The document discusses the energy challenges facing Europe, including increased demand putting pressure on supply, rising energy prices hurting competitiveness, heavy reliance on imports posing security risks, and the need to reduce emissions to tackle climate change. It outlines the EU's policy response, including developing open energy markets, investing in smarter infrastructure, implementing energy efficiency measures, boosting the use of renewable resources, and funding energy research. The conclusion is that the EU's Roadmap 2050 can meet climate and energy goals through decarbonization, a fully functioning internal energy market, improved energy efficiency, greater renewable electricity and smarter grids, and continued innovation.

1. Energy challenges
for Europe
Philip Lowe
Director General for Energy
European Commission
1
Energy
Energy

2. THE GLOBAL SUPPLY CHALLENGE
- Increased energy demand and increased competition
2

3. THE COMPETITIVENESS CHALLENGE
- Energy prices increase…
Electricity prices for industry in selected industrialised countries (USD/MWh)
** Without tax
Affordability of energy of increasing concern for households and
business 3

4. THE SECURITY OF SUPPLY CHALLENGE
- import dependency of the EU as a whole
in % 2005 2008 2020 2030 2005 2008 2020 2030
100
94,1%
92,7%
80 82,4%
84,3%
82,8%
75,9%
60 62,3%
57,7%
40
20
OIL GAS
4

5. THE SUSTAINABILITY CHALLENGE
- EU currently only on track for half of what is needed to tackle
climate change
Flat energy
consumption
Source: European Commission
40% reduction
compared
with 1990
5

6. The EU ENERGY ROADMAP 2050
Modelling exercise showing how to meet the
competitiveness, security of supply and
sustainability challenge in the 2050 perspective
4 key messages:
•Meeting climate change challenge not more costly
than ignoring it
•More electricity, more renewables
•Internal market critical to transformation
•No regrets: energy efficiency, smarter
infrastructure, gas (at least for transition)
6

7. THE EU'S POLICY RESPONSE (1) – Open and integrated markets
7

8. THE EU'S POLICY RESPONSE (2) – Smarter infrastructure
8

9. THE EU'S POLICY RESPONSE (3) – Measures on energy
efficiency
30
EED costs
Billion Euro '08
•increased costs for investment in
energy efficiency- €24 billion
0 annually
•reduced costs for investment in
energy generation and
distribution - €6 billion annually
-30
•reduced fuel expenditure - €38
billion annually
EED avoided
costs
-60 9

10. THE EU POLICY RESPONSE (4) sustainable energy
•Share of renewable energy
(% of total energy use)
2009 performance 2020 national target
%
10
Source: European Commission

11. THE EU'S POLICY RESPONSE (5) – Energy Research
- EU Funding for sustainable energy (calls 2007-2011)
efficiency Ocean
RES – 20,7 M€ PV
50,6 M€
bio-energy
Promotion
1,0 M€ power CSP
Industry
45,4 M€
25,1 M€
Concerto Biomass
22,6 M€ Algae
37,8 M€
Wind 19,2 M€
44,1 M€
Renewable
EeB
Poly- 33,4 M€ electricity Biorefineries
generation 15 M€
14,7 M€
generation
Energy 183,4 M€ 2nd
generation Transport
efficiency 2,2 M€
51 M€
and savings Cross-
Renewable
grids & storage 112 M€
fuel
cutting
1,2 M€
1st
production generation
Studies 93,5 M€ 4,9 M€
Grid Infra. Smart
14,8 M€ Biomass
Wind Grid energy 7,0 M€
Integration Renewables
38,0 M€ networks Geoth.
Storage
30,0 M€ 117,8 M€ CCS/Clean for H&C Solar
4,3 M€
44,1 M€
Coal Thermal
25,7 M€ Storage
69,6 M€
Smartgrid-
Distrib.
(+TP)
7,1 M€ RES –
35,0 M€
Policy Heating/c
2,2 M€
11
ooling

12. CONCLUSION AND OUTLOOK
 Roadmap 2050 decarbonisation scenarios deliver
on all energy policy objectives, even without a
global climate change agreement
 Make the Internal Energy Market work
 Use energy better
 Prepare for more electricity, more RES
and smarter grids
 Innovation: new fuels and uses
 Define the 2030 Framework
12
Energy
Energy