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Ref. Ares(2016)5414775 - 16/09/2016
Meeting between 
Article 4(1)(b)
 of VERBUND AG and 
Commissioner OETTINGER  
at Alpbach. Austria on September the first at 10:45 - 11:15  
_________________________________________________________________ 
I. Scene setter
At your request you will participate at Bilateral meeting with 
Article 4(1)(b)
 of 
VERBUND AG 
VERBUND AG is Austria's largest electricity provider, 80 percent of this energy is generated 
from hydropower, their activities to include other additional renewable energy sources, 
especially wind power generation.  

VERBUND AG is concerned about an idea circulating within the German "Bundesnetzagentur" 
to split of Austria from the German electric single market by 2018. This follows a legal but non-
binding opinion of the Agency for the cooperation of energy regulators (ACER) adopted on 
September 23rd last year. 

VERBUND AG, as member of EURELECTRIC, welcomed the Commission’s proposal to revise 
the EU Emission Trading System (ETS) Directive. In November 2015 position paper, 
EURELECTRIC expressed support for EU ETS as the main policy instrument to provide 
incentives to reduce green-house gas emissions, improve energy efficiency on the supply side and 
invest in low-carbon technologies.    

For DG CONNECT: none requested 
For the Cabinet: 
Estimated duration: 30 
min 
(from 
10:45 to 11:15)
Agenda:  
1. Gemeinsame Strompreiszone Deutschland/Österreich
2. CO2-Mindestpreis / Preisbildung am Strommarkt – aktuelle Entwicklungen
3. E-Mobilität (DE, AT, Konnex zur Digitalisierung)
Objective(s): Set out the main challenges on digital energy society, CO2 gas reduction and the 
main relevant actions by the Commission; respond to the concerns expressed by VERBUND.  
Their Position 
• VERBUND is supports the current reality of a common price zone between Austria and
Germany. It is a central element of the internal market for electricity in Europe;  It
contributes to safeguard the security of supply; it finally is also economically efficient,
allowing greater competition and unrestricted exchange of energy across national borders
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•  The current EU Emission Trading System price for CO² is however too low to provide 
investment incentives. 
•  The Austrian transport sector is responsible for a third of CO2 emissions s. E-mobility 
from 100% renewable energy sources is therefore a possible solution. VERBUND is 
however of the opinion that to enable a breakthrough in e-mobility a supporting legal 
framework
 is needed,    
•  Storage and pumped storage power plants represent the most efficient possibilities for 
storing electricity. Within the electricity system they make a significant contribution 
towards integrating the volatile production of electricity from wind and the solar power. 
Again, the current situation on the market and the legal requirements make the 
economical operation of the facilities more difficult. 
 Our Position 
•  The European Commission's Energy Union Framework has created a new momentum 
in the transition to a low-carbon, secure and competitive economy.  2016 is an important 
"year of delivery", in which the strategic vision set out in the Energy Union Strategy will 
be translated into several EU-level legislative initiatives. 
•  The Commission is supporting the Digitisation of European Industry as part of the Digital 
Single Market strategy, and the digital energy sector will be one of the first sectors to 
gain from the DSM  

•  An  enhanced market design – where short term markets are fully developed and 
integrated and flexibility plays a key role in enhancing the market value of renewables 
and flexible solutions - together with a strengthened EU ETS need to be at the core of the 
decarbonisation of the power system
.  
•  The Commission continues to support the current status of a common price zone shared 
Austria and Germany; we have confidence and the hope that alternative solutions will be 
found to avoid splitting this electric single market between Austria and Germany. 
•  We consider electric mobility as an important element of European climate and 
energy policy. Here our activities are focused on the integration of electric vehicles into 
the energy system (smart charging / demand response), and interoperability of charging 
stations in Europe (both technical compatibility between the vehicle and charging point 
and  interoperability of the various payment and information systems).    
•  As a digital contribution the Commission is supporting generic cross-sector solutions 
achieving thus innovation. The development and use of the Internet of Things, the 
Cloud, standardisation on the digital energy sector, 
usability and access to data and 
others under the DSM are key in this context. 
  
 
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Line to Take 
• The energy system as a whole is in transition to a more dynamic and sustainable energy
model, and consumers should become more protagonists as well as companies (such
as VERBUND AG) focalised on renewable energies. This contributes significantly to
achieving the sustainability objectives of the EU by 2030 ( greenhouse gas emissions
reduction by 40%; increased energy consumed from renewable energy sources (RES) by
27 %; and reduction of energy consumption by 27%).
• In the context of the Energy Union, the Commission is going to push ahead with the
energy efficiency agenda. The review of the Energy Efficiency Directive will set out the
right path and create the right framework to meet an ambitious target by 2030. We will
propose an update to the Energy Performance of Buildings Directive and alongside this
the Smart Financing for Smart Buildings will help boost renovation rates. And by the
end of the year we will present a review of the Renewable Energy Directive and a new
Electricity Market Design
.
• Digital energy will be one of the first sectors to gain from the Digital Single Market,
and CNECT is ready to support cross-sector cooperation between European Power
Generators and other energy operators, and digital 
service industry. The aim is to
create a win-win situation for these sectors.
• Supporting more intensive use of ICT including "Internet of Things" and the role of
consumers; we need collaborative transparency to achieve our commitments on
decarbonisation for 2020 – 30 and 50, using energy from renewable sources and being
more efficient on energy use; therefore consumers and companies who bet renewable
power generation as VERBUND are our best allies.

• The Commission adopted in July 2016 its communication on "a strategy for low
emission mobility" in which the importance of electro mobility for the decarbonisation
of transport was highlighted. However, no concrete new EU initiatives on electro
mobility have been announced in this document. Instead it mostly refers to the
implementation of existing legislation (AFID) and planned legislative proposals (MDI)
and EPBD (where it is considered to introduce an obligation for all new buildings to
foresee a dedicated electricity connection to 10% of all parking spaces that can be used
for charging).
• The integration of electric vehicles is challenge to the distribution networks; however
electric vehicles can become a significant factor to introduce flexibility to the system:
the shifting of charging to times of low demand and/or high supply ("smart charging").
Under the Market Design Initiative (MDI) the Commission will address this issue.
We consider electric vehicles (ev) as an additional load in the electricity system and
vehicles' batteries not differently from any other battery installed in private premises.
This will facilitate a demand-response mechanism, reducing peak demand and enhance
flexibility in the electricity market as a whole, providing consequently substantial
benefits to all stakeholders.
• Full deployment of electric vehicles is only possible if there are enough accessible
charging infrastructures. To mitigate this problem, the COM proposed a package of
binding targets on Member States for a minimum level of infrastructure for clean fuels
such as electricity, hydrogen and natural gas, as well as common EU-wide standards for
the equipment needed. In this respect, the COM welcome the coordinating role of
VERBUND in the EU funded projects Cross-Border and the CEGC (Central European
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Green Corridor) project aiming at constructing a dense, speedy-charging cross-border 
network in Austria, Slovakia and Slovenia, with the involvement of Munich and Zagreb. 
•  Smart meters are starting to provide significant data which allow to energy actors to 
optimize their operational assets, deferring the installation of new capacities and 
distribution facilities. But it also promotes changes, in electric usage by end-use 
customers, from their normal consumption patterns, in response to changes in the price of 
electricity over time. 
•  The legislative proposal for the revision of the EU ETS reflects the agreement reached 
among European leaders in the context of the 2030 climate and energy framework. As 
such, it presents a carefully crafted balance reflecting key concerns of all Member States. 
At the same time, it ensures that the EU ETS can deliver the emission reductions to meet 
the 40% reduction target in 2030. This should also solve the price issue that you raise. 
•  With respect to the common Austian/German price zone it is obvious that the 
Commission supports such market integration across borders. We therefore believe that 
further discussions between the involved countries would be beneficial to come to a 
solution that is acceptable for all. I would encourage you to continue the talks with 
Austria and Germany on possible compromise solutions. 
 
 
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II. Speaking points
Separate speaking points not requested 
Defensives  
What is your opinion regarding the possibility of splitting this electric single 
market between Austria and Germany? 

• I understand that the Bundesnetzagentur considers splitting of Austria from the
German electric single market by 2018 following a legal but non-binding
opinion of the Agency for the cooperation of energy regulators (ACER)
adopted on September 23rd last year. The reason is that there is a massive flow
of electrical energy between Germany and Austria and due to the congestion at
certain times of the internal electricity distribution network in Germany this
exchange occurs through neighbouring networks in Poland and the Czech
Republic. This in turn causes major distortions in the power distribution
networks in those Member States.
• I have confidence and the hope that alternative solutions will be found and that
it won’t be necessary to split this electric single market between Austria and
Germany; for very different reasons, the first one is that the European
Institutions and the Commission are  working precisely on the opposite way:
we are working on implementing cross-border cooperation across  the different
Member States, being this the best measure to ensure the electricity supply
throughout the whole Union and improve the flexibility mechanisms of the
electricity demand, producing multiple benefits for all actors involved in this
market and for the citizens.
Does the Commission support a carbon price floor mechanism?  
• No. The Commission shares the same concerns as many Member States on this.
This idea is not new and also did not find broad support when it was advocated
in the past.
• The EU ETS is a EU-wide market-based mechanism. It is for this market to
determine the price, not for political decisions to impose a price on the market.
• The carbon market and the price signal have been substantially weakened,
mainly due to the heavy economic recession. European institutions and
stakeholders have thoroughly debated how to respond to this. The result of this
long and difficult debate was the decision last year to create an ETS Market
Stability Reserve as of 2019.
5

•  We need to let the Market Stability Reserve unfold its full impact in the coming 
years. It was consciously designed as a gradual measure to address the surplus 
of allowances in steps. 
 
The carbon price is too low and doesn't provide sufficient incentives to the 
power sector to decarbonise.  Shouldn't this be addressed? 

•  Regulatory certainty is crucial for a favourable investment climate. I am 
positive that the Market Stability Reserve is already making a difference for 
investment decisions, as they are based on longer-term future price 
expectations, not on the current daily market prices.  
•  Now is not the time to rethink or revisit this Market Stability Reserve, but to let 
it unfold its full impacts in the coming years. 
•  The Commission is open to reflect on further reinforcing the EU ETS as a 
decarbonisation engine in the power sector, and ensuring effective use of its 
revenues to support the low-carbon transition. 
•  Substantial funding will be available to foster innovation in the energy sector 
and manufacturing industry through the future Innovation Fund. We need to 
make sure that meaningful projects receive support. 
•  Similar considerations apply to the debate on the governance structure of the 
Modernisation Fund. 
 
Why didn’t the Commission propose harmonised compensation for indirect 
costs? 

•  After a thorough analysis, the Commission proposed to continue with existing 
state aid approach, while actively encouraging Member States to provide 
compensation from their auction revenues. As Member States have to report the 
use of these revenues, the increased transparency could incentivise more 
Member States to make use of them in this way. 
•  More harmonised arrangements at the EU level may seem attractive, but they 
pose considerable technical and political challenges. A harmonized system 
would need to capture a wide variety of carbon intensities of electricity 
production across Member States, varying integration of national/regional 
electricity markets and a range of exemptions for industry.  
•  Therefore, we propose to continue with the existing state aid approach. State aid 
rules are designed in such a way to minimise competition distortions in the 
single market and are equally applicable to all Member States. 
 
 
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EU ETS and impact on industry  
•  The Commission proposal is in line with strategic guidance of the European 
Council, deciding that "free allocation will not expire; existing measures will 
continue after 2020 to prevent the risk of carbon leakage due to climate policy, 
as long as no comparable efforts are undertaken in other major economies." 
•  In the last decade, there is no evidence of any damage to the competitiveness of 
European businesses or economic growth as a result of the EU ETS.  
•  The ETS Directive already provides good protection to industry, in the form of 
free allocation and the right to receive state aid as compensation for indirect 
costs. We build on the past successes and continue with free allocation also 
after 2020, with an appropriate level of protection to those industrial sectors 
that need it.  
•  Discussions on carbon leakage are a key issue in the ongoing legislative 
process. The European Council decision to preserve the free allocation beyond 
2020, and the Commission's proposal for continuation of carbon leakage 
measures in the EU ETS strike the right balance at this point of time, but 
should be kept under review in the coming decade.  
 
Will best installations be guaranteed not to face any carbon costs – as 
requested by the European Council? 

•  The European Council gave the steer that the most efficient installations should 
not face undue carbon costs. The Commission proposal reflects this principle 
within the overall architecture. Best performers will receive the highest share 
of free allowances within their sector, giving them competitive advantage vis-
a-vis less efficient installations.   
•  Full protection from any carbon costs is neither possible nor desirable. It is 
essential to retain the carbon price signal and a continued incentive for industry 
to become increasingly carbon efficient. Being more efficient also means being 
competitive. 
•  Our industry also needs to remain competitive by being a leader in innovation, 
and low-carbon and sustainable technology development. This is what EU 
industry has always been best at. 
 
Why didn’t the Commission propose a tiered approach for carbon leakage? 
•  The Commission has proposed continuation of the current approach: 2 carbon 
leakage groups. 
•  A tiered approach is understood as a system with more than two carbon leakage 
groups. As analysed in the Commissions' impact assessment accompanying the 
ETS revision proposal, such a system could lead to even more targeted free 
allocation, differentiating further the risk of carbon leakage, but it could also 
increase complexity and administrative burden.  
 
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Article 4(1)(b)
Article 4(1)(b)

IV. Background
1. Company Profile:
Verbund AG is Austria's largest electricity provider. Total annual electricity production: 
27,369,197 [Mega Watt -hour] Verbund provides around 40 percent of electricity demands 
in Austria and 80 percent of it is generated from hydro power
. Verbund operates 123 
production facilities and deploys its activities mainly in Austria and Germany, as well as 
Spain, France, Romania and Albania. In 2007 they expanded their activities to include 
other additional renewable energy sources, especially wind power generation.
  
In 2009, Verbund acquired a power plant chain on the Bavarian river Inn from the energy 
company E.ON and the company became the fourth largest hydropower producer in Europe. 
Its activities cover Electricity generation, electricity trade, power transmission & 
electricity sales.  

Turnover: 2.835 billion EUR (2014) 
Location: Headquarters in Vienna. Employees: about 3.000  
The main shareholder is the Republic of Austria with 51 percent; other shareholders are 
Syndicate of EVN and Wiener Stadtwerke with 25 percent, Regional Energy Supplier of the 
State of Tyrol 5 percent, and small shareholders 19 percent. 
VERBUND group companies are represented in different organisations, among others: 

Austrian Mobile Power (AMP)

Bundesverband der Energie- und Wasserwirtschaft e.V (BDEW)

Deutsche Handelskammer in Österreich

European Federation of Energy Traders (EFET)

Industriellenvereinigung Österreichs (IV)

Oesterreichs Energie (OE)

Österreichischer Wasser- und Abfallwirtschaftsverband (ÖWAV)

Österreichisches Nationalkomitee des Weltenergierates (World Energy Council)
In addition, thanks to a nomination by Oesterreichs Energie (OE), VERBUND employees are
also active on the boards of EURELECTRIC and other European special interest groups.
VERBUND AG activities related to electromobility 
• "E-Mobility Provider Austria" is a joint venture between VERBUND and SIEMENS
Austria.
• SMATRICS is the first provider to establish a pan-Austrian infrastructure for
charging electrically powered vehicles with electricity from 100% hydropower. In this
way a nationwide utilisation of electric vehicles is being made possible and charging
in future turned into a matter of utmost normality for users of electric or plug-in hybrid
vehicles.  Over the course of the next few years, SMATRICS is going to attain a pan-
9

Austrian supply with a charging infrastructure that will then be concentrated in 
metropolitan areas and arterial routes. SMATRICS will operate the Austrian part of 
the speedy-charging network for the CEGC project (Central European Green 
Corridors) as well as the CROSSING BORDERS project, under the coordination of 
VERBUND AD.  
• VERBUND is currently launching the Tesla Energy Powerwall domestic
photovoltaic energy generation and storage product in cooperation with Tesla.
• Participation of VERBUND AG in EU funded projects (a few examples):
9  CEGC:  "Central European Green Corridors" project is a dense, speedy-charging
cross-border network to be constructed in Austria, Slovakia and Slovenia, with 
the involvement of Munich and Zagreb. 
9  Crossing Borders:  Network planning and infrastructure deployment aiming at 
providing convenient services for customers. 
9  Green eMotion: is setting a framework for pan-European interoperable 
electromobility which is commonly accepted, user-friendly and scalable. It aims 
at integrating smart grid developments, innovative ICT solutions and different 
types of EUs various urban mobility concepts. 
9  SUSPLAN: Development of regional and Pan-European guidelines for more 
efficient integration of renewable energy into future infrastructures 
9  GRIDTECH: Impact Assessment of New Technologies to Foster RES-
Electricity Integration into the European Transmission System 
2. ACER: (Agency for the Cooperation of Energy Regulators)
The Agency for the Cooperation of Energy Regulators (ACER), a European Union Agency, 
was created by the Third Energy Package to further progress the completion of the internal 
energy market both for electricity and natural gas. It was officially launched in March 2011, 
and has its seat in Ljubljana, Slovenia.  
3. Key points of the Commission policy on digital energy

Commission Communication COM(2011) 202 on Smart Grids: from innovation to
deployment

Commission Communication on Digitising European Industry Reaping the full
benefits of a Digital Single Market {SWD (2016) 110}
• A report from the Commission about smart metering deployment in the EU-27 with a
focus on electricity COM (2014) 356 on achieving EU commitments on
decarbonisation for 2020 – 30 and 50, using energy from renewable sources and being
more efficient on energy use see  COM (2014) 520
4. Excerpts from the Energy Union Communications:
"A Framework Strategy for a Resilient Energy Union with a Forward-Looking
Climate Change Policy /* COM/2015/080 final"

The Energy Union strategy has five mutually-reinforcing and closely interrelated
dimensions designed to bring greater energy security, sustainability and
10

competitiveness: 
- Energy security, solidarity and trust;
- A fully integrated European energy market;
- Energy efficiency contributing to moderation of demand;
- Decarbonising the economy, and
- Research, Innovation and Competitiveness
5. German-Austrian bidding zone
The German-Austrian bidding zone is, so far, the only cross-border bidding zone in the EU. 
However, the steep increase of RES production in Germany without proper grid capacities has 
led to significant congestion inside Germany. This has led to significantly reduce 
interconnector capacities at the DE/DK and DE/PL border (DE prefers limiting cross-border 
flows to costly redispatch measures). It affected also the DE/AT border, as maintaining one 
single price between Germany and Austria would require increased costs for redispatch 
measures in Germany (or a split of Germany into two price zones). 
While the root cause for the congestion problem is clearly inside Germany (insufficient 
transmission capacities between North and South), a split between Germany and Austria 
would at least slightly alleviate the loop flow problem and reduce the German need for 
reserve capacities. ACER, fearing not being able to impose an inner-German split, issued an 
opinion in September 2015, according to which the DE/AT-zone should indeed be split. 
Austria appealed this opinion in Court. However, the appeal has no suspensive effect. It is 
likely that ACER will confirm its view in an upcoming decision on so-called "capacity 
calculation regions" in the framework of the implementation of the Market Coupling 
Regulation ("CACM") in October 2016. A bidding zone study is also underway (also under 
the CACM-implementation framework), the results of which are expected for 2017.  
DG ENER (Dir. Dieter Borchardt) tried to moderate a compromise solution between Austria 
and Germany ("MoU"), according to which Austria would accept the preparation of a 
possible split, subject to confirmation by the bidding zone study in 2017. In exchange, 
Germany would guarantee certain minimum flow volumes at the DE/AT border.  
While an MoU had already been drafted, Austria ultimately refused to sign it, as it does not 
want to accept the necessity of a DE/AT split. There are no signals that Austria would change 
its opinion on short notice. 
DG Ristori met the Austrian DG Schönbauer in the margins of the informal Energy Council in 
July in Bratislava. 
6. CO2 Mindestpreis/Preisbildung am Strommarkt – aktuelle Entwicklungen
Aktueller ETS-Preis (23.8.2016): 4,7 €/t CO2  
Aktueller Strompreis (23.8.2016): 30,6 €/ MWh (DE Day Ahead Baseload) 
Anteil Erneuerbare Energien in Gesamtenergieproduktion (EU-weit): 
2015: 28% (davon 43% variabel - Wind und Sonne) 
2030: 43% (davon 62% variabel - Wind und Sonne) 
11

Geplante Kommissionsvorschläge: Revision der Erneuerbaren-Richtlinie, neues Marktdesign 
und Energieunions-Governance: Ende November 2016 
7. Proposal for the revision of the EU ETS – state of play
In July 2015, the Commission presented a legislative proposal to revise the EU Emissions 
Trading System (ETS) in line with the 2030 Climate and Energy Policy Framework agreed by 
the European Council in October 2014. The proposal is an integral part of the work on 
achieving a resilient Energy Union with a forward-looking climate policy. 
European Parliament. Discussions on the substance of the ETS Directive revision proposal 
have intensified this year. The lead committee is ENVI, with shadow rapporteur Ian Duncan1 
(UK, ECR). ITRE is the associated committee with no exclusive competences, shadow 
rapporteur Frederick Federley (SE, ALDE). The majority of the proposal is under shared 
ENVI / ITRE competencies.  
Both committee rapporteurs have presented their draft reports. The ITRE Committee's draft 
report was discussed on June 13, followed by the discussion on amendments on July 12. 
ENVI draft report was discussed on June 21. A plenary vote is tentatively scheduled for 
February 2017.  
Council. An Environment Council debate on the ETS took place on June 20, following the 
discussions under the former Dutch presidency. 
The ETS revision is one of the priority files for the current Slovak Presidency. The Presidency 
has scheduled 8 full-day Working Party meetings on the proposal during their term, aiming to 
agree a "general approach" by the end of the year (Council meeting on December 19). Even 
though Member State positions are evolving, this is an ambitious timeframe, also implying 
that the Council would position itself before the Parliament (scheduled for February 2017).  
Key features of the EU ETS proposal 
Environmental  - increasing the pace of emissions cuts.
 To achieve the at least 40% EU 
target, the sectors covered by the ETS have to reduce their emissions by 43% compared to 
2005.  To this end, the overall number of emission allowances will decline at an annual rate of 
2.2% from 2021 onwards, compared to 1.74% currently. 
Economic - more targeted carbon leakage rules. The proposal further develops predictable, 
robust and fair rules to address the risk of carbon leakage which may occur if production is 
transferred to countries with less ambitious climate policies.  
Financial - funding for low-carbon innovation and modernisation of energy sector. 
Several support mechanisms will be established to help the power sector and industry to meet 
the innovation and investment challenges of the transition to a low-carbon economy: 
• Innovation Fund – 450 million allowances are proposed to be allocated to support large-
scale demonstration projects in carbon capture and storage, renewable energy and energy-
intensive industry. Whereas details on the operation of the Fund will be laid down in
implementing rules (i.e. after adoption of the Directive), a high-level conference on the
Innovation Fund
 took place on June 9, with participation of power generation and
manufacturing industry, discussing the needs and potentials of this funding for innovation,
development and deployment of low-carbon technologies.
12

• Modernisation Fund – facilitating investments in modernising the power sector and wider
energy systems and boosting energy efficiency in 10 lower-income Member States.
Free allowances will also continue to be available to modernise the power sector in these
lower-income Member States.
8. Electromobility in Austria
• The automotive industry and the automotive suppliers industry generate, with
approximately 175,000 employees, an annually sold product volume of approximately
22 billion euro. The direct additional potentials of electromobility in the vehicle sector
are estimated to be at least 14,800 full-time equivalents as well as a gross added value
of at least 1.2 billion euro in the year 2030.
• Austria is predestined for electric mobility, due to its high percentage of electricity,
around two thirds, generated from renewable sources.
• Austria’s comprehensive transport plan sets quantitative objectives to 2025 which
include reducing transport emissions of CO2, PM2,5 and NOX, increasing the share of
freight transported by rail and increasing the use of public transport and electric cars.
• However, Austria does not have a comprehensive sustainable fuel outlook. In 2012 the
federal government adopted a national implementation plan “Electromobility in and
from Austria” which specifies 65 measures for promoting clean vehicles and
sustainable transport. Austria’s understanding of electromobility is deliberately broad,
covering various propulsion technologies, and ranging from already well-electrified
public transport over duty vehicles and cars to bikes.
• 2015 in Austria saw a very dynamic e-bicycle market with Austrian manufacturer
KTM Fahrrad GmbH stating that e-bicycles already contribute half of their annual
revenues. New registrations of BEVs in 2015 increased by 30.9% in 2014. The PHEV
market experienced two-and-a-half-times as many new registrations of PHEV (+
153%) compared to the previous year. The beginning of 2016 was marked by a reform
in company car taxation with significant benefits for zero-emission vehicles so that the
BEV and FCEV numbers are expected to pick up over 2016.
• The introduction of sustainable fuels is promoted by various ministries at national
level as well as supporting programmes at the regional and incentives at the local
levels. Supporting activities range from research and development promotion over tax
incentives and focused purchase incentives to broader mobility management measures
as well as dedicated support for start-ups.
• SB LiMotive builds and sells Li-Ion batteries for vehicles like Fiat 500e, BMW i3 and
BMW i8. In Europe, a production plant is located in Austria and all other plants are
located in Asia.
9. Electro-mobility in Germany
• The transport sector accounted for about 28 percent of Germany’s total final energy
consumption in 2014, and 164 million tonnes of CO2 emissions - 20.5 percent of the
country’s total.
• Germany currently looks incapable of fulfilling its official target of putting a million
electric vehicles (EVs) on the road by 2020, which experts say is crucial to reaching
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the country’s 2020 target of reducing CO2 emissions by 40 percent compared to 1990 
levels. 
• A November 2015 report by the International Renewable Energy Agency (IRENA)
chastised Germany for not doing more with renewable transportation technologies.
Yet in 2015, there were just 12,363 e-cars among the 3.2 million new cars registered in
Germany that year – a share of 0.4 percent.
• German carmakers invest billions of euros a year in R&D, much of which goes toward
green technology, such as alternative mobility and advances in fuel efficiency. In 2014
alone, Germany’s automotive industry R&D expenditure topped 17.6 billion euros,
one third of Germany’s total R&D expenditure, and R&D personnel within industry
tallied just over 93,000 in 2014, according to Germany Trade & Invest, Germany’s
economic development agency. The German government added 1.5 billion euros to
the carmakers’ research endeavours. There were 29 German-made EVs on the market
at the start of 2016
• Chancellor Angela Merkel recognized in December 2014 that the government has to
provide more incentives to meet the goal of having 1 million electric cars on the
country’s roads by 2020. Among others, the federal government is considering based
on the recommendations of the report to offer a tax break for zero-emission company
cars, more subsidies to expand charging infrastructure, particularly to deploy more
public fast chargers, and more public funding for research and development of the next
generation of rechargeable batteries.
10. Electric vehicles in Europe
• In 2015, the European market of electric vehicles has increased by 48% as compared
as 2014, with 97 687 vehicles sold last year. Half of this market is led by two member
states: Norway and France, thanks to incentives and tax exemptions.
• The European market is the first market worldwide, followed by China with 88 000
electric vehicles, and the USA with 73 301 electric vehicles sold last year.
• The electric car the most sold in Europe in 2015 was the Renault ZOE (18 000
vehicles, for a price starting at 21 500 € plus battery rental of 49-69 €/month
depending on annual mileage in Belgium), followed by the Tesla Model S (15 515
vehicles, starting at 82 600 € in Belgium) and the Nissan LEAF (15 455 vehicles,
starting at 24 740 € in Belgium).
• According to the EPSC Strategic Notes Issue 17, a Goldman Sachs projection foresees
massive advances in battery technology within the next years. In comparison to 2015,
by 2020 the battery costs will fall to around one third, their weight to about half, while
their capacity increases by about 50%. As currently about half the cost of an EV, as
well as most of their performance limits are owing to the batteries, these advances will
fundamentally transform the capabilities and commercial viability EVs by 2020.
• The Magna Steyr manufacturing plant in Graz is rumoured likely to produce the pilot
line of Apple's autonomous car in Europe (currently in development, and as
customary, unconfirmed by Apple).
11. Co-funded European research on Green Vehicles:
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• The European Commission has funded research and development on electric vehicles
and their subsystems and components since 2010 in the framework of the European
Green Cars Initiative PPP (EGCI) and its successor in Horizon 2020, the European
Green Vehicles Initiative (EGVI) which is focused on energy efficiency and
alternative power trains.
• In the 7th Framework Programme for Research and Development there has been a
trend to concentrate road transport research around the electrification of passenger
cars. Almost 350 million € were spent on the deployment of the technology. (e.g.
Green eMotion for electric vehicles mass deployment; or ZeUS on electric urban bus
systems; or Frevue on electrification of the "last mile" freight movements in urban
centres).

In Horizon 2020, the European Green Vehicles Initiative contributes with 700 million
€ to research and innovation around electric vehicles and their interactions with the
electric grid. (e.g. the project OPTEMUS works toward improving the range limitation
due to reduced storage capacity of electric batteries; or the Silver Stream project which
is developing and demonstrating  a new light and affordable vehicle concept (L-
category) that addresses sustainable and affordable personal mobility challenges for
growing and ageing population in European cities)
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Article 4(1)(b)
 VERBUND 
AG  
Short CV: 
Article 4(1)(b)
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