EnergyEnergy

Energy Efficiency and Cohesionin an EU Energy Policy perspective

EnergyEnergy

Dr. Tudor ConstantinescuPrincipal AdvisorEuropean Commission - Energy

EnergyEnergy

Decarbonisation

Technology

Ext

ern

al

LegislationC

ohes

ion

Internal Market

Objectives & Targets

European Energy Policy

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• Energy strategy 2020 – Five priorities

• Efficient use of energy

• Integrated energy market

• Secure, safe and affordable energy for consumers

• Technological leadership

• Strong international partnership

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Meeting our “20-20-20 by 2020” goals

Reduce greenhousegas levels by 20%

Increase share of renewables to 20%

100%

Reduce energyconsumption by

20%

-10%Current

trend to 2020

-20%

20%

Current trend

to 2020

Current trend

to 2020

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A NEW ENERGY EFFICIENCY DIRECTIVE

ServicesEnergy supply

House-holds

Industry

Generalmeasures

promoting EE

New EED

Sectoral measures

Monitoring & Reporting

Indicative national EE targets

Public sector

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Supported by multiple scenario analyses, to show how to reach the 80 % / 95 % goal while at the same meeting other policy objectives (Competitiveness and Security of Supply) Containing robust assumptions for all

possible scenarios

Looking to the future - Energy Roadmap 2050

•Basis: 20/20/20 objectives of the EU energy policy•Roadmap 2050: Cutting GHG emissions until 2050

down to 80 – 95 % below the level of 1990•The Energy Roadmap 2050: the basis for the

elaboration of a low carbon 2050 strategy

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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

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Conclusions and “no regret options”

•Energy efficiency gains throughout the system•Major role of renewables•But all options can contribute

EE, RES, Nuclear, CCS, Gas

•Act in time and together – timely investments cost less

•Gas – important role until 2030/35- more uncertainties after that period

Contribution after 2030 depends on (delayed) CCS

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European funding mobilised

• Structural funds/ERDF (incl. JESSICA)• Intelligent Energy – Europe Programme• ELENA Facility • European Energy Efficiency Facility • Smart cities • (within the 7th Framework programme for Research)• Public Private Partnerships• (within the 7th Framework programme for Research

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Cohesion Policy 07-

13

(€ 347 billion)

European Regional

Development Fund

(ERDF)

Cohesion Fund

European Social Fund

(ESF)

DG REGIO DG EMPLOYMENT

EnergyEnergy

Cohesion Policy

Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective.

Regional competitiveness and employment objective.

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Functioning of Cohesion Policy

• European Commission & Member States negotiated / agreed National Strategic Reference Framework (NSRF) and Operational Programmes (OPs) at national and/or regional level for 2007-2013.

• Member States alone select and implement the projects in line with priorities of the OPs (principle of ‘shared management’).

• Major Projects: Investments of more than € 50 million are submitted and approved by the Commission.

• EU funds always completed by national, regional, EIB funds.

EnergyEnergy

EnvironmentalRulebook

€54 bn

Low Carbon

Economy€48 bn

Eco-Innovation

€3 bn

= €105 billion 30% of Cohesion Policy funding

“Green economy” investments 2007-2013

Renewables €4.8 bilion

Energy Efficiency €4.4 billion

EnergyEnergy

Petroleum products2%

Natural gas6%

Electricity (TEN-E)3%Electricity

3%

Natural gas (TEN-E)3%

Wind7%

Solar 10%

Biomass17%

Hydroelectric, geothermal and other

10%

Energy efficiency, co-generation, energy

management39%

Cohesion Policy allocations to Energy

2007-2013 total = € 11 billion (3 % of total)

€ 9.2 billion EE & RES plus € 1.8 billion traditional energies & interconnectors.

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Energy Efficiency in the “Recovery Package”

• Amendment to ERDF regulation (May 2009)

• Up to 4% of the national ERDF allocation can go to energy efficiency and renewable energy in housing, potentially € 8 billion

• Member States define eligible categories of existing housing, to support social cohesion

• June 2010: Further regulatory amendment to facilitate the use of innovative financial instruments in this area, in addition to JEREMIE and JESSICA (JESSICA initiative also delivering EE & RES investments in the urban context)

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Uptake of the regulatory amendments

• Only EL making immediate use of the new financial engineering opportunity by establishing a revolving fund of EUR 300 million to provide repayable assistance for energy efficiency in housing.

• However, it seems like the amendment has triggered further MS interest, as the set-up of additional financial engineering instruments with an energy efficiency and/or renewable energies component is currently considered in BG, DE, HU, SK, UK.

• Also eight JESSICA funds with energy component set up in seven MS: EE, LT, ES, IT, PL, PT, UK.

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18

Refurbishment of social housing (FR)

• Investments of € 320 M of ERDF in whole country• Average support by ERDF = € 2,886 per dwelling (14% of total needs)• Impacts:

• generated over € 1 billion in investment in energy performance in social housing in FR

• helped to create and maintain 15,000 local jobs & potentially 31,000 with measures in the pipeline

• 50,000 households with modest incomes supported to fight energy poverty (heating costs reduced on average by 40%)

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│ 19

Proposed EU budget 2014-2020

"Ambitious but realistic" proposals issued by the Commission in June 2011 for a Multiannual Financial Framework 2014-2020

Cohesion Policy

33% (€336 billion)

Connecting Europe Facility

4% (€40 billion)

Other policies(agriculture,

research, external,…)63% (649

billion)

MFF 2014 - 2020

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European UnionCohesion Policy

│ 20

Concentrating resources to maximise impact

Less developed regionsMore developed & transition regions

Concentration of ERDF investments on: energy efficiency & renewable energy

research & innovation competitiveness of SMEs

flexibility – different regions have different needs special arrangements for ex-convergence regions

60%

20% 44%

6%

EnergyEnergyEuropean UnionCohesion Policy

│ 21

How will funding be allocated?

68,7%

11,6%

15,8%

0

10

20

30

40

50

60

70

80

90

100

119.2

72.4

307.1

0

50

100

150

200

250

300

350

400

450

500

Budget allocation (in %)

Population covered

(in millions)

Less developed regions/MS Transition regions More developed regions

Cohesion Fund¹ 68.7

Less developed regions 162.6

Transition regions 38.9

More developed regions 53.1

European Territorial Cooperation

11.7

Outermost regions and sparsely populated areas

0.9

Total 336.0

¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility

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ROMANIA, NSRF 2007-2013 (http://www.fonduri-ue.ro/)Energy Efficiency in ERDF Operational Programmes 2007-13: 100 MEUR

• Large enterprises/SMEs (Increase of the Economic Competitiveness programme)

• Total allocation: 100 M€ (245)• Implementation: European Regional Development Fund supports investments in installations/ equipments of

industrial operators leading to reducing the energy consumption.• Calls: on going

• Public buildings for Regional, Local and Municipal Authorities (Regional operational programme)

• No separate energy-efficiency measures are taken.• European Regional Development Fund supports the rehabilitation of public buildings (schools, hospitals, social

buildings); the projects are required to comply with reinforced energy efficiency national legislation;

• Housing

• Total allocation: 0 M€ • Implementation: this was not a priority for the Romanian authorities and no programme included this type

of projects. • Discussions are on-going on the possibility and opportunity to set up a financing scheme for energy efficiency

projects in housing under the Regional Operational programme.

• Contacts• Intermediate Body for Energy from the Ministry of Economy, Trade and Bussiness Environment, http://oie.minind.ro, Tel: (+40 21)

202 53 88.• Managing Authority for Regional Operational Programme from the Ministry of Regional Development and Tourism

http://www.inforegio.ro/, Tel: (+40 37) 211 14 09.

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•Thank you

• tudor.constantinescu@ec.europa.eu