A strategic energy technology policy towards 2050: no-regret strategies for European technology push

Abstract

Abstract:As current policy frameworks are expiring soon, the EU is revisiting its energy technology policy for the post-2020 horizon. The main long-run objective for energy technology policy is to foster the achievement of ambitious EU goals for decarbonisation. We discuss how European energy technology policy towards 2050 can be effective despite: 1) uncertain carbon prices; 2) uncertain technological change; and 3) uncertain or alternating policy paradigms shifting the focus from decarbonisation towards competitiveness or energy supply security. Public support to innovation in energy technologies is needed to correct for market failures and imperfections, as well as to fully exploit trade opportunities of such technologies on global markets. Benefits from EU intervention can be expected from the coordination of national policies. Effective European technology push should put strong emphasis on pushing consumption-oriented and enabling technologies, as these offer a no-regret strategy vis-à-vis any future context.

The EU internal electricity market: Done forever?

“…In 2050, the energy system will probably be extremely different from what it is today. Composing an adequate portfolio of generation technologies encompasses a very long-term scope, which is not only about looking ahead towards the 2050 decarbonization horizon, but also anticipating technological lock-ins that might persist even beyond that point in time (see also [24]).…”

The EU internal electricity market: Done forever?

“…In 2050, the energy system will probably be extremely different than it is today. Composing an adequate portfolio of generation technologies has a very long time horizon; it is not only about looking ahead to the 2050 decarbonization target, but to technological lock-ins that might persist even beyond (Ruester et al, 2013d).…”