Without renewables energy imports €30 billion higher
By:
Chris Anderson
17/03/2015
EU
Speech
Today I want to speak about how renewables fit into our vision for a sustainable
energy and climate future.
This Commission started with a promise to be different: to be "bigger
and more ambitious on big things". Many say that climate change is
one of the biggest threats facing our society and the EU has been leading
the action to reduce emissions for many years now. As we all know, renewable
energy can greatly contribute to that and to reducing our external energy
dependency. That's why, the EU becoming the world number one in renewables
is one of President Juncker's top priorities, and it is one of my top priorities
to take forward in the context of the Energy Union. But good intentions
count for nothing if we don’t get the policies right. That’s why renewables
take centre stage in the Energy Union action plan and why they are an integral
part of the Juncker Plan, designed to unlock the investment the renewable
energy sector really needs.
I want to first touch on some of the progress we have already made in this
area. And I will finish by highlighting the role renewables will play on
the road to Paris and beyond.
Twenty years ago, renewables were still seen by many as an expensive gamble.
Twenty years later, I am speaking to you in a building with solar panels
on the roof providing us with clean electricity. Efficient insulation in
combination with geothermal heat pumps, is keeping us comfortably warm.
There are no blinking lights or cold draft – proof that renewables can
function perfectly. Worldwide, since 2011, more new renewable energy capacity
has been installed than fossil and nuclear power combined. And with a sector
employing more than 1 million people and a turnover of 130 billion euro,
renewables are now in the mainstream in Europe.
Renewables represented more than 15% of our energy in 2014, and almost
26% of our electricity
Renewables represented more than 15% of our energy in 2014, and almost
26% of our electricity. And as we look to meet our 2020 targets, those
jobs and growth figures will only keep going up. 15% of renewables is good.
It is even better in some Member States such as Finland, Latvia and Austria,
where renewables already accounted for around one third of energy demand.
Not to speak about Sweden, where more than a half of the energy needs is
covered by renewables! However, in many Member States the picture is not
so rosy and a lot of work remains to be done to reach their 2020 targets.
Let alone to get ready for additional contributions towards the EU target
of "at least 27%" by 2030. So the first task will be to make
sure that current laws are being implemented and enforced. We will work
with national authorities to help them apply the rules but we won't be
shy to take legal action if necessary.
But let me now go one step further and tell you how renewables will underpin
each and every dimension of the Energy Union.
First, decarbonising our economy with renewables
Last October, the EU agreed on a binding target of reducing domestic greenhouse
gas emissions by at least 40% by 2030. To get there we will have to step
up our efforts to reach at least 27% of renewables by 2030. I started by
saying that good intentions count for nothing without good policies. And,
as I indicated already, good policies count for nothing without proper
implementation. So, later in the year we will report on the implementation
of the Renewable Energy Directive. Looking at the past will help us reflect
on the future, and notably how to collectively deliver on the EU target
for 2030. In 2017, I will come forward with a new Renewable Energy package
to ensure that we meet our 2030 targets cost-effectively. This will also
include a new policy for sustainable bio-energy. As part of this package,
we will need to find a way to promote cooperation on renewables support
- notably at regional level - more effectively than in the past. This entails
that Member States will need to coordinate their renewables policy already
at an early stage with their neighbours. This new renewable energy framework
will also need to ensure that the significant efficiency, decarbonisation
and security of supply gains in the heating and cooling sector are exploited
to the fullest extent possible.
Another area where we need to speed up action is the decarbonisation of
the transport sector and its switch to alternative fuels. By 2020 we want
to have 10% of transport fuel coming from renewable sources such as biofuels.
To make that a reality, the Commission will come forward with a comprehensive
road transport package to create the right market conditions for increased
use of alternative fuels and the roll-out of intelligent transport solutions.
Second, designing an internal energy market that works for renewables
Energy markets and grids have to be fit for renewables, not vice versa.
Markets should be designed, or re-designed, to fully integrate renewables
into the wider electricity market and remove any existing barriers. The
State Aid guidelines of 2013 and the reform of support schemes were the
first steps to better integrate renewables in the market. As the next step
on this trajectory, by the middle of this year, I will present our ideas
on a new electricity market design to increase security of supply and to
help better integrate renewables into our energy system. This will be followed
up with a legislative proposal next year.
The objective is to make our power system much more flexible, interconnected
and consumer-centred. This requires an important transformation of the
grid. But it also requires significant changes in the way the market operates,
and notably better functioning and liquid short-term markets. Improved
interconnections are another key to better integration of renewables into
our system. To make that happen we have just published a set of measures
to achieve our 10 % interconnection target and continue to support the
Projects of Common Interest (PCIs) with the highest potential. Recent progress
in the Iberian Peninsula to better connect France and Spain is very welcome
and encouraging in this regard. But we also need modern distribution networks.
We have smart phones, now we need smart grids! Consumers should be able
to react to energy prices, and decide where and when to consume or produce
energy.
Third, investing in renewable research and innovation
Our researchers are one of the best assets we have. However, with the rest
of the world catching up fast, more research and innovation will be needed
to keep us competitive on the global stage. 40% of all patents for renewable
technologies are owned by European companies. And staying world number
one in this field will create the jobs and growth Europe needs in emerging
areas, like offshore wind, ocean energy or advanced biofuels. But as one
of the best innovators of all, Thomas Edison used to say: “There’s a
better way to do it. Let’s find it”. We need to fund the research that
will help us deliver breakthrough solutions and get them to the market
quicker.
We will need to be innovative in smart grids, in demand-response, and in
energy storage. Users should be able to charge their electric vehicle when
prices are low and reduce their consumption when prices are high! This
is one of the fields in which we have to embrace the technology transition.
That’s why we have doubled the funding for energy research under the new
Horizon 2020 programme. And to support that, I will shortly propose an
upgraded Strategic Energy Technology Plan to help us focus on the areas
with the highest potential.
Finally, through our trade policy, we will aim to improve access to foreign
markets for European renewable technologies. For example, the "Green
Goods Initiative" aiming at liberalising trade in green goods and
services, will help promote products that reduce CO2 emissions and create
jobs and growth.
Fourth, making Energy efficiency and renewables work together
75% of our housing stock is energy inefficient. To make our existing buildings
more efficient and reach the "nearly zero-energy" standards for
new buildings, renewables and energy efficiency will have to work hand
in hand. I will make sure that the funding is there to make that happen
in the new “Smart Financing for Smart Buildings” initiative. The European
Fund for Strategic Investments (EFSI) should also multiply funding for
efficiency projects. But we will also review our regulatory framework.
Although the Renewable Energy Directive and the Energy Performance of Building
Directive already contain important provisions to make use of renewables
and energy savings measures in buildings, we will revisit both pieces of
legislation to make these provisions even stronger.
Last, but not least: A secure, renewable energy supply
We know the EU imports over €400 billion worth of energy every year. But
we should also remember that, without renewables, this figure would have
been at least €30 billion higher! Renewable energy, and in particular
heating based on renewables instead of fossil fuels, is key to reducing
import dependence. That’s why renewables will be prominent in the new
heating and cooling strategy that I will propose later this year as part
of the Energy Union Strategy. I believe that the Energy Union needs to
be powered by consumers and citizens, as active participants in making
it work. Decentralised energy production as well as energy cooperatives
will contribute to meeting the EU's climate and energy targets and are
essential for public acceptance of renewable energy and energy infrastructure.
Therefore, we are currently reviewing best practices for promoting cost-effective
self-generation and consumption of energy, with a view to developing guidance
in this field.
These objectives may sound ambitious. But the stakes are too high not to
be ambitious. The political momentum is there. The focus of the Juncker
Investment Plan on energy, and in particular on renewable energy and energy
efficiency, illustrates the Commission's commitment to supporting this
transition. And at local level, there are hundreds of cities and millions
of citizens who want to go beyond their 2020 targets. We will help them
do that through initiatives like the Covenant of Mayors and the European
Innovation Partnership on Smart Cities and Communities.
The European Council agreement on the 2030 Climate and Energy Framework
has opened the door for an ambitious agreement in Paris. Just last week,
the EU submitted its contribution to this new agreement – and we were
the first to do so. We have shown the way to the other countries to follow
us on the Road to Paris. We are calling for a deal with legally binding
emission targets, and renewables have a central role to play for all countries,
developed and developing alike. Without them, Europe will not get to the
40% reduction in greenhouse gas emissions by 2030 that we have committed
to. And without them, providing sustainable energy for all as advocated
by UN Secretary-General Ban-Ki-Moon and embedded in the Sustainable Development
Goals would not be possible either.
The momentum created by renewables for competitiveness, growth and jobs
in Europe must continue. With a resilient Energy Union and climate targets
powered by renewable energy, I have no doubt that we will succeed.
I look forward to working with all of you, to make that happen.
