The image of gas: a view from the EU European Gas Conference, Vienna 31 st January 2013 François- Régis Mouton, Chairman, GasNaturally

Transcription

1 The image of gas: a view from the EU European Gas Conference, Vienna 31 st January 2013 François- Régis Mouton, Chairman, GasNaturally

2 Who are we? GasNaturally brings together: 7 organisa4ons 133 companies in Europe 2

3 A Unified Voice for Natural Gas Our Mission: Communica4ons Feed the policy debate with factual informafon and data Underline the role gas could play in a sustainable energy mix Manage percepfon of natural gas amongst policymakers Advocacy Emphasise how natural gas helps the EU meet its energy policy objecfves Help policymakers formulate a clear vision for the future Secure a policy framework able to deliver that vision

4 Gas and the 3 EU Energy Policy Objec4ves CompeFFveness The 3 EU Energy Pillars Security of Supply EU Energy Policy ObjecFves Sustainability Gas is an adequate answer to these issues 4

5 Focus on the Gas & Power sector No longer a ques4on, but a must: Gas industry has to deal with high investments in renewable energy Source: European sources Wind Energy AssociaBon (EWEA)

6 What Consequences on Emissions? Growth in coal demand in 2011 Global CO 2 emissions Growth EU energy & climate policies are now less effecfve than US ones! Source : IEA, Golden Age of gas, 2011, p 49 6

7 What consequences on Gas Power plants? Gersteinwerk power plant Source : RWE Supply & Trading 2011 No longer a ques4on, but a must: Among other, need of reshuffling the power market design

8 The Solu4on: A Natural Gas and Renewables Partnership Natural Gas - Cleaner and flexible back- up - Offers possibility for electricity storage (Power- to- Gas ) What is needed: Renewables RES - Challenges of variability: need for balancing capacity GAS A clear view on post energy and climate policy to provide the right incenfves and compeffve pressure on the market No longer a ques4on, but a must: Gas has now to displace coal in the EU

9 Changing the mindsets Gas will remain cri.cal for the transforma.on of the energy system. Subs.tu.on of coal (and oil) with gas in the short to medium term could help to reduce emissions with exis.ng technologies un.l at least 2030 or Commissioner OeOnger at the Energy Dialogue Russia- EU, 27 April 2012 Percep4on of gas has improved But issues remain «Gas is the cleanest fossil fuel «Security of supply is less of an issue thanks to diversifica4on of sources «Gas- fired power plants bring efficiency and flexibility into EU grids «More gas can help restore the compe44veness of EU industry «Gas is s4ll A fossil fuel» «Exploring Shale Gas in the EU is ques4onable» «Gas is only a transi4on fuel» «To avoid a gas lock- in, priority should be given to renewables investments»

10 The Way Ahead for Natural Gas? (1/2) 2013 Gas, the fuel of reason 2035 Replacing coal in power genera4on, Gas for mid & base load and backing up variable renewables Gas for hea4ng, hot water & transport (LNG for shipping, gas for fleet, etc) Diversifying supplies: New investment in gas infrastructure, incl. Southern corridor and new LNG sources Further deployment and integra4on of renewables in the energy system R&D investment in renewables, energy efficiency, gas technologies (Power to Gas, ) and CCS.

11 The Way Ahead for Natural Gas? (2/2) 2035 Gas, part of the solu4on 2050 Gas for mid & base load and back up for variable renewables Further deployment of variable renewables Power- to- Gas : The gas grid stores and transports excess renewable energy Help decarbonisa4on of EU power sector genera4on CCS wide scale deployment (subject to technology breakthroughs & public acceptance)

12 «Making A Clean Future Real!» Partnership Flexibility InnovaFon DiversificaFo n Certainty IncenFves

13 GasNaturally calendar for st of Jan 05 th of March 23 th to 25 th of April 13 th of Nov GasNaturally Roundtable European Parliament Gas Security of Supply GasNaturally Roundtable European Parliament Technology & innovafon Gas Week European Parliament Compe44veness, Sustainability, Security of Supply + infrastructure & gas u4lisa4on, Power, Industry Gas Member State Forum Under Lithuanian Presidency Patronage

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15 Technical Costs of Electricity /MWh Back to the presentafon Non Dispatchable Variable Renewables (Excluding back up costs) Levelized Cost of Electricity 13/MWh CAPEX OPEX FUEL COST CO2 COST - w/o CCS Dispatchable Energies (Base load 80% ) Assump4ons : Gas price (plant gate) : 11 $₁₃/MMbtu Coal price (plant gate) : 115 $₁₃/t (ó 4,6 $₁₃/MmBtu) CO2 : 25 ₁₃/t 1 =1,3$ Source : TOTAL,

16 2011 EU Natural Gas Supplies Back to the presentafon 16

17 Power to gas : using gas infrastructure to store electricity 2H 2 direct injec4on into gas grid (10%?) excess renewable electricity gas storage CO 2 O 2 Electrolyser 2H 2 2H 2 CH 4 methanisa4on injec4on into gas grid (unlimited) 2H 2 O O 2 Source : GERG 2012 MeeBng Europe s energy storage challenge Back to the presentafon 17