new deal for smart, participative energy
TRANSCRIPT
New deal for smart participative energy
European Utility Week Barcelona 24 November 2016
Eero Ailio, dep. Head of Unit retail markets, Directorate-General for Energy
2
Gearing up ambition
State of PlayEnergy and Climate goals
Energy
Progressing
State of PlayEnergy transition
Energy
Updating needed
State of PlayWholesale markets, infra, rules
Energy
5
Vast new resource to engage, serve and reward
Future opportunitiesActive consumers
Energy
But can't get no…Copyright: Rolling Stones
Future opportunitiesConsumer challenges
Energy
7
…satisfaction
GAS
CONSUMER MARKETS SCOREBOARD, DG JUST 2016
ELECTRICITY
Energy
Activation
AVERAGE CONSUMER ENGAGES WITH THEIR UTILITY 9 MINUTES PER YEAR
Designed by Freepik / www.freepik.com/861636.htm
Future opportunitiesConsumer challenges
Energy
9Energy Pool
Future opportunitiesConsumer front-runners
Energy
EMPOWER ENERGY CONSUMERS - information and tools for active participation.
MARKET COMPETITION AND FLEXIBILITY – allow new services and real price signals for consumers to respond to and benefit from
CONSUMER PROTECTION AND SOUND MANAGEMENT OF CONSUMER DATA – set common principles, monitor and assist Member States. 10
Need to deliver fit-for-purpose retail markets
Strategy and objectives
Three point plan
Energy
• Smart meters enable correct bills, dynamic energy services, demand response
• Reliable price comparison tools facilitate savings
Empowering by information, smart meters, real prices
www.sahkonhinta.fi
The Sun
WAY FORWARD
Energy
• Few people switch suppliers in many Member States
• Self-generating and consuming electricity is effectively banned in some Member States
• Few consumers have access to independent aggregators, the gateway to trading self-generated electricity and full benefit from explicit demand response.
• Consumers to be entitled to individual, collective, simple and sophisticated participation alternatives.
WAY FORWARD
160 GWTheoretical demand response potential in 2030
100 GWTheoretical demand response potential today
20GWDemand response capacity used today
Empowering by switching, demand response, self consumption
Energy
Competition and flexibility through access to dynamic prices and service providers
Both electricity and gas price regulation for households Gas price regulation only for households
No electricity or gas price regulation for households
• Competition to unlock efficient and flexible consumer behaviour and keep cost of energy transition at check
• Consumers to have an option to react to price signals and be rewarded for it
• Obstacles hampering service providers such as aggregators to be removed
• 17 Member States regulate electricity or gas prices for households -> dis-incentivises consumers
• Dynamic price contracts allow exploiting wholesale price variations (price-based demand response) but out of reach to most
• Market entry barriers for new service providers like independent aggregators.
WAY FORWARD
Energy
WAY FORWARD
• Affordability of energy services becoming a concern in many Member States.
• Digitisation of the retail electricity market requires sound management of data to ensure level playing field for all market actors and benefits from sharing data to consumers.
• Inclusive transition by promoting monitoring, targeting and exchanging good practices on energy poverty.
• Energy efficiency key to address causes
• Clear principles on consumer data access benefit all market actors.
Smart meters generate roughly 3000 times as
much information as the analogue meters
SHARE OF HOUSEHOLD INCOME SPENT ON DOMESTIC ENERGY
Consumer protection and data management
15
Regulatory initiativesEnergy Union winter package
Clean energy transition growth sector of the future• Electricity Directive to boost investments, competition and
consumers’ role• Energy Efficiency legislation to unlock energy savings and growth.
(3% ->70b€-> 400,000 j.)
• Renewable Energy Directive to reach at least 27%. Sector employs 1.2 million and accounts for 138b€/year.
• Governance proposal to provide regulatory frame, accountability to stimulate transition.
Recognised partners in energy transition
16
Local energy communities, crowdsourcing platform
7000+ cities leading in climate mitigation and adaptation, implementing energy transition
Local action: Covenant of Mayors for Climate and Energy
Founded by European Commission in 2009, New Covenant in 2015, Global Covenant in 2016
18
Financing transition: European funding sources
19
Financing transition: EuropeanFund for Strategic Investment
177 b€ annual investments (2021 to 2030) to decarbonisetraditional finance not enough -> ¼ of EFSI to energy
Installed capacity in residential PV in selected Member States, in MWSource: Bloomberg New Energy Finance, 2015
Self consumption in EU
Energy
State of play: Renewables and efficiency
14
Power mix
Significant development of RES (solar and wind onshore)
Decline of generation from solid fuels
Gas-fired generation decreases until 2020, but increases thereafter playing a balancing role
Nuclear decreases slightly in the medium term
10
Investments in power generation
New plant investment is dominated by RES
New thermal plant investment is mainly CCGT and CHP plants
Retrofitting of old plants concern solid fuels plants in the short/medium term, nuclear throughout the projection and RES replaced on the same site