COM(2010) 639 final: Energy 2020 – A strategy for competitive, sustainable and secure energy

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A strategy for competitive, sustainable and secure energy

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Progress on energy efficiency in Europe The ODEX index measures progress in energy efficiency by major sector (industry, transport, households and services), as well as for all final consumers. For each sector, the index is calculated as a weighted average of sub-sectoral indices of progress in energy efficiency, observed over a given period. Sub-sectors refer to industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units (for instance tons of steel, tonne-km for transport of goods, kWh/appliance, m² for offices, etc.). ODEX provides a better 'proxy' of energy efficiency progress from a policy evaluation viewpoint than the more commonly used monetary indicators.
Energy intensity Energy intensity is the ratio between gross inland energy consumption (GIEC) and gross domestic product (GDP), calculated for a calendar year. GIEC is calculated as the sum of the gross inland consumption of the five sources of energy: solid fuels, oil, gas, nuclear and renewable sources. To monitor trends, GDP is in constant prices to avoid the impact of inflation, with a base year of 2010.
Overview of electricity production and use in Europe Total gross electricity generation covers gross electricity generation in all types of power plants. Gross electricity generation at plant level is defined as the electricity measured at the outlet of the main transformers, i.e. the consumption of electricity in the plant auxiliaries and in transformers is included. Electricity production by fuel is the gross electricity generation from plants using the following fuels: coal and lignite, oil, nuclear, natural and derived gas, renewables (wind, hydro, biomass and waste, solar photovoltaics and geothermal) and other fuels. The latter include electricity produced from power plants not accounted for elsewhere such as those fuelled by certain types of industrial wastes, which are not classed as renewable. Other fuels also include the electricity produced as a result of pumping in hydro power stations. The share of each fuel in electricity production is taken as the ratio of electricity production from the relevant category against total gross electricity generation. It should be noted that the share of renewable electricity in this indicator, based on production, is not directly comparable with the share required under Directive 2001/77/EC, which is based on the share of renewables in electricity consumption. The difference between both shares is accounted for by the net balance between imports and exports of electricity and by how much domestic electricity generation is increased or reduced as a result. Final electricity consumption covers electricity supplied to the final consumer's door for all energy uses. It does not include the electricity producer's own use or transmission and distribution losses. It is calculated as the sum of final electricity consumption from all sectors. These are disaggregated to cover industry, transport, households and services (including agriculture and other sectors).
Share of renewable energy in gross final energy consumption Gross final renewable energy consumption is the amount of renewable energy consumed for electricity, heating and cooling, and transport in the EU Member States with actual and normalised hydropower and wind power generation  [1] , and expressed as the share of gross final energy consumption. The indicator was developed to measure the EU's progress towards achieving the 2020 and 2030 objectives on renewable energy. RED ( Directive 2009/28/EC)  commits the EU to reaching a 20 % share of renewable energy in gross final energy consumption  [2]  by 2020, and a 10 % share of RES-T by the same year.   It sets binding national targets for renewable energy consumption by 2020 and prescribes minimum indicative trajectories  for each country in the run-up to 2020 to ensure that national 2020 targets will be met. In addition, the directive requires Member States to adopt and publish NREAPs that outline the expected trajectories for their national shares of RESs for the years from 2010 to 2020. Countries submitted their NREAPs in 2010. They have an obligation to report biennially on national progress towards indicative RED and expected NREAP targets. Europe 2020: the EU’s 10-year growth strategy reaffirms the importance of the renewable energy sector for Europe. The target of a 20 % share of renewable energy in gross final consumption is one of the three headline targets for climate and sustainable energy under this strategy. The other EU-wide targets are the achievement of a 20 % reduction in the EU's greenhouse gas emissions compared with 1990, and a 20 % decrease in the EU's primary energy consumption compared with projections, both by 2020. Together, these represent the EU's triple 20/20/20 objectives for climate and energy in the run-up to 2020. They are implemented through the EU's 2009 climate and energy package and the 2012 Energy Efficiency Directive (EED). For 2030, EU leaders endorsed the following three EU-wide targets: achieving a binding minimum 40 % domestic reduction in greenhouse gas emissions compared with 1990; achieving a binding minimum 27 % share of renewable energy consumption; achieving an indicative minimum 27 % improvement in energy efficiency.  [1] In accordance with accounting rules under Directive 2009/28/EC, electricity generation from hydropower and wind power needs to be normalised to smooth the effects of annual variations (based on the 15-year average for hydropower and 5-year average for wind power). [2] Gross final energy consumption refers to the energy commodities delivered for energy purposes to industry, transport, households, services including public services, agriculture, forestry and fisheries, including the consumption of electricity and heat by the energy branch for electricity and heat production, and including losses of electricity and heat in distribution and transmission (cf. Article 2f of Directive 2009/28/EC). With this, it excludes transformation losses, which are included in gross inland energy consumption. In calculating a Member State's gross final energy consumption for the purpose of measuring its compliance with the targets and interim RED and NREAP trajectories, the amount of energy consumed in aviation will, as a proportion of that Member State's gross final consumption of energy, be considered to be no more than 6.18 % (4.12 % for Cyprus and Malta).
Overview of electricity production and use in Europe Total gross electricity generation covers gross electricity generation in all types of power plants. Gross electricity generation at plant level is defined as the electricity measured at the outlet of the main transformers, i.e. the consumption of electricity in the plant auxiliaries and in transformers is included. Electricity production by fuel is the gross electricity generation from plants using the following fuels: coal and lignite, oil, nuclear, natural and derived gas, renewables (wind. hydro. biomass and waste. solar photovoltaics and geothermal) and other fuels. The latter include electricity produced from power plants not accounted for elsewhere such as those fuelled by certain types of industrial wastes, which are not classed as renewable. Other fuels also include the electricity produced as a result of pumping in hydro power stations. The share of each fuel in electricity production is taken as the ratio of electricity production from the relevant category against total gross electricity generation. It should be noted that the share of renewable electricity in this indicator, based on production, is not directly comparable with the share required under Directive 2001/77/EC, which is based upon the share of renewables in electricity consumption. The difference between both shares is accounted for by the net balance between imports and exports of electricity and by how much domestic electricity generation is increased or reduced as a result. Final electricity consumption covers electricity supplied to the final consumer's door for all energy uses. It does not include the electricity producer's own use or transmission and distribution losses. It is calculated as the sum of final electricity consumption from all sectors. These are disaggregated to cover industry, transport, households and services (including agriculture and other sectors).
Overview of the European energy system Energy efficiency of conventional thermal electricity production Output from conventional thermal power stations consists of gross electricity generation and any heat sold to third parties (combined heat and power plants) by both conventional thermal public utility power stations and autoproducer thermal power stations. The energy efficiency of conventional thermal electricity production (which includes both public plants and autoproducers) is defined as the ratio of electricity and heat production to the energy input as fuel. Fuels include solid fuels (i.e. coal, lignite and equivalents, oil and other liquid hydrocarbons, gas, thermal renewables, industrial and municipal waste, wood waste, biogas and geothermal energy) and other non-renewable waste. Energy losses in transformation and distribution Numerator: The amount of energy loss is the sum of the the energy industry's own consumption, with distribution and transformation losses (the difference between transformation input and output).  Denominator: Numerator plus final energy available for final consumption in primary energy. EU-28 share of primary energy by fuel type and share of final energy consumption by sector Total energy consumption or gross inland energy consumption represents the quantity of energy necessary to satisfy the inland consumption of a country. It is calculated as the sum of the gross inland consumption of energy from solid fuels, oil, gas, nuclear and renewable sources, and a small component of ‘other’ sources (industrial waste and net imports of electricity). The relative contribution of a specific fuel is measured by the ratio between the energy consumption originating from that specific fuel and the total gross inland energy consumption calculated for a calendar year.
Energy intensity Energy intensity is the ratio between the gross inland consumption of energy and Gross Domestic Product (GDP) calculated for a calendar year. The Gross Inland Energy Consumption (GIEC) is calculated as the sum of the gross inland consumption of the five sources of energy: solid fuels, oil, gas, nuclear and renewable sources. To monitor trends, GDP is in constant prices to avoid the impact of inflation, base year 2005.
Progress on energy efficiency in Europe The ODEX index (Figure 1) measures energy efficiency progress by the main sectors (industry, transport and households), as well as for the whole economy (all final consumers). For each sector, the index is calculated as a weighted average of sub-sectoral indices of energy efficiency progress; the sub-sectors are the industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units and selected so as to provide the best “proxy” of energy efficiency progress from a policy evaluation viewpoint. The fact that indices are used enables different units to be combined for a given sector, for instance, for households kWh per appliance, koe/m 2 , tep per dwelling etc. The weight used to get a weighted aggregate is the share of each sub-sector in the total energy consumption of the sub–sectors considered in the calculation.  A value of ODEX equal to 90 means a 10 % energy efficiency gain. The variation of the specific consumption of space heating per dwelling linked to building standards is modelled as the change brought about by the introduction of new dwellings with better insulation than the whole stock, since a base year (e.g. 1990), assuming that the unit consumption of new dwellings is equal to the theoretical value implied by thermal regulations (Figure 2). This effect is calculated as follows: ∆UCnew t = (UCnew t * nbrlpn t + ∆UCnew t-1 * (nbrlpr t – nbrlpn t )) / nbrlpr t with:  ∆UCnew t=0 = ∆UCnew t=1990 = UC t=1990 nbrlpr t : stock of dwellings at year t nbrlpn t : the volume of construction at year t   UC t : unit consumption per dwelling for space heating at year t
Overview of the European energy system Gross inland consumption is calculated as follows: primary production + recovered products + total imports + variations of stocks - total exports - bunkers. It corresponds to the addition of final consumption, distribution losses, transformation losses and statistical differences.
Primary energy consumption by fuel Primary energy consumption is defined as gross inland energy consumption minus the energy consumed for purposes other then producing useful energy (non-energy use). Gross inland energy consumption represents the quantity of energy necessary to satisfy the inland consumption of a country. It is calculated as the sum of the gross inland consumption of energy from solid fuels, oil, gas, nuclear and renewable sources, and a small component of ‘other’ sources (industrial waste and net imports of electricity). The relative contribution of a specific fuel is measured by the ratio between the energy consumption originating from that specific fuel and the total primary energy consumption calculated for a calendar year.
Share of renewable energy in gross final energy consumption Gross Final Renewable Energy Consumption is the amount of renewable energy consumed for electricity, heating and cooling, and transport in the Member States with actual and normalised hydro and wind power generation [1]  and expressed as a share against gross final energy consumption. The indicator is developed for measuring the contribution to the 2020 and 2030 objectives on renewable energy for the EU.   The Renewable Energy Directive (RED) [2]  commits the Union to reaching a 20% share of renewable energy in gross final energy consumption [3]  by 2020 and a 10% share of renewable energy consumed in transport by the same year.   It sets binding national targets for renewable energy consumption by 2020 and it prescribes for each country minimum indicative trajectories in the run-up to 2020 to ensure that national 2020 targets will be met. In addition, the Directive requires Member States to adopt and publish National Renewable Energy Action Plans (NREAPs) that outline the expected trajectories for the national share of RES for the years starting with 2010 and until 2020. Countries have submitted their NREAPs in 2010. They have the obligation to report biennially on national progress towards indicative RED and expected NREAP targets.   Europe 2020– the European Union’s ten-year growth strategy reaffirms the importance of the renewable energy sector for Europe. The 20 % renewable energy share in gross final consumption is one of the three headline targets for climate and sustainable energy under the strategy. The other EU-wide targets are achieving a 20 % reduction of the EU’s GHG emissions compared to 1990 and achieving a 20 % saving of the EU’s primary energy consumption compared to projections, both by 2020. Together, these represent the Union’s triple 20/20/20 objectives for climate and energy in the run-up to 2020. They are implemented through the EU’s 2009 climate and energy package and the 2012 Energy Efficiency Directive (EED).   For 2030, EU leaders endorsed the following three EU-wide targets: (i)            achieving a binding minimum 40 % domestic reduction of greenhouse gas emissions compared to 1990; (ii)           achieving a binding minimum 27 % share of renewable energy consumption; and (iii)          achieving an indicative minimum 27 % improvement in energy efficiency.  [1] In accordance with accounting rules under Directive 2009/28/EC, electricity from hydro and wind needs to be normalised to smooth the effects of annual variations (hydro 15 years and wind 5 years). [2] Directive 2009/28/EC [3] Gross final energy consumption means the energy commodities delivered for energy purposes to industry, transport, households, services including public services, agriculture, forestry and fisheries, including the consumption of electricity and heat by the energy branch for electricity and heat production and including losses of electricity and heat in distribution and transmission (cf. Art. 2f of Directive 2009/28/EC). With this, it excludes transformation losses which are included in gross inland energy consumption. In calculating a Member State's gross final energy consumption for the purpose of measuring its compliance with the targets and interim RED and NREAP trajectories, the amount of energy consumed in aviation shall, as a proportion of that Member State's gross final consumption of energy, be considered to be no more than 6.18% (4.12% for Cyprus and Malta).
Overview of the European energy system Energy flows in European Union The Sankey diagram (Fig.1) shows the energy conversion from primary energy (coal, oil, natural gas, etc) to secondary energy commodities such as heat, electricity and manufactured fuels, through transformation plants (power stations, district heating, CHPs, oil refineries and other transformation plants) and the associated conversion losses. The right hand side of the diagram shows the final mix of energy consumption by different EU27 energy users (including: industry, transport, domestic, other final consumers and non-energy use). Note that renewables in transport for ENER 36 include all biofuels whether sustainable or not. Only a proportion of the primary energy entering the energy system of a country flows through to the end user for consumption.  There are various diversions and losses incurred before energy reaches the final consumer due to distribution losses and use in the energy sector. The Sankey diagram is useful in capturing the situation in a certain year but other indicators are needed to show the change in energy use over time. Energy efficiency of conventional thermal electricity and heat production Output from conventional thermal stations consists of gross electricity generation and also of any heat sold to third parties (combined heat and power plants) by conventional thermal public utility power stations as well as autoproducer thermal power stations. The energy efficiency of conventional thermal electricity production (which includes both public plants and autoproducers) is defined as the ratio of electricity and heat production to the energy input as a fuel. Fuels include solid fuels (i.e. coal, lignite and equivalents, oil and other liquid hydrocarbons, gas, thermal renewables (industrial and municipal waste, wood waste, biogas and geothermal energy) and other non-renewable waste. Units: Fuel input and electrical and heat output are measured in thousand tonnes of oil equivalent (ktoe). Efficiency is measured as the ratio of fuel output to input (%) Energy losses in transformation and distribution Numerator: Share of energy losses is the sum of own consumption of the energy industry, distribution losses and transformation losses (difference between transformation input and output). Denominator: Numerator plus final energy available for final consumption in primary energy. EU-27 Share of primary energy by fuel type and, share of final energy consumption by sector Total energy consumption or gross inland energy consumption represents the quantity of energy necessary to satisfy the inland consumption of a country. It is calculated as the sum of the gross inland consumption of energy from solid fuels, oil, gas, nuclear and renewable sources, and a small component of ‘other’ sources (industrial waste and net imports of electricity). The relative contribution of a specific fuel is measured by the ratio between the energy consumption originating from that specific fuel and the total gross inland energy consumption calculated for a calendar year (Fig.2). Units: Energy consumption is measured in thousand tonnes of oil equivalent (ktoe). The share of each fuel in total energy consumption is presented in the form of a percentage. EU27 net energy imports of solid fuels, oil, and gas from outside the EU27 was calculated as follows: total imports by fuel minus the sum of imports by fuel from other EU Member States minus total exports (Fig.1)
Progress on energy efficiency in Europe The ODEX index (Fig.1) measures the energy efficiency progress by main sector (industry, transport, households) and for the whole economy (all final consumers). For each sector, the index is calculated as a weighted average of sub-sectoral indices of energy efficiency progress; sub-sectors being industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units and selected so as to provide the best “proxy” of energy efficiency progress, from a policy evaluation viewpoint. The fact that indices are used enables to combine different units for a given sector, for instance for households kWh/appliance, koe/m2, tep/dwelling… The weight used to get the weighted aggregate is the share of each sub- sector in the total energy consumption of the sub –sectors considered in the calculation.  A value of  ODEX equal to 90 means a 10% energy efficiency gain. The variation of the specific consumption of space heating per dwelling linked to building standards is modelled as the change brought about by the introduction of new dwellings with a better insulation than the whole stock since a base year (e.g. 1990), assuming that the unit consumption of new dwellings is equal to the theoretical value implied by thermal regulations (Fig.2). This effect is calculated as follow: ∆UCnew t = (UCnew t * nbrlpn t + ∆UCnew t-1 * (nbrlpr t – nbrlpn t )) / nbrlpr t with:  ∆UCnew t=0 = ∆UCnew t=1990 = UC t=1990 nbrlpr t : stock of dwellings at year t nbrlpn t : the volume of construction at year t   UC t : unit consumption per dwelling for space heating at year t  
Overview of the electricity production and use in Europe Total gross electricity generation covers gross electricity generation in all types of power plants. The gross electricity generation at the plant level is defined as the electricity measured at the outlet of the main transformers. i.e. the consumption of electricity in the plant auxiliaries and in transformers is included. Electricity production by fuel is the gross electricity generation from plants utilising the following fuels: coal and lignite, oil, nuclear, natural and derived gas, renewables (wind. hydro. biomass and waste. solar PV and geothermal) and other fuels. The latter include electricity produced from power plants not accounted for elsewhere such as those fuelled by certain types of industrial wastes which are not classed as renewable. Other fuels also include the electricity produced as a result of pumping in hydro power stations. The share of each fuel in electricity production is taken as the ratio of electricity production from the relevant category against total gross electricity generation. It should be noted that the share of renewable electricity in this indicator, based on production, is not directly comparable with the share required under Directive 2001/77/EC which is based upon the share of renewables in electricity consumption. The difference between both shares is accounted for by the net balance between imports and exports of electricity and by how much domestic electricity generation is increased or reduced as a result. Final electricity consumption covers electricity supplied to the final consumer's door for all energy uses, it does not include own use by electricity producers or transmission and distribution losses. It is calculated as the sum of final electricity consumption from all sectors. These are disaggregated to cover industry, transport, households, services (including agriculture and other sectors).
Share of renewable energy in final energy consumption Final Renewable Energy Consumption is the amount of renewable energy consumed in the member states with actual and normalised hydro and wind power generation and the share in the total final energy consumption. The final renewable energy consumption is composed of renewable energy for heat, renewable energy for electricity and the use of biofuels in transport The indicator is developed for measuring the contribution to the 2020 objectives on renewable energy for the EU-27. The Directive 2009/28/EC establishes an overall EU binding target of a 20 % share of renewable energy sources in energy consumption, as well as binding national targets by 2020 in line with the overall target. The overall share of renewable energy in the final energy consumption [1] includes consumption of electricity and heat from renewable energy sources as well as biofuels consumption. [1] Final Renewable Energy Consumption is the amount of renewable energy consumed in the member states with actual and normalised 15-year hydro power generation and 4-year wind and the share in the total final energy consumption. Due to this constraints, normalized data are only available from 2004 to 2009.
Total Gross Inland Consumption by Fuel The structure of the energy mix in gross inland energy consumption provides an indication of the environmental pressures associated with energy consumption. The type and magnitude of the environmental impacts associated with energy consumption, such as resource depletion, greenhouse gas emissions, air pollutant emissions, water pollution, accumulation of radioactive waste, etc., strongly depend on the type and amount of fuel consumed as well as abatement technologies applied.
Energy intensity Energy intensity is the ratio between the gross inland consumption of energy and Gross Domestic Product (GDP) calculated for a calendar year. The Gross Inland Energy Consumption (GIEC) is calculated as the sum of the gross inland consumption of the five sources of energy: solid fuels, oil, gas, nuclear and renewable sources. To monitor trends, GDP is in constant prices to avoid the impact of inflation, base year 2005.
Renewable electricity This indicator traces the  share of renewable electricity, expressed as  the ratio (%) between the electricity produced from renewable energy sources and gross national electricity consumption. It measures the contribution of electricity produced from renewable energy sources to the national gross electricity consumption. Renewable energy sources are defined as renewable non-fossil energy sources: wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases. Electricity produced from renewable energy sources comprises the electricity generation from hydro plants (excluding that produced as a result of pumping storage systems), wind, solar, geothermal and electricity from biomass/wastes. Electricity from biomass/wastes comprises electricity generated from wood/wood wastes and the burning other of solid wastes of a renewable nature (straw, black liquor), municipal solid waste incineration, biogas (incl. landfill, sewage, farm gas) and liquid biofuels. Gross national electricity consumption comprises total gross national electricity generation from all fuels (including autoproduction), plus electricity imports, minus exports.
Renewable gross final energy consumption Final Renewable Energy Consumption is the amount of renewable energy consumed in the member states with actual and normalised 15-year hydro power generation and 4-year wind and the share in the total final energy consumption. The final renewable energy consumption is composed of renewable energy for heat, renewable energy for electricity and the use of biofuels in transport. The electricity production of hydro power is calculated both as actual production and normalised production over a 15-year weighted average (4-year weighted average for wind). The indicator is developed for measuring the contribution to the 2020 objectives on renewable energy for the EU-27. The Directive 2009/28/EC establishes an overall EU binding target of a 20 % share of renewable energy sources in energy consumption, as well as binding national targets by 2020 in line with the overall target. The overall share of renewable energy in the final energy consumption [1] includes consumption of electricity and heat from renewable energy sources as well as biofuels consumption. [1] Final Renewable Energy Consumption is the amount of renewable energy consumed in the member states with actual and normalised 15-year hydro power generation and 4-year wind and the share in the total final energy consumption. Due to this constraints, normalized data are only available from 2004 to 2009.
Electricity production by fuel Total gross electricity generation covers gross electricity generation in all types of power plants. The gross electricity generation at the plant level is defined as the electricity measured at the outlet of the main transformers. i.e. the consumption of electricity in the plant auxiliaries and in transformers is included. Electricity production by fuel is the gross electricity generation from plants utilising the following fuels: coal and lignite. oil. nuclear. natural and derived gas. renewables (wind. hydro. biomass and waste. solar PV and geothermal) and other fuels. The latter include electricity produced from power plants not accounted for elsewhere such as those fuelled by certain types of industrial wastes which are not classed as renewable. Other fuels also include the electricity produced as a result of pumping in hydro power stations. The share of each fuel in electricity production is taken as the ratio of electricity production from the relevant category against total gross electricity generation. It should be noted that the share of renewable electricity in this indicator, based on production, is not directly comparable with the share required under Directive 2001/77/EC which is based upon the share of renewables in electricity consumption. The difference between both shares is accounted for by the net balance between imports and exports of electricity and by how much domestic electricity generation is increased or reduced as a result.
Primary energy consumption by fuel Total energy consumption or gross inland energy consumption represents the quantity of energy necessary to satisfy the inland consumption of a country. It is calculated as the sum of the gross inland consumption of energy from solid fuels, oil, gas, nuclear and renewable sources, and a small component of ‘other’ sources (industrial waste and net imports of electricity). The relative contribution of a specific fuel is measured by the ratio between the energy consumption originating from that specific fuel and the total gross inland energy consumption calculated for a calendar year.
Total primary energy intensity Total energy intensity is the ratio between the gross inland consumption of energy (or total energy consumption) and Gross Domestic Product (GDP) calculated for a calendar year. The gross inland consumption of energy is calculated as the sum of the gross inland consumption of the five sources of energy: solid fuels, oil, gas, nuclear and renewable sources. To monitor trends, GDP is in constant prices to avoid the impact of inflation, base year 2000.  Units: Gross inland energy consumption is measured in 1000 tonnes of oil equivalent (ktoe) and GDP in million Euro at 2000 market prices. To make comparisons of trends across countries more meaningful, the indicator is presented as an index. For country comparisons, two additional columns are included to show the actual energy intensity in GDP in purchasing power standards for the latest available year, and also the energy intensity in terms of consumption per capita.

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