Europe's Energy Transition

Dr. Manuel Welsch’s work on this book is based on his previous role as Deputy Director at the Division for Energy Systems Analysis at KTH Royal Institute of Technology. He is currently employed as energy planner and economist at the International Atomic Energy Agency (IAEA). Manuel has over 15 years of experience working in the energy sector, comprising engineering offices, research institutes, United Nations organizations, and the European Commission.

• Section I: Introduction1. Europe’s Energy Transition2. Insights for Policy Making - About this Book3. INSIGHT_E - A Think Tank Informing the European CommissionSection II: Europe’s Energy Policy Landscape4. Introduction: Europe as a Consuming Region5. The European Union on the Global Scene - A Snapshot6. European Energy Policy Objectives7. A Market-Based European Energy Policy8. ConclusionsSection III: Energy Supply: A Changing Environment9. Introduction10. Decarbonizing the EU Energy System11. Gas Security of Supply in the European Union12. Biofuels for Aviation: Policy Goals and Costs13. Conclusions and OutlookSection IV: Impact of Renewable Energies on Market Operation and Design14. Introduction15. Curtailment: An Option for Cost-Efficient Integration of Variable Renewable Generation?16. Impact on Electricity Markets: Merit Order Effect of Renewable Energies17. Market Design Options for Promoting Low-Carbon Technologies18. Case Study: Design Options for the German Electricity Market19. Conclusions and OutlookSection V: Reliable and Flexible Energy Systems20. Introduction21. Need for Flexibility and Potential Solutions22. Storage Solutions and Their Value23. The Role of Fuel Cells and Hydrogen in Stationary Applications24. Need for Reliability and Measuring Its Cost25. ConclusionsSection VI: Society and Consumer Demands26. Introduction27. Self-Consumption of Electricity from Renewable Sources28. DC Power Production and Consumption in Households29. District Heating in Europe: Opportunities for Energy Savings, Business, and Jobs30. Energy Poverty Across the EU: Analysis of Policies and Measures31. ConclusionsSociety and Consumer Demands—Abbreviations, Acronyms, and InitialismsSection VII: Europe’s Energy Transition: Challenges and Insights for Policy Making32. Introduction33. Key Challenges Ahead34. Developing the Policy Package35. Research Priorities

"The world has embarked on an unprecedented energy transition. Energy efficiency and renewable energy play a key role in this transition and Europe is leading the way. It is an unchartered journey, yet foresight is required what path to follow and which framework to put in place to enable such transition. New technologies, market designs and business models are needed. This book provides an excellent cutting-edge science based perspective on various aspects of the energy transition. It helps decision makers to better understand the relation between the physical economy and markets, consumer needs and technology innovation. Billions are at stake in financial terms, this book is a worthwhile investment to make sure the right decisions are taken." --Dr. Dolf Gielen, Director of the IRENA Innovation and Technology Centre in Bonn, International Renewable Energy Agency"A key driving force has gained remarkable momentum in the discussion on energy system transformation: sustainability. The objective to combat climate change is putting environmental considerations higher on the agenda than ever before. In fact, it is already widely believed that integration of sustainability issues will be critical to the future commercial success in the energy business. Thus, European utilities are forced to change their business models, factoring in the shift from traditional mostly fossil-based and centralized power generation to a more renewable and increasingly de-central production landscape. As a result, their traditional long-term investment planning has become even more dependent on regulatory design. More joint-up thinking between industry and policy makers will be required in order to address current deficiencies originating from the patchwork of energy policies across Europe. Holistic analyses as endeavored by this book are key to establish the required knowledge amongst stakeholders as common basis to develop the regulatory framework that allows pursuing European sustainability targets in an effective and efficient way." --Dr. Andreas Schuler, Chief Risk Officer, Vice President Risk Management, Vattenfall"This book represents a unique, value added contribution to the ongoing issues related to the transformation of the EU power system. Insights, thoughtful analysis, informed by solid analytics combine to offer decision makers, analysts, academics and business leaders rich information to chart a pathway forward." --Dr. Doug Arent, Executive Director, Joint Institute for Strategic Energy Analysis (JISEA) at the National Renewable Energy Laboratory (NREL)"The energy system is undergoing a deep, structural, and pervasive transformation, posing a number of challenges to our business models, regulatory frameworks, and behavioural patterns. For Europe, this does present very distinctive challenges, notably due to the EU’s unique complexity of multi-layer governance. By dissecting the very nature of this double complexity – the energy transition phenomenon and the EU’s policy framework – "Europe’s Energy Transition: Insights for Policy Making" responded to such a call for a comprehensive approach and provides a precious set of instruments for policy makers, researchers, and analysts at every governance level." --Dr. Fabian Zuleeg, Chief Executive and Chief Economist, European Policy Centre