Energy Union – The way ahead

Diego Pavia

30th October 2015

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Energy Union. What? (1/2)

A clearly defined framework

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Energy Union. What? (2/2)

Cheaper, cleaner, and secure

Cost energy

time2015 2020 2030

€1

€2

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Energy Union. How? (1/9)

Many dimensions required …. inter-related

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

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Energy Union. How? (2/9)

Technology dimension

Think City 2009Platser: 2Längd: 314 cmMax Hast:113 km/h0-100km/h: 16 s.Räckvidd: 161 kmEffekt: 34kW (46hk)Utrustning: Ej AC, Ej servo, direkt elvärme, ingen aktiv säkerhet…

VW e-Golf 2014Platser: 5Längd:425 cm Max Hast: 140 km/h0-100km/h: 10,4 s. Räckvidd:190 kmEffekt: 85 kW (115hk)Utrustning: ACC, servo, värmepump, aktiv säkerhet, LED-belysning….

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

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• EDSO: We will need storage « at whatever cost » with anincrease of the share of RE.

• RTE: we should stop focussing on conventional economicanalysis when it comes to storage (Tesla powerwall is maybe noteconomical, but it is sexy), and should consider the digitaltransformation

• JRC: We should not only consider storage for mitigation ofClimate Change, but also for Adaptation to CC.

• Eurelectric: for a new market design, we should start from thisrule: everyone going to the grid should be balanced. No moresimple injection of electricity in the grid.

• Tesla has been mentioned 5 times. Tesla appears as a mindchanger, enabling the blossoming of game changers.

Energy Union. How? (3/9)

Business model dimension

32%

26%

42%

John Europe energy bill

Energy

Grid

Others

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

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Energy Union. How? (4/9)

Regulation dimension

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

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Energy Union. How? (5/9)

Supply & value chain dimension

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

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Energy Union. How? (6/9)

Society and individual dimension

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

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Energy Union. How? (7/9)

Human capital dimension (both sides)

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain

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3 timelines (2015-2020-2030) / 2 dimensions lagging

Energy Union. How? (9/9)

Our judgment

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Conclusions

1. It is a systemic problem => requires systemic solutions

2. It is a multidimensional problem => requires multidisciplinary

solutions

3. It is a global problem => requires European solutions

Fortunately in Europe we are specially well prepared for complex

challenges

Let´s lead again

Societal &Individual

Technology

Human Capital

Regulation

ValueChain/Market/Biz

Model

Supply Chain