ENVIRONMENTAL
DIMENSION OF THE EEP III.
Filip Černoch
cernoch@mail.muni.cz
Energy policy of the EU
KMVES
Environmental dimension of EEP
 Climate Change
 Renewables
 Biofuels
 Energy efficiency
 CCS
 Technology and inovation
 Energy and climate package (2007, in force 2009)
1) A 20% reduction in EU greenhouse gas emissions from 1990 levels by 2020;
2) Raising the share of EU energy consumption produced from renewable resources
to 20% by 2020;
3) A 20% improvement in the EU's energy efficiency by 2020.
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A 20% reduction of GHG
 EU ETS and its reform
 National targets for non-EU ETS
emissions
 Traffic management, low-GHG
transport, biofuels, urban planning,
improved energy performance
standards for public building, labeling
systém, eco design……
 To support it some pan-European
measures – emission standards for
vehicles, CCS (limited interest,
public oposition).
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Renewables
 1997 – indicative target of 12 %
RES in gross domestic
consumption of the EU by 2010
 2001 – Directive 2001/77/ES –
indicative targets for individual
states to 2010
 2009 – Directive 2009/28/ES –
aim 20 % by 2020, 10 % in
transport sector (Energy climate
package).
 = to save 600 – 900 million tons of
CO2/y, 200-300 million tons of
oil/y, lowering of import
dependency, industry….
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Source: thinkcarbon.wordpres.com
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Results so far…
In the last decade increase of RES of more than 40 % in the EU.
 Production of electricity from RES + 40 %, heat + 30 %.
 Overal investments in RES around 40 bn. euro annualy.
 Employment in RES related sectors – 1,5 million in 2010.
 Reduction of costs of key PV and wind technology.
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Source: Ragwitz
But!
 Costs of RES subsidies – for national budget or/and
customers (RES are not competitive – need to be subsidized)
 RES support is rising rapidly in some countries. 47 % increase in
RES surcharge in Germany in 2013 to around EUR 20bn. Total
RES support costs could rise by 2020 to annual level of EUR 51
billion for electricity and EUR 78 billion for all renewables (Ecofys
projection).
 Estimated costs in Czech Republic – 1,76 bn. euro in 2013.
 Conflict with conventional sources – capacity market?
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Source: D.Buchan,
OIES
Types of subsidy – Feed-in-Tariffs
 21 EU states, provides a fixed rate of subsidy for fixed period.
Designed to cover all a producer’s costs and profit, they essentially
replace the market. Very successful in triggering large deployment of
RES, but at a high cost. Instrument of choice for big RES players
(Germany, Spain). Basic rule is government sets the price, market
(investor response) sets the quantity, but many recent amendments to
control costs.
 They are more effective, because they can be tailored to specific
technologies. Drawback include a) difficulty of setting the right price –
too high and money is wasted, too low and no deployment – and once
the price is set, it is hard to make radical changes without breaking
contracts, and b) they insulate the RES producer from the market.
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Source: D.Buchan,
OIES
Types of subsidy – Quota obligations
 Quota obligations with tradeable certificates. Here government sets
the quantity, the market the price. These exist in 6 EU states, have
been less successful, but are cheaper and therefore have by no means
fallen out of fashion.
 Quota systems with tradable certificates tend to be cheaper, but favour
mature technologies like onshore wind and biomass.
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Source: D.Buchan,
OIES
Support systems in the EU
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Source: D.Buchan,
OIES
But!
Conflict with conventional
sources – capacity market?
 E.ON in France is to close a
gigawatt of coal-fired
capacity
 GDF Suez to mothball three
of its gas turbines
 E.ON in Germany looses
money in its gas turbine in
Irsching
 Norway´s Statkraft is closing
its 510 MW gas turbine in
Landesbergen
 In Czech Republic a brand
new gas power plant in
Počerady is mothballed
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Energy efficiency
 A 20% improvement in the EU's energy efficiency
 Not in absolute terms, but relative to the BAU scenario.
 Plenty of different instuments.
 Products (energy labeling)
 Transport
 Buildings
 Public procurement
 Trade
 And national action
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Energy efficiency
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kg of oil equivalent per 1 000 EUR
EU (27 zemí) 144,3 Malta 200,7
Belgium 181,9 Hungary 282,1
Bulgaria 712,4 Germany 128,9
Czech Republic 356,2 Netherland 146,7
Denmark 90,7 Norway 111,6
Estonia 503,4 Poland 317,7
France 143,4 Portugese 152,7
Finland 212,0 Austria 126,1
FYROM 530,1 Romania 392,1
Croatia 231,7 Greece 155,1
Italy 121,5 Slovenia 230,2
Ireland 82,1 Slovakia 349,1
Cyprus 173,4 Spain 135,5
Lithuania 301,3 Sweden 147,6
Latvia 324,0 Turkey 232,0
Luxemburg 136,0 United Kingdom 103,6
Source: Eurostat
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