Brussels, 10 October 2024
Starting time: 09:30
Chair:
- Attila Steiner, Hungarian Minister of State for Energy and Climate Policy
European Commission representative:
- Kadri Simson, European Commissioner for Energy
Energy ministers will meet in Luxembourg for a meeting, during which they will focus on four main points.
Firstly, the Council will exchange views (in public session) on the contribution of the energy sector to the competitiveness of the EU. The discussion is part of the follow-up to the recommendations of the Draghi report that takes place in different council formations. The presidency prepared a background note with questions to steer the debate.
Secondly, ministers will address (in public session) the issue of divergence of wholesale electricity prices, with a focus on the price surge in South-eastern Europe. The exchange will be framed by a presidency note with questions.
Thirdly, the Commission will inform ministers about the EU’s preparedness and security of supply for the upcoming winter. This item will include a presentation on the energy situation in Ukraine by the Minister of Energy of Ukraine, Mr German Galushchenko, who will connect via videoconference.
Fourthly, the Commission will present a report on the state of the Energy Union and will update ministers on the implementation of the REPowerEU plan.
Energy for competitiveness
On 17 and 18 April 2024, European leaders called for a new European competitiveness deal, including a genuine energy union, to be achieved by securing the supply of abundant, affordable and clean energy and serving the dual objective of pursuing European energy sovereignty and climate neutrality.
On 9 September 2024, Mario Draghi presented his report on the future of European competitiveness and a competitiveness strategy for Europe. The report proposes a joint decarbonisation and competitiveness plan, which should align all policies with the EU’s objectives.
According to the report, high energy costs in Europe are an obstacle to growth; Europe must bring down high energy prices while continuing to decarbonise and shift to a circular economy. In order to accelerate decarbonisation, unlocking the potential of clean energy will be a key element and can be achieved through a collective EU focus on grids. The report stresses that decarbonisation offers an opportunity for Europe to lower energy prices and to take the lead in clean technologies, while also becoming more energy-secure.
Ministers will be invited to exchange views on how energy can contribute to the competitiveness of the European Union. In order to bridge the competitiveness gap, the recommendations of the Draghi report include lowering energy prices, establishing a new industrial strategy together with clean and sustainable technologies, investing more in energy grids and accelerating the green transition.
- Presidency background note
- European Council conclusions, 17 and 18 April 2024
- The future of European competitiveness – A competitiveness strategy for Europe (European Commission)
- The future of European competitiveness – In-depth analysis and recommendations (European Commission)
Divergence in wholesale electricity prices
In recent months, Central- and Southeastern Europe have faced high electricity prices, with severe price peaks during key hours, particularly in the evening. These prices, which in some cases exceeded €400/MWh during July and August 2024, have put significant pressure on economies in the region. Member states in the region have been particularly impacted and as a result, they are calling for coordinated EU action.
Ministers are expected to explore ways to ensure market stability and to discuss targeted measures to address divergence in wholesale electricity prices within the EU, including by increasing cross-border capacity, to enhance coordination among member states and to facilitate the roll-out of flexibility.
Winter preparedness 2024/2025
The Commission will give its regular presentation on EU preparedness in the energy sector for the upcoming winter. According to the Commission’s report, on 19 August 2024 the EU achieved its 90% gas storage capacity target ahead of the cold season, over two months ahead of the
1 November deadline, as set out in the gas storage regulation. The EU is well prepared to heat homes and to run businesses over the coming winter.
Mr German Galushchenko, Minister of Energy of Ukraine, will give a presentation on the energy situation in Ukraine.
This year has seen a step change in the intensity of Russia’s attacks on Ukraine’s energy sector. These attacks, lasting from March to August 2024, mainly targeted electricity generation facilities, resulting in rolling blackouts of 12 hours or more in some parts of the country, including Kyiv. According to the International Energy Agency, by June 2024 Ukraine was left with only around a third of its pre-war electricity generation capacity.
Ukraine’s energy system has made it through two successive winters since Russia’s invasion; but the upcoming winter will be a critical test. Ukraine’s electricity needs may rise to 18GW or more as the cold season begins, and the supply deficit could amount to almost a third of those needs.
- Energy prices and security of supply (background information) How much gas have the EU countries stored? (infographic)
- Council adopts regulation on gas storage (press release, 27 June 2022)
State of the energy union and REPowerEU plan
The Commission will provide ministers with the main findings of the state of the energy union report. According to the report, imports of Russian gas dropped from a 45% share of overall imports in 2021 to only 18% by June 2024. The EU also managed to reduce gas demand by 18% between August 2022 and May 2024. This resulted in about 138 billion cubic metres (bcm) of gas saved.
Meanwhile the EU succeeded in reducing its greenhouse gas emissions by 32.5% compared with 1990, while the pace of renewable power installation has been at a record high.
In the context of an unprecedented energy crisis and following Russia’s aggression against Ukraine, EU leaders invited the Commission to propose a REPowerEU plan to accelerate the reduction of the EU’s overall reliance on fossil fuels, taking into account national circumstances and member states’ choices of their energy mix.
The Commission adopted the REPowerEU plan in May 2022. It aims to phase out Russian fossil fuels as soon as possible, save energy, diversify energy sources and accelerate the production of renewables.
In May 2024, energy ministers took stock of achievements and challenges in its implementation and reflected on the way forward to strengthen energy security and price stability while phasing out the EU’s dependence on Russian fossil fuels.
The Commission will update ministers on how the EU is progressing in achieving its goal of phasing out Russian fuels.
- State of the energy union report 2024 (European Commission)
- The energy leap (feature story)
- The REPowerEU plan explained (infographic)
- Main results (Energy Council, 30 May 2024)
Any other business
The presidency will debrief ministers on the Geothermal Energy Summit that took place in Budapest on 20 September 2024.
Ministers will receive an update from the Commission on the implementation of the Fit for 55 legislation, most of which has already been adopted (in public session). Fit for 55 is the EU’s legislation to reduce emissions by at least 55% by 2030 and to make the EU climate-neutral by 2050.
Cyprus will provide information about the joint statement on ‘Transforming the Mediterranean Region into a Green Energy Corridor, which was adopted on 23 September at the MED9 Energy Ministerial Summit.
Ireland will ask further analysis from the European Commission and cooperation from member states on biofuels supply from palm oil derivatives and fraud prevention.
Belgium will call for a coordinated implementation of EU restrictive measures on Russian LNG transshipments (non-public session).
France will publicly inform delegations about the need for the opening of the European hydrogen bank auctions to all low-carbon hydrogen.
The Czech Republic will brief ministers on the European nuclear energy forum, held in Prague on 30 September and 1 October.
Source – EU Council: Background brief – Transport, Telecommunications and Energy Council (Energy) of 15 October 2024