Brussels, 30/05/2011 (Agence Europe) - The European Parliament (EP) energy committee has called for a list of criteria for the selection of priority energy infrastructure projects by 2020, and supported the issue of European bonds to provide funding.
In adopting the report by Francisco Sosa Wagner (non-attached, Spain) by 38 votes to one, with no abstentions, the EP energy committee gave its backing to the 10-year strategy, 2010-2020, to update and develop energy infrastructure in the EU, tabled by the European Commission in November of last year. MEPs confirmed the crucial role the market has to play in the planning and development of the infrastructure projects, but they stress the role of the EU in the process, in particular in the selection of projects of European interest. Thus, they propose a list of criteria for selecting the priority projects for the most urgent European needs, linking isolated energy islands to the rest of the network, encouraging the reduction of energy losses and involvement in diversifying supply and integration of renewable energy into the grid.
The energy committee wants the investment necessary to come from the market alone, on the basis of the principles of cost allocation and user-pays, but recommends that the EU provide financial support for a limited number of commercially non-viable projects of European interest which are essential to energy security when the market cannot cover the investment on its own. On this basis, MEPs propose that innovative financing instruments be developed and they support the idea of issuing bonds, which will secure the investment and create the conditions to attract private sector funding, to finance the biggest infrastructure needs. Also under consideration are loan guarantees, risk-sharing systems, public-private partnerships and EIB assistance to mobilise funding.
The Sosa-Wagner report will be put to the vote in the July plenary session.
Greens enthusiastic. “Renewable energy sources and the roll-out of smart networks have been given a great deal of scope. In general terms, MEPs highlighted the importance of prior evaluation of projects before launching any further new projects, for example, on carbon capture and storage and the CO2 transport network. They were very clear that projects have to be assessed and ranked according to need”¸ said Yannick Jadot (France). He highlighted the need for an in-depth study on schist gas. “In coming years, the EU will have to focus on a limited number of energy projects of European interest, the selection process for which will have to be transparent, in line with defined criteria and with better information to the public”. (E.H./transl.rt)