24

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The Impact of Brexit on the EU Energy System

23-11-2017

This study provided by Policy Department A at the request of the European Parliament’s Committee on Industry, Research and Energy (ITRE) shows that the energy-system related impact of Brexit on EU citizens and companies will be limited. The EU will be able to complete its market, achieve its climate and energy targets and maintain supply security. It appears likely (although not guaranteed) that the UK will continue to maintain sensible environmental policies and safeguard the rights of EU companies ...

This study provided by Policy Department A at the request of the European Parliament’s Committee on Industry, Research and Energy (ITRE) shows that the energy-system related impact of Brexit on EU citizens and companies will be limited. The EU will be able to complete its market, achieve its climate and energy targets and maintain supply security. It appears likely (although not guaranteed) that the UK will continue to maintain sensible environmental policies and safeguard the rights of EU companies in the UK. However, special attention on the impact of Brexit on the Irish energy system is warranted.

Vanjski autor

Gustav FREDRIKSSON, Alexander ROTH Simone TAGLIAPIETRA, Georg ZACHMANN

Energy consumers in the EU

27-04-2017

Consumers are considered a key element of EU energy legislation and the efforts to achieve a transition to a carbon-free society. Back in 2009, the third energy package, which sought to establish a liberalised internal energy market, granted energy consumers a number of rights, such as the right to an electricity connection, to switch energy providers and to receive clear offers, contracts and energy bills. However, some of these rights have not yet been put into practice: consumers often do not ...

Consumers are considered a key element of EU energy legislation and the efforts to achieve a transition to a carbon-free society. Back in 2009, the third energy package, which sought to establish a liberalised internal energy market, granted energy consumers a number of rights, such as the right to an electricity connection, to switch energy providers and to receive clear offers, contracts and energy bills. However, some of these rights have not yet been put into practice: consumers often do not understand their bills, are unable to compare different offers, are charged for switching, or a switch takes too long. Besides, they do not always seem to be aware of their rights. The ongoing revision of EU energy legislation aims to improve some of the rules concerning consumers and to introduce new rights, such as the right to self-generate and self-consume electricity, to ask for a smart meter, or to engage an aggregator. The European Parliament has repeatedly voiced concern that the truly competitive, transparent and consumer-friendly internal energy market envisaged by the third energy package has yet to materialise and that consumers are still having trouble understanding their bills, offers and contracts. It has called, among other things, for providing consumers with increased protection and clearer information, and for requiring suppliers to automatically put customers on the best possible tariff for their individual circumstances.

Overview of the internal energy market design legislation

23-01-2017

The new proposals build on previous legislation and continue to gradually implement an internal energy market. In particular, they look to incorporate recent changes, such as the rapid increase in renewables and technological advances relating to the digitalisation of services. They also attempt to clarify previous legislation such as in the case of storage for Transmission System Operators (TSOs) for example. As with the recent proposals on security of gas supply, the Commission looks to incorporate ...

The new proposals build on previous legislation and continue to gradually implement an internal energy market. In particular, they look to incorporate recent changes, such as the rapid increase in renewables and technological advances relating to the digitalisation of services. They also attempt to clarify previous legislation such as in the case of storage for Transmission System Operators (TSOs) for example. As with the recent proposals on security of gas supply, the Commission looks to incorporate a regional approach as the default option for assessing needs and mitigating risks. The Commission's evaluation, as well as the review of the implementation process, have shown that, while progress has been made, challenges to create a properly functioning internal market remain. The challenges identified by the evaluation, such as price controls, insufficient cross-border trade, uncoordinated national interventions and issues around regulatory independence, are addressed by the current proposals. However, it is also clear from the evaluation that progress towards a well-functioning and competitive energy market has not been consistent across the EU. Where progress has been made, the effects have been positive, although the evaluation does not look at examples of best practice to assess the best way forward. The EU- wide oversight of national regulators and TSOs is seen as positive, but question marks remain in terms of whether the suggested changes will be sufficient. Several reviews on the topic have noted that the Agency for the Cooperation of Energy Regulators (ACER) lack sufficient powers to be effective and it is unclear whether the current proposals will properly address this issue. The public consultations also pointed to the dual role of the European Network for Transmission System Operators for electricity (ENTSO-E), as both a lobby organisation and a representative of public interest,  as potentially problematic. The creation of a European Distribution System Operator (DSO) could possibly duplicate this issue. The evaluation does not include any assessment around infrastructure legislation or the EU's role in this area; however, it notes that the incentives for private investments have been insufficient so far. It is hoped that the proposed moves to a more flexible and price-driven market should improve investment conditions. As reforms in this area have been ongoing since the 1990s, it will be particularly important to continue to monitor progress and to what extent the new proposals increase competition and a well-functioning, price-led market. In terms of the Parliament's demands, many of its requests are reflected in the proposals, such as calls for more regional cooperation, for example. They do not, however, include a review of the gas market or interconnectivity objectives differentiated by regions; nor do they look to address to any great extent the issue of external import. In the case of the ACER, Parliament had asked for a substantial increase in resources. While the proposals strengthen the agency's position, the Commission decided not to propose making the ACER into a pan-European regulator, with the increase in budget and staff that such a move would have entailed.

Proceedings of the Workshop on "Collaborative Economy"

16-01-2017

This proceedings summaries the workshop chaired by MEP Nicola DANTI on collaborative economy. The workshop is a part of the overall work done within the European Parliament in order to deal with this new form of economy in the context of the Single Market. This document was prepared by Policy Department A at the request of the Committee on Internal Market and Consumer Protection.

This proceedings summaries the workshop chaired by MEP Nicola DANTI on collaborative economy. The workshop is a part of the overall work done within the European Parliament in order to deal with this new form of economy in the context of the Single Market. This document was prepared by Policy Department A at the request of the Committee on Internal Market and Consumer Protection.

Vanjski autor

Alexandros GONIADIS

An Economic Review on the Collaborative Economy

15-12-2016

This paper provides an overview of the empirical evidence concerning the potential gains from collaborative economy and the economic impact some of its business models on. It discusses how we can distinguish professional and non-professional services and provides a list of 9 tentative recommendations for the better protection of the users of the collaborative platforms. It also summarises the main regulatory concerns that emerge from the operation of such platforms. This document was prepared by ...

This paper provides an overview of the empirical evidence concerning the potential gains from collaborative economy and the economic impact some of its business models on. It discusses how we can distinguish professional and non-professional services and provides a list of 9 tentative recommendations for the better protection of the users of the collaborative platforms. It also summarises the main regulatory concerns that emerge from the operation of such platforms. This document was prepared by Policy Department A at the request of the Committee on Internal Market and Consumer Protection.

Vanjski autor

Georgios Petropoulos

Cyber Security Strategy for the Energy Sector

05-12-2016

This study is provided by the Policy Directorate at the request of the ITRE Committee. The EU energy infrastructure is transitioning into a decentralised, digitalised smart energy system. Already, energy operations are increasingly becoming the target of cyber-attacks with potentially catastrophic consequences. Development of energy specific cyber security solutions and defensive practices are therefore essential. Urgent action is required, including empowering a coordination body, to promote ...

This study is provided by the Policy Directorate at the request of the ITRE Committee. The EU energy infrastructure is transitioning into a decentralised, digitalised smart energy system. Already, energy operations are increasingly becoming the target of cyber-attacks with potentially catastrophic consequences. Development of energy specific cyber security solutions and defensive practices are therefore essential. Urgent action is required, including empowering a coordination body, to promote sharing of incident information, development of best practice and relevant standards.

Vanjski autor

David Healey (Analysys Mason Limited), Sacha Meckler (nalysys Mason Ltd.), Usen Antia (nalysys Mason Ltd.) and Edward Cottle (nalysys Mason Ltd.)

Perspectives on transatlantic cooperation: Energy and EU-US relations

02-12-2016

Energy as a subject of relations between the EU and the USA has been characterised by considerable synergy on security of supply issues, and efforts to enhance free trade in energy products and services, cooperate on geopolitical challenges and nuclear safety, reduce greenhouse gas emissions and promote renewable energy sources. The recent lifting of US export restrictions on crude oil and natural gas is likely to increase energy trade with the EU, and allow Member States to benefit from lower energy ...

Energy as a subject of relations between the EU and the USA has been characterised by considerable synergy on security of supply issues, and efforts to enhance free trade in energy products and services, cooperate on geopolitical challenges and nuclear safety, reduce greenhouse gas emissions and promote renewable energy sources. The recent lifting of US export restrictions on crude oil and natural gas is likely to increase energy trade with the EU, and allow Member States to benefit from lower energy prices and more diversified supply. Bilateral EU US cooperation on energy issues could be further enhanced, perhaps by building on the framework of the EU-US Energy Council. There is also potential for more systematic EU-US cooperation on energy research and new technologies. Greater coordination of EU and US positions in multilateral fora negotiating energy issues could help these organisations to achieve more ambitious goals, complementing a stronger EU-US bilateral relationship. This briefing continues a series which formed part of a broader research project on perspectives on transatlantic cooperation in the US election year, requested by the Chair of the European Parliament’s delegation for relations with the United States.

Energy service companies in the EU

05-09-2016

To attain the target of an 80–95% reduction of greenhouse gas emissions by 2050 compared with 1990 levels, the EU will need to make big investments. A prospective resource in this regard are the energy service companies (ESCOs), which specialise in assessing, designing and implementing energy efficiency and renewable energy projects, and typically arrange or even take on the project financing themselves. Clients do not need to pay huge upfront costs, as these are covered by the future cost savings ...

To attain the target of an 80–95% reduction of greenhouse gas emissions by 2050 compared with 1990 levels, the EU will need to make big investments. A prospective resource in this regard are the energy service companies (ESCOs), which specialise in assessing, designing and implementing energy efficiency and renewable energy projects, and typically arrange or even take on the project financing themselves. Clients do not need to pay huge upfront costs, as these are covered by the future cost savings. However, ESCO markets have matured in only a handful of EU Member States, namely Austria, the Czech Republic, France, Germany and the United Kingdom. ESCOs have facilitated energy efficiency gains in industry and have delivered projects, though not on a massive scale, involving the installation of modern energy-efficient street lighting and the renovation of social housing through public-private partnerships. However, their engagement in the private residential sector has been modest. Recently, a potential new role has emerged for them: in decentralised power production, ESCOs could ‘aggregate’ excess electricity produced by small producers (prosumers) and help place it on the wholesale market.

Sanctions over Ukraine: Impact on Russia

11-03-2016

In early 2014, Russia violated international law by annexing Crimea and allegedly fomenting separatist uprisings in the eastern Ukrainian region of Donbass. The European Union, the United States and several other Western countries responded with diplomatic measures in March 2014, followed by asset freezes and visa bans targeted at individuals and entities. In July 2014, sanctions targeting the Russian energy, defence and financial sectors were adopted. These sanctions have not swayed Russian public ...

In early 2014, Russia violated international law by annexing Crimea and allegedly fomenting separatist uprisings in the eastern Ukrainian region of Donbass. The European Union, the United States and several other Western countries responded with diplomatic measures in March 2014, followed by asset freezes and visa bans targeted at individuals and entities. In July 2014, sanctions targeting the Russian energy, defence and financial sectors were adopted. These sanctions have not swayed Russian public opinion, which continues to staunchly back the Kremlin's actions in Ukraine. The diplomatic impact has also been limited, particularly now that Russia's military intervention in Syria has helped it to break out of diplomatic isolation. On the other hand, sectoral sanctions have proved painful, aggravating the economic downturn triggered by falling oil prices. Sanctions have affected the Russian economy in various ways. The main short-term impact comes from restrictions on Western lending and investment in Russia. Oil and gas production remains unaffected for the time being, but in the long term energy exports are likely to suffer. Meanwhile, Russian counter-sanctions are benefiting the agricultural sector, but consumers are losing out in terms of choice and price. So far, the overall impact of sanctions has been to isolate Russia from the global economy and hold back economic modernisation.

US Supreme Court puts Clean Power Plan on hold

26-02-2016

In August 2015, the Obama administration promulgated a landmark regulation known as the Clean Power Plan (CPP), to reduce greenhouse gas (GHG) emissions from fossil-fuelled power plants. Soon after the publication of the CPP in the Federal Register, state and industry petitioners contended that the administration had exceeded its authority under the Clean Air Act (CAA), violated the historic and legal authority of the states, and imposed unmanageable restructuring of the power sector. In February ...

In August 2015, the Obama administration promulgated a landmark regulation known as the Clean Power Plan (CPP), to reduce greenhouse gas (GHG) emissions from fossil-fuelled power plants. Soon after the publication of the CPP in the Federal Register, state and industry petitioners contended that the administration had exceeded its authority under the Clean Air Act (CAA), violated the historic and legal authority of the states, and imposed unmanageable restructuring of the power sector. In February 2016, the US Supreme Court – the highest US court with unique authority over constitutional and federal affairs – temporarily suspended President Barack Obama's landmark carbon-emissions regulation for existing stationary sources.

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