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Common rules for the internal electricity market

12-07-2019

On 30 November 2016, the European Commission presented a legislative proposal for a recast directive on the internal market for electricity, as part of a comprehensive legislative package entitled 'Clean Energy for all Europeans'. The proposed directive would oblige Member States to ensure a more competitive, customer-centred, flexible and non-discriminatory EU electricity market with market-based supply prices. It would strengthen existing customer rights, introduce new ones and provide a framework ...

On 30 November 2016, the European Commission presented a legislative proposal for a recast directive on the internal market for electricity, as part of a comprehensive legislative package entitled 'Clean Energy for all Europeans'. The proposed directive would oblige Member States to ensure a more competitive, customer-centred, flexible and non-discriminatory EU electricity market with market-based supply prices. It would strengthen existing customer rights, introduce new ones and provide a framework for energy communities. Member States would have to monitor and address energy poverty. The proposal clarifies the tasks of distribution system operators and emphasises the obligation of neighbouring national regulators to cooperate on issues of cross-border relevance. The Council adopted its general approach in December 2017. In the European Parliament, the Committee on Industry, Research and Energy (ITRE) adopted its report in February 2018. A provisional trilogue agreement was reached in December 2018. The European Parliament adopted the text in the March II 2019 plenary session and the Council on 22 May 2019. The Directive entered into force on 4 July 2019 and must be transposed into national legislation by 31 December 2020. Fourth edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure. Please note this document has been designed for on-line viewing.

What if we let consumer electricity prices fluctuate?

10-01-2019

Electricity production from renewable sources such as wind and solar energy is expanding rapidly in Europe and around the world. However, integrating these fluctuating sources into the grid is increasingly becoming a challenge for grid operators that need to match electricity supply with demand. Switching over to a new electricity market system where the demand would better adapt to the supply could be crucial for the success of the transition towards a low-carbon society.

Electricity production from renewable sources such as wind and solar energy is expanding rapidly in Europe and around the world. However, integrating these fluctuating sources into the grid is increasingly becoming a challenge for grid operators that need to match electricity supply with demand. Switching over to a new electricity market system where the demand would better adapt to the supply could be crucial for the success of the transition towards a low-carbon society.

Seven economic challenges for Russia: Breaking out of stagnation?

18-07-2018

This publication describes the current condition of the Russian economy, which has suffered recently from external shocks, such as a collapse in oil prices and Western sanctions. However, it argues that poor economic performance has more to do with long-term internal problems, including a lack of competitive markets, low levels of investment, an absence of innovation and excessive dependence on natural resources. Finally, it discusses President Putin's promises of economic reforms to tackle such ...

This publication describes the current condition of the Russian economy, which has suffered recently from external shocks, such as a collapse in oil prices and Western sanctions. However, it argues that poor economic performance has more to do with long-term internal problems, including a lack of competitive markets, low levels of investment, an absence of innovation and excessive dependence on natural resources. Finally, it discusses President Putin's promises of economic reforms to tackle such issues, and evaluates the prospects for major change.

Energy as a tool of foreign policy of authoritarian states, in particular Russia

27-04-2018

Russia and other energy-rich authoritarian states use their energy exports for economic gains but also as a tool of foreign policy leverage. This study looks at the ways and methods these states have used to exert political pressure through their energy supplies, and what it means for the European Union. Most energy-rich authoritarian states use their energy wealth to ensure regime survival. But, more than others, Russia uses its energy wealth as well to protect and promote its interests in its ‘ ...

Russia and other energy-rich authoritarian states use their energy exports for economic gains but also as a tool of foreign policy leverage. This study looks at the ways and methods these states have used to exert political pressure through their energy supplies, and what it means for the European Union. Most energy-rich authoritarian states use their energy wealth to ensure regime survival. But, more than others, Russia uses its energy wealth as well to protect and promote its interests in its ‘near abroad’ and to make its geopolitical influence felt further afield, including in Europe. It uses gas supplies to punish and to reward, affecting both transit states and end-consumers. This study explores how supply disruptions, price discounts or hikes, and alternative transit routes such as Nord Stream 2 and Turkish Stream, are used by Russia to further its foreign policy ambitions, feeding suspicions about its geopolitical motives. The lack of transparency about Russia’s energy policy decisions contributes to this. In response, the EU is building an Energy Union based around the Third Energy Package, a more integrated European market and diversified supplies. By investing in new supplies, such as LNG, and completing a liberalised energy market, the EU will be better able to withstand such energy coercion and develop a more effective EU foreign policy.

Extern avdelning

Rem Korteweg

Financing the transition to clean energy in Europe

27-10-2017

Clean energy is energy produced and consumed generating a minimum of greenhouse gas emissions or other pollution. The level of emissions associated with energy use can meanwhile also be lowered by means of energy efficiency measures reducing demand for energy. To meet the targets of the Paris Agreement (to keep the global temperature rise to well below 2°C above pre-industrial levels, aiming at 1.5°C), greenhouse gas emissions must be near zero in the second half of this century. For the energy sector ...

Clean energy is energy produced and consumed generating a minimum of greenhouse gas emissions or other pollution. The level of emissions associated with energy use can meanwhile also be lowered by means of energy efficiency measures reducing demand for energy. To meet the targets of the Paris Agreement (to keep the global temperature rise to well below 2°C above pre-industrial levels, aiming at 1.5°C), greenhouse gas emissions must be near zero in the second half of this century. For the energy sector, this means that fossil fuels must be phased out and replaced by low-carbon energy sources. This calls for an unprecedented transition in energy production and consumption, requiring trillions of euros in investment. Financing such a large-scale transition is primarily a task for the private sector, but governments and the EU also have a critical role to play in creating a supportive policy framework. This includes markets for energy and carbon, taxation, regulation, incen¬tives, finance for key infrastructure, and innovation, coordination and information. In the framework of the energy union, the European Commission has proposed a package of legislation and policies to support the transition towards clean energy. The EU has also dedicated 20 % of its budget to climate action, including clean energy. The European Parliament is championing an ambitious climate and energy policy; it regards the carbon and electricity markets as key drivers and favours strong targets for energy efficiency and renewable energy sources.

EU energy policy [What Think Tanks are thinking]

29-09-2017

Faced with uncertain energy demand, volatile prices and possible disruptions to supply, the European Union is pushing ahead with efforts to fully integrate its still-fragmented energy market. The aim is to boost economic growth, foster innovation, ensure stable supplies and protect the environment. The planned construction of the Energy Union is taking shape with the ongoing adoption of numerous policy proposals, such as those contained in the 'Clean Energy for All Europeans' package of 2016. Most ...

Faced with uncertain energy demand, volatile prices and possible disruptions to supply, the European Union is pushing ahead with efforts to fully integrate its still-fragmented energy market. The aim is to boost economic growth, foster innovation, ensure stable supplies and protect the environment. The planned construction of the Energy Union is taking shape with the ongoing adoption of numerous policy proposals, such as those contained in the 'Clean Energy for All Europeans' package of 2016. Most recently, the European Parliament adopted new rules on the security of gas supply. This note offers links to a selection of recent commentaries, studies and reports, from some of the major international think tanks and research institutes, which discuss EU energy policies.

Assessing the state of Energy Union

12-05-2017

The European Commission’s second report on the state of the Energy Union, delivered in February 2017, paints a picture of considerable progress just two years into the Energy Union strategy. The bulk of new legislative proposals have now been adopted by the Commission. Most are still under consideration in Parliament and Council, although in some cases an interinstitutional agreement has already been secured. The focus of 2017 is therefore negotiations towards the adoption of numerous legislative ...

The European Commission’s second report on the state of the Energy Union, delivered in February 2017, paints a picture of considerable progress just two years into the Energy Union strategy. The bulk of new legislative proposals have now been adopted by the Commission. Most are still under consideration in Parliament and Council, although in some cases an interinstitutional agreement has already been secured. The focus of 2017 is therefore negotiations towards the adoption of numerous legislative proposals already on the table, together with a more limited number of new initiatives. The EU and its Member States are well on track to meet the targets of the 2020 climate and energy package in terms of promoting renewables, improving energy efficiency and reducing greenhouse gas emissions. Continued effort is needed to meet the higher targets of the 2030 climate and energy framework. The Energy Union includes a series of concrete actions to implement the 2030 framework, yet the main EU Institutions have shown different levels of ambition in these fields. A new legislative package on low emission mobility is expected in 2017, as well as ongoing actions across a wide range of energy-related areas. This includes measures to improve gas and electricity infrastructure, foster climate and energy diplomacy, and to advance research and innovation on energy technologies.

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.

ENERGY POLICY

15-03-2017

This leaflet provides abstracts of selection of latest publications prepared by the European Parliament’s Policy Department on Economic and Scientific Policy at the request of the ITRE Committee in relation to the Energy policy.

This leaflet provides abstracts of selection of latest publications prepared by the European Parliament’s Policy Department on Economic and Scientific Policy at the request of the ITRE Committee in relation to the Energy policy.

European statistics on natural gas and electricity prices

23-01-2017

Member States would have to collect statistics on the prices charged to industrial consumers and households for natural gas and electricity. Price data would be reported every six months for different consumption volumes, and cover energy prices, network charges, taxes and levies, and their sub-components. The proposed regulation would replace Directive 2008/92/EC that requires Member States to collect such statistics for industrial consumers. Data on gas and electricity prices for households are ...

Member States would have to collect statistics on the prices charged to industrial consumers and households for natural gas and electricity. Price data would be reported every six months for different consumption volumes, and cover energy prices, network charges, taxes and levies, and their sub-components. The proposed regulation would replace Directive 2008/92/EC that requires Member States to collect such statistics for industrial consumers. Data on gas and electricity prices for households are currently collected on a voluntary basis. Statistical data on gas and electricity prices are needed for monitoring the internal market for energy, and the impacts of various policies in the field of energy, such as support for renewable energy sources. The Commission has committed to preparing reports about energy costs and prices every two years, starting in 2016. The regulation came into force in December 2016 after completion of the legislative procedure in the European Parliament and the Council. This briefing updates an earlier edition, of June 2016: PE 583.850.

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