„energy policy in eastern europe: what challenges lie … · „energy policy in eastern europe:...

„Energy Policy in Eastern Europe: What

challenges lie ahead ?”

Prerequisites of power development in CE

1st of October, 2015

1

Access to low energy prices

is one of the key drivers of

economic growth.

Paweł Olechnowicz

Chairman of the

Board of Directors

CEEP

Welcome message

2

About CEEP

Central Europe Energy Partners

represents the interests of the energy and energy-

intensive companies from Central Europe in order to

strengthen the region’s energy security within the

framework of a common EU energy and energy security

policy.

CEEP represents 26 energy and energy-intensive

companies and organisations from six Central

European countries, employing over 300,000 workers,

with a total annual revenue of more than EUR 50 billion.

It is the first major body to represent the energy sector

companies from the region at the EU level. The aim of

CEEP is to strengthen the region’s energy security

within the framework of a common EU energy and

energy security policy.

CEEP is an international non-profit association with its

headquarters in Brussels and a branch in Berlin.

Major Tasks To increase the energy security

of Central Europe, as well as the European Union as a whole

To strengthen the idea of energy solidarity within the Energy Union. We do believe that only common activities of all EU member states could be successful in enhancing the energy security of Europe

To build relations and facilitate contacts between Member organisations and EU bodies and agencies, individual representatives and associations of energy and energy-intensive sector companies, as well as international energy sector think-tanks and lobbies

3

Bogdan Janicki, Senior Adviser CEEP

Saturated

EU Economies

Average GDP

per capita:

EUR 31,600 (2014 data)

Source: CEEP based on Eurostat data

Non-Saturated

EU Economies

Average GDP

per capita:

EUR 10,500 (2014 data)

4

GDP per capita – UE 28 (000’EUR)


GDP per capita – UE 28 (000’EUR)


0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Saturated

EU Economies

Non-Saturated

EU Economies

5


CO2 emissions per capita (per capita CO2 emissions of fossil fuel use and industrial processes )

2011 2012 2013 2011 2012 2013 2011 2012 2013

Belgium 10,61 10,22 10,29 Malta 3,73 3,65 3,69 Latvia 3,94 3,87 3,83

Denmark 7,83 6,97 7,39 Netherlands 9,99 9,75 9,66 Lithuania 6,05 6,14 5,92

Germany 9,68 9,97 10,21 Austria 9,15 8,91 9,00 Hungary 5,13 5,01 4,72

Ireland 8,46 8,63 8,56 Portugal 4,66 4,72 4,60 Poland 8,60 8,38 8,47

Greece 8,12 7,75 7,10 Finland 11,25 9,93 10,57 Romania 4,17 4,00 3,68

Spain 6,07 5,93 5,27 Sweden 5,38 5,05 5,04 Slovenia 8,19 7,97 8,07

France 5,72 5,67 5,73 U.K. 7,51 7,77 7,53 Slovakia 7,34 6,96 7,13

Italy 6,78 6,77 6,39 Bulgaria 7,61 6,98 6,50 Croatia 5,24 5,29 5,37

Cyprus 6,61 6,49 6,59 Czech Rep. 11,52 10,98 10,66

Luxembourg 21,47 20,66 20,42 Estonia 16,34 15,53 15,75 EU 7,95 7,53 7,35

2011 2012 2013 2011 2012 2013 2011 2012 2013

USA 17,07 16,28 16,55 Russia 12,55 12,70 12,62 Brazil 2,32 2,43 2,56

Canada 16,10 15,72 15,67 South Korea 12,62 12,62 12,72 Turkey 4,38 4,51 4,41

Australia 19,10 17,63 16,92 China 6,97 7,17 7,42 Indonesia 1,93 1,93 1,95

Japan 10,09 10,75 10,70 India 1,49 1,60 1,65 South Africa 6,33 6,29 6,25

6

(tonnes/cap, 2013)

Source: JRC, CEEP


CO2 emissions in the EU Data in million tonnes of CO2

Estonia

Czech Republic

Spain

Slovakia

Sweden

Romania

Portugal

Poland Netherlands

Lithuania

Latvia

Italy

Ireland

Hungary

Greece

United Kingdom

Germany

France

Finland

Denmark

Bulgaria

Austria

Slovenia

Belgium

78 80 3%

18 19 5%

453 399 -12%

EU 27 5 566 4 493 -19%

country year 1990 year 2012 change in %

72 58 -20%

70 61 -13%

41 19 -53%

27 11 -59%

50 22 -57%

104 110 7%

111 61 -45%

250 119 -52%

97 62 -36%

74 43 -42%

196 131 -33%

519 460 -11%

59 69 17%

283 341 20%

563 490 -13%

142 117 -18%

212 192 -10%

776 581 -25%

55 59 6%

1 248 939 -25%

68 52 -24%

Country Change in %

Latvia -59%

Lithuania -57%

Estonia -53%

Romania -52%

Bulgaria -45%

Slovakia -42%

Hungary -36%

Czech Republic -33%

United Kingdom -25%

Germany -25%

Denmark -24%

Sweden -20%

Belgium -18%

Croatia -17%

France -13%

Finland -13%

Poland -12%

Italy -11%

Netherlands -10%

Austria 3%

Slovenia 5%

Ireland 6%

Greece 7%

Portugal 17%

Spain 20%

Countries in which

CO2 emissions decreased

Countries in which

CO2 emissions increased

EU-10

EU-15


32 26 -17%

Croatia

7


World Electricity Generation by Fuel

8

Source: Eurostat


Gross electricity generation in the EU 28

9 Bogdan Janicki, Senior Adviser CEEP

Source: Eurostat

Gross electricity generation in the CE countries (2012)

10 Bogdan Janicki, Senior Adviser CEEP

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bulgaria Czech Republic

Estonia Croatia Latvia Lithuania Hungary Poland Romania Slovenia Slovakia

Solid Fuels Nuclear Renewables Gases Petroleum and products Wastes

Electricity production, 2013 (billion KWh)

11

Source: Making it happen – Paving the way for the Central European North-

South Infrastructure Corridor; CEEP,Roland Berger Strategy Consultants

Each member State maintains its right to determine the conditions for exploiting its energy sources, its choice between different energy sources and the general structure of its energy supply.

Article 194 of the Treaty on the functioning of the European Union (TFEU):


Energy Prices (EUR/MWH)

Nuclear energy

Lignite

Hard coal

Natural gas

Fuel oil

Gas oil

Source : IEA

EU countries need cheap sources of energy

Solid fuels are cheapest

Bogdan Janicki, Senior Adviser CEEP 12

Transforming Europe's energy system - Commission's energy summer package

• EU Commission Vice-President for Energy Union Maroš Šefčovič said:

"In the Energy Union strategy, we committed to empowering European consumers, creating a single well-functioning energy market, putting energy efficiency first and becoming the number one in renewables. Today, five months after the adoption of the Energy Union strategy, this Summer Package shows our determination to decarbonise our economy and to give consumers a central role in Europe's energy transition. It marks not only a new deal for consumers, but a new deal for Europe´s entire energy system.„

• EU Commissioner for Climate Action and Energy Miguel Arias Cañete said:

"Actions speak louder than words. Today we take a decisive step towards enshrining the EU's target of at least 40% emissions cut by 2030 into law. My message to our global partners ahead of the Paris climate conference: the EU stands by its international commitments. And my message to investors, businesses and industry: invest in clean energy; it's here to stay and continue to grow. With these proposals, Europe is once again showing the way and leading the global the transition to a low-carbon society."

13

Article 194 of the Treaty does not exist?


Electricity consumption per capita (2012)

14

7,5

3,8

5,4

5,6

6,4

5,2

5,3

4,7

5,2

6,6

3,6

4,9

5,1

3,4

2,9

11

,8

3,3

4,4

6,4

7,4

3,2

4,4

2,1

6,1

4,4

14

,9

13

,4

4,9

5,5

MWH/CAP



Saturated

EU Economies

Non-Saturated

EU Economies

Electricity prices for household consumers versus GDP per capita (2014)

15

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00 B

elgi

um

Bu

lgar

ia

Cze

ch R

epu

blic

Den

mar

k

Ge

rman

y

Esto

nia

Irel

and

Gre

ece

Spai

n

Fran

ce

Cro

atia

Ital

y

Cyp

rus

Latv

ia

Lith

uan

ia

Luxe

mb

ou

rg

Hu

nga

ry

Mal

ta

Net

her

lan

ds

Au

stri

a

Po

lan

d

Po

rtu

gal

Ro

man

ia

Slo

ven

ia

Slo

vaki

a

Fin

lan

d

Swe

de

n

Un

ited

Kin

gdo

m

EU2

8

000 EUR GDP per capita

EUR per 100KWh



Electricity prices for industrial consumers versus GDP per capita (2014)

16

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

100,00 GDP 000'EUR per capita

EUR per 100KWh



CAPACITY MARKET

17

Blackout was very close

Main reasons: - Bełchatów power plant failure - repairs season in other power plants

during the summer - no power from wind turbines due to

lack of wind - power transmission network capacity

decrease due to air temperature - lack of availability of sufficient power

from international interconnectors

Source: PSE

August 2015 –

Limitations in the supply of power in Poland

power demand available power


CEEP’s Latest Report

18

The Central European North-South Infrastructure Corridor is a key enabler for completing the European integration process by bolstering the connectivity, competitiveness and security of the EU- 11 and the European Union overall. Successful implementation of the Corridor would be a historical milestone in European integration, yielding enormous political, economic and social benefits


Electricity transmission network in Central and Eastern Europe

19

Source: Making it happen – Paving the way for the Central European North-South Infrastructure Corridor; CEEP,Roland Berger Strategy Consultants


Uncontrolled electricity transfer between countries

Phase shifting transformers construction

LitPol Link and Baltic Corridor

20


• Increased security

of supply

• Access to cheaper

electrical energy

from Nord Pool

• Decrease of

electricity price


Baltic Ring - Poland - Lithuania - Latvia - Estonia - Finland - Sweden - Norway - Denmark - Germany

PCI electricity transmission projects

21



The main power prerequisites for Central European Countries

• Maintaining ETS derogation till 2030 for coal power plants with a 45% energy efficiency as the cheapest source of electricity and an enabler of a 30% CO2 decrease;

• Extending support for cogeneration till 2030 as an effective means for achieving a CO2 decrease;

• Full acceptance for a capacity market as one of the main conditions for energy security and a stable/diversified RES development ;

• Supporting innovation programmes concerning the power industry leading to better energy efficiency, CO2 decreases , and lower prices ;

• Supporting PCI projects concerning the electricity interconnectors and transfers of electricity between countries


Central Europe Energy Partners, AISBL

Rue Froissart 123–133, 1040 Brussels

www.ceep.be

Phone: +32 2 880 72 97, Fax: +32 2 880 70 77, E-mail: [email protected]

Transparency Register No. 8773856374594


„energy policy in eastern europe: what challenges lie … · „energy policy in eastern europe:...

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