Analytics, Ecology, Energy, EU – Baltic States, Modern EU
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Friday, 29.03.2024, 03:33
Clean energy for all Europeans: lessons for the Baltic States
European citizens spend a significant part of their income
on energy, and energy is an important input for European industry. At the same
time, the energy sector plays a key role in reducing greenhouse gas emissions
in the EU by at least 40% until 2030 with an expected share of 50% of
renewables by 2030.
“Clean Energy for
All Europeans” package (adopted in Brussels on 18 December 2018) is a major step towards completing the Energy
Union and combating climate change – the priorities of the present Commission.
Negotiators among
three EU’s legislative institutions provided for a political agreement on the
new electricity regulation and directive. This agreement follows previous
agreements on the energy union governance proposal, the revised energy efficiency
directive (see below), the revised renewable
energy directive and a directive on energy performance in construction.
Besides, a regulation on risk preparedness was adopted
with a creation of a new Agency for the Cooperation of Energy Regulators
(ACER).
On governance in energy union: http://europa.eu/rapid/press-release_IP-18-4229_en.htm;
On renewable energy in: http://europa.eu/rapid/press-release_STATEMENT-18-4155_en.htm;
On energy in construction in: https://ec.europa.eu/energy/en/topics/energy-efficiency/buildings;
Commissioner for climate action and energy Miguel Arias Cañete underlined
that the “Clean Energy for All
Europeans” package puts the EU among the global leaders in making adequate rules
to accelerate and facilitate the clean energy transition. The new electricity market
will be more flexible and facilitate the integration of a greater share of
renewable energy. The new rules, he stressed, would create more competition and
allow consumers to participate actively in the market with clean energy
transition reconciling security of supply with the climate objectives.
The new
electricity market proposals (with directives and a regulation) aim at adapting
to the new market realities: they introduce a new limit for power plants
eligible to receive subsidies as capacity mechanisms. Subsidies to generation
capacity emitting 550gr
CO2/kWh or more
will be phased out under the new rules.
The new
rules enable both the active participation of consumers and strong framework
for consumer protection. By allowing electricity to move freely to where it is
most needed, society will increasingly benefit from cross-border trade and
competition. They will drive the investments necessary to provide security of
supply, whilst decarbonising the EU’s energy system. The new market design also
contributes to the EU's goal of being the world leader in energy production
from renewable energy sources by allowing more flexibility to accommodate an
increasing share of renewable energy in the grid.
The shift
to renewables and increased electrification is crucial to achieve carbon
neutrality by 2050. The new electricity market design will also contribute to
the creation of jobs and growth, and attract investments.
Political guidelines
On 30 November 2016, the Commission proposed new rules
(revised electricity
market regulation and directive) on the EU energy market design in order to help energy
markets include more renewables, empower consumers, and better manage energy
flows across the EU.
More on the EU internal market for electricity (proposal for
a regulation/directive, 23.ii.2017) in:
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52016PC0861R(01)&from=EN;
Markets need to be improved to meet the needs of renewable
energies and attract investment in the resources, like energy storage, that can
compensate for variable energy production. The market must also provide the
right incentives for consumers to become more active and to contribute to
keeping the electricity system stable. Today's electricity market has
fundamentally changed since 2009, when the most recent legislation was
introduced. The share of electricity produced by renewables is expected to grow
from 25% to 55% in 2030. But when the sun does not shine and the wind does not
blow, electricity must still be produced in sufficient quantities to deliver
energy to consumers.
The proposed measures also contain measures that ensure that
state interventions designed to make sure there is sufficient energy available
are only used when really needed, and in a way that does not distort the
internal electricity market.
Through the revised directive, these new rules will put consumers at the heart of the transition:
consumers will be able to become active players in the market thanks to access
to smart meters, price comparison tools, dynamic price contracts and citizens'
energy communities. At the same time, energy poor and vulnerable consumers will
enjoy better protection.
The revised electricity regulation brings stricter and harmonised rules for capacity
mechanisms, reconciling thus the EU objectives of security of supply and
emission reduction. Enhanced regional coordination will improve market
functioning and thereby competitiveness while making the system more stable.
Perspectives
Following this political agreement, the texts of the
Directive and Regulation will be prepared in all EU languages and then have to
be formally approved by the European Parliament and the Council. Once endorsed
by both co-legislators in the coming months, the new laws will be published in
the Official Journal of the Union. The Regulation will enter into force
immediately and the Directive will have to be transposed into national law
within 18 months.
More on the issues discussed in the following web links:
- Energy Union ;
- Clean Energy for All Europeans package;