New EU plan targets 90% greenhouse gas cut by 2040

The European Commission has presented a plan aiming to slash net greenhouse gas pollution in the EU by 90 percent by 2040, compared to 1990 levels, with a focus on carbon dioxide from burning fossil fuels and gases from agriculture and land use.

Market officials have described the plan’s goal of coming close to climate neutrality ten years before 2050 as highly ambitious.

The 2040 targets are a first step for energy legislation proposals concerning buildings, transport, alternative green fuels, industry and renewables.

Extending energy legislation beyond 2030 promises to serve as a major catalyst for development of technologies and investments.

The European Commission’s proposals, announced ahead of elections in June, will activate a new energy policy cycle, as was the case, years ago, when 2030 targets were set, triggering spectacular growth in the renewable energy, energy saving and electromobility sectors.

The new 2040 targets will be even more challenging as the 90 percent greenhouse gas reduction target will require tremendous change in the energy, agriculture and land-use domains, amongst others.

The European Commission plan’s proposals are based on extremely detailed simulation of the respective energy systems of EU member states and projections made through exclusive usage of PRIMES, a mathematical model developed at the National Technical University of Athens for all of Europe – it has been consistently applied since 1995 for all EU energy policy proposals – and studies conducted by the Athens-based E3 Modelling scientific team for energy and transportation.

 

Energy ministry pushing ahead with CRM despite Brussels doubts

The government is pushing to deliver, as soon as possible, to Brussels its plan for a Capacity Remuneration Mechanism (CRM), a challenging endeavor given the strict stance maintained by the European Commission’s Vice-President Margrethe Vestager during her meeting with energy minister Kostas Skrekas last month.

RAE, the Regulatory Authority for Energy, assisting the government’s effort with swift progress on preliminary procedures, has commissioned consulting firm E3-Modelling, a decision based on its specialized skills, to prepare an implementation plan, required by Brussels, in order to help eliminate regulatory distortions or market failures.

Vestager, at her meeting with minister Kostas Skrekas in May, made clear that Greece will need to incorporate its strategic reserve model – remunerating units made available by electricity producers for grid back-up services – into a wider Capacity Remuneration Mechanism.

The Brussels deputy, also the Commissioner for Competition, has demanded a new grid sufficiency study and the reserve mechanism’s restructuring from scratch, aligned with EU directives.

Besides remunerating power utility PPC facilities for grid back-up services, the mechanism will also need to incorporate a demand response system.

Brussels officials have indicated the Greek plan will need to have a short duration.

The E3-Modelling company’s team includes Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, who possesses a high level of expertise in European energy market reforms, as well as other officials with the necessary expertise, to help the authority complete its task within the limited time given by the government.