Wed. Sep 18th, 2024

Main results of the EU TTE Council Energy Council (Energy), 30 May 2024

May 30, 2024 , , ,

Brussels, 30 Juli 2024

Sustainable electricity grids

Energy ministers approved conclusions on sustainable electricity grid infrastructure. This set of conclusions follows up on the discussions of Energy ministers during the informal ministerial meeting on energy which took place in April 2024.

The conclusions also build on the Versailles Declaration of 10 and 11 March 2022 and the objective to phase out the EU’s dependency on Russian fossil fuels as soon as possible. Completing and improving the interconnection of European electricity networks and fully integrating power grids throughout the EU is key for achieving this objective.

Furthermore, in April 2024, the European Council underlined the importance of achieving a genuine Energy Union, which requires a substantial deployment of and investment in grids, storage and interconnections.

Ministers acknowledged the importance of an interconnected, integrated and synchronised European electricity network in ensuring energy security, the resilience of the electricity system, and for EU competitiveness and decarbonisation.

The share of renewables in electricity generation has more than doubled since 2004 to reach almost 40%. The Council conclusions align with this development and reflect the European Union’s ambition to become more green, competitive and resilient in the energy sector, emphasizing the need to roll out an EU Supergrid to incorporate more renewables, support electrification, stabilize prices and increase energy security.

Tinne Van der Straeten, Belgian Minister for Energy

The Council conclusions call on member states and the Commission to forge ahead with actions and measures to achieve this, such as speeding up the roll-out of grids (standardisation of components, different dimensions of permitting, nature inclusive design), swift implementation of the relevant parts of the Grid Action plan, strengthening the European and regional approaches to grid planning financing and investing in onshore and offshore grid projects, as well as protecting electricity grids against cyber and hybrid threats.

 

REPowerEU: quo vadis?

Following Russia’s unprovoked and unjustified military aggression against Ukraine, EU leaders adopted the declaration of Versailles on 11 March 2022, with the objective ‘to phase out the EU’s dependency on Russian gas, oil and coal imports as soon as possible’.

In the context of an unprecedented energy crisis, 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, and to diversify our supplies and routes. The Commission adopted the REPowerEU plan in May 2022.

Thanks to the relevant measures taken and agreed upon by the member states and the Commission, the EU has managed to save 125.2 billion cubic metres (bcm) of gas, while securing sufficient gas reserves and reducing gas imports from 45% to 15% in only two years. Furthermore, installed wind and solar capacity increased by over a third between 2021 and 2023.

Building on the lessons learned from the energy crisis, and taking into account the negative and at times disruptive effects the energy crisis has had on European citizens and industries, further efforts will be needed in the years ahead, to increase the EU’s and member states’ resilience to the weaponisation of energy by foreign regimes, preserving and strengthening energy security and stabilising prices.

Based on a Presidency’s note, ministers shared obstacles faced in phasing out Russian energy imports. They also came forward with initiatives to be launched in order to support the EU and its member states in their efforts to phase out dependency.

Ministers agreed that the EU’s unity has been its strongest asset so far. Building on this asset, they added that stepping up efforts is needed, including an action plan, a roadmap and timelines to be crafted. Many ministers invited the European Commission to come up with further guidance on better coordination and to look into suggestions made during the discussion in order to effectively phase out Russian fossil fuels.

In particular, two delegations suggested the establishment of a high-level working group to focus on this issue, which was supported by many ministers and will be further discussed within the Council’s preparatory bodies.

 

European Green Deal for a competitive EU

Ministers also held an exchange of views on the European Green Deal and how it can help transform the EU into a modern, resource-efficient and competitive economy.

Energy ministers took stock of the legislative achievements made under the Fit for 55 package, which is now entering its implementation phase. Against this background, they exchanged views on how to remain on track for the EU’s 2030 energy efficiency and renewable energy targets, therefore boosting the Union’s competitiveness, while ensuring a just transition towards decarbonisation.

Along with advancing electricity grids, they discussed additional steps towards a genuine Energy Union, as called for in the European Council conclusions of 17-18 April 2024, in order to pursue European energy sovereignty and climate neutrality.

 

Energy communities

Over lunch, ministers exchanged views on energy communities and citizen participation. They acknowledged that community-owned renewable energy projects have significant potential to accelerate the energy transition and reduce Europe’s dependence on energy imports.

However, ministers also outlined that, due to various barriers, the development of these local initiatives is not as popular and disseminated as it could be. One of the central barriers that was quoted very often was ensuring access to grids for renewable energy communities.

Ministers underlined that action needs to be taken to help create a level playing field and integrate renewable energy communities into existing energy markets.

It was outlined that some elements can be taken up nationally, but many ministers insisted that there are different elements where more work is to be done at European level.

Therefore, ministers invited the Commission to come up with an energy community action plan. Such a plan should propose solutions to resolve unwanted or unjustified barriers for energy communities.

 

Energy Charter Treaty

With the decisions formally adopted today, the European Union and Euratom will leave the Energy Charter Treaty while member states will be allowed to support modernisation during the next Conference of the Treaty. The decisions are linked as they form the two pillars of a political compromise known as the Belgian roadmap on the Energy Charter Treaty.

Today’s formal adoption by the Council gives the final green light for the EU and Euratom to withdraw from the Energy Charter Treaty, after the European Parliament approved it during its last plenary session in April 2024.

Member states who wish to remain contracting parties after the EU’s and Euratom’s withdrawal will be able to vote during the upcoming Energy Charter Conference – expected to take place by end-2024 – by approving or not opposing the adoption of a modernised agreement.

This way, breaking the stalemate within the EU, the Belgian roadmap also unlocked the process of modernisation of the Energy Charter Treaty for its non-EU contracting parties.

Today’s adoption represents the final milestone in the Belgian roadmap we crafted for the Energy Charter Treaty. Building on the groundwork laid by our Swedish predecessors, the Belgian presidency has worked tirelessly to break this complex deadlock and found a balance acceptable and useful to all.

Tinne Van der Straeten, Belgian Minister for Energy

Other business

The Commission informed ministers about the final and updated national energy and climate plans submitted by member states, which are instrumental in achieving the Green Deal objectives and agreed EU-wide targets.

The Commission presented information on preparedness for winter 2024-2025. Ministers were briefed on the streamlining of the Commission’s procedures for the adoption of capacity mechanisms as a follow-up of the agreed provisions in the context of the electricity market design reform.

Ministers heard from the Czeck and Slovak delegations about the ‘Karlovy Vary Annual Policy Dialogue Statement’ and the need to strengthen just transition in regions affected by decarbonisation (in public session).

An information point on the impacts of the gas storage neutrality charge and the need for a better coordination at European level was raised by the Austrian, Czech, Hungarian and Slovak delegations.

The German, French and Dutch delegations shared information – and were supported by the Austrian delegation – related to the importance of the prevention of biofuels fraud and invited the Commission to come forward with the necessary initiatives in this respect.

Delegations heard from the Polish, Hungarian and Czech delegations on the terms and conditions of the 2024 Innovation Fund Action for RFNBO (Renewable Fuels of Non-Biological Origin) hydrogen production in the framework of the Hydrogen Bank and their suggestions for improvement.

Finally, the Hungarian delegation presented its priorities as the upcoming Presidency of the Council.

The Council also adopted without discussion the items on the lists of legislative and non-legislative A items, including the decisions on the Energy Charter Treaty.

The REPowerEU plan explained (infographic)

Preparatory documents
Outcome documents
Press releases

 

Press remarks by EU Commissioner Simson at the Energy Council

Brussels, 30

“Check against delivery”

Thank you, Tinne

Good evening dear journalists,

I would like to start by congratulating Minister Van der Straeten on the success of the Belgian Presidency. You have taken over the Council at a difficult moment, at the end of the institutional cycle, and you have been a steady pair of hands for the many challenges we face in the energy sector.

You have concluded several important files, like the decision today on the withdrawal from the Energy Charter Treaty.
As the Minister said, today’s Council had a full agenda.

I am personally very glad that the Council adopted conclusions on advancing sustainable electricity infrastructure, following up on the Grids Action Plan which I presented last Autumn

Today’s conclusions give a clear mandate to the Commission to continue to deliver with concrete actions. This is an issue that is central to the success of the transition.

This Council also gave us an opportunity to take stock of what has been achieved so far under the Green Deal and the REPowerEU plan, and to consider what still remains to be done.

When we launched the Green Deal, we already knew this was one of Europe’s most ambitious programmes of reform and modernisation.

We have re-designed almost every part of our energy legislation.

We have raised our targets for renewables and energy efficiency, created an enabling framework to boost the renovation of buildings, reformed both the electricity and gas markets, rewritten our infrastructure policy priorities, and prepared the ground for a hydrogen market to take off.

And then, in February 2022, we were confronted with Russia’s invasion of Ukraine and the worst energy crisis Europe had ever faced.

And our energy system had to change even faster than we intended.

The REPowerEU plan was our response. We took a strategic decision to end our dependency on Russian fossil fuels, through diversification, energy efficiency and acceleration of renewables.

When energy prices shot up to unprecedented levels, we had to take swift and decisive action. We took some bold steps, like coordinated demand reduction, a common storage policy and several emergency regulations intervening in the electricity and gas markets.

Today, I could report to the Ministers that the REPowerEU plan is working. We reduced Russia’s share in EU gas imports from 45% in 2021 to 15% last year. We emerged from the winter with a record level of gas storage, around 60%. And today it is already approaching 70%.

We also accelerated the clean transition. New installed solar and wind capacity reached over 100 GW in two years, saving 24 bcm of gas. The share of renewables in the electricity generation mix jumped to almost 45% last year. REPowerEU has boosted the clean energy transition, and enhanced Europe’s energy security and its sustainability.

But the work is not yet over, and we discussed the next steps today for the Green Deal and also for REPowerEU. I underlined how important it is now to support implementation on the ground, to build capacity at national level, to attract adequate private investments, to preserve a level playing field and to promote EU manufacturing and supply chains.

The final National Energy and Climate Plans which Member States will submit next month, will be a test of our ambitions. I urged Member States not to slow down our diversification efforts and to commit to further reduce their imports of Russian gas.

We all agreed that to reach our end goal of reducing Russian energy imports to zero, we need to maintain close coordination, also at the political level.

We need to agree on a timeline and an exact roadmap, to tackle the last remaining imports, and to ensure that all Member States are able to make the transition together.

The end of Russian gas transit via Ukraine will be a very critical next step. I have worked with the Member States on the diversification options, and I have reported today to the Ministers on the results of this work.

As I said already in March, Europe can satisfy its demand for next winter, and refill its gas storage in spring 2025 without using Russian pipeline gas.

With the gas package now adopted, Member States also have the legal tools to limit imports of Russian gas into their networks.

The Commission stands ready to support Member States in the use of this tool and ensure as much coordination as possible, and I took note of Member States’ request today for more guidance on how they can use this new tool.

Ladies and gentlemen, dear Tinne,

European citizens are going to elections in one week. We can be proud of our work for them in the energy sector. I truly believe that working jointly, the Parliament, the Council, and the Commission have proved that Europe’s strength lies in unity and in solidarity.

There’s plenty of work ahead, to deliver on the Green Deal and to complete the REPowerEU Plan. But we are on the right track, and I believe that our joint work is the basis for completing a genuine Energy Union in the next 5 years.

Thank you!

Source – EU Commission

 

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