Luxembourg, 08/06/2015 (Agence Europe) - On the sidelines of the meeting of EU energy ministers in Luxembourg on Monday 8 June, agreements strengthening regional cooperation were signed by three separate groups of member states, paving the way for greater integration of European energy markets and contributing towards implementing the energy union project.
Firstly, the Commission and the countries of the Baltic Sea Region (Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland and Sweden, plus Norway, as an observer), with the exception of Denmark, which will sign later, signed a memorandum of understanding modernising and strengthening the Baltic Energy Market Interconnection Plan (BEMIP) that was launched in 2008.
BEMIP seeks to end the energy isolation of the Baltic Sea Region and to integrate it fully into the EU energy markets. In autumn 2014, the Commission launched the reform of the BEMIP initiative to further reinforce cooperation on energy matters in the region. On Monday, the signatories extended the scope of BEMIP by adding new areas, such as energy efficiency, renewables and security of supply, to the already existing areas of cooperation - internal energy market, interconnections and power generation.
Similarly, ten EU countries (Austria, Belgium, Denmark, Czech Republic, France, Germany, Luxembourg, Netherlands, Poland, Sweden along with neighbouring countries Switzerland and Norway) signed a political declaration for regional cooperation on security of electricity supply within the framework of the European internal market, with the objective of enhancing the flexibility of electricity markets and facilitating the energy transition. It sets political commitments to coordinate national energy policies better, including on security of supply, make more efficient use of existing electricity networks and increase the integration of renewable energies to the national markets.
Furthermore, the countries of the Pentalateral Energy Forum (Austria, Belgium, France, Germany, Luxembourg and the Netherlands, plus Switzerland as a permanent observer) celebrated the Forum's tenth anniversary with the signing of the Pentalateral Forum's “second political declaration”, which seeks to set out the regional steps towards a European energy market.
Set up in 2005 to promote collaboration on cross-border trade in electricity, the Pentalateral Forum represents more than one-third of the EU population and covers more than 40% of the electricity generation in the EU. It aims to foster open and transparent regional dialogue in order to increase security of supply, further market integration and pursue greater market flexibility.
On Monday, the countries of the Pentalateral Forum, jointly with the players in the project, launched “flow based market coupling” for the Pentalateral Region. This new common methodology for assessing the security of supply risks at regional level and creating the right conditions for cross-border electricity trade will bring greater fluidity to the wholesale electricity market in the Benelux-France-Germany region with, as a consequence, increased price convergence.
“These agreements are a first milestone. They give the political backing to a stronger energy cooperation in Europe. The signatory countries are determined to enhance security of supply through further market integration. This is one of the main building blocks of the Energy Union which is one of the key priorities of the Juncker Commission. Today the member states begin synchronising their efforts and working together towards cheaper and more effective solutions. Where there is a will there is a way. Today member states are showing their will”, said Climate Action and Energy Commissioner Miguel Arias Canete. (Emmanuel Hagry)