The global energy market is changing all the time. With the help of a comprehensive package of measures, the EU wants to be competitive in the future. Read more about this topic in the following article.
On the 30th November 2016 the European Commission has presented a package of measures. The aim is to stay competitive in a continually changing energy market. The package involves a multitude of policy and legislative proposals, for example the reduction of CO² emissions by at least 40%.
1. The three main goals of the Energy plan
The measures should be implemented until 2030. The three main goals of the energy policy package of the EU are:
- Encouragement of energy efficiency,
- Global leadership in the sector of renewable energy, and
- Fair conditions for all consumers
2. What is really behind the new energy package?
We have analyzed the most important aspects for you.
Since 2015, the investments in renewable energy by European member states decreased rapidly. This resulted in the fact that the EU lost it’s global leadership in this sector to China, for the first time.
Encouraging investments in renewable energy
The presented package point up that the European Commission (again) recognizes the importance of encouraging renewable energy. The package of measures includes realistic targets to support the increasing of renewable energy. Due to that, the current guidelines should be adjusted until 2030. Especially the suggestions for the support of renewable energy are very relevant. For example, the priority feed-in should be strongly restricted in the future. Furthermore the encouragement of renewable energy, in the European member states, should be obtained primarily by market criteria’s.
To reach this aim research and innovation in the energy sector will be forced and facilitated. Other measures will give the private and public sector the opportunity to invest easier in renewable energy.
Development of the gas & power price
In addition the development of the gas and power price as reviewed by the European Commission. It became clear, that also in this sector measures are necessary to reduce the striking price gap between the EU and the global competitors. Despite a slight improvement in 2015, industrial electricity was 70% more expensive than in the U.S.A. last year.
The package of measures includes a wide range of suggestions for the organization of the European electricity markets. One of these suggestions deals with securing of the electricity supply. This is a very positive aspect, especially in the light of the current situation in the CEE countries. Nevertheless, this step needs a closer analysis, because the area of influence of the European regulatory authority, ACER will also be extended. In addition, the increase of the energy efficiency (aimed at 30%) must be seen critically, too. Firstly, the cost-efficiency is conflicting to the Impact Assessments of the European Commission. Secondly it endangered the long-term investment safety.
3. Résumé to the EU’s energy policy
It was the right step that the EU is focusing on stronger energy policy. Without a doubt, the package of measures will help to fill the gaps in the European internal energy market and to push forward a common European energy market.
However, at the same time, it has to be clear, that the main focus must be on cost-efficiency – especially in the industry sector. Only in this way, it will be possible for the EU to become the global leader in renewable energy again.
Are you thinking in investing in Renewable Energy projects in Europe? This article was written by the Austrian Energy expert Veronika Seitweger