How to secure Europe s competitiveness in terms of energy and raw materials? The answer, my friend, is blowing in the wind

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1 How to secure Europe s competitiveness in terms of energy and raw materials? The answer, my friend, is blowing in the wind Iván Pineda Head of Policy Analysis, EWEA PolyTalk 2014, Brussels

2 Around 600 members from almost 60 countries Manufacturers with a leading share of the global wind power market Component suppliers Research institutes National wind and renewable associations Developers Electricity providers Finance and insurance companies Consultants Contractors

3 EWEA s leading members

4 Why wind energy is the answer for Europe s competitiveness and industrial renaissance?

5 European competitiveness is suffering because of our energy handicap: Source:

6 Reducing our dependence on imports will also increase our capability of managing energy decision-making. Source:

7 and will avoid expensive fuel imports

8 Wind energy is a mainstream power generation technology Share of wind in EU s electricity consumption 8% of the electricity demand in Europe 14% - 16% in 2020? 50% in 2050? Others ? 2050? Offshore wind = fastest growing power sector in Europe

9 Wind energy is a low marginal cost power technology Source: Risø DTU

10 so why our electricity bills are increasing? Source: EC, Energy Prices and Costs report, 2014

11 Wind energy is not increasing your electricity bill - Fossil fuels main drivers of energy prices and will remain so in future. - Energy infrastructure investments weigh on energy bills. These will carry on to 2030 even with less RES. - Less mature renewable technologies can result in higher electricity prices.

12 Wind energy is not increasing your electricity bill - Grid tariffs, taxes, levies and exemptions have significant impact on energy prices. - Support for RES-e is 7.2% of end-user electricity price for industry and 5.4% for households - Completion of internal energy market helps keep wholesale prices in check. This trend will continue.

13 Renewables are expensive is a cliché! Total support provided in the EU-28 in 2012 Source: EC, Subsidies and costs of EU energy, 2014

14 Renewables are expensive is a cliché! Total interventions, external costs and costs of energy in 2012 Source: EC, Subsidies and costs of EU energy, 2014

15 Wind energy is an opportunity for European industry. Global market share of wind turbine manufacturers Source: MAKE consulting, 2014

16 Wind energy is an opportunity for European industry. Source: EC DG ECFIN with data from OECD patent statistics, 2013

17 Conclusions European competitiveness is suffering because of its energy handicap We must reduce this fuel anaemia, (fuel) transfers are expensive. Use more indigenous resources such as wind Wind not only avoid expensive imports, but it is a near zero marginal cost technology than can lower electricity prices in functional markets Wind energy is cheaper than gas, nuclear and coal It is one of our best bets in technological leadership, job generation and exports

18 Thank you very much for your attention RUE D ARLON 80 B-1040 BRUSSELS T: F: E: ewea@ewea.org

19 Companies going green

20 Other indicators of competitiveness

21 High wind energy penetration can equates to low electricity bills 0,35 /kwh 0,3 0,25 0,2 0,15 0,1 0,05 Cost of electricity in Denmark including support for wind energy, excluding other taxes. 0 Source: Eurostat Energy supply Network costs Taxes & levies France is excluded from this analysis as it did not communicate a price breakdown to Eurostat

22 Cyprus Malta Italy Ireland Slovakia Germany Spain Belgium Greece Latvia Czech Rep UK Lithuania Portugal Luxembourg Slovenia Poland Netherlands Denmark Croatia Sweden Romania Finland Estonia Bulgaria High wind energy penetration and industry electricity costs. /kwh 0,25 0,2 0,15 0,1 0,05 Cost of electricity in Denmark for industrial consumers including support for wind energy and other taxes. 0 Source: Eurostat Energy supply Network costs Taxes & levies France is excluded from this analysis as it did not communicate a price breakdown to Eurostat

23 Main messages relating to electricity prices Europe is price-taker on global fossil fuel market (oil, gas and to a lesser extent coal). Europe is an increasingly import-led coal market. Since 2005 wholesale gas prices have increased across the world (except N. America). Industrial electricity prices have been fairly stable between 2009 and 2012.