A crucial element of security of energy supply is energy storage. The recent decision by the European Commission in state aid case N 660/2009 is illustrative of that growing concern, and of the wish to enable more capacity storage in Member States.
The Nature and Purpose of The Aid
The aid (notified by Polish authorities) concerns state grants for a total of 390 million EUR. The exact nature of the aid is not detailed further yet.
The grants aim to support the construction of 3 storage sites and the increase in capacity of one underground gas storage site in Poland (4 sites in total). The beneficiary is the state-owned gas company Polskie Gornictwo, the dominant player on the Polish market.
The projects are deemed to be 'open to all operators at regulatored conditions' since the new gas storage capacity is supposed to be made available to all competitors, avoiding market distortion according to the assessment done by the Commission's services.
Energy Storage and Security of Energy Supply
The argument of security of energy supply has been apparently decisive in that case. The fulfilment of the 4 projects will bring Poland's gas storage capacity from 1.6 billion m3 to 2.6 million m3, an increase that 'will bring the country closer to the current EU reserve capacity average of 14% of annual demand' , gas storage being already used with that particular purpose in 21 EU member states (Press release). It will ultimately contribute to the security of supply of the EU itself. It also corresponds to the overall objective of Directive 2004/67/EC of 26 April 2004 concerning measures to safeguard security of natural gas supply (OJEU L 127/92 of 29.04.2004).
Energy storage has already been recognised as a priority area at EU political level. See Conclusions of the 2854th Council Meeting of Transport, Telecommunications and Energy Ministers of 28 February 2008, regarding the European Strategic Energy Technology Plan (SET Plan). The issue is also of growing relevance as part of an EU strategy on clean and efficient vehicles, electricity storage and smart grid.
Energy storage has already been authorised as legal justification for the grant of state aid under research projects (e.g., Case N 603/2007, France/GENESIS R&D programme).
The full text of the decision is not yet available. But this note, based on the Commission's press release (IP/10/786 of 23 June 2010) will be completed as soon as the decision is published.
The Nature and Purpose of The Aid
The aid (notified by Polish authorities) concerns state grants for a total of 390 million EUR. The exact nature of the aid is not detailed further yet.
The grants aim to support the construction of 3 storage sites and the increase in capacity of one underground gas storage site in Poland (4 sites in total). The beneficiary is the state-owned gas company Polskie Gornictwo, the dominant player on the Polish market.
The projects are deemed to be 'open to all operators at regulatored conditions' since the new gas storage capacity is supposed to be made available to all competitors, avoiding market distortion according to the assessment done by the Commission's services.
Energy Storage and Security of Energy Supply
The argument of security of energy supply has been apparently decisive in that case. The fulfilment of the 4 projects will bring Poland's gas storage capacity from 1.6 billion m3 to 2.6 million m3, an increase that 'will bring the country closer to the current EU reserve capacity average of 14% of annual demand' , gas storage being already used with that particular purpose in 21 EU member states (Press release). It will ultimately contribute to the security of supply of the EU itself. It also corresponds to the overall objective of Directive 2004/67/EC of 26 April 2004 concerning measures to safeguard security of natural gas supply (OJEU L 127/92 of 29.04.2004).
Energy storage has already been recognised as a priority area at EU political level. See Conclusions of the 2854th Council Meeting of Transport, Telecommunications and Energy Ministers of 28 February 2008, regarding the European Strategic Energy Technology Plan (SET Plan). The issue is also of growing relevance as part of an EU strategy on clean and efficient vehicles, electricity storage and smart grid.
Energy storage has already been authorised as legal justification for the grant of state aid under research projects (e.g., Case N 603/2007, France/GENESIS R&D programme).
The full text of the decision is not yet available. But this note, based on the Commission's press release (IP/10/786 of 23 June 2010) will be completed as soon as the decision is published.
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