Manuel Welsch

Long-Term Energy Systems Planning : Accounting for Short-Term Variability and Flexibility

Limiting global climate change to +2 °C may require an increase of renewable electricity generation from a 20% share today to close to 50% by 2035, according to the International Energy Agency. As ...

Technoeconomic assumptions adopted for the development of a long-term electricity supply model for Cyprus

The generation mix of Cyprus has been dominated by oil products for decades. In order to conform with European Union and international legislation, a transformation of the supply system is called for. Energy system models can facilitate energy planning into the future, but a large volume of data is required to populate such models. The present data article provides information on key modelling assumptions and input data adopted with the aim of representing the electricity supply system of Cyprus in a separate research article. Data in regards to renewable energy technoeconomic characteristics and investment cost projections, fossil fuel price projections, storage technology characteristics and system operation assumptions are described in this article.

Chapter 8 – Conclusions

While the European Union is well on track with the implementation of its energy and climate policies, it is facing a complex situation. The energy transition will require new market designs which deliver on climate policy targets, ensure energy security, and provide affordable energy services to final consumers. At the same time national policies are to some extent contrasted by the launch of the Energy Union. This chapter provides some concluding thoughts on this energy transition, based on the analysis presented in this section on Europe’s Energy Policy Landscape.

Key Challenges Ahead

This chapter sets out the key challenges ahead for the European energy system, as it transitions to one that is low-carbon, both secure and reliable, and meets the energy needs of European citizens. It highlights the need for a comprehensive and cohesive policy package, as further considered in more detail in Chapter 33, Developing the Policy Package.

Chapter 35 – Research Priorities

There are a range of research needs that have emerged from the activities of INSIGHT_E. Whilst researching across a range of topics, the need for a more in-depth understanding have become increasingly evident. Such research topics include energy poverty, new market designs for electricity, and enhanced modeling of the Europe-wide system. In addition, the policy situation has changed, with the ratification of the Paris Agreement and new Commission proposals across a range of energy issues. This calls for a response from the research community.

The European Union on the Global Scene—A Snapshot

The European Union stand as the world’s fourth largest energy-consuming region. Despite the growing share of renewables, its energy supply mix remains dominated by fossil fuels. This chapter presents a statistical overview of the structure and dynamic of the EU’s primary energy supply and demand. For a number of Member States, alleviating external energy dependency remains a key concern.

A Market-Based European Energy Policy

European energy policy focuses on the opening of the energy market to ensure competition in generation, supply, and retail activities; and in this context on the reinforcement of cross-border interconnections. Despite such endeavors, regulatory structures remain fragmented, which is reflected by the disparity of energy prices inside the EU. A European dimension related to affordability and to the harmonization of national security of supply policies is also missing in this context. Policy coordination is further required among Member States and together with other trading partners in order to secure investments in energy markets. In the electricity market, different market policy instruments are envisaged as part of the EU Energy Union. Among them, a reform of the European Trading Scheme is put in place and a convergence of existing national capacity remuneration schemes is considered. This section assesses these market instruments and the overall progress towards an EU internal energy market. It further discusses the implication of EU energy policies on energy prices.

Chapter 4 – Introduction: Europe as a Consuming Region

Europe is one of the largest energy-consuming regions in the world, relying heavily on fossil fuel imports. This requires the EU to pursue an active policy to ensure security of supply. The challenges are particularly acute in the context of the transformation of the EU’s energy systems to meet the 2050 climate change targets. This introductory chapter sets the scene for and presents the outline of the following chapters.

European Energy Policy Objectives

Europe is on track to achieve the targets it set out for 2020 in terms of share of renewables, greenhouse gas emission reductions, and energy-efficiency efforts. Apart from a decline in consumption due to the 2007–12 financial crises, this apparent success relies on national interventions such as feed-in tariff support schemes. With the decision of the antitrust authorities to move from regulated support to market-based remuneration schemes, the pace of development of renewables is more uncertain. At the same time, significant low-carbon investments are needed to meet the increasingly ambitious energy and climate change targets for 2030 and 2050. This chapter presents an overview of related policy developments, assesses the level of progress towards achieving these targets and present associated barriers. It concludes by discussing the recent evolution of energy prices in the European Union and the challenges related to the Energy Union project.

Developing the Policy Package

Chapter 32, Key Challenges Ahead, set out the nature of the energy challenges faced by the European Union, as framed by the Energy Union and illustrated by the research presented in this book. In this chapter, we consider further insights from the think tank INSIGHT_E concerning the direction of policy formulation to effectively address some of these challenges. Particular focus is on policy needs to drive decarbonization, such as the EU ETS, system and market design for increasing the role of renewables, and protections for vulnerable consumers in energy markets, and the energy-poor more broadly.