This year’s Eurelectric convention in Vilnius, Lithuania is another crucial point to reflect on our move towards a low carbon electricity system. As the association representing the common interests of the electricity industry across 32 European countries, Eurelectric’s annual convention plays an important role in helping to shape the future direction of the electricity market.
Since I was appointed one of the vice presidents last year we have been working hard help deliver affordable, reliable, low carbon electricity across Europe. One of the key ways we believe we can achieve that goal is to create the signals to deliver market-led innovation through a robust carbon price signal and electrification to help decarbonise other areas of the economy.
We are a leader in renewable energy and fully committed to decarbonising power supply and are already taking important steps in this regard. SSE invests heavily in the UK and Ireland’s energy infrastructure – around £1.6bn last year and we expect to invest around £5.5-6bn across the four years to 2020. The majority of our investment is in renewable generation or upgrading our networks to help integrate the increase in renewable energy.
The impact of the Paris Agreement last December marked a turning point in the building of a low-carbon economy. It set in motion an irreversible trend towards decarbonisation. However, the EU ETS is not delivering on these challenges and will need further strengthening if it is able to drive investment in the electricity sector in the next decade.
According to the International Energy Agency, the full implementation of climate pledges will require the energy sector worldwide to invest 13.5 trillion USDs (approx. 12 trillion EUR) in energy efficiency and low-carbon technologies from 2015 to 2030, representing almost 40% of total energy sector investment. SSE is ready to play its part and the work Eurelectric is doing will help the whole continent play its part.
I’m sure the conference will bring up some key challenges and solutions and I look forward to working with President António Mexia and Vice-President Jean-Bernard Lévy to help deliver them.