Chair: Jernej Vrtovec, Slovenian Minister of Infrastructure
European Commission representative: Kadri Simson, European Commissioner for energy
Starting time: 10:00
EU energy ministers will start their meeting with an exchange of views on the impact of rising energy prices and possible mitigating measures at national and EU level. The discussions will be framed around a discussion paper from the Presidency and a preliminary assessment by the European Union Agency for the Cooperation of Energy Regulators (ACER) on Europe’s high energy prices and the current wholesale electricity market design.
In the afternoon Ministers will hold a policy debate on the Fit for 55 package, in particular on the two energy-related files: the directives on renewable energy and energy efficiency. The Presidency will inform ministers on the progress achieved under the Slovenian Presidency on the Fit for 55 package as a whole and on the two energy-related files in particular. Ministers will hold a single policy debate based on questions by the Presidency to give guidance for further work.
The discussions will be held in public session.
Under other business, the Commission will inform ministers on developments in the field of external energy relations and present a report on the state of the Energy Union. The Presidency will brief ministers on the progress made with the European Parliament in negotiations on the revision of the trans-European networks for energy (TEN-E) regulation. Denmark will share information on the coexistence between renewable energy and biodiversity. Lithuania will share information on the importance of ensuring nuclear safety at the Belarusian Ostrovets nuclear power plant in accordance with recognised EU safety levels. Belgium will share information on the Impact of the existing 70 percent rule applicable to interconnections2 on offshore hybrid projects. France will present the work programme of its upcoming Presidency.
In addition, during an informal lunch, ministers will exchange views on the future gas legislative package.
Press conference: at the end of the meeting +/- 17:30
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1 This note has been drawn up under the responsibility of the Press Office.
2 Article 16 of the Electricity Regulation provides that TSOs shall make available a minimum binding level of capacity equal to 70% for cross-zonal trade.
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Press conferences and public events by video streaming
Increase in energy prices
EU energy ministers will hold an exchange of views on the impact of rising energy prices and possible mitigating measures at national and EU level. The discussions will be framed around a discussion paper from the Presidency and a preliminary assessment by the European Union Agency for the Cooperation of Energy Regulators (ACER) on Europe’s high energy prices and the current wholesale electricity market design, published on 15 November. The preliminary assessment is a deliverable of the Commission’s Communication “Tackling rising energy prices: a toolbox for action and support” presented on 13 October. The preliminary assessment brings new insights to the discussion on energy prices and confirms earlier analyses of the causes of recent energy price spikes. A final report is expected from ACER in April 2022.
During the policy debate, ACER will shortly present the key highlights of its preliminary report to ministers. Based on a background paper from the Presidency, the exchange of views aims to focus on two main points:
- First, ministers will review what has been achieved in the recent months. They will share their experience with implementing the measures proposed in the Commission’s toolbox, with a focus on their impact on keeping energy prices in check and protecting consumers.
- Secondly, ministers will assess if there is a need to further improve the understanding of the possible options on the table. They will exchange views on ACER’s preliminary assessment and on additional aspects that could usefully be addressed in the final report.
Since the summer of 2021, Europe is experiencing a sudden hike in energy prices in the context of a global surge in energy prices. EU member states are taking the situation seriously and have discussed the issue in different instances.
Energy ministers reacted immediately. During the informal energy and transport Council on 22 September, some member states expressed concerns over the rising energy prices and called on the Commission to look into causes of higher gas and electricity prices. Discussions reflected also the need to act in a coordinated way and to take pressing measures to mitigate the impact of rising energy prices on the most vulnerable households and companies. At the meeting, Commissioner Simson committed to delivering a “toolbox” of possible measures at national and EU level.
On 13 October the Commission released a Communication that provides an analysis of the causes of energy price increase and presents a “toolbox” of measures, compatible with current EU legislation, that the EU and its member states can use to address the immediate impact of current price increases. Short-term national measures include emergency income support to households, state aid for companies, and targeted tax reductions. In the longer run, the Commission indicated it would support investments in renewable energy and energy efficiency and examine possible further options, including measures on energy storage and purchasing of gas reserves.
On 21-22 October, the European Council in its conclusions invited:
- the Commission to study the functioning of the gas and electricity markets, as well as the EU ETS market, with the help of the European Securities and Markets Authority (ESMA). Subsequently, the Commission will assess whether certain trading behaviours require further regulatory action;
- the Member States and the Commission to urgently make the best use of the toolbox to provide short-term relief to the most vulnerable consumers and to support European companies, taking into account the diversity and specificity of situations of Member States;
- the Commission and the Council to swiftly consider medium and long-term measures that would contribute to energy at a price that is affordable for households and companies, increase the resilience of the EU’s energy system and the internal energy market, provide security of supply and support the transition to climate neutrality, taking into account the diversity and specificity of situations of Member States; and
- the European Investment Bank to look into how to speed up investment in the energy transition, within its current capital headroom, with a view to reducing future disruption risks and meeting Europe’s global connectivity ambitions.
The European Council invited the extraordinary meeting of the Energy Council on 26 October 2021 to take this work forward immediately. The European Council stated it would keep the situation under review and revert to the subject in December.
At the extraordinary Council of energy ministers on 26 October, ministers explored and exchanged views on the Commission’s “toolbox” on energy prices, in more detail. One important conclusion of the meeting was that further analyses on the matter were needed, especially in view of potential long-term measures.
- ACER’s Report on a preliminary assessment of Europe’s high energy prices and the current wholesale electricity market design
- Presidency background paper
- European Council conclusions
- Commission communication on energy prices
- Energy price surge in the EU (background information)
Fit for 55 package
Ministers will hold a policy debate on the Fit for 55 package, in particular on the two files concerning energy: the directives on renewable energy and energy efficiency. The Presidency will inform ministers on the progress achieved on the Fit for 55 package as a whole and on the two energy-related files in particular. Ministers will then hold a single policy debate based on questions tabled by the Presidency in order to give guidance for further work.
On 14 July 2021, the Commission presented the Fit for 55 package. The package of legislative proposals and initiatives aims to align the EU’s climate and energy policy framework with its target for 2030 of reducing net greenhouse gas emissions by at least 55% and to put it on track to reach its objective of becoming climate neutral by 2050.
The package includes a proposal for a review of the Renewable Energy Directive (RED) and a recast of the Energy Efficiency Directive (EED). The proposal on the RED increases the current EU-level target of “at least 32 %” of renewable energy sources in the overall energy mix to at least 40 % by 2030. It also proposes the introduction or enhancement of sectorial sub-targets and measures across sectors, with a special focus on sectors where progress with integrating renewables has been slower to date, in particular in the fields of transport, buildings and industry. While some of those targets and provisions are binding, several others remain of an indicative nature.
The EED recast proposes to increase the current EU level target of 32.5 % to 36 % for final, and 39 % for primary energy consumption (although based on a new baseline, thus making the target 9% compared to 2020), while leaving national contributions to the binding EU target indicative. In addition, it puts forward several provisions to increase energy efficiency efforts by member states, such as new annual energy savings obligations and rules aimed at decreasing the energy consumption of public sector buildings, as well as targeted measures to protect vulnerable consumers. The Commission’s aim is to facilitate the cost effective achievement of the 9 % EU target, while ensuring that energy efficiency is prioritised and delivers on multiple benefits.
The two progress reports take stock of the progress made on the files and outline the main outstanding issues. On the basis of the progress achieved to date, and in order to set a direction for further work, ministers are invited to exchange views on the basis of the following two questions:
- To what extent do you consider that the proposed measures for renewables in buildings, industry and transport strike a good balance between supporting the use of the cost-efficient renewables’ sectoral potential and recognising national circumstances and different starting points?
- To what extent do you consider that the measures foreseen in the Energy Efficiency Directive strike a fair balance between the increased energy efficiency efforts required of Member States and their accounting towards reaching the EU headline energy efficiency target, and the need for flexibility to reflect national circumstances? In particular, how can these flexibilities be adequately used in the obligations relating to public sector buildings?
Presidency progress report on Fit for 55 package
Presidency discussion paper on the policy debate on Renewable energies and Energy efficiency directives
Presidency progress report RED
Presidency progress report EED
Other business
Under other items, the Commission will inform ministers on developments in the field external energy relations and present a report on the state of the Energy Union.
The Presidency will brief ministers on the progress made with the European Parliament in negotiations on the revision of the trans-European networks for energy (TEN-E) regulation.
Denmark will share information on the coexistence between renewable energy and biodiversity. Information from Denmark
Lithuania will share information on the importance of ensuring nuclear safety at the Belarusian Ostrovets nuclear power plant in accordance with recognised EU safety levels.
Information from Lithuania
Belgium will share information on the impact of the existing 70 percent rule applicable to interconnections on offshore hybrid projects.
Information from Belgium
France will present the work programme of its upcoming Presidency.