Revealing the potential of Electricity in the Decarbonisation
Challenge
Karl Vella - EURELECTRIC
10 May 2017
MEDELEC Workshop 2017
Istanbul
1
EURELECTRIC – representing the European electricity sector across the
entire value chain
ENERGY POLICY
& GENERATION
ENVIRONMENT
& SUSTAINABLE
DEVELOPMENT
MARKETS
DISTRIBUTION
NETWORKS
RETAIL
CUSTOMERS
Members representing electricity sector in over 30 European countries.
EURELECTRIC represents 3500 companies with an aggregate turnover of €200 billion.
EURELECTRIC’s Structure of Expertise provides input to development of the sector’s policy
positions, statements reports etc.
2
Presidency Priorities (2015-2017)
Reveal the value of
Electricity
Foster the added
value of the Energy
Union
A holistic Market
Design to attract
investments
Define the new
role of DSOs
Decarbonisation
Agenda
Focus on Retail
3
Presidency Priorities (2015-2017)
Reveal the value of
Electricity
Foster the added
value of the Energy
Union
A holistic Market
Design to attract
investments
Define the new
role of DSOs
Decarbonisation
Agenda
Focus on Retail
4
European Power Sector is fully committed to Decarbonisation
The European electricity sector is committed to
providing carbon neutral electricity in Europe by
2050.
Fully support the objectives of the Paris
Agreement. Achieving these objectives will be
essential to guarantee the long-term sustainability
of the global economy.
As electricity generation becomes increasingly
decarbonised, using more electricity in sectors like
Transport and Heating & Cooling provides a
powerful pathway for these sectors on the road to
decarbonisation.
5
The EU’s 2030 Climate & Energy Targets
In 2014, the European Council (Heads of State from all 28 EU Member States)
agreed these targets which set the basis for a holistic and market-based policy
framework.
6
Achieving the EU’s 2030 targets and the Paris Agreement will
require massive investment in power generation
EU 2030 Climate & Energy
Targets*
*European Council conclusions, October 2014
-40%
reduction domestic
greenhouse gas emissions
>27%
share of renewable energy
consumption
>27%
Improvements in energy
efficiency
€50
billion/year
up to 2030 in
power
generation
€40 billion/year
up to 2030 in
power grids
7
How is the EU’s 40% Greenhouse Gas reduction target split?
8
Decarbonisation of the European power sector is happening
Low carbon sources already dominate the European power generation market
In 2015 - 56% of all electricity generated across the EU came from low carbon sources: Nuclear,
Hydro and Renewables
9
Power to the People !!!
A BRIGHT FUTURE FOR EUROPE
The Value of Electricity in Decarbonising
the European Union
“Electrification is a winning strategy for
Europe that will add value to the everyday
lives of European citizens, and supports the
pursuit of key EU decarbonisation objectives.
Cost-effective decarbonisation is crucial for
Europe to remain competitive in the global
market.”
Antonio Mexia, EURELECTRIC President
10
Electrification is a winning strategy for Europe
Improving
value
The strong value
proposition of
electricity
Expanding value
Realising value
11
The European power sector’s value proposition today
Source: EURELECTRIC
12
The European power sector’s value proposition today
Source: EURELECTRIC
13
Improving the value proposition of Electricity in Europe
Mt of CO2 equivalent emitted
Carbon emissions by sector
1600
1400
1200
1000
800
600
400
200
0
2000
2005
2010
2015
2020
Power generation
2025
Transport
2030
2035
2040
2045
2050
Residential
Source: EU Ref Scenario 2016
14
Improving the value proposition of Electricity in Europe
Mt of CO2 equivalent emitted
Carbon emissions by sector
1600
1400
1200
1000
800
600
400
200
0
2000
2005
2010
2015
2020
Power generation
2025
Transport
2030
2035
2040
2045
2050
Residential
Investments in Europe clean energy in 2004-2016: €882
billion
Source: EU Ref Scenario 2016
15
Strengthening the value proposition of Electricity
The strong value
proposition of
electricity
16
Strengthening the value proposition of Electricity
The strong value
proposition of
electricity
17
Expanding Value through Transport and Heating & Cooling
1
Enabling system integration
2
Empowering active customers
3
Improving security of supply
4
Improving air quality
5
Increasing efficiencies
18
Making it happen!
1
Implement strict GHG emissions standards for Cars and Vans
2
Invest & facilitate the rollout of Electric Vehicle-charging infrastructure
3
Encourage private investment to close energy efficiency financing gap
4
Legislation to recognise that electricity is increasingly coming from low
carbon sources
19
Electrification in the Clean Energy Package
Revise the MARKET
DESIGN to attract
investments
Achieve the ENERGY
UNION
PROMOTE DSOs as
technological
enablers and market
facilitators
Reveal the value of
electricity:
ELECTRIFICATION
Reinforce the focus
on retail with
EMPOWERED
CUSTOMERS
Ensure a costeffective
DECARBONISATION
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Electrification through the Long term low emission strategies
2070
2050
2030
PLAN
STRATEGY
VISION
The national long-term low emission
strategies should also provide commitment
to an electrification agenda.
The rate of electrification should be an
important KPI to measure progress to
decarbonised energy systems as part of the
Member States.
The proposed 50 year horizon should be
kept to provide a strategic vision and should
be complemented by more elaborate
national climate and energy strategies for
the first 30 years, up to 2050.
21
Understanding the benefits of Electrification in Transport
Energy efficiency gains
 Electric car engines are around 4 times more energy efficient than internal combustion
engines: With the same amount of energy used for 1 internal combustion vehicle, you can
propel 4 electric vehicles.
Emission savings
 As emissions in the electricity sector are capped by the ETS, electrification of any sector
results in a de-facto decarbonisation of this sector
 In well-to-wheel calculations and with the current European electricity mix, electric vehicles
emit 50% less CO2 than an average internal combustion engine vehicle
Sector coupling and contribution to an integrated system
 With dynamic pricing and a charging station equipped with a smart metering and
communication devices, EVs can charge at time of high renewables feed-in – generating
savings for the driver’s electricity bill and at the same time providing valuable flexibility for
the electricity system
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Power to the People – Follow the Campaign!!
A BRIGHT FUTURE FOR EUROPE
The Value of Electricity in Decarbonising the European Union
Download the Report at
www.eurelectric.org/publications
Power to the People – Follow the Campaign!!
A BRIGHT FUTURE FOR EUROPE
The Value of Electricity in Decarbonising the European Union
Follow EURELECTRIC’s Electrification Campaign on Twitter:
#itsElectric
@EURELECTRIC
Thank You
Karl Vella [email protected]