European Energy Policy and Security of Supply Giordano

European Energy Policy and Security of Supply Giordano Rigon European Commission DG Energy and Transport, Energy Policy and Security of Supply 22 November 2005 Directorate-General for Energy and Transport 1

Commissioner Piebalgs’ 6 priorities: 1 - Promoting Energy Efficiency 2 - Supporting renewable energy sources 3 - Proper functioning of the internal market for electricity and gas 4 - Better linkage between energy policies and environmental & research policies 5 - Strengthening nuclear safety and security 6 - Developing external energy policy relations Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 2

Energy demand management Directorate-General for Energy and Transport 3

1. Reducing energy demand trend • Work towards existing targets • Develop proposals for eco-design • Green Paper on Energy efficiency adopted 22 June 2005 Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 4

Importance of Energy Efficiency DVD player 4 W Radio clock 2 W Microwave oven 2 W TV 5 W Satellite/Cable box 10 W VCR 6 W 40 W Phone 2 W per household Printer 5 W Security system 15 W Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 5

Renewable energy in the EU MS have agreed targets l By 2010, total renewable energy’s share of gross inland energy consumption in the EU 15 will almost double to 12%. (11. 1% EU 25. ) l By 2010, electricity from renewable energy sources in the EU 25 will increase its share from 14% (2000) to 22%. l By 2010, the share of biofuels in the transport sector in the EU 25 will increase from less than 1% (in 2000) to 5. 75%. Directorate-General for Energy and Transport 6

2. Promoting renewable energy • Keep up pressure on MS to achieve promises on renewables • Strengthen existing programmes, eg Intelligent Energy and RTD Framework Programme • Fresh priority to biomass Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 7

3. Ensuring a proper functioning of the internal market for gas and electricity for the benefit of all our citizens • Ensure proper implementation of legislation • Monitor investment and price developments • Consider ways to assure best functioning of markets Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 8

TEN-E Programme Need to provide new gas supply routes Planned investments for gas network < 2013 : € 22 billion TEN financial support by the EC: Annual budget € 20 million EC contribution can only be minor: initiation of feasibility studies and preparatory activities. Investments to be financed by the private sector with the contribution of Community instruments, in particular the Structural Funds Directorate-General for Energy and Transport 9

4. Creating a better linkage between energy policies and environmental and research policies • • • boost investment in new technologies strengthen EU research capacities reinforce EU leadership in climate and energy technologies Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 10

5. Strengthening nuclear safety and security • Increase collaboration with IAEA • Maintain high number of EU inspections Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 11

6. Further strengthening international energy policy relations • Build up dialogue with Russia • Build up relations with neighbouring countries – South East Europe, Maghreb • Develop dialogue with OPEC • New focus to relations with other consumers and developing countries Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html 12

Our future needs in EU 25 – Increases in all sectors mtoe Directorate-General for Energy and Transport 13

EU indigenous energy production Europe (EU-25) Directorate-General for Energy and Transport 14

EU imports where will they come from, and how? Directorate-General for Energy and Transport 15

Energy Security: Russia: a major & reliable supplier of hydrocarbons The origin of imports into the EU 25 Oil (crude & products) By pipelines or oil tankers Natural gas By pipelines or GNL tankers Sources : European Commission, 2004 Directorate-General for Energy and Transport 16

EU-Russia Energy Dialogue l Where : The EU-Russia Summit in Paris l When : 30 th October 2000 l Nomination of two sole interlocutors : Mr François Lamoureux, Director General of the European Commission and Vice-Prime Minister of the Russian Federation, Viktor Khristenko l Objectives l l progress in the definition of an EU-Russia energy partnership, contribute to the security in energy supply as well as in energy demand, cooperation on energy saving, rationalisation of production and transport infrastructures and importance of electricity interconnections, l facilitate investments, l contribute to the relations between producer and consumer countries Directorate-General for Energy and Transport 17

The EU-Russia Energy Technology Center The EU-Russia Energy Dialogue - Technology Centre is a project cofunded by the European Union and the Russian Federation which aims to enhance co-operation between the EU and Russia on new energy technologies and facilitate the attraction of investment for technology projects of common interest. Last Update: 20/05/2005 Inauguration of the Center by V Khristenko and F. Lamoureux 5/11/2002 http: //www. technologycentre. org/ Directorate-General for Energy and Transport 18

Interconnection of the electricity grids On 19 April 2005, Boris Ayuev, CEO of the System Operator of the « United Power System of Russia –UPS » and Martin Fuchs, President of the European « Union for the Coordination of Transmission of Electricity – UCTE » and CEO of E. ON Netz, kicked of a three year study that should lead to the synchronous interconnection of the UPS/IPS and the UCTE creating an installed generation capacity of some 800 GW, spanning 13 time zones and serving about 800 million people Directorate-General for Energy and Transport 19

Latest developments On 10 November 2004, at the latest meeting of the Energy Steering Group in The Hague, it was agreed that four Thematic Groups should be established: p infrastructures, p investments, p energy efficiency p trade to discuss energy priorities with a view to producing report by end 2005. EU-Russia Permanent Partnership Council on Energy 3 October 2005 Directorate-General for Energy and Transport 20

Extending the Internal Energy Market beyond the EU Commission Communication on «The development of energy policy for the enlarged EU, its neighbours and partner countries » (May 2003) Objectives • Enhance the security of energy supplies of the European continent • Strengthen the Internal Energy Market of the enlarged EU • Support the modernisation of energy systems in partner countries • Facilitate the realisation of major new energy infrastructure projects. Conditions • A level playing field in terms of market opening, fair competition, environmental protection and safety, including nuclear safety. • Some common rules and standards in the energy sector. • Additional infrastructure. Directorate-General for Energy and Transport 21

Strengthening international energy policy relations l l l l South-East Europe Development of an Energy Community between the EU and the countries of South East Europe, including Turkey. Mediterranean Objective of developing a Euro-Mediterranean energy market. A number of significant sub-regional projects being pursued (including the progressive integration of the Maghreb electricity markets and integration of gas markets in the Mashreq region) Caspian Basin EU-Caspian Basin Ministerial Conference on Energy of November 2004 and the creation of four working groups Ukraine Agreement in February 2005 to intensify energy co-operation. Draft memorandum of understanding to be approved on the occasion of the Summit EU-Ukraine. Russia EU-Russia Energy Dialogue. Other countries and organisations : Dialogue with Opec and energy cooperation with China Israeli-Palestinian Energy Co-operation programme : electricity, renewables, gas cooperation Directorate-General for Energy and Transport 22

Agenda 2006 l Green Paper on a Secure, Competitive and Sustainable Energy Policy for Europe Ø to review all aspects of energy policy in the light of new challenges: Kyoto Protocol implementation, volatile internal energy market, increasing dependency on imported hydrocarbons Ø should be adopted in June 2006. l Communication on a Secure, Competitive and Sustainable Energy Policy for Europe Directorate-General for Energy and Transport 23

l Thank you for your attention l http: //europa. eu. int/comm/energy/russia /overview/index_en. htm Directorate-General for Energy and Transports http: //europa. eu. int/comm/dgs/energy_transport/index_en. html