Brussels 23/02/2015. (Agence Europe) - The energy union package to be put on the table by the Commission on Wednesday 25 February is based on a strategic framework containing 15 action points covering the five dimensions of the project - energy security, the internal market for energy, moderating demand for energy and energy efficiency, decarbonising the economy and research and innovation. EUROPE here provides a glimpse of the content of the draft document, a copy of which it has obtained.
Completion of the internal market becomes the number one priority. To this end, the European Commission promises to make use of all available instruments to ensure implementation of the 3rd package on liberalisation and respect for competition rules.
The Commission is also looking, in 2015-2016, to examine the regulatory framework of the 3rd package, including the operation of the Agency for the Cooperation of Energy Regulators (ACER) and the European Networks of Transmission System Operators for electricity (ENTSO-E) and gas (ENTSO-G).
In order to develop regional approaches on market integration, the Commission promises guidelines on regional cooperation and active engagement alongside the member states and stakeholders in regional cooperation bodies.
To better integrate renewables in the market and ensure coordinated development of capacity mechanisms in the member states, the Commission is looking to work in 2015 on a new electricity market design and bring forward legislative proposals in 2016.
To ensure increased transparency on energy costs and prices and to identify any action that distorts the internal market, the Commission will produce biennial reports on energy prices, analyse in depth the role of taxes and subsidies and seek the phasing out of regulated prices below cost. It says that it expects measures to be taken at national and local levels to protect vulnerable customers through social policies.
In the chapter on energy security, the Commission says it is looking to bring forward legislative measures in 2016 to strengthen electricity security and supply.
The Commission will also present a resilience and diversification package for gas in 2015-2016 by revising the existing security of gas supply regulation. It also promises a new comprehensive strategy for liquid (LNG) natural gas and its storage. Lastly, it will work with member states to develop access to alternative suppliers in order to reduce existing dependence on individual suppliers. The draft highlights completion of the Southern Gas Corridor and the gas platform in the Mediterranean.
The Commission also wants to revise the decision on intergovernmental agreements (IGAs) between member states and non-EU energy suppliers in order to ensure that any such agreements are transparent and comply with EU energy internal market rules and the energy security criteria. It is looking at a system where the member states would have to consult the Commission before signing an IGA with a third country.
In terms of infrastructure, the Commission wants to speed up implementation of major projects, particularly projects of common interest (PCIs) through the available financial means, such as the Connecting Europe Facility, the European Structural and Investment Funds and the future European Fund for Strategic Investment. In 2015, it also wants to set up a dedicated infrastructure forum that will bring together the member states, regional cooperation groups and the European institutions.
In the section on reducing the demand for energy, and with a view to reaching the target of 27% energy savings by 2030, the Commission says it will review all relevant legislation in 2015 and 2016. It expects the member states and regions to make greater use of European funding for renovation of housing.
To improve the energy performance of existing buildings, the Commission will develop an initiative for accessing existing funding instruments. It will also propose a strategy to facilitate investment in heating and cooling.
For the transport sector, the Commission will propose a comprehensive road transport package promoting more efficient pricing of infrastructure, enhancing energy efficiency and creating the right market conditions for increased deployment of alternative fuels. This will be delivered through a mix of national, regional and local measures with EU support, it says.
To decarbonise the economy, the Commission will bring forward a new renewable energy legislative package in 2016-2017 with a view to achieving the target of 27% of renewable energies in primary energy demand by 2030. This package will include a new policy for biomass and sustainable biofuels and legislation to ensure that the 2030 objective is met cost-effectively.
The Commission will also propose legislative measures to meet the greenhouse gas reduction target of 40% by 2030 both in the emissions trading scheme (ETS) and in the sectors outside the ETS.
Lastly, in research and innovation, in 2016, the Commission will propose an upgraded strategic energy technology plan (SET-plan) with a limited number of essential priorities and clear objectives. It will also develop an initiative on global innovation and technology leadership on energy and climate to boost jobs and growth.
This strategic framework comes with a roadmap for its implementation, an implementation plan for improving cross-border interconnections and a roadmap for the UN climate conference in December 2015. (Emmanuel Hagry)