Brussels, 15/02/2007 (Agence Europe) - Meeting in Brussels on Thursday, EU Energy Ministers gave strong approval to the energy and climate change package set out by the Commission on 10 January ahead of the European Spring Council (8-9 March) which is expected to adopt a plan of action for Europe's energy policy based on this package. “As far as all European energy policy priority issues are concerned, we have found joint responses on all points even though the starting points were not the same for all of us given the many differences from one country to another. The overall problems are not national problems and we can only respond to them by acting together,” stressed Michael Glos, German Economy Minister and current the President of the Energy Council bringing the Council to an end. “Energy supply must be more independent, the internal market more integrated and we must avoid contributing to climate change and find solutions which are responsible from an economic point of view,” he went on, stressing the Energy Council's concern that the European consumer “can, anywhere in Europe, buy energy at an affordable price”.
In its conclusions, which break down into five chapters, the Energy Council “supports the ambitious overall targets for the reduction of greenhouse gas emissions set by the EU for 2020”. EUROPE will confine itself here to detailing the Energy Council conclusions on those chapters which raised significant debate, given that ministers largely supported the Commissions proposals on security of supply and solidarity among member states, energy technologies and international energy policy.
On the “energy efficiency and renewable energies” chapter, the Energy Council reached total consensus on the need to achieve, by 2020, the potential energy saving estimated by the Commission at 20% of the Union's energy consumption. In this context, energy ministers call for rapid and complete transposition of the five essential priorities highlighted in the Energy Council's conclusions of 23 November last on the action plan (EUROPE 9313). Regarding renewable energies, the ministers left it up to the European Council to decide on the degree of ambition of the objective concerning them by 2020. In its conclusions, the Energy Council approves the 20% share of renewable energies in overall EU energy consumption by 2020, but without mentioning the nature. Cyprus, Malta and Luxembourg, moreover, were able to ensure that the Council take into account the “different individual circumstances, starting points and potentials”, according to each member state. On the other hand, the Energy Council supports a “10% binding, minimum target” to be achieved by all member states for the share of biofuels in overall EU transport petrol and diesel consumption by 2020, and this objective is to be reached by all member states at a reasonable price. The “binding character of this objective is appropriate subject to production being sustainable, to second-generation biofuels becoming commercially available and the Fuel Quality Directive being amended accordingly to allow for adequate levels of blending”, the conclusions state, adding that: “From the overall renewables target, differentiated…national overall targets should be derived with member states' full involvement and, subject to meeting the minimum biofuels target in each member state, leaving it to member states to decide on national targets for each specific sector of renewable energies (electricity, heating and cooling, biofuels”. To reach these objectives, the Council is calling for a coherent global framework for renewables that could be established on the basis of a new draft directive involving use of all renewable energy sources that the Commission will present this year.
The “internal gas and electricity market” chapter provoked the greatest debate at the Energy Council. Following dinner on Wednesday evening, the German Presidency managed to get a compromise accepted on the question of unbundling production and network activities, a question which has been the subject of many differing views. In the end, the Energy Council underlined the interaction between investment decision and developing the regulatory framework, and called on the Commission to elaborate measures that take into account characteristics of the gas and electricity sectors, as well as the regional and national markets, that include the development, if possible of existing legislation and the effective separation of supply and production activities from network operations, “based on independently run and adequately regulated network operation systems which guarantee equal and open access to transport infrastructures and independent of decision on investment in infrastructure”.
A kind of victory for France (and Germany) which support a third option, that of “regulated unbundling” as well as the two options put on the table by the Commission, namely ownership unbundling and that for setting up an independent management network (ISO+ solution). The March European Council is therefore expected to postpone the decision on this issue. Mr Glos said that the Council has asked the Commission to, “examine all alternatives and see what the repercussions are and then provide concrete proposals”. These proposals according to the Commissioner for Energy, Andris Piebalgs are not expected to be put on the table before the autumn. Glos added that, “nothing is ruled out, no-one is putting the brakes on, nobody is blocking but action is needed for real separation. This need is acknowledged by all, even if the speed on which it is done provokes different opinions”.
On this chapter, the Energy Council also gave its approval to the Commission's elaboration of measures for greater harmonisation of powers and the enhanced independence of national regulators for cooperating and taking decisions on important cross-borders issues (ERGEG+ solution proposed by the Commission), the creation of a new Community mechanisms for GRT to better coordinate how the networks operate, as well as their security and a more integrated and high performance system for the cross-border electricity trade, including the elaboration of technical standards. (eh)