Since the publication of the Clean Energy for All Europeans package on the 30th of November 2016, a vivid public debate can be witnessed with stakeholders giving a lot of input on these important legislative proposals, which would deeply transform the electricity market in Europe. Central Europe Energy Partners, representing energy and energy intensive sectors across Central Europe, would like to take an active part in this discussion, as we consider that the transition into low-emission economy requires profound decisions that will take into account the specific positions and starting point of all EU Member States, notably the from Central Europe region. CEEP welcomes the publication of the Clean Energy package and would like to emphasize its gratitude to the European Commission for the tremendous work it has been doing in the recent years. We agree with the general goals of the package, which promotes market approach with focus on empowering customers, prioritizing energy efficiency and making the national markets more integrated. Furthermore, we consider the Commission’s focus on importance of regional cooperation as a positive factor. We highlight however that the rapid economic growth necessary to catch up with the EU’s average GDP remains the priority for the most of Central European countries. Having said that, we have to regrettably admit that not all provisions included in the package fit our needs. In this paper, we would like to present our position on the Energy Market Regulation proposal (EMR), Energy Market Directive proposal (EMD) and the new Renewables Directive proposal (RED II). Member states' rights to shape their own energy mix According to Article 194 (2) of the [...]
The European electricity industry is supportive of Europe’s decarbonisation agenda, and is dedicated to decarbonising electricity production by 2050. In the midst of this transition, Europe must ensure secure, sustainable and affordable energy to its citizens and businesses. With today’s numerous market interventions distorting price formation, the electricity system lacks signals, both for short-term operations, and for longer-term system adequacy and decarbonisation. The market environment has become increasingly volatile and the risk of exposure for investors has risen. In this context, the issues faced by market participants and investors are similar for all assets, be it thermal or renewable generation, storage, or demand response. EURELECTRIC recently adopted recommendations for an electricity market design that is suitable for a cost-efficient, low-carbon transition. While the power sector faces different fundamentals and regulatory frameworks, market designs are not carved in stone, and should evolve with the transition. Customers at the centre of the new market design [Tweet "EURELECTRIC: clear roles and responsibilities for all market players must be defined"]Empowered customers will play a crucial role in addressing the challenges of the energy transition. Integrating increasing shares of variable renewable energy sources (RES) into the system, makes demand response ever more relevant. Technological solutions such as heat pumps, electric vehicles, home management systems, home energy devices, and connected objects will give them unprecedented control over their energy use. Rules enabling customers’ participation in the market, and ensuring fair competition between all resources (generation, demand response, storage) must be implemented. For this to happen, clear roles and responsibilities for all market players must be defined, including regard for balancing responsibility. Retailers should also be [...]
As a MEP and a member of the ITRE Committee, I fear that we in Europe face a double energy crisis – in terms of competitiveness, but also security of supply. Former Energy Commissioner Günther Oettinger has said “Europe can no longer afford to adopt a unilateral climate policy”. And former Industry Commissioner Antonio Tajani has said “We are creating an Industrial Massacre in Europe”. They are right. The EU has set aggressive targets for emissions reductions, which have meant gross over-investment in intermittent and expensive renewables. Brussels has forced the closure of low-cost coal-fired power stations. It has created a cat’s-cradle of subsidies; incentives; feed-in tariffs; renewables obligations; quasi-carbon-taxes like the Emissions Trading Scheme; capacity payments for spinning reserve; and so on. And it has resolutely set its face against low-cost alternatives like coal and indigenous gas. When I challenged the new EU Energy Commissioner Cañete on this issue, his solution was simply “a more integrated European energy market”. That’s fiddling at the margin, and ignoring the real issues. Energy pricing in the EU is driving industries, jobs and investment off-shore, often to jurisdictions with lower environmental standards, thus potentially increasing global emissions, while we undermine European economies. Let’s look at some examples. [Tweet "Since 2007, the European aluminium smelting industry has closed 36% of its capacity"]Take aluminium. Since 2007, the European aluminium smelting industry has closed 36% of its capacity – eleven smelters out of 24. It’s lost around 42,000 jobs – many of them high-value jobs in R&D. And this is not because of lack of demand, which has been rising. So imports have been rising [...]
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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.
