Trade Bodies push EU for internal Energy Market
By:
Chris Anderson
23/02/2015
EWEA
EURELECTRIC, Eurogas, EPIA and EWEA are pleased
to see the new European Commission’s
increased focus on energy issues. We hope
this new momentum will reinforce policy in favour of
a better functioning market and a positive
investment climate for companies, as well as
contribute to achieving a secure and affordable
energy mix for a low-carbon economy. A
competitively priced, secure and sustainable
supply of energy is essential for economic growth,
European competitiveness, and the well-being
of millions of consumers across Europe.
The concept of an Energy Union, if appropriately elaborated, has the potential
to steer a coherent
and consistent implementation of European energy policy. An Energy Union
should nourish
a spirit of greater policy coherence and strengthen cooperation among Member
States.
Those within, and those beyond the EU’s borders should see a single transparent
and competitive
low-carbon energy market that provides a secure energy mix and is based
on a coherent
regulatory structure within a clear ambitious 2030 framework.
A successful policy framework, based on a coherent Energy Union concept,
should in our view focus
on three interlocking approaches:
1. Design a cost-efficient, market-based transition to a sustainable low-carbon
energy mix
− Foster cooperation and coordination between EU Member States to reach
the targets on GHG
emission reductions, renewables and energy efficiency of the 2030 climate
and energy framework
through a robust and reliable governance structure. Prioritise efficient
crossborder connections
and regional solutions, involving also Energy Community countries, in the
drive for integrated, liquid, wholesale
markets in electricity and gas.
− Drive the low-carbon transition and the achievement of Europe’s 2030
targets through effective
and market based instruments.
− The EU Emissions Trading System should urgently be strengthened to
reinforce the overall effectiveness
of this instrument in achieving the greenhouse gas emission reduction target.
− Promote cost-efficient energy efficiency investments and services;
seize opportunities arising from
decentralised energy production and demand side participation.
− Adapt market rules and practices so as to minimise energy market distortions
and allow for fair
access conditions for all technologies. Integrate renewables in the market
and ensure that
they operate cost-effectively.
− Ensure a predictable and stable regulatory framework that gives confidence
to investors across
the energy chain and that helps to deliver the forward-looking technologies
and intelligent infrastructure that are necessary for the energy transition
in particular at distribution level where most renewable energy sources
need to be integrated.
− Submit all policy proposals to a rigorous cost- benefit analysis. New
legislation should not unnecessarily
increase the financial burden for European citizens.
2. Implement and improve market mechanisms to deliver security of supply
− Complete missing infrastructure links so as to ensure a fully interconnected
European market.
− Remove remaining distortions and obstacles to the completion of the
internal energy market, in
order to make it attractive in a global energy market.
− Create a sound governance system to drive forward the integration of
wholesale energy markets
across all timeframes.
− Develop a holistic market design that delivers short- and long-term
energy system adequacy by
properly valuing energy, flexibility and capacity.
− Optimise development of indigenous and sustainable energy resources
and business opportunities
through the whole energy value chain, while using global market opportunities
to keep energy affordable and secure.
− Encourage the EU and its Member States to deliver one external message,
making it easier for
companies to engage in a global energy market to deliver a competitive,
diversified mix of energy
supplies for Europe’s consumers. Trade in energy products, globally and
within the internal
market, should be considered positive and desirable.
− Build on the principles and achievements of the single energy market
to deliver security of supply,
avoiding undue market interventions and distortions. Facilitate commercial
agreements that support solidarity across
Europe.
3. Deliver a competitive energy system that benefits customers
− Put customer needs for sustainable, affordable and secure energy at
the centre of policymaking.
− Create a fair, level playing field for existing and new downstream
market participants.
− Promote a regulatory environment that enables the industry to develop
innovative products and
services for consumers
− Leverage the Commission’s Investment Plan for Europe to allocate
more funding to research and
demonstration of innovative technologies, connecting private investments
with energy projects
that showcase Europe’s technological prowess.
