IEEE Power & Energy Magazine - March/April 2014 - 69

when reflecting, as we will in the next
section, on the optimal energy policy
mix for 2030.

R&D Expenditure by 13 Major European Utilities in Early 2000s1 and Early 2010s2
1,757

Paving the Way to 2030
as we have established above, europe's
decarbonization policies in 2013 have
Statkraft
Iberdrola3
+90%
delivered mixed results. We therefore
3
CEZ
RWE
look at the ongoing policy discussion
E.ON
Centrica
about the 2030 framework with some
925
Vattenfall5
SSE
concern, as policy makers seem keen
EDP
GDF Suez6
to replicate the 20/20/20 climate and
Enel/Endesa4
EDF
energy package that was designed for
Dong
the 2020 horizon. in what follows,
we put the initial eU energy policy
objectives in perspective, offer a new
account of what we think should be
the key objectives of the eU's energy
2003
2012
policy, and propose scenarios for the
1
2003: Vattenfall, E.ON, lberdrola, SSE; 2004: Dong; 2005: EDF, GDF Suez, Enel;
2030 framework.
2006: Statkraft; 2007: CEZ, EDP, RWE; 2009: Centrica
the ec has always argued that
2 2010: CEZ; 2011: Centrica, Dong, RWE, EDP; Others 2012
3 Adjusted for Acquisition of Scottish Power Ltd.
it sees eU energy policy resting on
4 Adjusted for Acquisition of Endesa
three pillars of equal importance:
5 Adjusted for Acquisition of Nuon Energy
security of supply, competitiveness,
6 Adjusted for GDF-Suez Merger and Spin-Off of Suez Environnement Company
and sustainable development, as
shown in Figure 9.
the generic character of these figure 7. R&D expenditures by large European utility companies, 2003-2012
objectives has led to some confusion, (sources: Capital IQ annual reports and EURELECTRIC).
as it makes it hard to identify exactly
what factual implications falls under which umbrella. more1) decarbonization
over, as time passes, policy priorities shift, thus making it
2) import independency and fuel diversity
almost impossible to understand which end of the triangle
3) technology development and innovation
"matters" more. as an example: does competitiveness mean
4) completion of the internal energy market and effective
cheap electricity prices, or are we talking here about an
retail competition
activist industrial policy designed to create jobs and gain
5) affordability for european industry.
competitiveness on global markets? is the aim of sustainthese principles reflect in a more comprehensive way
able development to be understood in strict terms as the fight the most recent proposals and the ec's current reflections
against climate change, or does the ec also include the cre- on energy policy, as enunciated in the res directive, the
ation of green jobs, which could create an overlap with the third electricity directive, the energy efficiency directive, the
objective of competitiveness? as far as the security of supply energy roadmap 2050, and the 2012 internal energy maris concerned, do we mean the reduction of import depen- ket communication. as a consequence, the policy triangle
dency or the guarantee of secure and reliable energy?
becomes a policy pentagon (see Figure 10).
We argue that these principles no longer reflect the reality of the ec's energy policy agenda and consequently do Competing Scenarios for 2030
not provide us with a forward-looking guide with which to to conduct a sound energy transition lasting through 2050,
analyze options for the 2030 framework. Below, we there- with a crucial milestone at 2030, we believe effective polfore summarize what we consider to be the key cornerstones icy instruments must provide clear investor certainty to
of eU energy policy. We then outline competing scenarios achieve decarbonization in the best conditions, at reasonfor europe's decarbonization by 2030. Finally, we test these able cost, and using market-based principles. decarbonizaoptions by evaluating their effectiveness in meeting a set of tion can be accomplished by relying on either expensive or
consistent criteria that we will outline beforehand.
more cost-efficient solutions. rather than choosing which
approach is the best, the following scenarios aim to outline
the pros and cons of the various instruments that can be
EU Energy Policy Revisited
in our view, ec energy policy is actually driven by five core used at the eU level to steer decarbonization and, in the
best of cases, exploit the complementarities of instruments.
objectives:
march/april 2014

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Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - March/April 2014

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