Publications Archive

EU legislation on the internal electricity market has been comprehensively reformed. cep gives the following assessment of the reform.

The EU has passed a new mechanism for “Governance of the Energy Union” in order to regulate energy and climate policy in the EU. It aims to achieve the EU’s energy and climate targets and to coordinate the measures of the EU and its Member States post-2021. cep provides an assessment of the new rules in an Input.

EU rules on support for renewable energy sources have been comprehensively reformed for the period 2021-2030. cep has assessed the individual measures in an Input.

The EU wants to oblige Member States to undertake closer regional cooperation in the avoidance and management of electricity crises. In cep’s view, this could avoid severe economic damage in Member States in the event of an electricity crisis. The duty to manage electricity crises primarily with measures which are compatible with the internal electricity market also facilitates efficient pricing on the wholesale electricity market.

The EU Commission’s proposed reform of the EU Energy Agency ACER and the creation of additional organisations aims to improve regulation of cross-border electricity networks and the wholesale electricity market. cep criticises the Commission’s proposals.

The “governance mechanism” aims to enable coordination of the energy policy measures of the Member States and the EU, and tighten planning and reporting duties. The EU Commission’s proposed Regulation creates clarity and reduces excess red tape. However, its authorisation for the Commission to design a financing platform for renewable energy projects is contrary to EU law.

The EU Commission wants to strengthen competition on the wholesale electricity markets. Cross-border power flows in the EU will also be increased. In cep's view, banning Member States from intervening in price formation on the wholesale electricity markets increases competition amongst electricity producers.

The recast of the Electricity Market Directive aims to give consumers a stronger influence on the retail electricity market and generally protect the market against state intervention. In cep’s view, however, it is misguided for electricity suppliers to have to offer tariffs with dynamic electricity prices when there is no corresponding demand.

The share of renewable energy in overall EU energy consumption is to increase to 27% by 2030. This is set out in the EU Commission’s Proposal for a Directive to promote energy from renewable sources (“renewables”) post-2021. In cep’s view, the Proposal allows Member States too much scope for developing inefficient and anti-competitive renewables support schemes.

The EU Commission wants to ensure that the energy efficiency of buildings is further increased. The proposed amendment to the Energy Performance of Buildings Directive is intended to remove "cumbersome" provisions and speed up the energy-related renovation of existing buildings. In cep's view, linking financial support for building renovation to the energy savings achieved, is an improvement on the status quo.