Download EAR Ressl Beirut - European Academy of the Regions

EUROPEAN ACADEMY OF THE REGIONS
PRESENTS:
CHALLENGES TOWARDS A COMPREHENSIVE
ENERGY POLICY
BEIRUT, 07.03.2017
Presentation EAR-AER
Dr. Stephan Ressl
Member of the Board
EAR-AER aisbl
EAR/AER’s mission
The aim of the European Academy of the Regions / Académie
européenne des Régions is to promote the idea of
regionalisation and of regional action as a tool for employment
and wealth creation.
EAR-AER promotes and defends the autonomy of regional and
local authorities and their right to have adequate financial
resources to enable them to exercise their responsibilities.
The organization supports cooperation between regional and
local authorities of the Member States, neighboring States and
third countries.
Presentation EAR-AER
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WHAT IS REGIONAL APPROACH?
• supranational approach:
• energy and water supply,
• fight against pollution,
• medical research and
development,
• …
• subnational approach:
• Homogenizing forces of globalization endanger the local knowledge,
relationships, and regionally diverse cultures that once connected
people and place
require a specific approach, which often differs from the national
policy
Energy: decentralised, more and more sustainable, more
individualised, higher resilience, ultimate security of supply.
Regional Approach - Louis Delcart
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ENERGY POLICY: CHANGING TIMES
• Climate change, economic globalisation and asymmetric
population growth change also energy needs
• “Old” heavy investment cycles too long for changing
environment (exceptions: Hinkley Point,..), old system failed to
avoid climate change
• “New” lower magnitude of investments (e.g. RES, efficiency,..)
are more flexible and adaptable to (local) needs, but you
need more
• New type of investors interested in local investments
(pension funds, citizens, ..), the consumer more involved
• Side effect: increase of power and autonomy of the “small”
• Side effect: very low pre-visibility for infrastructure needs
• -> currently a somewhat messy situation in EU
Regional Approach – Energy Policy
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GLANCE AT EU ENERGY POLICY
• The EU has adopted a vision of
decarbonised economy and
committed itself in COP21
• EU is not one country or a block
but a multitude of MS with
diverse interests – progress slow
• Globalised industry needs
competitive energy and citizen
decent service
• Progress in data processing and
communication and technology
opens new business in local and
regional level – faster, more flexible
• New proposal for holistic approach
seems well targeted, but to be seen..
Regional Approach – Energy Policy
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CHALLENGES TO A COMPREHENSIVE
ENERGY POLICY
• Worst thing: lack of clear vision by policy makers
• 2nd worst thing: changing of “clear” vision every few
moments
• 3rd worst thing: the citizens do not share the same vision
as the policy makers
• And more questions arise:
• Society: Elite driven versus bottom-up driven
• Market: Monopolistic, static and foreseeable versus
“atomistic”, efficient and volatile setting, who is allowed to
participate?
• Technical: technologically proven but inefficient versus higher
forecast uncertainty and heavy investment challenge
• Financial: how and who to finance change (especially if it is
not clear that the change will not be changed again before
investment returns)
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CONCLUSION:
HOW TO MANAGE BEST
TRANSFORMATION AND INNOVATION
• Establishing an energy strategy is a process, starting with a vision and best inclusive
with stakeholders(e.g. green book, white book, legal transposition of result etc..),
including also transport and heating and cooling
• Indigenous hydrocarbons is not the answer to all, although nice to have if managed
well (de-politized Sovereign Wealth Fund,…)
• The integration of new elements (energy efficiency (building insulation…), RES,
demand response, smart grids, …) is secure, fast, reliable and rather cheap on
lifetime calculation, 30-50 % RES penetration possible within 10 years
• Much of the new approach comes with innovative financing models
• The clean energy and climate sensitive view present a valid add on to the fossil fuel
only energy regime
• Low capitalised, new entrepreneurs can enter and prosper in decentralised energy
markets, creating local jobs and added value
• ESA incubator (or via a new smart academy) could also foster start-ups in energy
(financing), creating local knowledge and wealth, exporting this then to Middle East
and abroad..
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Thank you very much
Q+A
[email protected]
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