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Internal market for electricity

12-07-2019

On 30 November 2016, the European Commission presented a legislative proposal for a regulation on the internal market for electricity, as part of a comprehensive legislative package on the energy union. The proposed regulation is aimed at making the electricity market fit for more flexibility, decarbonisation and innovation, by providing for undistorted market signals. It sets out rules for electricity trading within different time frames, and clarifies the responsibilities of market actors. It defines ...

On 30 November 2016, the European Commission presented a legislative proposal for a regulation on the internal market for electricity, as part of a comprehensive legislative package on the energy union. The proposed regulation is aimed at making the electricity market fit for more flexibility, decarbonisation and innovation, by providing for undistorted market signals. It sets out rules for electricity trading within different time frames, and clarifies the responsibilities of market actors. It defines principles for assessing capacity needs at regional and European level and proposes design principles for market-based capacity mechanisms with cross-border participation. It introduces regional operational centres for handling-system operation and a European entity for distribution system operators. 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 on 19 December 2018. The European Parliament adopted the text in the March II 2019 plenary session and the Council on 22 May 2019. The Regulation entered into force on 4 July 2019. 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.

Risk-preparedness in the electricity sector

12-07-2019

On 30 November 2016, the European Commission adopted a proposal for a regulation on risk-preparedness in the electricity sector. This proposal addresses shortcomings in the existing legislation, notably a lack of regional coordination, and differing national rules and procedures. It would replace the existing legislation, and establish common rules on crisis prevention and crisis management in the electricity sector. Regional interdependencies would be taken into account in the preparation of national ...

On 30 November 2016, the European Commission adopted a proposal for a regulation on risk-preparedness in the electricity sector. This proposal addresses shortcomings in the existing legislation, notably a lack of regional coordination, and differing national rules and procedures. It would replace the existing legislation, and establish common rules on crisis prevention and crisis management in the electricity sector. Regional interdependencies would be taken into account in the preparation of national riskpreparedness plans and in managing crisis situations. Transparency would be enhanced by requiring an ex-post evaluation of crisis situations. In the European Parliament, the proposal was referred to the Committee on Industry, Research and Energy (ITRE), which adopted its report in February 2018. A trilogue agreement was reached in November 2018. The European Parliament adopted the text in the March II 2019 plenary session and the Council on 22 May 2019. The Regulation was published in the Official Journal on 14 June 2019 and entered into force on 4 July 2019. 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.

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.

The Potential of Electricity Demand Response

15-09-2017

This report summarises the presentations and discussions made during a workshop on ‘The Potential of Electricity Demand Response’ organised on 30 May 2017 by Policy Department A for the Committee on Industry, Research and Energy (ITRE). The aim of the workshop was to highlight the role and potential of electricity demand response in achieving the EU energy and climate policy targets, to illustrate the current experiences and progress towards deployment of demand response across the EU and to identify ...

This report summarises the presentations and discussions made during a workshop on ‘The Potential of Electricity Demand Response’ organised on 30 May 2017 by Policy Department A for the Committee on Industry, Research and Energy (ITRE). The aim of the workshop was to highlight the role and potential of electricity demand response in achieving the EU energy and climate policy targets, to illustrate the current experiences and progress towards deployment of demand response across the EU and to identify and evaluate possible legislative and regulatory initiatives to optimally deploy the potential. The presentations and proceedings of this workshop should support the ITRE members in their evaluation of the related legislative proposals in the “Clean Energy for All Europeans package”.

Externý autor

Luc VAN NUFFEL, Jessica YEARWOOD

European Energy Industry Investments

16-01-2017

This study was prepared at the request of the European Parliament's Committee on Industry, Research and Energy (ITRE). The paper provides an overall assessment of European investments in the electricity sector. It concludes by providing policy recommendations to facilitate the investments in the electricity sector which are needed to enable a transition to a low carbon energy supply, while realising a fully integrated and interconnected electricity system, enhancing competitiveness and ensuring security ...

This study was prepared at the request of the European Parliament's Committee on Industry, Research and Energy (ITRE). The paper provides an overall assessment of European investments in the electricity sector. It concludes by providing policy recommendations to facilitate the investments in the electricity sector which are needed to enable a transition to a low carbon energy supply, while realising a fully integrated and interconnected electricity system, enhancing competitiveness and ensuring security of electricity supply.

Externý autor

Luc VAN NUFFEL, Koen RADEMAEKERS, Jessica YEARWOOD and Verena GRAICHEN

Capacity mechanisms for electricity

22-05-2017

Concerns about a lack of investment in electricity generation capacity to meet peak demand have prompted several EU Member States to introduce rewards for making capacity available, in the form of capacity mechanisms. Such mechanisms must conform to the EU guidelines on state aid for environmental protection and energy. However, capacity mechanisms are considered problematic because they risk distorting the internal electricity market. Moreover, purely national mechanisms are not as cost-effective ...

Concerns about a lack of investment in electricity generation capacity to meet peak demand have prompted several EU Member States to introduce rewards for making capacity available, in the form of capacity mechanisms. Such mechanisms must conform to the EU guidelines on state aid for environmental protection and energy. However, capacity mechanisms are considered problematic because they risk distorting the internal electricity market. Moreover, purely national mechanisms are not as cost-effective as mechanisms that allow for cross-border participation. To tackle these issues, the European Commission carried out a sector inquiry, in which it analysed capacity mechanisms in the EU and offered conclusions about the design principles needed to ensure their effectiveness and compatibility with the internal electricity market. It found that many Member States did not adequately assess the need or cost-effectiveness before introducing capacity mechanisms. Consequently, the Commission's 'clean energy for all Europeans' package, adopted in November 2016, includes a proposal for a recast of the Electricity Regulation, which updates the rules for European resource adequacy assessments and sets out design principles for national capacity mechanisms. In several resolutions, the European Parliament has expressed support for market-based cross-border capacity mechanisms, pointing out, however, that they should only be used under certain conditions. The Council of the EU stresses that ensuring the security of electricity supply is the responsibility of the Member States. Stakeholders have expressed various views about what the appropriate design of capacity mechanisms should be.

Sector coupling: how can it be enhanced in the EU to foster grid stability and decarbonise?

19-11-2018

Sector coupling involves the increased integration of energy end-use and supply sectors with one another. This can improve the efficiency and flexibility of the energy system as well as its reliability and adequacy. Additionally, sector coupling can reduce the costs of decarbonisation. To foster the full potential of sector coupling in several end-use and supply applications, it is important that existing techno-economic, policy and regulatory barriers are removed. Furthermore, a more integrated ...

Sector coupling involves the increased integration of energy end-use and supply sectors with one another. This can improve the efficiency and flexibility of the energy system as well as its reliability and adequacy. Additionally, sector coupling can reduce the costs of decarbonisation. To foster the full potential of sector coupling in several end-use and supply applications, it is important that existing techno-economic, policy and regulatory barriers are removed. Furthermore, a more integrated approach to energy systems planning is needed. This document was provided by Policy Department A at the request of the Committee on Industry, Research and Energy.

Externý autor

Luc VAN NUFFEL, João GORENSTEIN DEDECCA, Tycho SMIT, Koen RADEMAEKERS, Trinomics B.V.

Cybersecurity of critical energy infrastructure

25-10-2019

The European Union (EU) has a high level of energy security, enabled by oil and gas reserve stocks, and one of the most reliable electricity grids in the world. However, a number of established and emerging trends pose new challenges to the security of energy supply, notably in the electricity sector. The production, distribution and use of energy is becoming increasingly digitalised and automated, a trend which will further increase with the transformation towards a distributed carbon-neutral energy ...

The European Union (EU) has a high level of energy security, enabled by oil and gas reserve stocks, and one of the most reliable electricity grids in the world. However, a number of established and emerging trends pose new challenges to the security of energy supply, notably in the electricity sector. The production, distribution and use of energy is becoming increasingly digitalised and automated, a trend which will further increase with the transformation towards a distributed carbon-neutral energy system and the growth of the 'internet of things', which means that more and more networked devices will be connected to the electricity grid. This provides increased opportunities for malicious actors to carry out attacks on the energy system, notably cyber-attacks, possibly in combination with physical damage and social engineering. It also increases the risk of inadvertent disruption. Hackers are becoming increasingly capable, and are already probing and exploiting vulnerabilities in the energy system, as a number of incidents outside the EU have demonstrated.

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.

New rules for the EU internal electricity market

20-03-2019

The European Parliament is expected to vote on four legislative proposals related to the EU electricity market during the March II plenary session: a regulation and a directive on the internal electricity market, complemented by a regulation on risk-preparedness in the electricity sector and a regulation on the Agency for the Cooperation of Energy Regulators (ACER). The new rules aim to empower customers, streamline cross-border electricity trading, ensure the security of supply and facilitate climate-friendly ...

The European Parliament is expected to vote on four legislative proposals related to the EU electricity market during the March II plenary session: a regulation and a directive on the internal electricity market, complemented by a regulation on risk-preparedness in the electricity sector and a regulation on the Agency for the Cooperation of Energy Regulators (ACER). The new rules aim to empower customers, streamline cross-border electricity trading, ensure the security of supply and facilitate climate-friendly electricity generation.

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