Budapest, 16 July 2024
Within the framework of the Hungarian Presidency, the energy ministers* discussed topical sectoral issues on 16 July 2024 in Budapest’s Várkert Bazaar.
Fulfilling feasible commitments will require large-scale investments, and to boost these we need to ensure readily available resources at EU level. Where possible, we need to minimise unnecessary administrative burdens, as they significantly hinder Europe in regaining its competitiveness. By increasing flexibility, improving efficiency and financing justified improvements, the European Union can lead the way towards a cleaner and more secure energy future, while maintaining affordability for European families and businesses.
Csaba Lantos Minister of Energy
Csaba Lantos pointed out that “the Hungarian Presidency will focus on improving Europe’s competitiveness. To this end, strengthening energy sovereignty and energy security, ensuring the affordability of energy prices and increasing the flexibility of energy markets are key tasks.”
The ministers first discussed the role of geothermal energy. The participants agreed that geothermal energy is a critically important alternative and sustainable renewable energy source for both heating and electricity generation and offer a number of as yet unused benefits. Member state representatives identified numerous areas where EU-level guidance and coordinated efforts could help accelerate investments. Several participants suggested improving the availability of geological data and facilitating investors’ access to digitised and harmonised databases.
The second theme covered challenges faced by many member states implementing the 2030 energy policy, including progress on the revision of national energy and climate plans. Each country’s different ambitions and agenda should be seen as a natural given, as they all start from differing points of departure and, therefore, have different visions of the path towards decarbonisation. Where possible, Member States should adjust their plans so that they come much closer to reality, while preserving competitiveness and security of supply across Europe.
In a separate thematic block of the meeting the participants took stock of the energy sector’s role in the new deal for European competitiveness. They agreed that the rapid pace of electrification called for considering all zero- and low-carbon solutions. There is a need for flexibility, the large-scale build-up of, and investment in, networks, storage facilities and interconnections. Many speakers were of the belief that the complexity and slowness of European licencing and funding application procedures was a barrier that had to be eliminated. It would therefore be worthwhile and useful for the new European Commission to work towards simplifying licencing procedures and cutting red tape.
The final section of the plenary session focused on the electricity network, continuing the work started by Spain and Belgium. The transformation of the EU power grid and the related regulatory framework are essential to implement a sustainable, secure and resilient energy system. Significant investments are needed to create missing infrastructure interconnections, to upgrade power transmission and distribution grids and to make them compliant with new requirements. An enabling regulatory framework is essential to stimulate investments. Access to EU funds must be increased and improved, in particular to keep energy prices affordable in Europe.
Source – Hungarian EU Presidency
*EU Commission statement as to the Hungarian EU Presidency
Eric Mamer, Chief Spokesperson of the EU Commission posted on X:
In light of recent developments marking the start of the Hungarian Presidency, the President has decided that the @EU_Commission will be represented at senior civil servant level only during informal meetings of the Council. The College visit to the Presidency will not take place.