On 19 March 2015, the European Council reached conclusions on the strategy for the Energy Union, newly presented by the European Commission on 25 February 2015 (see previous post and comments). The text is a broad endorsement of the general policy lines contained in the strategy, with a slightly re-arranged priority order.
Green light to the Energy Union Strategy
In its conclusions, the European Council endorses the approach proposed by the Commission, and the core idea of the Energy Union, which, in practice is a deepening of current EU energy policy (see my comments in Norwegian here). The wording is indeed general, waiting for concrete proposals from the Commission. The European Parliament may well be a bit more picky on the approach proposed.
The Energy Union Strategy is structured around 5 pillars which are described as "closely interrelated and mutually reinforcing":- energy security, solidarity and trust
- a fully integrated European energy market
- energy efficiency contributing to moderation of demand
- decarbonising the economy
- research, innovation and competitiveness
While all aspects are more or less directly addressed in the 17 March 2015 Conclusions, the heads of state and government are clearly defending an ambitious and pro-active EU energy policy for the years to come. The three pillars consisting of security of energy supply, competitiveness and sustainability remain valid guidelines, although security of supply takes the front of the stage for the time being.
Security of supply at the front stage
No energy can flow across borders without "robust" and extended energy infrastructures. The European Council gives its green light to the Commission to continute its initiatives in that area, including current works on Projects of Common Interests (PCIs) and their financing, and the reinforcement of regional networks.
The scrutiny of gas purchasing agreements with external partners is moved up on the agenda. Member States seem to have reached agreement on the need to reinforce the transparency of the deals, while protecting confidentiality. This ex ante control mechanism could be preferred to ex post control and sanctions - entailing delays - in case of infringements with EU competition law. Similarly, the Council calls again upon "assessing the options" for "voluntary demand aggregation mechanisms", "in full compliance with WTO and EU competition rules". The word "assessing" may here express a certain reserve from some Member States.
A new energy market design, more "effective" and "flexible" is expected to deliver regional integration, protect consumer and allow for the integration of renewables. Meanwhile, the Member States are keen to keep sovereignty over the national energy mix and, as long as permitted under state aid rules, public intervention.
A fundamental element of international energy competitiveness lays in EUs energy technology and innovation strategy (e.g., next generation renewables, CCS, energy storage, transport) The need for coordination of efforts in that area is acknowledged.
The establishment of a new governance framework around the Energy Union and the 2030 targets is confirmed. It should be formed in 2015-2016.
Finally, external EU energy policy continues to increase in momentum, with a clear need for a stronger EU voice in international negotiations and relationship to external partners.
Next steps
The European institutions and the Member States will now put proposals into action, and follow the action plan put forward by the Commission in Annex to its Strategy in February. A reporting deadline is set at the latest to December 2015. In parallel, the European Parliament will continue to take position on the Strategy, with some dealines before the summer.
References: European Council of the EU, press release 139/15 of 19.03.2014
Picture credit: (c) European Union
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