Informal meeting of EU energy ministers, 15-16 July 2024

More information about the agenda and the outcome of this meeting is available on the presidency website.

Informal meeting of energy ministers, 15-16 July 2024

The Informal Meeting of Energy Ministers will take place on 15 and 16 July 2024, at Várkert Bazár, in Budapest.

The informal meeting will concentrate on the decarbonisation of the energy system. Related to this, the discussions will focus on issues such as the role of geothermal energy, implementation of the 2030 energy policy framework and the role of the national energy and climate plans, a resilient, flexible and integrated electricity system and the contribution of the energy sector to the new competitiveness deal.

Source – Hungarian EU Presidency (PDF)

BACKGROUND INFORMATION

Informal Meeting of Energy Ministers to take place on 15 and 16 July 2024, at Várkert Bazaar in Budapest.

The role of geothermal energy in the European energy mix

The European Union is committed to reducing its net greenhouse gas emissions by at least 55 % by 2030. In order to progress towards this objective and to pursue a just and fair transition, the European Union needs to harness the potential of all clean technologies.

Geothermal energy is a locally available source of renewable energy that can provide, in a cost-effective way, dispatchable electricity, heat or a combination of both and has great potential both for heating and cooling and for the power sector, providing baseload energy combined with stability, storage and flexibility services, as well as sustainable production of raw materials, like lithium. The EU’s Solar Energy Strategy states that the proportion of the energy demand covered by solar heat and geothermal must increase at least threefold if the EU is to meet its 2030 climate and energy targets.

More efficient utilisation of geothermal energy plays a key role in the decarbonisation of the heating and cooling sector. Commerciality of geothermal developments in the sector however requires public funding and government incentives. Non-financial obstacles in the deployment of geothermal energy include the visibility of the subsurface potential, access to local geological data and the lack of public awareness, including by industry, of the benefits of a renewable and locally available energy source.

Implementation of the 2030 energy policy framework and the role of the national energy and climate plans

To progress with the fulfilment of the Paris Agreement and to limit global warming, the EU has set ambitious climate and energy targets for 2030 and requires Member States to implement sound policies and measures at national level. The implementation of the 2030 framework is key for staying on track and reaching the climate-neutrality objective by 2050. Accelerating the deployment of renewable energies also locally, including hydropower, solar, wind, and, to an increasing extent, geothermal energy, increasing energy efficiency, and measures ringfencing a just energy transition will be key enablers for the Union´s goals and international commitments.

National Energy and Climate Plans (NECPs) are at the core of long-term planning and provide investment certainty and predictability. The NECPs allow citizens and investors to position themselves and take timely decisions in accordance with the path pencilled at national and regional level towards 2030 energy and climate targets. Updating the NECPs in a sound and reliable way will require looking at the future policy and measures and cross-sectoral coordination.

The contribution of the energy sector to the New Competitiveness Deal

Affordable energy is key to the competitiveness of the EU’s industry. Efforts to ensure secure and adequate access to clean energy at globally competitive prices in the internal market will be central to better positioning the EU’s industrial strengths during the transition.

The EU’s ambitious climate and energy targets can only be achieved if they go hand in hand with the EU’s competitiveness and the security of energy supply throughout the green and just transition.

The benefits of energy market integration grow with the increase of renewables in the system, strengthening the value of its flexibility and overall resilience. Integrated energy markets ensure the deployment of new clean energy generation in the fastest and most cost-efficient manner possible. It also provides a good environment for the clean tech industry to flourish, fostering innovation in clean technologies and digital solutions for the energy sector.

A resilient, flexible and integrated electricity system as the key to decarbonising the economy

Interconnected and stable electricity grids are the backbone of a well-functioning energy market and have a crucial role in the achievement of the EU energy and climate targets and a safe and sustainable energy transition. A well-integrated and connected European electricity network is key to ensuring the security of the whole system and to driving decarbonisation in the most cost-effective way. The smooth functioning of the internal market is a precondition for the competitiveness of the EU.

Energy transition requires the EU and its Member States to create a decarbonised energy system which will be able to integrate a large share of variable renewable power and manage the growing demand linked to clean mobility, heating and cooling, and the electrification of industry. Therefore, grids need to adapt to a more decentralised, digitalised and flexible electricity system with the active participation of millions of consumers and local energy communities. In order to reach our ambitious energy and climate goals, especially to significantly increase the level of renewable energy in the energy system, massive investments will be needed both in renewable energy sources, but also in transmission and distribution infrastructure.