66 July 2021 Energy Notebooks 66 July 2021 Translated from Spanish to English - www.onlinedoctranslator.com Editorial Board Oliverio Alvarez Alonso Energy Partner, Deloitte Silvestre Arana Knirsch Managing Partner of Energy & Natural Resources, J&A GARRIGUES, SLP Juan Bachiller Araque Honorary Vice President. Spanish Energy Club Carmen Becerril Martinez Chairwoman. OMIE (Iberian Market Operator - Spanish Pole) Nemesio Fernandez Cuesta Adviser Iñaki Garay Zabala Director of Expansion Rafael Garcia de Diego Red Eléctrica de España Arcadio Gutierrez Zapico Managing Director. Spanish Energy Club Juan Luis López Cardenete Extraordinary Professor. IESE - University of Navarra Vicente López Ibor President. International Law Firm Pedro Mielgo Alvarez President. Madrileña Red de Gas, SA Jesus Navarro Gallel Founding Partner of Cuadernos de Energía and Treasurer of the Spanish Energy Club Rafael Piqueras Bautista Secretary General and of the Board of ENAGAS Pedro Rivero Torre Professor of Financial Economics and Accounting. Complutense University of Madrid Juan Sancho Rof Vice President of the Board of Directors. Gathered techniques Dear reader, It is a pleasure for the Editorial Committee of Cuadernos de Energía to present its 66th edition that we published before the summer holidays, in a year that is being difficult for everyone due to the pandemic, but where advances in vaccines also provide hope. The world of energy has not ceased its activity, even intensifying in recent months. At the international level, the United States Summit on Climate Change promoted by Biden, held in April, gives a new boost to the Paris Agreement. Today, countries that represent more than 70% of world GDP and global emissions have announced targets to achieve carbon neutral economies by 2050. Especially relevant will be the Glasgow Summit, specifically in the area of countries' ambition by 2030 , but also in aspects such as climate finance. Europe for its part has increased its emission reduction target to at least 55% and on July 14 it launched the Package Fit for 55, aligning policies to achieve this goal. It continues to work on the EU Climate Law, and other additional provisions that are part of the Green Deal. In addition, it prepares the first disbursement of recovery funds, essential for short-term economic reactivation, and developing innovation projects that define technologies that will give us a competitive and industrial advantage in the future. Probably the most relevant event in Spain has been the approval by parliament of the Climate Change and Energy Transition Law last May. A Law that helps us prepare for the future, and that contributes to modernizing the economy and transforming production and consumption models. In addition, the introduction of new electricity rates or the high prices of electricity and fuel in the first half of the year, are other relevant issues, many of them analyzed in this edition of notebooks. We begin as always with the international bloc, with an article by Ana Padilla Moreno, General Secretary of the Spanish Committee of the World Energy Council (CECME), who presents a Summary of the World Energy Issues Monitor 2021. The Issues Monitor is a tool of the World Energy Council, which allows to know what are the most important issues in the sector world, European and Spanish energy for professionals in the sector. In addition to knowing how these issues have evolved in importance in recent years, it also allows us to analyze which of these issues have a greater impact or a greater need for action. Energy Notebooks 3 Turning to the Europe block, we find two articles focused on the Funds of Next Generation EU, funds that are essential to reactivate the economy after the impact of COVID in Europe. Jonás Fernández Álvarez, Member of the European Parliament, analyzes the reaction that Europe had to the critical situation of the pandemic, the Spanish Recovery, Transformation and Resilience Plan (PRTR) and its main components, and how the ecological and digital transformation and the industrial and energy sectors are called to play a decisive role in this field. Next, Oliverio Álvarez Alonso, Partner responsible for the technical-economic regulation area of the Energy, Infrastructure, Telecommunications and Government (EITG) industry and Concha Iglesias Jiménez, Responsible Partner of the Climate and Sustainability Area, both from Deloitte, carry out an analysis of the criteria applied by the European Commission in the awarding of funds, providing some very valuable indications on the type of projects that are most likely to receive them, and highlighting some ideas that may be useful to PRTR-related project promoters and interested executing agencies. Also related to the scope of the EU, the European emission rights market, its evolution and current state is the subject of analysis in the following article contributed by Bernadett Papp, Senior Market Analyst at Vertis Environmental Finance. This article allows to know in detail the operation of this market since its inception and the reason for its high prices in recent months. The author also analyzes which are the following aspects to take into consideration in the future, including some reference also to the mechanism for adjusting the carbon borders, a tool indicated in the EU Green Agreement, and currently under discussion at the Union level. inside the package Fit for 55. To end with the European bloc, Jorge Fernández Gómez, Orkestra Energy Lab Coordinator - Basque Institute of Competitiveness describes the current state of development of local flexibility markets in Europe, a fundamental element to guarantee a safe operation of electrical systems. This contribution presents the main characteristics of local (organized) flexibility markets and describes the initiatives currently underway in Europe, also presenting some conclusions derived from their analysis with application to the case of the Spanish electricity system. The Spanish bloc begins with two interesting articles in which a double approach is made to one of the issues that has been giving the most talk in recent weeks. We refer to the new electricity rate structures. 4 Energy Notebooks In the first of the contributions received, Estefanía Arbós, Manel Martínez, Andrés Morata of Endesa's Regulation Directorate describe, with an eminently practical approach, the impact that the new electricity rates have on the energy transition, with a series of examples of their effect on our day- to-day life in aspects such as air conditioning or electricity. household appliances, or other novelty such as electric vehicle recharging, self-consumption, or demand management. For its part, José Luis Sancha Gonzalo, Professor at the Higher Technical School of Engineering (ICAI) of the Comillas University, explains in a more technical way, what the new methodologies for tolls and charges consist of, with special emphasis on the costs and income of the electricity system, its internal structure, the keys to the internal distribution between tariffs and how they are specifically applied to the domestic consumer with less than 15 kW of contracted power. Also related to the economic aspects of the electricity system, the following contribution analyzes in detail the evolution of the debt of the electricity sector and its future prospects. Ana María Antona Díaz and Henar González Tejero of the National Markets and Competition Commission, describe in detail the evolution of the deficits and surpluses of the electricity system during the last 20 years, the current state of the debt of the electricity sector and its associated financing cost. The evolution of the regulations governing the use of surpluses in the system is also reviewed, specifying the destinations for which they have been used. Finally, the future forecasts of the current debt of the electricity sector are analyzed. The last of the articles in the block of Spain is that of Concha Sánchez, Director of System Development, Red Eléctrica de España. The author explains the importance and main characteristics of the new interconnection between Spain and France through the Bay of Biscay, which will reinforce the interconnection of the Iberian Peninsula with the rest of the European electricity system and allow the commercial exchange capacity between Spain and France to increase. its value up to 5,000 MW. This PIE project (Community Interest Project) constitutes a very important step in strengthening the interconnection between Spain and France, although it will be necessary to develop new projects for Spain to achieve the necessary interconnection ratio of 15% in 2030 with the rest of Europe. Turning to the technology block, we continue with the analysis of one of the energy vectors that is acquiring the greatest prominence, and whose development is essential to decarbonize the economy in Energy Notebooks 5 the next years. We are referring to hydrogen. Pedro Rubio Blanco, Director of Project Management and Technical Services, and Luis Ignacio Parada Diego, Manager of Global Regulation Services, both of Enagas, carry out a technological and economic analysis on the infrastructures related to the transport of Hydrogen, also in storage, and focused on the European scope. Other major issues in the field of technology is related to digitization, a field that is analyzed by Niurka Cordero, Technology Strategist for Energy and Manufacturing at Microsoft Spain. Focusing on the field of energy, the author explains the change in trend that COVID-19 has brought about in the field of application of digital technologies, and how energy companies have understood the great benefits that they entail, in the field operational, but also people management, or in the field of sustainability, and the new and ambitious goals that are looming in this post-Covid era. The last of the articles dedicated to technology focuses on analyzing what are the keys to sustainable development, the efforts that are being carried out from many instances and institutions and, finally, how technology and companies are an ally to achieve these sustainable development goals. David Nunez, Senior Regional Vice President at Salesforce, describes the main challenges posed by global warming or meeting the Sustainable Development Goals, the role of companies in this process and how the practical application of digital technologies is essential to overcome current challenges. The last of the blocks in this edition of Cuadernos de Energía, as has happened in previous issues, is dedicated to the articles selected from the Enerclub Youth Network, a platform that seeks to involve young people in the debate on energy. Two are the articles chosen for this edition. The first of them is him Rosa Puentes Fernández, specialist in Hydrogen and gas quality at ENTSOG, who, through an article dedicated to the great challenges posed by the development of hydrogen, highlights how the use of it could occupy an important place in the coupling of electrical and gas systems in which cooperation between the energy sectors will be essential. 6 Energy Notebooks The second of the articles of the Youth Network focuses on the wind industry, in which Ignacio Urbasos Arbeloa, from the University of Navarra, describes the relevance of safety in the supply chain of critical minerals, specifically in light rare earths such as dysprosium, neodymium and praseodymium, in addition to boron, niobium or nickel. The author explains the challenge related to accessing these materials, as well as the complexities related to mining, refining and transporting these elements and his vision from the EU. We sincerely hope that this edition of Cuadernos de Energía will be of interest to the reader, wishing you all a happy summer and inviting you to the new issue of Notebooks in which the most current issues in the world of energy will continue to be analyzed. Energy Notebooks 7 All rights reserved. The total or partial reproduction of this document by any electronic procedure is strictly prohibited. or mechanical, including photocopying, magnetic and optical recording or any information storage or retrieval system without permission of the copyright owners. Spanish Energy Club Paseo de la Castellana, 257, 1st Floor 28046 Madrid Tf. 91 323 72 21 Fax. 91 323 03 89 www.enerclub.es Legal Deposit: M-21638-2008 ISSN: 1698-3009 8 Energy Notebooks Index What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" Ana Padilla Moreno, Secretary General, CECME (Spanish Committee of the World Energy Council) eleven Next Generation EU: Europe turns on the high beams Jonás Fernández Álvarez, Member of the European Parliament, Group of the Progressive Alliance of Socialists and Democrats 20 European funds, first do not harm Concha Iglesias Jiménez, Partner in charge of the Climate & Sustainability area, Deloitte Oliverio Álvarez Alonso, Partner in charge of the technical-economic regulation area of the infrastructure, telecommunications and government industry, Deloitte 26 The bullish history of the European emissions market Bernadett Papp, Senior Market Analyst at Vertis Environmental Finance 31 Local Flexibility Markets in Europe Jorge Fernández Gómez, Coordinator of the Energy Lab, Orkestra-Basque Institute of Competitiveness 40 The new electricity rates, a step forward in the energy transition Estefanía Arbós, Manel Martínez and Andrés Morata, Directorate of Regulation, ENDESA 55 New Methodologies for tolls and charges José Luis Sancha Gonzalo, Professor at Comillas-ICAI Author of the book “Presume to understand (in depth) the electricity and gas bills 62 Debt of the electricity sector and application of the system surplus Ana María Antona Díaz and Henar González Tejero, National Commission for Markets and Competition (CNMC) 76 Energy Notebooks 9 Interconnections with France through the Bay of Biscay Concha Sánchez, Director of System Development, Red Eléctrica de España 87 Infrastructures for the development of the Hydrogen economy. Technological and economic analysis Pedro Rubio Blanco, Director of Project Management and Technical Services, Enagás Luis Ignacio Parada Diego, Manager of Global Regulation Services, Enagás 96 Scenario and Trends of the Digitalization of the Energy sector 2021 Niurka Cordero, Technology Strategist for Energy and Manufacturing, Microsoft Spain 110 Technology and companies in the face of the climate crisis David Núñez, Sr. Regional Vice President, Salesforce 115 Hydrogen in the 'race' towards the energy transition Rosa Puentes Fernández, Hydrogen and Gas Quality Specialist, ENTSOG 122 Safety in the supply chain of critical minerals for the Spanish wind industry Ignacio Urbasos Arbeloa, University of Navarra 132 10 Energy Notebooks What are the most important issues for the energy sector? Summary "WorldEnergy IssuesMonitor 2021" Ana Padilla Moreno Secretary General CECME (Spanish Committee of the World Energy Council) Introduction For the twelfth consecutive year, the World Energy Council (WEC, for its Thus, in total, in this new edition, they have technologies; energy policy and environment analyzed 25 issues grouped into five business; and environment), whose acronym in English) has carried out its project "Word Energy Issues Monitor", which compiles through an annual survey, the vision of energy professionals from around the world on what are the main challenges and opportunities in the management and configuration of the energy transition. categories (global and macroeconomic trends; social dynamics; new positioning on the map allows classifying Carlos in two groups (see Figure 1): Figure 1. Global map of energy issues In this article prepared for Cuadernos de Energía, a summary of the main results of the study published in March is presented, in which the responses of more than 2,500 energy leaders in 108 different countries are analyzed, which together, at the globally, they represent 78% of total energy consumption. The Spanish Committee of the WEC has participated one more year, actively, with around 60 responses. The 2021 edition of this publication, as new this year, includes a redefinition of the subjects and a simplification of the questionnaire. In addition, new sections are included to help contextualize responses, such as a comment section on opportunities to address the energy transition. Energy Notebooks eleven What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" • Critical uncertainties: zone of high impact and high uncertainty. These are the issues that keep industry leaders “worried”. They are identified by the orange balls in the upper right area. The issue affects society as a whole, from the inhabitants of the cities this crisis. Low-carbon and digital solutions are considered from developed countries to rural areas in developing countries. fundamental to achieve it. Another critical uncertainty is the energy supply . During the pandemic, the power supply has been maintained, without notable incidents, adapting to changes in the • The appearance of a new generation of digital energy services and entrepreneurs . The most agile and disruptive technologies have • Need for action: high impact and low uncertainty. These are priority issues that already have a clear course of action and that keep leaders “busy”. Identified by the blue balls in the lower right area. gained market share over supply- centric energy solutions. There is a growing trend in the search for customer-oriented solutions, as well as changes in global and local demand patterns. demand. However, in the long term, there are concerns about possible disruptions in demand and how demand may change. Some sectors such as aviation have been severely affected The center point of the map represents the mean level of impact and uncertainty, to help make comparisons between significant. Business travel can take some time to recover and may even be permanently affected. In the following sections, different maps. the main results of the global map, you for the rise of virtual meetings, the European map and the Spanish one. potentially reducing future demand in this area. This issue has a particularly important impact on hydrocarbon producing and exporting countries. Based on the responses to the questionnaires obtained during the months of October to December 2020, and the discussions held Global perspective nests with members during a series We begin with the analysis of the results of the global map, shown in Figure 1. from webinars, from the report the following conclusions: Cybersecurity stands out this year as critical uncertainty. Digitization has • A major change has occurred on the perception of the profes- As mentioned, in relation to uncertainties , clearly this year the issue that worries the most refers to the helped mitigate the economic impact of the pandemic, but at the same time the associated risks and the professionals in the energy sector upon risk areas, opportunities and priorities of action with respect to economic trends , as a consequence of the COVID-19 pandemic, and awareness about the importance of cybersecurity, gaining weight in the agencies previous edition. As a consequence of COVID-19, economic trends become the area of ma- its potential impact on investments and days of the professionals of the sector. The inci- the energy transition. Uncertainties have arisen about what to invest in and where, and The front of the Colonial gas pipeline in the US, last May, is a clear example in which the risks are revealed. Accelerating digitization in the yor uncertainty , increasing by a third over the previous year. whether the necessary support will be secured. The recovery packages that have been put in place in different countries have energy sector will require strategies • At the same time, a higher new and agile risk management systems, capable of coping with the new elements raising awareness of the social and human impact of both the economic recovery and the provide an opportunity to correct the social imbalances that have increased during the pandemic and to facilitate emerging developments and increasing resilience, given the fundamental role that energy plays in critical infrastructures. energy transition . Making energy affordable for everyone is one create a fairer energy transition for all. Governments, industries, and society, growing priority for the sector, with its perceived impact and uncertainty 20% higher than a year ago. This should seize the opportunity to design tools and support mechanisms that allow them to emerge strengthened from Fourth, this year has appeared carbon reduction as critical uncertainty. This is a consequence of 12 Energy Notebooks What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" that more and more countries are committing to reduce their emissions and A third priority identified globally is the support mechanisms sites. There are some issues that recur frequently in all regions and de- they even reach zero net carbon emissions, and are concerned about how to monetize and take advantage of their existing hydrocarbon infrastructures while meeting those objectives. The circular economy, or the use of technologies such as carbon capture, transport and sequestration as facilitators of the energy transition and to put the citizen at the center. Furthermore, many of the new business models (such as electricity demand aggregators and storage) or new technologies will require changes in market designs to be realized. completed topics that are unique, such as: Africa (affordability, and demographic patterns); Asia (innovation in energy storage); Latin America (trade and investment policies, market design); Middle East and Gulf States-MEGS (Internet of Things, big data, Intelligence may have an important role in the future in can integrate into systems in a way Artificial-AI, innovative transport); North America (climate adaptation). Figure 2. these countries. Interest in this issue also underlies the great expectations placed on the progress that has been made. successful. Covid-19 has raised issues related to social aspects such as affordability and ac- Regarding the comparison of the priorities climate change may occur in of action in the different regions, as has been pointed out before, renews COP 26, scheduled for November 2021 in Glasgow. cesibility to energy. As consumers have adapted to the bles and efficiency appear as a common aspect in all. There are two themes that These are the five critical uncertainties teleworking tools, a greater emphasis has been placed on obtaining access to quality and competitive energy. appear as frequent, Big data and AI, most notable but others can be cited and support mechanisms. However, many differences are observed at the regional level: Africa (investment environment and innovation in energy storage), Asia (innovative transport), Europe (design of issues within this area, such as adaptation to climate change, innovative transportation, and geopolitics. Another topic of interest has also emerged. laugh, like demographic patterns In relation to action priorities , These can be divided into two groups. On market), Middle East and the first two that appear on the map developed regions, such as Europe, there are Gulf (affordability and geopolitics), North- global are the renewable energy and more concern about the aging of the population, how demand will change, and how it will be managed. By America (availability of space and water, urban design). Figure 3. energy efficiency . When we look at the time series, we see that these issues have held for the last 5 years in this prominent position. on the other hand, in developing countries, with A matter that deserves special attention, With a growing population, they are more concerned about how to ensure energy supply and access. by the weight that has taken on the agendas, it is hydrogen. In previous editions it was seen as a long-term issue, for the future, which was not prepared for its economic implementation. This has changed. Its potential has been recognized, especially to decarbonise sectors and uses that are difficult to electrify, such as The sector has made great strides in the development of renewable energies and their integration. Wind and solar are the dominant technologies, with relative variations. Regional comparison regional depending on the availability of resources. For its part, energy efficiency One of the uses of the Issues Monitor is the possibility of making comparisons between regions that can help to detect interesting topics. Genetics remains a key issue with high impact and relatively low cost of implementation. It remains a long-term policy in many countries tied to climate change goals, and the sector continues to make continuous improvements high temperature industrial processes. But the perspectives differ depending on the countries. From the analysis of the uncertainties in the six regions, it appears that economic trends are an uncertainty. Countries that have made commitments to achieve emissions neutrality are developing, or have already done so, on issues such as the performance of electrical appliances, buildings or energy distribution networks. dominant in all of them, although the impact of the pandemic and responses to it have not been uniform across all hydrogen strategies and roadmaps, such as Germany, Spain or Japan. Some Energy Notebooks 13 What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" Figure 2. Comparison of critical uncertainties between regions Figure 3. Comparison of action priorities between regions 14 Energy Notebooks What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" Countries rich in fossil fuels see hydrogen as an opportunity that can help them continue to use their existing assets in conjunction with other low- carbon technologies (such as carbon capture, transport and storage). Developing countries are generally less interested but are beginning to be interested in how hydrogen could be used in their energy systems. Cooperation and dialogue are identified as fundamental to determine what are the policies and incentives necessary to make the hydrogen economy a reality. Figure 4. Perception of different countries about hydrogen Figure 4 shows those countries, with orange or blue balls, that are developing or have already developed a hydrogen strategy, and those that do not have it in gray. Europe In Europe (see Figure 5), as globally, the economic trends stand out as critical uncertainties. However, in this region clearly its impact has not slowed the climate agenda , but has accelerated its implementation. There is a fairly general consensus on the importance of using economic recovery measures to support ambitious climate goals. Many countries (Austria, France, Spain) have implemented recovery plans with a focus on the green transition, in line with the Green Deal of the EU, with significant funds dedicated to accelerating investments. Figure 5. European energy affairs map Other non-EU countries are also putting the focus on climate change, such as Great Britain, which will host COP 26, which has increased its level of ambition, or Russia, which is studying how to reach its neutrality. Energy Notebooks fifteen What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" traity in carbon while continuing to use your existing energy infrastructure. Figure 6. Spanish map of energy issues In view of this ambition, the increased participation of renewable energy at mix remains one of the top priorities for action in the European region, closely followed by the energy efficiency . Professionals in the sector are kept busy with how to best achieve these goals. The integration of energy markets regionally, supported by the increase in physical interconnections between countries, it is considered crucial for the optimal integration of renewables in the system and to address issues such as energy security. Many countries are also adopting different types of support mechanisms to increase the development of renewables, from direct subsidies to auctions. In several countries there is also a debate about the use of these technologies entails vulnerability will therefore remain a key issue for years to come. excuse me redesign the market in order to effectively incorporate new technologies and business models. rabilities. Cybersecurity appears as one of the main uncertainties bres, with 74% of the responses from the The pandemic has revealed some region considering that the level of preparedness in Europe for this type of risk is in the medium to very low range. social inequalities, and there is growing concern about the affordability and Increase the energy efficiency it looks as a priority action, in which let no one be left behind. This is evidenced by the just transition mechanisms and initiatives that have been put in place at the EC and national levels. you need to make a lot more progress. In the EU, for example, buildings are responsible for around 40% of consumption The consumer role as main actor The main part of the system has gained prominence. Not only because of its role as a prosumer, there is also a greater awareness of the importance of its behavior. of energy and 36% of emissions of GHG. For its part, in Russia, energy efficiency measures are an important pillar for reducing the carbon intensity of GDP by 40-50%. Spain planning for the energy transition to be successful. Digitization and transition will only be successful if consumers are willing to use new technologies. The aptitudes " not-in-my backyard" In Spain they stand out as critical uncertainties in particular three themes (see Figure 6): the first is the economic evolution , consequence of COVID. This, as mentioned, has been common The application of digital technologies , including smart grids, smart meters, energy management systems, blockchain, bigdata be perceived can have a considerable impact on the progress of the transition so it is for all regions but in Spain it has had a social and economic impact par- ben as priority actions. At the same time, it is recognized that the increase in determining to have the support of society. The humanization of energy is particularly strong, with an expected drop in GDP of 11.6% by 2020 (OECD). 16 Energy Notebooks What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" in the industrial, transport and electrical sectors. Spain has the opportunity to become a leader in this technology, given its high capacity in renewable resources, its well-developed energy infrastructures, its geographical position ... To achieve this, regulatory and economic aspects are some of the main challenges to be addressed. Figure 7. Evolution of the perception of hydrogen in Spain Other issues such as innovation in the field of energy storage , is also perceived as a critical uncertainty. Regarding priority actions : these coincide to a large extent with the results of the previous edition and those obtained at a European and global level. For yet another year, great opportunities have been identified in terms of renewable energies, energy efficiency and also digitization, and in this area in Spain, smart grids are particularly noteworthy. This fact, however, has not diminished the importance of the perception of the issues. ethics, recently approved; the Just Transition Strategy; and the Strategy for The renewable energy repeat like from climate change , which continue to appear this year with a prominent role, in line with the rest of European countries. The Green Package and recovery plans are decarbonization of the economy to one of the main priorities, in line 2050, which seeks to achieve neutrality with the ambition of reaching a 42% share of these technologies in total consumption (74% in the mix electric) climate, no later than 2050. come in our country as an opportunity As a great novelty in this edition, it has by 2030 in the PNIEC. New regulations so that the economic recovery is appeared on our map on hydrogen , to expedite the approval of licenses green, digital and with positive social impact. This is the main objective of the Spanish Plan that has gone from being perceived with low impact and little uncertainty, to being one of Companies for new projects and a new auction regime, among others, have recently been launched to accelerate their development. recovery, transformation and resilience that seeks to mobilize around 72,000 million euros in the next three years the issues that concern the most. Figure 7. In the map included in Figure 4, in which this issue was compared with the rest of the countries, we see how the perception of Spain on this issue stands out. Our- (including 37% for the green economy and 33% for digital transformation). The pandemic has revealed the importance of digitization and its true use in many sectors, including energy. Thus, in this edition, The National Integrated Energy Plan and another country published in 2020, its roadmap Climate 2021-2030 (PNIEC) is considered the guide for the investments that will be necessary in the coming years. This document has been completed with others such as the Climate Change and Energy Transition Law. for renewable hydrogen with ambitious targets, including the installation of 4 GW of electrolyzers by 2030 (10% of the target set by the EC for the entire region). It also includes a series of milestones it is perceived as one of the highest priorities and as a key element for green recovery. Spain is well positioned for digitization, as it is a leading country in interconnectivity, it has Energy Notebooks 17 What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" Figure 8. close to 100% of households with smart electricity meters and has led to energy science In our country. The The publication of the Strategy for the PNIEC includes an objective to improve Self-consumption by 2030. carry out important projects in the area of efficiency of 39.5% in 2030, with this smart cities. However, more work needs to be done in areas such as skills and consumer engagement. In July 2020, the “Digital Spain Plan 2025” was launched to accelerate this process. Special focus on building renovation and modal changes in transportation. Consumer participation is considered key, and measures have been put in place in this area, such as opening up demand participation in markets and creating local energy communities. In this sense, Finally, the temporal evolution in Spain of some issues that have been gaining weight on the agenda over the years is illustrated, such as the future of work (within the social dimension), urban design (related to the environment) and cyber risks in relation to new digital technologies. Important opportunities are once again perceived this year in terms of efi- 18 Energy Notebooks What are the most important issues for the energy sector? Summary "World Energy Issues Monitor 2021" More information For more complete information, you can access the following links: - Full report: World Energy Issues Monitor 2021. - Interactive tool to make personalized queries, make comparisons between regions or track the evolution of issues over time: http://www.im.worldenergy.org/. - Video of the report presentation event, organized by the Spanish Committee and the Spanish Energy Club: World Energy Issues Monitor 2021 and COVID-19 press. Humanising energy - YouTube.n Energy Notebooks 19 Next GenerationEU : Europe turn on the high beams Jonah Fernandez Alvarez Member of the European Parliament. Group of the Progressive Alliance of Socialists and Democrats The design of the program Next Generation EU, to the capital of the Union to be present at that session, but with telematic voting enabled, the plenary session approved by by a percentage around 9 percent of the euro area, that is, of almost all public deficits that would end up accruing. financed with community debt, it constitutes one of the most significant political changes in recent years in Europe. East a vast majority a resolution that mule in that exercise, without stressing mechanism and recovery and resilience plans that the Member States of the it could be a before and after, both for the economic response to the crisis risk premiums. The PEPP was announced by Christine Lagarde days after Union must file to receive their funds have given the EU an opportunity that was beginning to be perceived, as for the having avoided a direct commitment to the media in statements that, while unfortunate, very nature of the EU. to set its course for decades to come. This article will review the process of proposals, negotiation and procedures The European Commission had responded to came to remember the need for an im- that first wave of a pandemic shared fiscal pulse, leaving no response that crystallized in the creation of the program pretty diligent way, after showing off for a few initial weeks budgetary allocation exclusively in the hands of the States, even when they Next Generation EU, the conditionality associated with the Recovery and Resilience Mechanism, and the linking of the new funds in March as disoriented as almost everyone else. In any case, the Commission soon proposed the application of the “clause have additional support from other European institutions. with the European Green Deal and Strategy EU Industrial. escape route ”of the Stability and Growth Pact, and quarantined the regulation of State aid in order to facilitate the use of automatic stabilizers and the deployment of In this sense, the Commission also quickly proposed the SURE program to offer liquidity to the States to cover the expenses of the unemployment programs (ERTEs in Spain) and the European Bank of A timeline of the development of Next Generation EU In the middle of May last discretionary policies to prevent Investments also communicated a new year, Parliament celebrated its plenary session the stoppage of the activity will destroy line to absorb endorsements and guarantees, which Ordinary in the Brussels headquarters in an extraordinary way before the impact of multitude of companies and, with this, it would feed a certain hysteresis that would make it difficult governments were managing through their public banks (ICO in our country). Negotiations within the Mechanism also began rapidly. the first wave of the coronavirus. At that time, freedom of movement within the framework of the Union, but also in rapid recovery, once distancing measures could be reversed. This was done by the Member States, European Stability (ESM) to create the interior of several Member States, was prohibited and the distancing measures, necessary to prevent the spread of the pandemic, threatened to destroy the productive fabric of Europe. Many deputies could not fly with the support in the secondary market of the European Central Bank, which added to its debt purchase programs the new emergency purchase program, PEEP for its acronym in English, which would allow the institution to acquire debt Additional liquidity lines, which, although they matured somewhat more (and have not been used until now), offered financial support for direct or indirect expenses of the coronavirus without budgetary and / or macroeconomic conditionality. twenty Energy Notebooks