Past Event

Towards a zero-carbon and digital energy system: which policy challenges for Europe?

Decarbonisation and digitalisation: two mega trends that will change the European energy system.

Date: October 27, 2016, 12:30 pm Topic: Energy & Climate

SUMMARY

SEE BELOW FOR THE VIDEO, AUDIO AND EVENT MATERIALS

In this event, Simone Tagliapietra presented the preliminary results of a Bruegel study on the main trends of the energy sector: decarbonization, digitalization and decentralization. The 2030 decarbonization targets are binding, as do the ones related to the 2050 scenario, so all energy sectors need to be considered. In the electricity sector, the main decarbonization pathways are energy efficiency, increased role of renewables and CCS (Carbon Capture and Storage). Each of them have important issues or constraints, but should be parallelly employed to reach the long-term goals. Heating and cooling has never been tackled until recently, although it represents 50% of the EU total final energy consumption. It is a highly fragmented market and thus needs to be tackled at the local level, for instance through district heating and recovering waste heat from industrial clusters. The transport can be decarbonized thanks to an improvement of ICE efficiency, an increased role for public transport and a modal shift towards bike- and car-sharing. Industry has similar decarbonization options to the energy sector and also in this case the coordination at the local level is crucial.

There are two main policy challenges that stem from this analysis. An increased interaction between sectors, favored by ICT, implies the emergence of new industrial models, the need for new market designs and a higher coordination between the EU, national and local levels of governance. Secondly, the role of cities will have to increase. The Covenant of Mayors is a good initiative, but more competences and fiscal space should be given to cities, taking inspiration from virtuous examples such as Copenhagen.
Mark van Stiphout explained the main initiative by the EU Commission on renewables, energy efficiency, heating and cooling and energy market legislation. The Juncker Commission is no more operating in silos, with better links across areas. The commitment of the EU to COP21 needs to be linked to jobs and growth, thanks to innovation, access to capital and investments. To release the potential for decarbonization of heating and cooling, renewables will have to be integrated into the electricity market and be allowed more flexibility, using the house as a storage unit and thanks to demand-response. A greater value should be given to flexibility, to make it easier to participate in the electricity market, by exploiting the digitalization trend. However, one should be aware of risks of such transition, such as the technology lock-in. Cities should act as a facilitator and investor for consumers to be integrated in the system. Such level of decentralization in only made possible by ICT and we thus need clearer rules on interoperability, standardization and accessibility of data.

Jean Jacques Marchais dwelled with the three main trends of the energy sector. Decarbonization: the Paris agreement came into force very quickly but the 2 degrees goal is still too far. We should invest in energy efficiency and renewables. Decentralization: half of power generation will be distributed, batteries’ prices are plunging and energy users will become prosumers. All these developments point at districts, as the aggregation of citizens and businesses, to have a key role. Digitization: ICT allows all such trends, but must be secure and reliable. Privacy and cybersecurity issues must be tackled at the policy level.

Michael Grubb stressed as well the importance of the “three D’s”. Decarbonization, in particular, is not seen as a major political driver but as an input to innovate the system. Regarding decentralization, the main question is whether there is enough capacity for cities’ needs. MG then pointed out that in Southern Europe there is enough solar power as in Northern Europe there is wind, especially off-shore, so it is more an internal issue. Indeed, the EU market works well for optimizing and allocating efficiently resources, but then the redistribution task related to social investment is up to national governments.

Event Notes by Enrico Nano 

VIDEO AND AUDIO RECORDING


EVENT MATERIALS

Presentation by Simone Tagliapietra

Presentation by Jean-Jacques Marchais

Presentation by Michael Grubb

 

Schedule

Oct 27, 2016

12:30-13:00

Check in and lunch

13:00-13:30

Presentation by Simone Tagliapietra

13:30-14:00

Panel debate

Chair: Alissa Decarbonnel, EU Energy & Environment Correspondent, Thomson Reuters

Michael Grubb, Professor of International Energy and Climate Change Policy at University College London, London, UK

Jean Jacques Marchais, Schneider Electric

Mark van Stiphout, Deputy Head of Unit "New energy technologies, innovation and clean coal".

14:00-14:30

Q&A

14:30

End

Speakers

Alissa Decarbonnel

EU Energy & Environment Correspondent, Thomson Reuters

Michael Grubb

Professor of International Energy and Climate Change Policy at University College London, London, UK

Jean Jacques Marchais

Schneider Electric

Mark van Stiphout

Deputy Head of Unit "New energy technologies, innovation and clean coal".

Simone Tagliapietra

Research Fellow

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevón

matilda.sevon@bruegel.org +32 2 227 4212

Read article More on this topic More by this author

Blog Post

The US 100% renewables dispute

What’s at stake: Two years ago, a debate started on whether it would be feasible for the US to achieve 100% renewable energy power. The arguments on both sides have been fierce, and more has been written recently. We review the debate.

By: Silvia Merler Topic: Energy & Climate Date: June 26, 2017
Read about event More on this topic

Past Event

Past Event

Renewing the 2050 Roadmap

The objective of this brainstorm session is to explore how we can improve the quality and the impact of the revisited 2050 Roadmap, set the agenda for revising it, increase ownership of it and analyze the methodological basis of the 2050 Roadmap.

Speakers: Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 22, 2017
Read about event

Past Event

Past Event

Fintech and the digital transformation of banking

FinTech is changing the financial sector. What are the challenges associated with this and what policies should we adopt in response?

Speakers: Xavier Corman, Cora van Nieuwenhuizen, Georgios Petropoulos, Ezequiel Szafir and Pēteris Zilgalvis Topic: Finance & Financial Regulation, Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 20, 2017
Read about event More on this topic

Past Event

Past Event

Lessons for the future governance of financial assistance in the EU

On 14th June, Randall Henning will present his latest book on the Euro crisis and we will discuss how financial assistance should be governed in the euro area in the future.

Speakers: Servaas Deroose, C. Randall Henning, Rolf Strauch and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 14, 2017
Read about event More on this topic

Past Event

Past Event

Future of the European energy industry

Closed-door brainstorming workshop about how the European energy system is changing because of decarbonisation and digitalisation.

Speakers: Simone Tagliapietra Topic: Energy & Climate Location: Milan Date: June 14, 2017
Read about event More on this topic

Past Event

Past Event

Substance requirements for financial firms moving out from the UK

In the run-up to Brexit, UK-based financial firms are considering how to organize their operations across the future divide between the UK and EU27. This event will discuss the regulatory requirements on how self-sustaining the operations in the EU should be, and implications for the single market and third countries.

Speakers: Gerry Cross, Simon Gleeson and Nicolas Véron Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 2, 2017
Read about event

Past Event

Past Event

Inclusive growth: global and European lessons for Spain

Can manufacturing still be a driver for inclusive growth around the world? What European and national policies can foster inclusive growth in Europe? What is the situation in Spain and what can Spain learn from the global and European experiences?

Speakers: Cristina Cabrera, Zsolt Darvas, Maria Demertzis, Alejandra Kindelán, Robert Lawrence and Federico Steinberg Topic: European Macroeconomics & Governance, Global Economics & Governance Location: Calle Los Madrazo 36-38 Madrid Date: May 31, 2017
Read article More on this topic

Blog Post

Adieu Paris: what’s next for climate policy if Trump ditches the Paris Agreement?

US President Trump has made it clear that he is not happy with the Paris Agreement. This week he will announce whether the US will withdraw from the Agreement altogether. What might that mean for the global fight against climate change? US decarbonisation is already well underway but the EU would need to step up and defend global climate governance.

By: Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: May 30, 2017
Read about event

Past Event

Past Event

Geo-blocking in the digital single market

Geo-blocking is a discriminatory practice that is wide-spread in EU. It prevents online customers from accessing and purchasing products or services from a website based in another member state

Speakers: Marine Elgrichi, J. Scott Marcus, Fabian Paagman, Bertin Martens, Georgios Petropoulos, Agustin Reyna, Gareth Shier, Werner Stengg and Roza von Thun Topic: European Macroeconomics & Governance, Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 30, 2017
Read about event More on this topic

Past Event

Past Event

Financial Times - Bruegel Forum: the future of Europe after the French election

The second event in the Financial Times - Bruegel Forum series will look at how the results of the French elections will affect Europe.

Speakers: Tony Barber, Jean Pisani-Ferry and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 11, 2017
Read about event More on this topic

Past Event

Past Event

Standardisation and patents: problems and policy options

Bruegel together with the Association for Competition Economics (ACE), is hosting an event on standardization and SEP licensing.

Speakers: Aleksandra Boutin, Georgios Petropoulos, Rebekka Porath, Pierre Regibeau and Hughes de la Motte Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 9, 2017
Read about event More on this topic

Past Event

Past Event

Protecting the privacy of electronic communications: getting the next steps right

Do the European Commission's recent initiatives put us on the right path?

Speakers: Nicholas Blades, Orla Lynskey, J. Scott Marcus, Alexander Whalen and Jeremy Rollison Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 25, 2017
Load more posts