Energy Strategy for the Basque Country How to transform constraints into opportunities. Lyon, 17/12/2012
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1 Energy Strategy for the Basque Country 2020 How to transform constraints into opportunities Lyon, 17/12/2012
2 Basque energy situation Growth in energy demand slowed from 2008 on as a result of the crisis and high energy prices ktep Energy Demand Sectorial energy consumption Electricity (imports) Renew ables Natural gas Oil and derivatives Coal and derivatives 1,5% 8,6% 32,9% 11,7% Industry Primary Residential Transport Services 45,3% but at a sectorial level, consumption in industry still plays a very major role as compared to other sectors. 2
3 Basque energy situation Over nearly 30 years, there have been major changes in the Basque energy mix % 62% 21% 39% 42% 24% 11% 2% 0% 1% 8% 16% 1% 4% 3% 9% 7% 0,3% Coal Oil Natural gas Derived energy Renewables Electricity (imports) with an increasing role played by natural gas and renewables at the expense of oil, coal and imported electricity 3
4 Directives. Strategic areas Energy strategy for 2020 is deployed through three basic strategic areas Consumer sectors Energy markets and supply Technological and industrial development involving 29 initiatives and 107 actions. 4
5 Energy Cluster: great significance with 350 Companies, 2.6% of employment in Basque Country and 23% of turnover on GDP, Basque energy companies Scientific and technological agents R&D Business Units Total turnover in the Basque Country Total R&D spending in the Basque Country 44,210 m 15,470 m (35%) 324m 188m (58%) Total no. of employees in the Basque Country Total no. of employees in R&D in the Basque Country 68,625 24,378 (36%) 2,948 1,905 (65%) which spends around 320m on R&D, employing around 3,000 people. 5
6 energibasque" strategy: making use of the great energy challenges as a major opportunity for the Basque industrial sector. Market size Growth rate Techn. Position Ease of entry Value chain Businessgenerating companies Vision The Basque Country, a knowledge pole and a reference point for industrial development in the energy sector worldwide 6
7 Strategic areas: 8 priority technology areas, Consolidate Basque businessgenerating firms Activity in emerging areas New market opportunities Smart Grids Wind Waves Offshore Solar thermoelectric Storage PRIMARY ENERGY Unconventional gas exploration Electrification of transport Management of energy services... with electricity as a common link to all of them, and a key energy vector in the coming years. 7
8 Driver companies and their value chain: To consolidate them as leaders in the technological field in their specific energy areas. Smart Grids Comprehensive and internationally recognised offer Wind Increasing power of wind turbines Offshore segment Solar thermoelectric Central receiver Thermal energy storage technology 8
9 New and emerging fields: Developing business activities in which the existing technology base has a strong starting point. Waves Consolidate a scientific and technological offer Value chain (equipment, components and services) specific to the marine energy sector Driver effect generated by the outstanding test-bed infrastructure Storage Generate high level scientific and technological skills and knowledge Develop technology applications for the market 9
10 New energy-related markets and opportunities within the framework of the 3E2020 strategy. Electrification of transport Development of a distinctive infrastructure of charging stations Support services for electric vehicles Management of energy services Promotion of a structured, challenging and sophisticated demand Development of an innovative business offer (smart technologies) Unconventional gas exploration Development of a domestic offer of products and services 10
11 An international outstanding and unique experimental facility for R&D aimed at developing new concepts, products and services to improve ENERGY EFFICIENCY IN BUILDINGS KUBIK generates realistic scenarios with varied uses: Residential sector Services Sector Sports complexes Educational sector 11
12 Socio-economic impact The impact of domestic investment is seen in an increase in business equivalent to 1.6% of GDP and maintenance of 14,150 jobs per year, Total investment 3E2020 Social impact Economic impact of investment Technological impact Domestic investment 61% Economic impact of cutting CO 2 Business impact (new markets) Production of Added Value Direct effect Employment Total Effect = + Induced effect Return on labour and capital Tax revenue and in addition a business profit of close to 4,000 million is generated and more than 2,800 million in revenue collected by Basque public authorities. 12
13 Summary The Basque energy strategy (3E2020): Will enable determined progress towards a more secure, efficient, competitive and sustainable energy system, with a vision for the future. Will contribute to meeting the strategic targets of European and Spanish energy and environmental policy. Will promote technological and industrial development of the Basque business sector, using energy policies to attract innovative projects and new market opportunities. Will have important knock-on benefits for economic activity, employment and industrial development in the Basque Country. In alignment with other plans and strategies will reinforce synergies between different Basque government policies. 13
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