 My intention here was to learn a bit about the integration of renewables here in Ireland and what I've heard so far clearly indicates to me that Ireland is really on the forefront here and maybe you become the powerhouse for renewable integration and we all can learn from you. But let me tell you a bit where we are at the European level with the integration of renewables. Before I go into that, one just brief introduction to see the integration of renewables is an important thing that needs to be done in order to complete the internal energy market in Europe. But it is by far not the only thing to be done and you all, or most of you might have heard about the project that we want to build a European energy union. This European energy union is based mainly on five pillars. The first pillar here is the security of supply based on solidarity between member states. Very important issue on which we are currently working, notably how to implement this solidarity aspect. Then the second is the completion of the internal energy market. This is my task in the Director General for Energy. I have to see how far can I push it during my lifetime to get to the internal energy market. And there, of course, one of the issues is also how to integrate renewables. The third issue is energy efficiency. Here we still see a huge potential in order to cope with the problem of security of supply because the best energy is the one that is not needed. The fourth is innovation and technology. Also one for the energy sector, a very important component that is absolutely needed if we want to build an internal energy market and it gets to more efficiency. And last but not least, it's the decarbonisation of our economy. That is what is our guiding force over time. This will not come today, not tomorrow. It will take some time, but if you have a clear roadmap for the time being until 2050. And that brings me now to my... This leads now up to what we call no regret scenario for Europe. You will find these five things more or less in this because these are our guiding principles. Our overarching objectives on which we want to build our European energy policy. You have these three big objectives with competitiveness, sustainability and security of supply. The magic triangle of objectives. And then you have the driving forces in order to reach not one after the other, but in the ideal world, all three together. And that is we need competitive markets, we need energy efficiency, we need renewable sources, we need diversification of supply, groups and suppliers important and we need a smart infrastructure. This is all together is really what guides us in formulating our policy. Now what is the electricity market structure today? The core principles for us are we want to have first and foremost a market based approach. And market here in the energy sector means for us we need many buyers, we need many sellers and that the price is determined by those buyers and sellers and the influence of the government should be reduced to the minimum. We have on the other side a regulated part which is the grid infrastructure and the system management for very good reasons because that's the backbone for the whole system. And then for the time being we have renewables accepted from this market. Why was it though? At the time when we started to develop the European policy the renewables, wind, solar have not been ready for being put into the market scheme because if we have done so they would never have taken off because their technology was not mature and too costly. So it was only possible with high subsidies and keeping them away from the market. This in the meantime has changed. So that illustrates a bit where we are today with the system. On the right you have the different support schemes for renewables in whole Europe. The orange that's a quota system, the green are feed-in tariffs. There you see also a couple of Ireland and Northern Ireland and you have the blue ones feed-in premiums. You see quite a colorful picture but that is the situation today. And on the left side you have the same thing on capacity market proposals. You have the green ones energy only market that means no capacity mechanisms at all. You have the blue ones the proposal for new capacity elements and what is it, the actual capacity mechanisms and major capacity. So also here you see quite diversity. Both of course cannot stand forever because these kinds of differences, diversities that help us in development of the market and therefore it is important to work on both on the support schemes in the context of the integration of renewables and capacity mechanisms in the context of a new market design for the electricity market which is an ongoing work at the Commission. We have just closed our public consultation on this issue and we are working towards legal proposals for the end of next year. I have two slides, very interesting and I have put them because they are so positive for Ireland. They show you what is behind the diversity of the schemes. When you look at the costs of renewables as a share of electricity price you see a tremendous difference. You have on the left side Germany, we pay what it costs. And then you have on the right side Poland, but forget Poland because they don't even have a renewable policy. So it's no wonder that they are far off. So the best ratio that you can find is here. And that shows one thing to me at least is that here in Ireland you have been right in choosing the most cost efficient way to integrate or to take in renewables. And that's exactly what we think should be done. But Germany I have to say they are doing now better because they have reformed the system because even a rich country like Germany could not afford over a long period to spend so much money for that. And the same also reforming now and doing much much better. But for Ireland what I have said initially, you are already at a very very good platform from which you can develop new solutions, more solutions than are needed. The other is the cost effective use of renewable resources. The red dots are subsidized over production costs. And the grades are the production costs and then the green ones are the subsidies, low production costs. Here the same picture. You have a number. You can see that quite clearly. A number of Member States where you have subsidies beyond production costs. This is distorting. It's clearly distorting and has to stop. Again, Ireland where I can see it left is the wind. You are still very good. Where are you to the left there? Yes, the third. You are still below and also here I think also with solar. No, there you are. Something we can discuss. Electricity market structure now adds a transition that was already mentioned. We know we have targets for 2020. Not only for 2020. The European Council has already decided for the targets 2030. And this decision of the European Council clearly means more renewables. More renewables, otherwise we cannot fulfill the new CO2 reduction target which is minus 40% by 2030. It's out of the question. And even the 27% average at European level will be just about to make it there. And only if something happens to be more than they want. Here I want to show you one state of play 2020 target. I have only singled out Ireland. Today I learned that our forecast 2020 projection might be too optimistic. Because we in the Commission, we still believe that Ireland will make it. You see 2013 at 7.3 and our projection chose 18.4 and your target was 16. So you would be clearly above. But in the discussions this morning there were doubts raised that the 16% will be achieved by 2020. I personally still have on the positive side. So before it is not proven Ireland is still on the positive list at least with me. Here you have the summary of the 2020 and 2030 targets. You see first the greenhouse gas emission reduction 2020 minus 20%. Here we still believe that we are good. We might end up at 21 so we will just make it. But 2030 is around the corner and then we double it to 40% which really asks for a huge effort. Then the renewable energy 20% 2020 but there these 20% have been broken down by member states. We have seen for Ireland that 60% for other member states are more. Now we are going for 2030 to at least 27% this time average EU. That was a compromise that had to be accepted. This will be accompanied by kind of governance system. Then you have the energy efficiency 20% 2020. We will fall short of that. But for 2030 it is again at least 27% but the parliament and the commission has already promised to the parliament to support 30%. And then you have the interconnection targets 2020 10% for electricity, interconnectivity and we will raise that to 2030 to 15%. So this is the new market design. These are the goals and if you want to achieve these goals you have to come forward with policy measures. And that means that renewables in this system play a predominant role for the CO2 reduction target for the renewable target all together. And that means more and more the share of renewables in most of the member states will raise in Ireland too. And that has impact on the market but also on the system that is operated. And that also has to be taken into account when we come to the policy shaping. Here I just want to show you what does it mean integrating variable renewables and why does it require new thinking. Here we have two days, one is in December and one is in June. Here on the left in December you have very little renewables production and at the same time a high demand. So here we have a mismatch not enough energy. On the other side it's exactly the opposite. We have high production in renewables but a lower demand. And again we have a problem because the right one stresses the system and the left one we fall short and we have to see where we get back up so that the energy supply is guaranteed. So at the same time we have to deal with both cases and that requires as you can see a new thinking. So what is the new thinking and this is now our policy answer to it. The first very important statement that I want to make is very often when you hear about integration of renewables into the market at European level we are just, very often you only hear something about the green pillar that I will put forward in a minute. But that's not true. That's only half of the truth. It is not possible just to take the necessary measures that I will list in a moment for integrating renewables into the market. We also have at the same time in parallel also making the market fit for the renewables. The one cannot go without the other. If we would only take the measures to integrate the renewables we would fail. We also need some clear market measures in order to welcome the renewables in the market. So what is this now in detail? Integrating the renewables into the market requires that all producers of whatever generation have a balancing responsibility. All. That's the first requirement. The second requirement is all the priority rules on the dispatching which exist for renewables but also in different forms for instance even for coal have to go. There is absolutely no room for priority rule for dispatching anymore. Then the renewables have to be sold into the market. That also means that the market should not be distored through or by subsidies that keep renewables within the market in a favorable position. We have to discuss what kind of support is necessary and we have also said that there is a transition necessary. We cannot strip away all the subsidies for renewables from one day to the other. But we have to have a clear idea what kind of support schemes should they look like. They should be open also for others coming out from other member states. You know that the Commission does not want to see feed and tariffs. That's a problem here for Ireland. We are more for premiums or other forms also bringing this to the market by bidding system, auctioning system that we are testing currently in Germany. And we need a much more coordinated approach for support scheme at the regional level. As I have just said it is not only in one member states we want to open these schemes up for the regional level. This is on the integration side of renewables. Now we come to the market. What do we need to do at the same time for the market to make the market fit? We want to take the renewables in. We need short term measures because we have the problem. If we say we want to give balancing responsibility we have to give the producers of renewables the possibility to get in almost real time the necessary capacities that they need in order to balance the portfolio. That means we need interday market company and we need balancing markets and greater bidding songs. The next is market rules have to be compatible with renewables. We have to take away all the discriminations that might still exist between technologies. We have to be technologically neutral also on the market side. We need flexibility options and here it is demand side management. Here you still see demand side response but I don't like the response on its more management that is needed. There is a very important pillar in the system because we see also functioning demand side management can really make the difference for the integration of renewables in the whole system. Especially in short term you can see good results if you start using the demand side management with existing industries where it is possible. And at a further stage than also in aggregated form taken in the households. And then last but not least we need new hedging tools all this together. We have to cope with the risks that are inherent of all this and therefore we need hedging tools. So this on one slide is if you want our idea from how we integrate a European level renewables into the market. We are working on the same time on very focused and very targeted measures to the renewable system. But at the same time also changing some market rules in the market in order to make it compatible. And that has to happen at the same time. We cannot be done in sequence. My last slide is about investments because this in the upcoming years is the challenge for renewables. Because what we see is that for the renewables once they are installed they are well off because they are working at zero marginal cost. But there is high or great big capital needed in order to install renewables at the market. And what we need here is we need a clear framework for giving incentives to investors to invest in building new capacities for renewables. And that for the moment is a problem and this problem has different facets. One clearly is that things that happened in Spain or in Czech Republic where over the running period investment period they have changed retroactively the remuneration for the investments is the killer for the investment climate. If this was not only an issue for Spain and Czech Republic it really has done a lot of harm to the investment reputation of the European energy market as such. And we have to make sure that these kinds of things remain exceptions because the investors first and foremost need a stable predictable framework in which they can invest over many many years a huge amount of money. And that for me is the first thing. Secondly and here I impress myself also to my friend Gary. We need I give out the Irish regulator but we need also from the regulator side a more proactive approach towards investment decisions that they are ready to take also I know for a regular regulator it is difficult to hear but I tell you you have to take also as a regulator certain risks. There is no investment without risk and you have to take that also into account and you should bear that in mind. I think we need a discussion there are regulators like Irish one but others they have already this positive attitude to investment but I can tell you from experience there are a lot of member states regulators they are even counterproductive to these investments. That of course goes together with synergies that we have to find. We have to find new approaches. Good example is cooling and heating. Also something I heard this morning is very high on the agenda in Ireland and in my view rightly so. If we want to fulfill all the objectives that I have mentioned we have to go also with renewables into this sector cooling and heating. And last but not least I mentioned it the development of technologies and innovation. The new electricity market or energy market will not be developed in due time if we do not support heavy innovation and research on new technologies. Even those that are mature like wind and solar there is still room for improvements for new developments. In solar it is quite obvious everybody is complaining that we have lost the production of the panels to China. But now they do it we buy cheaper than we had constructed ourselves. But what is missing we should be as Europeans already on the market for the second or third generation of panels and doing the business. Being in the lead of the technology. So let the Chinese build the first generation but then we should come immediately on the market with the second generation that is improved with our know how. And then we have to do on a large scale solar is only an example I think also when it comes to the windmills or other wave energy all what have you. There is a huge potential for Europe to be at least from the technological point of view in the lead. So that was in a natural bit what we have in mind and I hope that is enough thought for discussions afterwards.