Workshop

Putting Science into Standards: Power-to-Hydrogen and HCNG

Keynote 2: A European Perspective on Power-to-Gas

Tudor Constantinescu Principal Adviser European Commission – Energy

1 1 Climate and energy: where do we stand? Main changes since 2008 • Renewable energy saw rapid cost decreases • Technologies are gradually • Impact of the financial crisis becoming competitive • Fall in private investment, • But large scale integration is tight financing conditions a challenge Fukushima Shale gas US oil and gas production

Rising demand Some countries phase out -> rising prices nuclear power production By 2030, world economy set to double and energy Unconventional gas Unconventional oil demand to rise by 1/3 Conventional gas Conventional oil 2 Major energy challenges in Europe

• Import Dependency • High Energy Prices • Decarbonisation • Technology mix

3 How to address energy challenges in Europe?

. Complete the internal market and place consumers into focus . Improve EE- attract investments, behaviour change . Increase RES – lower technology costs, market integration measures, reform support schemes . Make use of available energy resources, develop synergies between RES and fossil fuels (e.g. Power to Gas) . Improve and develop infrastructure – interconnections, smart grids . Diversify energy supplies and International cooperation (e.g. Energy Community, Eastern Partnership, Inogate)

. Act on Technologies – Regulations – Financing - Cooperation

4 5 6 2030 targets • Greenhouse gas emissions reduction of 40% • EU level target of at least 27% share of renewable energy • Energy Efficiency improvement of 30% By • Greenhouse gas reduction target at EU level, shared equitably among the Member States • A reform of the Emissions Trading System • A new European governance process for energy and climate policies based on Member State plans for competitive, secure and sustainable energy While energy efficiency will continue to play a significant role in delivering the Union's climate and energy objectives. 7 SET Plan adopted in 2008

• Focus on technologies with market impact up to 2020 (set up of EIIs) • Wind • Solar • Electricity grids • CCS • Bioenergy • Nuclear • Smart Cities and Communities • Fuel cells and hydrogen • Focus on longer-term research actions beyond 2020 (set up of EERA) • Financing

8 Communication on energy technologies and innovation

• Looking at the whole energy system • Making better use of existing and increased financial resources • Integrated Roadmap • Consumer • Energy Efficiency • System optimisation • Secure, clean and competitive supply • Action Plan

9 Conclusion: RE variability will increase

59 62 78 96 108

Source: Eurostat 10 Hydrogen technology application Flexibility . Electrolysers can today provide flexibility through primary, secondary and tertiary services to the electricity grid.

Size . Small physical size of electrolysers: location and geography independent . Biggest electrolysers in operation: . Coupled with RE: 6 MW in Werlte (2013) . For industrial use: 160 MW in Egypt (1960's) . Outlook for the coming years linked to renewable power: . Some RE investors are currently looking into double-digit MW applications

Market value . Large scale application of the P2G technology requires structured approach . Technology & policy & standards & markets 11 Storage capacity

Source: ZSW 12 Storage capacity Energy system flexibility balances the electricity grid

13 Market development and policy

The cost of P2G is reducing with technical progress • …while RES moving towards market conditions: lower FIT/support & lower cost

Hydrogen is an energy carrier, and is often not seen as such • Need to better integrate the hydrogen/P2G aspects into policy making, analyses and future solutions in generation and grid planning.

14 H2 and Natural Gas

The proposal of integrating P2G with the natural gas grid brings up the issues concerning natural gas and the related infrastructure:

• Technical possibilities: blending & materials

• Standards (safety, amount, end-use)

• Gas quality: impact of SNG & hydrogen– as well as biomethane

• Decarbonisation of the gas infrastructure – scale of impact on objectives

• Markets – treatment of the low-carbon/carbon free content of natural gas

• Regulatory aspects – access and tariffs

15 Power to Gas applications RES - possible developments- Power 50-90 %

2020 2030 2050 16 Thank You for Your Attention!

[email protected] http://ec.europa.eu/energy/index_en.htm

Energy 17