Publications Archive

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.

The Energy Efficiency Directive of 2012 is to be amended. A stricter, and now also binding, energy savings target of 30% by 2030 will apply in the EU. In order to achieve this target, the Member States will be subject to detailed energy savings obligations. Thus, they will also have to ensure that the energy consumption of end customers falls by 1.5% per year post 2020.

The EU Commission will allocate Member States with national targets for reducing greenhouse gases (GHG) in sectors not subject to EU emissions trading (ETS) (e.g. transport and agriculture). It also proposes flexibility options which Member States can use to achieve their national targets.

In its Communication, the Commission sets out how heating and cooling can be made more efficient in the EU. In cep's view, the proposed rules on energy efficiency and the use of renewables are unsuitable for reducing CO₂ emissions in a targeted and cost-effective way. Instead, all forms of heating and cooling should be included in the EU Emissions Trading System.

The EU Commission wants to facilitate the cross-border use of liquefied natural gas (LNG) and gas storage facilities in order to complete the internal gas market and increase security of supply. For this purpose, cross-border gas infrastructure will be built and cooperation with third countries improved in order to remove barriers to global trade in LNG. In cep's view, this will increase security of supply for Member States that do not have their own LNG terminals and gas storage facilities.

In future, the European Commission wants to ensure the compatibility of intergovernmental agreements with EU law by way of "ex-ante checks" on energy agreements between EU members and third countries. In cep's view, however, this would constitute drastic intervention in the sovereignty of the Member States.