On December 3, during the 6th Central European Day of Energy, CEEP released a report on the resilience of the Central European power sector in the time of transition, written by REKK. In the report, we focus on resilience in the context of coal phase-out and the rapid development of intermittent solar and wind energy sources. There is no question by now, that coal needs to be phased out, but there are still several options and solutions to fill in the gap in the power production capacity. When and how to replace coal in a cost-efficient way, while keeping system security levels high, remains a key question (not only) in the Central European energy sector transition. According to the modelling natural gas-based capacities will play a key role in providing flexibility in Central Europe in 2030. More natural gas will be needed in the power sector to provide the flexibility required in the future. However, altogether less natural gas-based power generation capacities will be required for that, than what we have in the system now. More than 14 GW of existing coal capacity is to be closed until 2030, which is around 10% of the total net generation capacity installed in Central Europe. Despite the high decrease in coal-based generation in Central Europe by 2030, coal to gas switch will happen only partly – a large share of the “missing” production is to be compensated by renewable producers. The estimated increase of intermittent RES capacity from 29 GW in 2022 to 71 GW in 2030 in Central Europe will require investments in adequate dispatchable and flexible generation, storage capacities, [...]
The report offers a comprehensive look at our activities during 2020 with four key topics highlighted: fair transition, energy system integration and the role of hydrogen, EU emission trading system and offshore wind energy. 2020 was the first year of implementation of the European Green Deal agenda. From the perspective of the energy sector, it was a busy year with numerous public consultations and discussions as well as important decisions taken regarding 2030 emission reduction target and the EU funds. “The energy sector will get ready to deliver, but we have to be very cautious with social costs of this rapid change. Without a strong support from across all EU Member States and all parts of our societies, the EU will not be able to meet its goals, and the world could treat it as an excuse for climate inaction. In order to avoid this, we all have to make sure that the “leave no one behind” theme will guide all EU energy transition instruments. People, not only in Central Europe and Paris, are right to worry about the costs of climate change and energy transition. The best way to deal with these worries is to engage all different stakeholders and run a frank and open discussion about the best mechanisms which would make it easier to bear these costs in a fair way,” wrote Mr Leszek Jesień, Chairman of the Board of Directors at CEEP in a message included in the report. Download the CEEP’s 2020 annual [...]
On 14 July, the European Commission will present its Fit for 55 package that aims to deliver the 2030 climate target of 55%. The package will include 13 policy strands that fundamentally overhaul the EU’s climate policy. It will also include the revision of the EU Emission Trading System. Furthermore, we observe that EU carbon allowance prices hit an all time high and the EU carbon price today hits record high 50 euros a tonne. Based on ERCST and CEEP’s long-standing expertise on the EU ETS, previous work done on the funding mechanisms, engagement and consultations with climate policy experts, policymakers and stakeholders, we propose 7 major recommendations to the use of auctioning revenues and design of the funding mechanisms in light of the review of the EU ETS under the European Green Deal: Ensure auctioning revenues are fully mobilised to for climate and energy purposes. Safeguard the solidarity mechanism from the functioning of the Market Stability Reserve (MSR). Ensure an adequately increased Modernisation Fund. Maintain trust and stability by keeping financing rules for the Modernisation Fund unchanged until the 2024 review. Taking additional factors into account when distributing the modernisation fund among MS. Ensure sufficient revenues are mobilised through the Innovation Fund to finance breakthrough low-carbon technologies. Explore additional financing options to deploy low-carbon technologies at scale through the Innovation Fund. Download the recommendations. Have a nice [...]
CEEP welcomes the possibility to provide feedback to the Commission’s Inception Impact Assessment on the revision of the Ambient Air Quality Directives (AAQD). Clean air is essential for the health of people and the environment. Air quality is a major global, complex issue that needs to be addressed effective with prompt actions and with relevant legislation that allows to cooperate at global, national and regional level across different sectors. Today, the level of air pollutants has exceeded the EU thresholds and is responsible for millions of premature deaths every year. All the pollutants covered by the AAQ Directive have harmful effects and cause breathing difficulties, lung and heart diseases or trigger asthma symptoms. We recommend to reflect on the most recent scientific evidence on the harmful effects of air pollution and align the existing framework with the WHO Guidelines. CEEP acknowledges a need to take actions in order to improve air quality standards and recommends to strengthen air quality monitoring, modelling and plans: The criteria on monitoring and assessing ambient air quality should be coherent with other EU legislation and funding instruments. The EU should make sure that sufficient means are provided for those MSs and regions which will have to make most efforts in implementing the directive, for example through Just Transition Mechanisms. As coal regions will be the most affected throughout the transition, focus should be made to guarantee that they are well equipped with legal and financial instruments to implement the Directive. Coordination, coherence of action taken between different levels of government and a better allocation of responsibilities between the administration at the regional and local [...]
The new CEEP Policy Paper on the prospects for offshore wind development in Central Europe: how to boost offshore energy in the Baltic, Black and Adriatic seas examines the current state of affairs and future prospects of the offshore wind development in Central Europe. The scope of this paper is limited to the three sea basins (i.e. Baltic, Black and Adriatic) and their costal states: Poland, Lithuania, Latvia, Estonia, Romania, Bulgaria and Croatia. The paper consists of two main sections, together with the conclusions and recommendations for the future. The 1st section of the report analyzes the current state of affairs of offshore wind in Central Europe, including aspects of offshore wind development potential, ongoing projects and plans, existing political and legal frameworks, and existing challenges. The 2nd section analyzes national energy and climate plans of the previously mentioned coastal states, including national targets, policies and measures, costs of necessary investments as well as national strategies in mobilizing capital, such as EU instruments and the potential for cross-border links.. The paper shows a way in which three sea basins and its coastal states differ, in terms of developmental stage, perception of opportunities and threats as well as national approach in pushing for the climate-neutrality and shaping national economies towards renewable energy sources. For more, please read the full version of our latest Policy Paper on the prospects for offshore wind development in Central [...]
Central Europe Energy Partners (CEEP) welcomes the possibility to provide feedback on the technical screening criteria (Annex I and II) of EU Taxonomy for climate change mitigation and climate change adaptation. We are fully committed to meeting the ambitious energy and climate targets and building a carbon neutral economy by 2050. We strongly believe that climate change remains one of the most urgent challenges and in order to accelerate our actions to reach the 1.5 degree ambition, we need to put our efforts on developing sustainable financing, in particular, cost-effective electrification, low carbon electricity and zero emission vehicles. The Delegated Act is an important step to establish an EU classification system for sustainable activities and to help investors and companies access green financing. However, the initial proposal by the European Commission introduces several uncertainties, especially in the calculating methodology, which needs to be addressed if the Delegated Act is to be effective. Our general remarks on the approach are supplemented by a proposal of drafting remarks included at the end of the CEEP’s position paper. CEEP calls on the EU to introduce, along the 100 gCO2e/kWh, an additional threshold of maximum 400 gCO2e/kWh of direct emission, which would be used to indicate installations which may still contribute to tackling climate change, during the interim period of up to 2030. To mitigating the climate risks, CEEP calls to introduce provisions which will allow categorising the investments in: stable gas fired power generation; transmission infrastructure required for their connection to the grid; transmission infrastructure required for operating these systems. These provisions should be based on the consideration that where new gas fired power [...]
We represent the widely understood Central Europe energy sector (electricity generation, distribution and transmission, renewables, gas, oil, heat generation and distribution, chemical industries, etc.), universities and scientific institutions.