Brussels, 14/10/2010 (Agence Europe) - Mid-November, the European Commission is to adopt a detailed plan of energy infrastructure priorities for 2030. EUROPE has obtained a draft of the communication entitled “energy infrastructure priorities for 2020 and 2030 - a blueprint for an integrated European energy network”. The major lines are set out below.
Need for €1,000 billion in investment. The lack of energy infrastructure is an “unnecessary obstacle” to reaching EU climate targets and energy supply security. The Commission therefore considers a long-term vision is needed to coordinate and optimise network development. Published in June, a progress report shows that the trans-European energy networks (TEN-E) are very slowly meeting EU medium and long term objectives. But things are becoming urgent. The European executive estimates that by 2020 the amount of investment needed to meet EU targets will be €1,000 billion (of which €500 billion for new electricity generation capacity, €200 billion for new transmission networks and storage and €400 billion for distribution networks), if not €2,000 billion by 2030. For electricity, the networks must be modernised to meet growing demand due in particular to the multiplication of new applications (heat pumps, electric vehicles, etc.), and extended to strengthen market integration and carry electricity of renewable origin. Storage capacity is also needed. For gas, a diversified portfolio of physical gas sources and routes and a fully interconnected and bidirectional gas network within the EU are needed. Gas networks face increased flexibility requirements on the pipeline system, supplies, including liquefied (LBG) and compressed natural gas (CNG) and adequate storage capacities. In order to prepare for application at commercial level of CO2 capture, transport and storage (CCS) technology, a cross-border system of CO2 transport pipelines is essential. Finally, the plan provides for more effort to be made for the transport and refining of oil.
Identifying projects of European interest. These challenges call for urgent EU-scale answers, and the Commission therefore suggests a strategic planning method to identify priority projects of European interest accompanied by a set of instruments for implementation. This method should be based on three stages: - identification of a limited number of priorities at EU level to be implemented by 2020, responding to criteria such as the contribution to security supply, market integration, energy efficiency and competition objectives; - identification of concrete projects needed to implement these priorities declared projects of European interest; -and the implementation of projects through improved approval procedures, regional cooperation and innovative financial solutions.
Faster authorising procedures. To ensure the swift implementation of the priority projects identified, the Commission wants to simplify and speed up authorisation procedures, the main cause of delay in the implementation of projects; in particular in electricity, when it frequently takes 10 years between the planning and construction stages, and affects commercial viability (almost 50% in electricity and 10% in gas). In line with the principle of subsidiarity and existing EU legislation, the proposal should, at the same time, respect the high standards of environmental protection, improve transparency for all stakeholders and facilitate public involvement in the decision-making process. The Commission is considering introducing a requirement on member states to establish a national contact authority (“one stop shop”), serving as a single interface between project developers and the competent authorities at national, regional and/or local level. This authority would be in charge of coordinating the entire permitting process for a given project and of disseminating the necessary information on administrative procedures and the decision-making process to stakeholders, while leaving responsibility for allocating decision-making powers to member states. The Commission also wants to explore the possibility of introducing a five-year time limit for a final authorisation decision by the competent authority. It also proposes putting in place guidelines to increase the transparency and predictability of the process, including minimum requirements on compensation of people affected by a project. Estimating a possible gap of €60 billion in the €1,000 billion needed, which the market will not be able to cover alone, the Commission also proposes to establish a stable financial framework.
Nine priority projects. Nine projects of European interest are proposed: - the offshore network in the North Sea and the connection to Central Europe, the renewable energy connection in the South-East of Europe, and the completion of interconnection plan for the Baltic region for electricity; - the southern corridor linking the Caspian Basin, Central Asia and the Middle East to the EU, implementing the Baltic interconnection plan and the North-South connections in Central and South-East Europe for gas; - strengthening the oil pipeline network in Central and Eastern Europe; -the development of smart networks and, in the long term, putting in place a European supergrid of very high tension lines and a CO2 transport network. (E.H./transl.jl/rt)