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Energy Efficiency and Cohesion in an EU Energy Policy perspective

Energy Efficiency and Cohesion in an EU Energy Policy perspective. Dr. Tudor Constantinescu Principal Advisor European Commission - Energy. Energy. European Energy Policy. Objectives & Targets. Technology. Legislation. External. Cohesion. Decarbonisation. Internal Market.

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Energy Efficiency and Cohesion in an EU Energy Policy perspective

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  1. Energy Efficiency and Cohesionin an EU Energy Policy perspective Dr. Tudor ConstantinescuPrincipal AdvisorEuropean Commission - Energy Energy

  2. European Energy Policy Objectives & Targets Technology Legislation External Cohesion Decarbonisation Internal Market

  3. Energy strategy 2020 – Five priorities Efficient use of energy Integrated energy market Secure, safe and affordableenergy for consumers Technological leadership Strong international partnership

  4. Meeting our “20-20-20 by 2020”goals Reduce greenhousegas levels by 20% Increase share of renewables to 20% Reduce energyconsumption by 20% 100% Current trend to 2020 Current trend to 2020 -20% -10% Current trend to 2020 20%

  5. Sectoral measures Indicative national EE targets General measures promoting EE A NEW ENERGY EFFICIENCY DIRECTIVE Public sector House- holds Services Energy supply Industry New EED Monitoring & Reporting

  6. 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 • 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

  7. 75% 50% 25% 0% RES Gas Nuclear Oil Solid fuels 2005 • Fuel Ranges (primary energy consumption) 2030 2050 75% 50% 25% 0% RES Gas Nuclear Oil Solid fuels

  8. 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

  9. 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

  10. Cohesion Policy 07-13 (€ 347 billion) European Regional Development Fund (ERDF) Cohesion Fund European Social Fund (ESF) DG REGIO DG EMPLOYMENT

  11. 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.

  12. Functioning of Cohesion Policy • EuropeanCommission & 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.

  13. “Green economy” investments 2007-2013 Renewables €4.8 bilion Energy Efficiency €4.4 billion = €105 billion 30% of Cohesion Policy funding

  14. Electricity (TEN-E) Energy efficiency, co- Natural gas (TEN-E) Electricity 3% Natural gas generation, energy 3% 3% 6% management Petroleum products 39% 2% Wind 7% Solar 10% Biomass Hydroelectric, geothermal 17% and other 10% Cohesion Policy allocations to Energy 2007-2013total = € 11 billion (3 % of total) € 9.2 billion EE & RES plus € 1.8 billion traditional energies & interconnectors.

  15. 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) Energy Efficiency in the “Recovery Package”

  16. 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. Uptake of the regulatory amendments

  17. 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%) Refurbishment of social housing (FR) 18

  18. Proposed EU budget 2014-2020 MFF 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) Other policies (agriculture, research, external,…) 63% (649 billion) Connecting Europe Facility 4% (€40 billion) European UnionCohesion Policy

  19. Concentrating resources to maximise impact Concentration of ERDF investments on: energy efficiency & renewable energy research & innovation competitiveness of SMEs 6% 60% 44% 20% More developed & transition regions Less developed regions flexibility – different regions have different needs special arrangements for ex-convergence regions European UnionCohesion Policy

  20. How will funding be allocated? Less developed regions/MS Transition regions More developed regions Population covered (in millions) ¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility Budget allocation (in %) European UnionCohesion Policy

  21. 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.

  22. Thank you • tudor.constantinescu@ec.europa.eu

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