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SPEECH Thank you Helen, Minister White, ladies and gentlemen, Events like today's are very important as they provide me with a valuable opportunity to engage with the key individuals and organisations. This is an important part of the “Energy Union” tour, bringing this project to the stakeholders in each and every EU country I visit. Listening to your concerns, priorities, ideas; hearing what really matters to you in the making and the implementation of the Energy Union strategy. I would therefore like to thank you all for waking up so early to join today's debate and to the Institute of International and European Affairs (IIEA) - Brendan, as well as Pat O’Doherty from ESB, for making this possible. DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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Ladies and gentlemen, The current Commission took office with a promise to be different, to focus on big things, to tackle what matters the most to European citizens. The Energy Union was therefore high on President Juncker's list of Priorities from the very beginning. Put simply, the current situation is no longer sustainable in any sense of this term: o the geopolitical crisis on our eastern borders served as an important reminder of the risk of depending so greatly on a dominant supplier and thus the need to diversify our sources. But it is safe to say that our energy security is not safe as long as we don't ensure better connectivity and diversity of sources. We should reduce our energy bill currently amounting to around EUR 400 billion euros per year ! o climate change is manifesting its devastating and irreversible effects, obliging us to act now, responsibly and collectively, both here DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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in Europe but also in our relations with the rest of the world. I will touch on that in a moment. o Energy poverty is much more widespread than we can tolerate in a modern society: Over 10% of Europeans cannot properly heat their houses in winter. Ireland in this respect suffers from relatively high energy prices, due notably to its small size and geographic isolation. I will address what can be done from a European perspective. o It is linked: at EU level, we are losing precious energy resources due to inefficient usage. 75% of Europe's housing stock, for example, is not energy efficient! o Investments have not yet picked up, compared to pre-crisis times. This slows down technological progress and also our efforts to make Europe a global leader in renewables. These are significant challenges. What is also significant – and comensurate - is the current DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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political momentum, as I have witnessed since taking office and after the Energy Union strategy was adopted. I has been endorsed by the European Council, warmly welcomed by the main groups of the Parliament and very well received by citizens and major stakeholders. Energy Union - INTRO Maybe a step backward however: I guess everyone in this room is by now familiar with the concept of the Energy Union. We would like to bring Europeans energy which is secure, competitive, and sustainable. This will be achieved by building a truly integrated energy market  Which is less dependent on external suppliers, where we have a range of sources and resources  where energy can flow freely across borders (or seas in the case of Ireland),  where we decrease our energy consumption by increasing our efficiency  where renewables have a major share DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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 thanks to research and innovation This Strategy was only the start of a decisive process, setting the vision. In the short months since February we have been materialising these ideas, moving from words to deeds. From vision to reality. Let me tell you a little about these concrete actions along three parallel tracks: political, legislative and diplomatic – which are of course very much inter-linked. POLITICAL TRACK I will start with the political track: Since may I have embarked on an 'Energy Union Tour' to discuss in the Member States the Energy Union and its implementation. I am almost half way through and I must say this has been a very enriching experience. DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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I have met with many key actors, including national governments, NGOs, social partners, business representatives, students and think tanks, etc. During those meetings I try to convey, in person, what the Energy Union is all about and why it matters so much. Here in Ireland, yesterday I had the opportunity to meet with Prime Minister Enda Kenny, Tánaiste Joan Burton, Minister Alex White, who shares this panel with me today, and Minister Coveney. I presented to them and discussed the Commission's preliminary findings on the Irish situation as per energy, climate, transport, research and innovation. We also addressed the opportunities that can be derived in Ireland from the Energy Union. For example, we discussed how the Energy Union could boost Ireland's interconnections, security of supply, low-carbon innovation and competitiveness. I will come back to that. I must say the discussions have been extremely pragmatic and constructive. They will help us finalise our analysis, which we plan to make DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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made public as a part of the first State of the Energy Union Report, which I will present in November. This will be the first edition of an annual Report which we will use in order to monitor progress on the five dimensions of the Energy Union – not only at national level but also towards our collective EU objectives. In this regard, I would like to welcome the work of the Irish government, including the efforts involved in the formulation of the forthcoming and much-anticipated Energy White Paper I know that you received nearly more than 1,200 submissions following the publication of the Green Paper on Energy and that you have held information meetings throughout the country to discuss the issues.

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In fact, from a European perspective your Paper comes at a perfect timing as we will soon start discussing sustainable pathways to 2030. That brings me to the legislative track. LEGISLATIVE TRACK In parallel, the Commission is presenting a series of initiatives, mostly legislative, covering all five dimensions of the Energy Union.

Internal Energy Market I would like to address bost hardware / infrastructure and software / regulatory issues. Hardware

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As you may recall, along with the Energy Union Strategy, the Commission presented a Communication on how to reach the 10% electricity interconnection target. Ireland is close to 9%. The Energy Union has and will continue to be in support of connecting Ireland to the rest of the continent energy-wise. There are currently 18 priority interconnections – also called Projects of Common Interest – identified by the Commission in Ireland. These are key infrastructure projects, which will help Ireland to physically integrate its energy market with other EU countries and bring an end to its energy isolation. Some are gas-related like the Shannon LNG Terminal and the reverse flows at Moffat.

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Some concern the electricity interconnection between Ireland and Norther Ireland (NorthSouth electricity interconnectors), others are with France (Celtic), others with the UK (Greenlink). These projects will also enable the power grid to cope with increasing amounts of electricity generated from renewable energy sources and consequently help reduce CO2 emissions. They all partakes in breaking the peripheral or energy-island status of Ireland. From this standpoint, the North-South electricity interconnector plays a strategic role. It should not only help avoid Northern-Island blackouts, but also allow you to exploit your unparalleled renewable potential (ocean, wind, and bio energy), and export it to the North!

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Geographically, Ireland might be at the Western end of the EU, but this can bring Ireland right into the beating heart of the internal energy market! I assure you that consumers, both retail and wholesale will feel the difference in their pockets, once energy flows freely into this country. Regional cooperation will play an important role in building a truly integrated market. In this respect, I would like to underline the huge potential of the North Seas Countries’ Offshore Grid Initiative. This regional cooperation will conrribute to the development of renewable energy resources as well as infrastructure investments through offshore electricity grids in the North Sea. [mention the Dutch Presidency interest?] Software In July, we presented the next major milestone what we called the 'Summer Package', consisting of four elements, which are very much in line DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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with the topic we are discussing here today - the 'Power Shift' in the energy market: o Consultative Communication on Electricity Market design. In this exercise the Commission put forward our first ideas on how to redesign our electricity markets in a way which allows a lot more generation and integration of electricity from renewable sources, in line with last year's decision of all the heads of States and governments to bring the share of renewables in the EU energy mix to 27% by 2030. o The consultation is still open until 8 October and I would strongly encourage you to participate. Your input is very valuable, especially considering your consultation and action on renewable energy, and the clear benefits of the “All-island energy market” (put into place already in 2007). o Of course the redesign of our electricity market has major implications for our DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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consumers. Our communication on the 'New Deal for Consumers' tackles exactly the role of consumers in the new energy market; how to empower them, give them more choice and transparency – and ultimately more control on their consumption and energy bills.

o We also revised the energy efficiency labelling system in order to make it easier for consumers to understand and to reflect the latest efficiency technologies. This will allow conscious consumers to select the most energy-efficient appliances and serve our common efforts to reducing our CO2 emissions. o Due to our same commitment to decarbonise the economy, the Package also included a revision of the EU Emission Trading System (ETS) to ensure that it remains the most

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efficient and cost-effective way to cut emission in the decade to come.

The Summer Package was only a first batch of our legislative track – most of which will be presented over the course of 2016. SECURITY OF SUPPLY  Next year, we will present a proposal for the revision of the Gas Security of Supply Regulation, to secure supplies in case of disruption, strengthen cooperation at regional level and improve crisis management at European level.  Also next year, we will present a comprehensive strategy for LNG and storage and review the Decision on Intergovernmental Agreements (IGAs) to ensure they comply with EU law, and of transparency of contracts to ensure EU buyers can get the best prices. DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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ENERGY EFFICIENCY  Very soon, we will come forward with a Heating and Cooling Strategy, to tap the huge potential in this area. As you know, heating and cooling represent around half of the EU energy consumption.  By the end of this year, the Commission will also present a Circular Economy Package. We want to look beyond waste only and ‘close the loop’, including for instance the design of a product.  Finally, the Energy Efficiency Directive will be revised in the second half of next year.

DECARBONISATION  We are also working to reach our goal to become the number one in renewables, a key commitment expressed in the Energy Union DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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Strategy. Current preparatory work will lead in 2016 (or 2017) to an ambitious revision of the Renewable Directive. The new EU framework will have to deliver investor certainty for the further cost-effective deployment of renewables at all levels. I will say a few words about our preparations for COP21 when going into the diplomatic track. In addition to Energy Efficiency and Renewables, next year packages will include non-ETS sectors (Effort Sharing Decision): transport, building, agriculture. I understand the importance of agriculture and sustainable agriculture in the Irish economy. We need to look at how to reconcile post 2020 climate mitigation objectives with a food security and sustainable food production. I also am aware that Ireland is investing heavily into aforrestation – this needs to be recognised. When discussing the issue of land use change and land use change DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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(LULUCF), Ireland's specific circumstances need to be taken into account, without however losing site of our broader climate objectives. [I am confident that with effective political leadership and pragmatism, we will find a fair and costeffective solution with the Member States when discussing the effort sharing decision.] Of course this legitimate focus on agriculture does not mean transport and buildings should be neglected. I understand the government is currently looking at both sectors very closely to see what is feasible given Ireland’s housing, spatial planning and transport infrastructure. Research, Innovation and Competitiveness  In order to become global leaders in renewable and efficiency technologies, we must sustain our competitive advantage. The Strategic Energy Technology Action (SET) Plan, which we adopted this week, provides an analysis of the DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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technological landscape and priority actions to be taken. By the end of next year, we should come up with an overarching innovation and competitiveness strategy addressing not only technological development but also transport and industrial policy. Through this we will address the market deployment of newly developed technologies underpinning the low carbon economy.  This is extremely relevant for a country like Ireland which has a well-advanced high-tech industry. Renewable sources and energy efficiency will be the gold rush of the 21st century because they are unlimited. Whoever finds the best solutions to capture and store this free energy will lead the global economy. In terms of competitiveness, Ireland can thus rely on its strenghts, building on its natural resources (waves and wind) and competitive edge (ICTs). Renewables, first among which ocean energy, DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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wind and the bioeconomy are identified as key priorities by the SET Plan. Similarly, the SET Plan and the Market design Communication underlines the links to be fostered between energy and ICT sectors, where Ireland can play a leading role, with the companies, knowledge and ecosystem to develop smart devices and innovative energy solutions. As president Juncker has set the objective for Europe to play that leading role, we are working on facilitating and encouraging such research. I have no doubt that Europe can benefit a lot from the Irish expertise in that sense, and that Ireland could enjoy a great economic boost in joining this.

[Of course, investing in renewables is not only about providing our own energy but also exporting our technologies to third countries. 1.3 billion people, across the developing world, do DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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not have access to electricity. Providing them with technological solutions has huge economic potential, can fit into our development objectives, and make a significant contribution to the global decarbonisation efforts.] DIPLOMATIC TRACK The third parallel track in which the Commission invests a lot of energy in is the diplomatic one: addressing our climate and energy targets. On the climate front, we encourage more countries to present ambitious contributions ahead of the UN Climate Conference in December. Ladies and gentlemen, in just over two months from now, we will have a historic opportunity to tackle climate change at international level. Our actions in Europe are only effective if they are part of a genuine global effort to reduce human kind's CO2 emissions. This is therefore high on DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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our agenda when meeting with governments of third countries. I know your government is committed to the success of COP21 in Paris. And I also know that Mary Robinson is a forceful advocate of the fight against Climate Change. And she has a point when she says that climate change affects primarily the most vulnerable ones in our society. This is a fight for climate “justice” (as she would call it), or fairness. At my level, I have engaged in dialogue, in Africa and the Balkans. [Africa's contribution is far more than symbolic as it is one of the regions that faces the most severe consequences of climate change. It was important for me to convey to our African partners that they are part of the solution. That it is urgent that we act now. Collectively.] We also need to show that business and civil society are leading the way. In some cases these stakeholders are actually one step DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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ahead of politicians or negotiators. Through their daily actions, companies, local administration, associations contribute actively to fight climate change. The second main element of our energy diplomacy concerns Europe's need and will to diversify its energy sources, suppliers, and routes. At the same time, I have been facilitating trilateral talks with Ukraine and Russia on the implementation of the Winter Package and worked with our partners on the advancement of the Southern Corridor which will bring natural gas from the Caspian Sea. There is also great progress when it comes to the advancement of gas infrastructure projects across countries of South East and Central Europe. This work will continue as there are still significant concerns of energy security, especially DUBLIN 18/09/2015 – IIEA/ ESB 'Power Shift'

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in central and eastern Europe. [But here in Ireland too, your power generation relies essentially on gas, most of which is imported. Diversification of energy sources and of gas suppliers, as well as better coordination of emergency response mechanisms among Member States will further strengthen Ireland's energy security situation. This should also contribute to driving down gas prices, and thereby, electricity prices.] As you can see, the implementation of the Energy Union Strategy is keeping us very busy and will continue to keep us busy at least until mid-2017. We made a conscious decision to deliver all our legislation within the first two years of this Commission mandate to allow for sufficient time for discussions with the Member States and the European Parliament before adoption.

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I have discussed many different aspects of the Energy Union but I will stop here in order to give the floor to Minister White and of course to leave us time for discussion. Thank you very much.

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