Current challenges in completing the European Internal Energy Market EPP Hearing European Parliament, 6 June 2013 Ann-Katrin Schenk, Policy Officer European Federation of Local Energy Companies
Who is CEDEC? • European Federation of Local Energy Companies • 1500 local and regional energy companies • Electricity and heat generation • Electricity and gas distribution grid & metering operators • Energy (services) suppliers • Mostly in public hands • 85 million electricity and gas customers & connections • > 350 000 employees • Annual turnover ca. 120 billion • Enhancing competition in the energy market European Federation of Local Energy Companies 2 www.cedec.com
Infrastructure Bringing distribution grids into the focus > 80% RES connected to distribution grids • Solutions: Smart distribution grids, energy storage, smart devices, electric vehicles • €480 bn investments in European distribution grids needed to 2030 • Incentivise investments in modern infrastructure – Adapt regulatory frameworks for investments in innovation – EU funding • National Action Plans for swift deployment of smart grids European Federation of Local Energy Companies 3
Retail markets Creating a level playing field • Smart grids enable system flexibility, active consumer participation and energy efficiency through new services and actors • Data management and data communication is mission-critical to guarantee system stability • Recognition of increasingly active role of DSOs: – Responsible for security of supply: enhanced system services to balance local generation and demand – Neutral market facilitator, delivering data to all market players in non- discriminatory way, while safeguarding consumer data privacy European Federation of Local Energy Companies 4
Consumers Improving markets for consumers Ecological awareness and climate • Activation of consumers protection – Demand response • New contracts, products and services Decreasing the dependence on Income return energy imports – Prosumers Citizen • Matching self-production and consumption engagement – Citizens projects • Shareholders of local generation Local added Enhancement of value quality of life in own city • Support for Vulnerable consumers – Social and Energy Policy – Energy Efficiency European Federation of Local Energy Companies 5
Energy Transition Towards a sustainable EU energy system No level playing field for generation • technologies → Phase out subsidies for fossil fuels and nuclear energy • Trigger deployment of renewables – Gradual convergence of support schemes but leave room for Member States to exploit all regional and local potentials and resources – Ambitious, binding GHG emissions and RES targets for 2030 • Urgent fix of ETS needed – Backloading to quickly adress oversupply of 2 billion EUAs – Increase 2020 GHG reduction target to 25-30% – Permanent retirement of surplus allowances European Federation of Local Energy Companies 6
Thanks for your attention! CEDEC Ann-Katrin Schenk Ann-Katrin.Schenk@cedec.com 7
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