Update to the Scottish European Energy Network, following the meeting of 22 March 2010, in Brussels.
European Sustainable Energy Week (EUSEW) took place from 23-26 March 2010. On Monday 22 March, the Scottish Government in conjunction with Scotland Europa, The Scottish European Green Energy Centre(SEGEC) and the EU Offshore Energy Association hosted a seminar looking at the challenges involved in developing the Marine Energy sector (wave and tidal power). The event, which the Cabinet Secretary for Rural Affairs, Richard Lochhead, opened was a sell out and attended by developers, the European Investment Bank, the European Commission, the Chair of the Scottish European Green Energy Centre and a number of electricity utilities. A number of Scottish Government Energy officials and members of the Scottish EU Energy Network also attended. A great deal of discussion focussed on the absence of public funding to facilitate the deployment and demonstration of marine technologies on a large scale and the need for an Industrial initiative to develop the sector strategically. Scottish Government officials are discussing how best to take the issue forward with the European Commission. In the evening, the Chair and Interim Chief Executive of the Scottish European Green Energy Centre, Duncan Botting, opened a reception and exhibition of Scottish sustainable energy projects. The reception was extremely well attended by members of the European institutions, Scottish organisations and members of the Network. It provided a valuable opportunity for networking and showcased the best of Scotland's low carbon energy projects - including a scale model water tank of the Aquamarine Oyster device which gave a very tangible demonstration of the considerable work already underway in Scotland.
EUSEW official opening
Energy Commissioner Oettinger addressed the opening conference stressing key priorities would be ensuring appropriate implementation of existing energy directives, promoting energy efficiency measures, development of grid, a sustainable transport strategy and the promotion of renewables technologies through the Strategic Energy Technology Plan, which will give rise to the launch of a number of Industrial initiatives at an event in Madrid in June 2010. A key output from the Commission this year is also expected to be a consultation on a proposed 2050 Energy Framework.
EU Energy Network meeting
The Network met on the same day as the Scottish EUSEW event in Brussels. The meeting was well-attended and there was a good exchange of ideas and information on key developments in EU energy policy since the last meeting:
· The appointment of the new Energy Commissioner, Gunther Oettinger and his strategic priorities for his term;
· The agreement in the comitology process to the ETS New Entrants Reserve funding mechanism for CCS and innovative renewable demonstration;
· The EU Energy Action Plan (2010-14) - Karen Burt gave a presentation, which can be viewed here
· The agreement of the Energy Council to conclusions on the financing of low carbon energy technologies and the updated Strategic Energy Technology Plan from 2010-14
New Entrants Res erve
· The EU's Climate Change Committee reached agreement in February on the NER financing package for 8 CCS demonstrators and 34 innovative renewable projects across the EU. The funding is expected to be worth €5-10 billion in co-financing of 50% of project costs, depending on the carbon price of the allowances. Each member state can secure funding for a maximum of 3 projects. The CCS projects in the UK will be co-financed via the proposed CCS levy and the RE projects via the Renewables Obligation. The Scottish Government is working with DECC officials to agree the mechanism for pre-selection of projects to go forward to the EU competition, with proposals to be submitted in October 2010 for final award in mid-2011. The new Scottish European Green Energy Centre will be leading on work with developers to prepare appropriate bid submissions.
Strategic Energy Technology Plan
· The SET Plan was recently updated for the 2010 to 2020 period and sets out a clear financing package and various technology roadmaps for each of the key low carbon sectors (solar, wind, CCS, smart grids, etc). The delivery of the plan will be via a series of European Industrial Initiatives, with those on solar, wind and grid expected to be launched at a summit in Madrid in June. These EIIs will bring together industry, member states and the Commission to focus on delivery. Initial funding will come via the NER and existing FP7 research framework programmes, but more substantial finance after 2013 will depend upon the EU budget review.
http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm
EUROPEAN COMMISSION WORK PROGRAMME 2010
The new European Commission has published its detailed Work Programme for 2010. The key policy initiatives foreseen over the coming year for energy, climate change and transport are:
- Energy Action Plan 2011-2020: A holistic document is expected to be published early 2011 setting out key priorities.
- Interim document on the Energy Action Plan: At the initiative of the Spanish EU Presidency, the Commission is requested to come forward with an interim document on the Action Plan in May 2010.
- Energy taxation Directive: The Commission will develop and publish a proposal to revise current rules to ensure CO2 is taken into account in minimum levies.
- Energy efficiency: An Action Plan will be developed, focusing especially on the building and transport sectors, as well as energy supply systems.
- 2050 Energy Vision: A roadmap towards a 2050 low carbon energy vision will be drafted, looking towards decarbonisation of energy and transport.
- Energy infrastructure package: This will set out priorities for interconnections and the development of smart grids. [Expected in Q.4.]
- Smart grids: A legislative framework for smart grids will be proposed.
- Wholesale market trading: A proposal addressing transparency and integrity is expected. [Expected date not specified]
- Communication on "Mainstreaming Climate Adaptation and Mitigation in EU policies and climate proofing of financial instruments
- Communication on a 30% emissions reduction: This will set what measures would be necessary to step up the EU emissions reduction goal to 30% by 2020, if this is agreed by EU leaders. [Expected date not specified]
- Integration of adaptation and mitigation: Following up on 2009's White Paper, this will look to integrate climate adaptation and mitigation in policies and programmes.
- Transport technology: A Sustainable Transport Technology Plan is expected to be published, setting out technology development needs to achieve decarbonisation by 2050.
- Biofuel sustainability: A Commission Communication will set out how to implement the sustainability scheme for biofuels.
- Green vehicles: A Communication will set out a strategy for the decarbonisation of transport vehicles.
- White Paper on Transport: This will focus policies to achieve sustainability of transport and will further focus on infrastructure needs.
In addition, adapting the financial framework will be on the agenda, ahead of the new financial programming period beginning in 2013. Discussions this year will focus around a Budget Review to be presented by the Commission, and will look at ensuring funds are better allocated in line with key policies such as energy and climate change.
European Commission Work Programme
UPCOMING MEETING OF THE SCOTTISH EU ENERGY NETWORK
· The next meeting of the Network will take place on Friday 14th May from 10.30-12.30, at Thistle House in Edinburgh (91 Haymarket Terrace). Please confirm attendance to myself by close of play on Monday 3 May.
· The agenda for the meeting is:
- Update on Grid interconnections and ISLES - Mike McElhinney, Scottish Government
- Update on New Entrants Reserve - Ross Loveridge, Scottish European Green Energy Centre
- Update from the Scottish European Green Energy Centre
To attend, please contact Victoria.wallace@scotland.gsi.gov.uk