Publications Archive

The Commission promotes the expansion of the EU internal energy market and announces a legal framework for the safe storage of nuclear waste. The expansion of EU energy grids is to be better coordinated. The Commission wishes to promote technological innovation and initiate a shift towards a low-carbon energy system by 2020 through market-based instruments.

The European Commission wants incentives for demand-side flexibility in electricity markets ("demand response") to be increased thereby contributing to network stability. For this purpose, electricity consumers will be increasingly offered variable real-time electricity tariffs. The Commission also points out, in connection with demand response, the required investment in network infrastructure and consumer concerns about data protection.

The European Commission proposes new targets for 2030 for the reduction of greenhouse gas emissions and the development of renewable energy. An energy-efficiency target will not be discussed until autumn 2014 following the assessment of the Energy Efficiency Directive. Consultation will take place, in the framework of a new "governance structure", between the Commission and the Member States regarding the latter's plans for climate and energy policy.

The European Commission reports on the trends in electricity and gas prices in the EU and the resulting impact on the international competitiveness of EU companies. It calls on Member States to ensure greater cost efficiency with regard to environmental and energy-policy measures so as to reduce taxes and levies and considers additional state measures to support energy efficiency.

Where the market is unable to secure adequate electricity generation, the Member States should, in the European Commission's view, be able to set up "capacity mechanisms" under certain conditions. These capacity mechanisms should meet certain criteria; they should, inter alia, be technology-neutral and accessible across borders. Beforehand, however, the Member States should firstly, assess whether there is in fact a shortfall in generation, secondly, identify and remove the causes for the shortfall of generation, and thirdly, evaluate which alternatives to capacity mechanisms could remove these shortfalls in generation, where appropriate.

The Commission announces measures to advance the completion of the internal energy market. For instance, it wishes to implement the Third Energy Package also through infringement proceedings. Moreover, it wishes to prevent Member States from applying capacity mechanisms as this would distort competition in the internal energy market.

The proposed Regulation is to replace the existing Directive on the security of gas supply. The Proposal contains obligations of the Member States with respect to their infrastructure and the establishment of emergency plans. In times of crisis the Commission is to coordinate the gas supply.

According to the Commission the potential of liberalisation of the electricity and gas markets should be further tapped. Competitive solutions are to increasingly enjoy priority over price regulation. Moreover, the Commission is making statements on the frequency of supplier switching.

With renewables taking up a growing share of energy production, the European Commission wants support for renewables to be carried out more competitively. For this purpose, feed-in tariffs should be largely replaced by feed-in premiums and quota models. Degressive elements of the support system should mean that overcompensation and distortions of competition are avoided. Support for existing installations should not be changed retrospectively.

According to the Commission, the EU must urgently invest in outdated and poorly interconnected energy infrastructure in order to meet their energy policy and climate objectives by 2020. To this end, national approval procedures for projects of European interest are to be streamlined and better coordinated. The Commission announces to submit guidelines or a legislative proposal on cost allocation to address major or cross-border projects through tariff or investment rules in 2011.