Presentation del Clean Energy Package de la Comisión European en el Winter Seminar de Funseam 2016, organizado por Funseam y Gas Natural Fenosa Paula PinhoHead of Unit – Energy Policy CoordinationEuropean Commission – DG ENERGY

1. CLEAN ENERGY FOR ALL EUROPEANS
CLEAN ENERGY
FOR ALL
EUROPEANS
Paula Pinho
Head of Unit – Energy Policy Coordination
European Commission – DG ENERGY

2. CLEAN ENERGY FOR ALL EUROPEANS
Unique opportunity to modernise our economy and to
WHY DO WE NEED THIS PACKAGE?
THE ENERGY SYSTEM OF TOMORROW WILL LOOK DIFFERENTLY
2030
50% of electricity to come
from renewables
2050
Electricity completely
carbon free
Thanks to the EU - ambitious energy and climate commitments
With leadership comes responsibility
create the growth and jobs we needboost competitiveness
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3. CLEAN ENERGY FOR ALL EUROPEANS
WHAT ARE OUR GOALS?
CREATING JOBS & GROWTH, BRINGING DOWN GREENHOUSE GAS EMISSIONS, SECURING ENERGY SUPPLY
Demonstrating
global leadership
in renewables
Delivering a
fair deal for
consumers
Putting energy
efficiency first
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4. CLEAN ENERGY FOR ALL EUROPEANS
HOW DO WE GET THERE? (2)
THE RIGHT ENABLING ENVIRONMENT
Setting the right
incentives for
investment in the
energy transition
and maximising the use
of public funds
Delivering on social
concerns and job
training to ensure a
socially fair energy
transition
Driving
digitalization
forward to enable
new energy
technologies
Delivering on key
energy
infrastructure
projects
Accelerating research
and innovation to
support leadership in
advanced RES
Ensuring regional
cooperation: Making
the energy transition a
multi-level
government and
stakeholder project
External dimension:
Fostering security of
supply and promoting
clean energy measures
abroad
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5. CLEAN ENERGY FOR ALL EUROPEANS
New Electricity
Market Design
(including Risk
Preparedness)
HOW DO WE GET THERE?
THE RIGHT REGULATORY FRAMEWORK FOR POST – 2020
Energy Union
Governance
" In essence the new package is about tapping our green growth potential across the board"
Commissioner Miguel Arias Cañete (2016)
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6. CLEAN ENERGY FOR ALL EUROPEANS
ENERGY EFFICIENCY
ACHIEVING THE 30% ENERGY EFFICIENCY TARGET BY 2030
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Energy Efficiency Directive Energy Performance of
Buildings
• Clear vision for a decarbonised
building stock;
• Smart & Efficient buildings
through use of Information and
Communication Technologies
and Smart Technologies;
• Smart Finance for Smart
Buildings initiative:
o More effective use of
public funding
o Aggregation of funds
o De-risking
• Protect vulnerable groups &
address energy poverty.
Ecodesign Working Plan
2016-2019
• List of new product groups;
• Outline on how ecodesign will
contribute to circular economy
objectives;
• Specific measures on air
conditioning;
• Guidelines on voluntary
agreements.
• Binding 30% energy efficiency
target for 2030;
• Create 400,000 new jobs;
• Reduce gas imports by 12%;
• Save € 70 billion in fossil fuel
imports;
• Empower consumers by
granting access to information
on their energy consumption;
• Cut health-related damage
costs by up to €8.3 billion.

7. CLEAN ENERGY FOR ALL EUROPEANS
Integrated
national energy
and climate plan
Periodic progress
reports
Periodic State of
the Energy Union
MS planning MS reporting EC monitoring /
reporting
TODAY
NEW
GOVERNANCE
Synchronised with the Paris Agreement's review cycle
ENERGY UNION GOVERNANCE
STREAMLINING AND INTEGRATION OF ENERGY AND CLIMATE PLANNING AND REPORTING
National Integrated Energy and
Climate Plans (2021 to 2030)
(iterative process between Member
States and Commission)
National progress reports
(from 2021, every two years)
European Commission monitoring
(State of the Energy Union)

8. CLEAN ENERGY FOR ALL EUROPEANS
Stenghthened
role
Regulatory
oversight
Better
information
Protection
Empowerment
Information
sharing &
transparency
Common
principles
Level-playing
field
Liquid,
integrated
markets
Sharing
generation
adequacy
Regional
Operation
Centres
Flexibility
NEW MARKET DESIGN

9. CLEAN ENERGY FOR ALL EUROPEANS
A FAIR DEAL FOR CONSUMERS
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NEW MARKET DESIGN
• Access to fit-for-purpose smart
meters
• Certified price comparison tool
• Clearer energy bills
• Entitle individuals and
communities to generate
electricity and to consume, store
or sell it back to the market
• Easier switching conditions
• Reward demand-response
• Monitoring of energy poverty
(governance)
• Information on alternatives to
disconnection
• Secured electricity supplies
• Sound data management
BETTER INFORMED EMPOWERED PROTECTED
MARKETS FIT FOR PURPOSE
Competitive
wholesale
market by
enhancing system
flexibility
Competitive
retail market
Regulated prices phased out
Fair market access for new
market players such as new
services providers
Flexible network management
Distribution operators
become neutral but active
market facilitator
Reward flexibility for
generation, demand-
response and storage
Scarcity pricing
Increase cross-border
trading opportunities over
shorter timeframes
Create level-playing field
among sources (e.g.
priority access/dispatch,
balancing obligation etc.)

10. CLEAN ENERGY FOR ALL EUROPEANS
MARKETS FIT FOR PURPOSE
LOW
EMISSION
Enhancing
system flexibility:
INTEGRATION OF
RENEWABLES
MARKET-DRIVEN
INVESTMENTS
Strengthened short-term markets Level-playing field among sources
Increase cross-border trading
opportunities over shorter
timeframes (intraday and balancing
markets)
Reward flexibility for generation,
demand-response and storage
Allow prices to show real value of
electricity in terms of time and location
(scarcity pricing)
Rules on priority access and
dispatch
Curtailment rules
Remuneration on equal terms on
market principles
Extended balancing responsibilities
Competitive energy markets are at the heart of a competitive economy
Competitive retail markets
Flexible network management
Regulated prices phased out
Fair market access for new market players such as new services
providers
Distribution operators become neutral but active market facilitator

11. CLEAN ENERGY FOR ALL EUROPEANS
STRENGTHENING RISK PREPAREDNESS: SAFER TOGETHER
ENHANCED COOPERATION COMES FROM COMMON RULES
Common
risk
assessment
Risk
preparedness
plans
Monitoring at
EU level via
ECG
Information
sharing and
transparency
Common
principles on
how to handle
crisis

12. CLEAN ENERGY FOR ALL EUROPEANS
Investment
certainty
Cost-effective
deployment
Collective
target
achievement
Strengthening
bioenergy
sustainability
Promoting
innovation in
transport
Tapping into
heating and
cooling
potential
THE REVISED RENEWABLE ENERGY DIRECTIVE – MAIN OBJECTIVES

13. CLEAN ENERGY FOR ALL EUROPEANS
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2030202320212019
Governance
(reporting & monitoring)
RED II sector specific measures
(transport, H&C, support schemes, self-consumers…)
Flexible Gap filler
If gap, MS decide on measures
Incl. voluntary contribution to financing
platform (governance)
Enabling framework incl. enhanced use of funds
Governance
(planning, reporting and monitoring)
2020 targets as the baseline
Governance
RED II
HOW TO MAKE IT HAPPEN: ACHIEVING AT LEAST 27 % RES EU-WIDE

14. CLEAN ENERGY FOR ALL EUROPEANS
Energy prices and costs - the headlines
 Wholesale gas, electricity and oil prices have fallen significantly since 2012
 Prices in regional EU markets have converged
 Global price gaps with US (-) and Asia (+) have diminished
 The EU energy import bill fell by 35% since 2013; economic growth was boosted
 Retail prices rose: higher network tariffs and taxes and levies countered fuel price reductions
 household electricity prices rose 3% pa; gas prices around 2% pa.
 industry electricity prices rose 2%; gas prices were stable; fell for large consumers
 Energy costs rose for households: to 5.8% of household energy expenditure
 for poorer households share rose to 8.6%, a greater increase than for wealthier households
 Overall industry's energy share of production costs is less than 2%
- Data on energy intensive industries shows overall energy cost shares have declined since 2008
- However these shares can be very significant and affect competitiveness in certain sectors

15. CLEAN ENERGY FOR ALL EUROPEANS
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THANK YOU!
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