Page 22 - European Energy Innovation - Winter 2016 publication
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22  Winter 2016 European Energy Innovation


complete and prolonged gas-supply         Gas demand in buildings reduced through energy efficiency measures
disruption from Russia, the region
would be able to meet its demand with
reverse-flow pipelines from Western
Europe and LNG terminals.

The upfront investment is relatively          account when preparing their risk      Heating and cooling infrastructure to
high in all scenarios, but is more than       assessments under the Security of      be planned strategically
offset by the avoided energy costs. The       Gas Supply Regulation.
maximum investment needed under                                                      •	 A strategic roadmap should be
the ’energy security‘ scenario is €81bn,  EU level policies and definitions need         developed to shift away from
which delivers energy-cost savings        refinement                                     traditional heating and cooling
of €106bn (present value costs and                                                       methods based on fossil fuels and
savings, derived over the measures’       •	 Funds from the Connecting Europe            local biomass, towards modern
lifetime). To sum up, the savings far         Facility, the Multiannual Financial        approaches built on best available
outweigh the initial commitment.              Framework, the European Fund               low-carbon technologies. Energy
                                              for Strategic Investments and the          efficiency of the whole energy
While a considerable share of                 Structural and Investment Funds            system, including district heating,
investment will come from private             should be better directed for              should be addressed in order to
sources, public funding can fast-track        investments in deep renovations of         mitigate the demand for gas as well
and support the process, by using             the building stock.                        as for other energy carriers.
funding from the European Fund for
Strategic Investment and the
European Structural and Investment

In BPIE’s view, several steps can be
taken order to decrease the risks
South-East Europe is facing:

Preventive measures have to be            •	 Energy efficiency and demand-side       •	 Subsidies for fossil fuels need to be
considered                                    response need to be taken into             phased out and redirected to clean
                                              account in The Projects of Common          energy developments that support
•	 The European institutions and              Interest list for 2018.                    the combination of renewable
    countries in the region are strongly                                                 energy technologies and energy
    encouraged to set energy efficiency   •	 To ensure that local employment             efficiency improvements in the
    as an infrastructure priority.            opportunities are maximised and            building sector.
                                              that economic benefits are retained
•	 In drawing up their Preventive             within the region, a strategic multi-  Some food-for-thought, as
    Action Plans under the Security           country approach that sees the         governments should consider other
    of Gas Supply Regulation,                 development of manufacturing           alternatives to decrease energy supply
    participating countries need to look      capacity alongside the expected        risks and encourage investments to
    into demand-side measures on              increase in the installation of        upgrade their national building stock.
    an equal footing with supply-side         renovation measures is required.       This would generate domestic growth,
    measures.                                                                        modernise the national building
                                          •	 The significant renewable energy        infrastructure and improve inhabitants’
•	 Countries in the region are                potential in the region needs to be    living conditions. l
    encouraged to take the Building           maximised, including within the
    Vulnerability Indicator (BVI) into        building stock.                        1. bcm = billion cubic metres

For an in-depth analysis, see BPIE’s report at

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