100% renewable electricity

A 2050 vision and roadmap for Europe and North Africa

March 2010

PwC
Agenda

1 Introduction

2 The 2010 / 2050 Transition and Roadmap

3 Conclusions and next steps

100% renewable electricity: A 2050 vision and roadmap for Europe and North Africa March 2010
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 1 Introduction

What is the context and opportunity?

• Ageing infrastructure Change in the makeup Need to stay within a

• Security of supply and structure of the 2oC temperature
• Climate change power sector increase

An opportunity to achieve
100% renewable electricity
for Europe and North Africa
Roadmap ? Good EU-wide policy
cohesion and alignment

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 1 Introduction

2010 / 2050: Today’s starting point, tomorrow’s vision

2010 2050
• Demand challenges • Regional power system
• Power grid / power mix • Decarbonised electricity generation
• Imports / security of supply • Unified European power market united
• Emerging EU energy policy with NA
• Power market structure • Most suitable sites / technologies
• REN electricity costs • Affordable electricity / no energy
poverty
• Fossil fuel subsidies
• Development of a “Green” market

100% renewable electricity: A 2050 vision and roadmap for Europe and North Africa March 2010
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 1 Introduction

A simplified market model

Government
Enabling
Policy Areas

Investment & Market Infrastructure

Finance Structure

h
& Planning

Supply Generation Grid

Delivery
R&D Chains Capacity Demand
Capacity
Areas

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 1 Introduction

Breaking down this down into manageable steps

100% 2050

Long term
milestones and
% REN generation in power sector

vision
2040
75%

50% 2030

Medium term milestones, linking

into existing EU 2020 targets

25%
2020
2015
End- 2012 Short term
Current 2010 milestones
state

2010 2020 2030 2040 2050

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 1 Introduction

A roadmap to 2050

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 2 The 2010 / 2050 Transition and Roadmap

Key Findings
Enabling Area 1 – Government Policy
• REN Directive (esp. Art 9, electricity imports)
• Setting of binding regional 2030, 2040 and 2050
targets
• Long term policy, support schemes / incentives
General • Development of further technical guidelines

• Permission processes and public concern

• Other EU Directives – grid regulation
• Sharing best practice / lessons learned
• Building of institutional capacity across NA
Grid
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 2 The 2010 / 2050 Transition and Roadmap

Key Findings
Enabling Area 2 – Market Structure
• Regionalisation / unification of EU power markets
• Real time pricing and support schemes
(dispatchability)
• Grid connection for REN electricity
General • Increasing cooperation with North Africa

• Harmonisation of grid regulation

• Increasing coord’n between TSO’s and Nat’l Grids
• Managing electricity supply and demand
• Supply chain constraints
Grid • New entrant network connection
100% renewable electricity: A 2050 vision and roadmap for Europe and North Africa March 2010
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 2 The 2010 / 2050 Transition and Roadmap

Key Findings
Enabling Area 3 – Finance & Investment
• Accessing all sources of financing
• Information sharing, standardisation of tools
• Development of bespoke products e.g.
insurance
General • R&D and demonstration plant investments

• Technology cost reductions

• Project proposal development
• HVAC and HVDC supply chain
• Energy efficiency
Grid
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 2 The 2010 / 2050 Transition and Roadmap

Key Findings
Enabling Area 4 – Infrastructure & Planning
• Long term planning for regional grid expansion
• Mandate to introduce new technologies, support
R&D
• Commercial scale demo projects (generation)

General • Natural and strategic decommissioning of FF plants

• Development of 3-5 regional Super Grids

• Demonstration projects (transmission)
• Reinforcing HVAC lines, new DC links to North
Africa
Grid • North African grid development

100% renewable electricity: A 2050 vision and roadmap for Europe and North Africa March 2010
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 2 The 2010 / 2050 Transition and Roadmap

Key Findings
Other – Opportunities and Consequences
• Security of supply
• Costs
• Environmental concerns
• Sustainable development
General • Climate change

• Governance and regulation

• Engagement with the public
• Other North African opportunities
• Cost reduction
Grid
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 3 Conclusions and next steps

What is the context and opportunity?

• Ageing infrastructure Change in the makeup Need to stay within a

• Security of supply and structure of the 2oC temperature
• Climate change power sector increase

An opportunity to
achieve 100%
renewable electricity
for Europe and
? Good EU-wide policy
cohesion and alignment
North Africa
Roadmap

100% renewable electricity: A 2050 vision and roadmap for Europe and North Africa March 2010
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Thank you

The report can be downloaded from: www.pwc.com and www.SuperSmartGrid.net

Gus Schellekens
PricewaterhouseCoopers
Sustainability and Climate Change
gus.schellekens@uk.pwc.com
+44 7711 828 845

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