewable energy and storage saw rapid cost

decreases Technologies are gradually

becoming competitiveBut large scale integration

is a challenge

Impact of the financial crisisFall in private investment, tight

financing conditions

Rising demand-> rising prices

By 2030, world economyset to double and energydemand to rise by 1/3

Fukushima

Some countries phase outnuclear power production

Shale gasUS oil and gas production

Unconventional gas

Conventional gasUnconventional oil

Conventional oil

Ukraine

COP21 -Paris

EU Energy Consumption and Imports

• Gross energy consumption, 2015 ImportGas

ImportOil

ImportSolids

34,4% (88%)

22,0%(69%)

16,1% (64%)

13,6%

13,0%

37%

33%

11%

8%12%

35% 29%

12%

8%8%

7%

29%

24%16%

9%

8%14%

Energy

Major energy challenges in Europe

• Import Dependency

• Energy Prices

• Decarbonisation

• Technology mix

Source: Directorate-General for EnergySource: Directorate-General for Energy

The way towards:

The Energy Union

Where we want to go:A secure, sustainable, competitive, affordable energy for every European

What this means:Energy security, solidarity and trust

A fully integrated internal energy market"Energy efficiency first" (including the transport sector)

Transition to a long-lasting low-carbon societyAn Energy Union for Research, Innovation and Competiveness

How we want to reach it:

5

Strenghen European regulatory framework

Sustainable energy security package, 2016LNG and StorageA decision on Intergovernmental Agreements in energySecurity of Gas Supply RegulationHeating and Cooling strategy

A new market design, 2016

Energy efficiency, 2016

Renewables package 2016-2017Self-consumptionBioenergy sustainability, RES fuels post 2020 RES legal framework

Alternative fuels & integration of energy and transport sectors

Initiative on global technology and innovation leadership on energyand climate

Key Activities

7

Fuel Ranges (primary energy consumption)

0%

25%

50%

75%

RES Gas Nuclear Oil Solid fuels0%

25%

50%

75%

RES Gas Nuclear Oil Solid fuels

2030 2050

2005

Energy

2030 framework for climate and energy policies

EU, IEA decarbonization scenarios lead to declininggasdemand by 2040; industry expects growth

9

Energy

Evolution of gas imports

•Growing consumption and falling

indigenous production both contributed to the rise of imports.

•Russia remained the main supplier of

the EU. Falling oil-indexed prices allowed it to gradually increase its market share.

•Imports of LNG increased throughout

2016

•Imports increase in longer term (2040,

and even 2050 in reference scenario)

•

10

Energy

Evolution of gas security of supply risk

11

Gas supply concentration index

• Evolution of gas security of supply risk

Energy

Renewables in the EU – progress per sector

12

13

Integrating the energy systems (P2G)

Energy Storage - Definition and principles• Storage definition: 'energy storage' means, in the electricity system,

deferring an amount of the electricity that was generated to the moment of use, either as final energy or converted into another energy carrier.

Principles for market development for energy storage • Energy storage should be allowed to participate fully in electricity markets

• Energy storage should participate and be rewarded for services provided on equal footing to providers of flexibility services

• Energy storage as an enabler of higher amount of variable RESs could contribute to energy security and decarbonisation of the electricity system or of other economic sectors

• The cost-efficient use of decentralised storage and its integration into the system should be enabled in a non-discriminatory way by the regulatory framework

14

Energy storage SWDThe Staff Working Document on Energy storage presents views on energy storage developments related to electricity grid:

• Supporting the electricity generation profile of variable RES

• Enabling energy efficiency

• Storage characteristics for the market

• The role of innovation and cost of technology– Standardisation needs

• Storage within the electricity system

• Storage connected to the electricity system and sectorial integration

• General principles15

H2 - Standardisation needsTo be discussed

• Electricity grid connection

• Electrolysers

• Natural gas system and usage

• Natural gas grid integrity

• End-users

• Hydrogen system and usage

• Cross cutting

16

Energy

A flexible and adaptive energy system

Smart Energy System. Generation

. Demand

. Electricity, gas and heat networks

. Storage

Flexibility

ICT

Adaptability

17

Power generation

Grid

Storage

Demand management

Transport; BEV, etc.

Prosumers

Markets

Fuel switching

Avoid lock-in

Adaptation of the gas grid

Thank You for Your Attention!

[email protected]

http://ec.europa.eu/energy/index_en.htm