Completion of the Internal Energy Market and new governance process for 2030 strategy discussed at the Energy Council meeting of 9.12 (conclusions)

 

The Transport, Telecommunications and Energy (TTE) Council met on 9 December 2014 to discuss energy issues. The following matters were on the agenda:

• policy debate on the follow-up to the 2030 climate and energy framework
• completion of the internal energy market
• policy debate on the mid-term review of the Europe 2020 strategy
• recent developments in the field of external energy relations, including with the US, Ukrain, Energy Community, Energy Charter Treaty, Mediteranean countries (among others).
• indirect land-use change for biofuels (adoption of position at first reading on draft Directive on ILUC)

 

The two first points are reviewed below.

1. Follow-up of October European Council on 2030 climate and energy framework: focus on "the new governance process"

 

On 24 October 2014, the EU heads of state and government reached an agreement between the EU heads of state and government on a new climate and energy framework for 2030 (see detailed analysis in previous post).

 

Energy ministers agreed now to focus their efforts on the "new governance process" whose first delineation was given by the European Commission in its January 2014 Communication (COM(2014) 15 final), and which has been later discussed by the Energy Council in May and June. The Commission envisaged the process as being the muscle of the 2030 framework, since there are few binding Commitments at national Level:

 

"The increased flexibility for Member States will be combined with a strong European governance framework to deliver EU objectives for renewable energy and energy savings in a manner that is consistent with attainment of national and European greenhouse gas targets and coherent with the wider principles of European energy policy, including the operation and further integration of the internal energy market and the delivery of a competitive, secure and sustainable energy system." (p. 8)

"The Commission considers that there is a need to simplify and streamline the current separate processes for reporting on renewable energy, energy efficiency and greenhouse gas reduction for the period after 2020, and to have a consolidated governance process with Member States." (p.12)

"There would need to be a clear governance structure with an iterative process led by the Commission to assess the Member States' plans regarding these common issues and to make recommendations as appropriate."

 

Following the Council debates, it has been agreed that the governance system will:

• "build on the existing building blocks, such as national climate programmes, national plans for renewable energy and energy efficiency. Separate planning and reporting strands will be streamlined and brought together;
• set up the role and rights of consumers, transparency and predictability for investors, inter alia through systematic monitoring of key indicators for an affordable, safe, competitive, secure and sustainable energy system;
• facilitate coordination of national energy policies and foster regional cooperation between member states"

 

The endless completion of the Internal Energy Market (IEM)

 

It was in its conclusions from February 2011 that the European Council called upon the completion of the IEM by 2014 "so as to allow gas and electricity to flow freely". Since then, initiatives on infrastructures development, regional market integration, strengthened consumer rights and removal of isolated areas (energy isolation) have been at the center of the completion process.

 

In the aftermaths of the Commission's Communication from October 2014 on the same topic, the Council is now adopting "Conclusions on the Completion of the IEM", which are structured around three topics: (1) measures to be taken in order to complete the IEM; (2) wholesale energy markets; (3) retail energy markets.

 

The same priorities than previously identified are reiterated, namely: adoption and implementation of the network codes; realisation of projects of common interest; interconnections; cooperation at EU level of national administrations, national regulatory authorities and network operators; regional market integration; cross-border cooperation; and increasing awareness and involvement of consumers. The conclusions contain reference to concrete implementation projects.

 

The next step will consist in a follow-up review by the Commission by 2016.

 

References:

Press release and conclusions, 3355th Council TTE-Meeting, Energy issues, 9 December 2014

"Completion of the Internal Energy Market", TTE Council Meeting, 9 December 2014.

 

Picture:

Press Conference, 3355th TTE Council Meeting (c) European Union