Tag Archives: Electrical energy

Renewable energy

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Renewable energy

Outline of the Community (European Union) legislation about Renewable energy

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Renewable energy

Renewable energy

Renewable sources of energy – wind power, solar power (thermal and photovoltaic), hydro-electric power, tidal power, geothermal energy and biomass – are an essential alternative to fossil fuels. Using these sources helps not only to reduce greenhouse gas emissions from energy generation and consumption but also to reduce the European Union’s (EU) dependence on imports of fossil fuels (in particular oil and gas).
In order to reach the ambitious target of a 20% share of energy from renewable sources in the overall energy mix, the EU plans to focus efforts on the electricity, heating and cooling sectors and on biofuels. In transport, which is almost exclusively dependent on oil, the Commission hopes that the share of biofuels in overall fuel consumption will be 10% by 2020.

POLICY ORIENTATIONS

  • Promotion of the use of energy from renewable sources
  • Renewable Energy Road Map
  • “Intelligent Energy for Europe” programme (2003-2006)
  • The Global Energy Efficiency and Renewable Energy Fund
  • Renewable energy: the share of renewable energy in the EU in 2004

ELECTRICITY

  • Renewable energy: the promotion of electricity from renewable energy sources
  • Support for electricity from renewable energy sources

HEATING AND COOLING

  • Biomass Action Plan

BIOFUELS

  • EU strategy for biofuels
  • Motor vehicles: use of biofuels

WIND ENERGY

  • Promotion of offshore wind energy

Nuclear energy

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Nuclear energy

Outline of the Community (European Union) legislation about Nuclear energy

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Nuclear energy

Nuclear energy

Nuclear power stations currently produce around a third of the electricity and 15% of the energy consumed in the European Union (EU). The sector represents a source of energy with low carbon levels and relatively stable costs, which makes it attractive from the point of view of security of supply and fighting climate change. It is up to each Member State, however, to decide whether or not to pursue the option of nuclear power. The ground for nuclear energy in Europe was laid in 1957 by the European Atomic Energy Community (Euratom). Its main functions consisted of furthering cooperation in the field of research, protecting the public by establishing common safety standards, ensuring an adequate and equitable supply of ores and nuclear fuel, monitoring the peaceful use of nuclear material, and cooperating with other countries and international organisations. Specific measures adopted at EU level are geared to protecting the health of those working in the sector and of the public at large, and protecting the environment from the risks associated with the use of nuclear fuel and the resulting waste.

EURATOM

  • Treaty establishing the European Atomic Energy Community (Euratom)
  • Euratom Supply Agency
  • Seventh Framework Programme: Euratom
  • Nuclear Illustrative Programme

NUCLEAR RESEARCH AND DEVELOPMENT

  • Joint Undertaking for ITER and the Development of Fusion Energy
  • ITER: Euratom/Japan agreement on nuclear fusion

NUCLEAR SAFETY

  • Nuclear non-proliferation
  • Dangers arising from ionising radiation
  • Safety of nuclear installations
  • Convention on Nuclear Safety
  • Convention on the Physical Protection of Nuclear Material and Nuclear Facilities
  • Control of high-activity sealed radioactive sources and orphan sources
  • Education and training in the nuclear energy field
  • Safeguarding nuclear materials
  • Cooperation with Non-EU Member Countries on nuclear safety
  • Operation and efficiency of facilities for monitoring the level of radioactivity in the air, water and soil – Report 1990-2007

NUCLEAR WASTE

  • Shipments of radioactive substances
  • Shipments of radioactive waste: supervision and control
  • Management of spent fuel and radioactive waste
  • European system for registration of carriers of radioactive materials (Proposal)

Prospects for the internal gas and electricity market

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Prospects for the internal gas and electricity market

Outline of the Community (European Union) legislation about Prospects for the internal gas and electricity market

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Internal energy market

Prospects for the internal gas and electricity market

New measures must be added to the existing rules of the internal gas and electricity market in order to guarantee its integral operation. An inventory of the market in fact reveals that there is still malfunctioning and that the current rules do not allow it to be corrected effectively.

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 10 January 2007 entitled “Prospects for the internal gas and electricity market” [COM(2006) 841 final – Not published in the Official Journal].

Summary

The aim of the European Union (EU) is to set up a truly competitive internal market for gas and electricity to offer consumers a real freedom of choice at fair, competitive prices, to stimulate clean energy production and to improve security of supply.

Although the internal energy market is well established, malfunctioning (identified by the sector inquiry into the gas and electricity markets) persists, preventing both consumers and the economy from getting the full benefit of the advantages of opening up the national gas and electricity markets.

As current rules do not allow effective correction of this malfunctioning, new measures must be taken as the final step in achieving integrated operation of the internal energy market in Europe.

Advantages of creating the internal energy market

The opening of national markets in gas and electricity to competition visibly gives consumers the freedom to choose their energy supplier and, therefore, the opportunity to make savings. It also improves the security of supply by encouraging, on the one hand, investment in facilities, so that interruptions to supply can be prevented, and, on the other hand, diversification of transport routes and energy sources. The existence of a truly competitive energy market also contributes to sustainable development, notably by enabling suppliers of electricity from renewable energy sources to enter the market.

Continued malfunctioning

In practice, the EU is still a long way from achieving its objective of a real internal market in which each consumer has the legal right to choose his supplier and exercise this right simply and effectively armed with the facts, and the current rules do not effectively prevent market malfunctioning.

The legal and functional unbundling of system operators vertically connected to suppliers and producers has proven insufficient to guarantee equal access to the networks. The traditional operators thus maintain their dominant position and new companies wishing to enter the market encounter many problems caused by discriminatory access conditions, lack of available network capacity, a lack of transparent data on the network situation and poor investment.

National regulators do not have the powers or independence necessary for succeeding in their mission. Their powers vary considerably from one Member State to the next, hindering cross-border trade and access to consumers in other Member States.

New set of rules for completion of the internal energy market

  • Provision of non-discriminatory access to the networks through unbundling

Current legal and functional unbundling has proven insufficient in removing the conflict of interests arising from vertical integration. Clearer separation between operation of transmission systems and production or supply activities must be introduced to ensure that operators maintain, operate and develop the networks in the general interest of the network users.

The separation may be based either on complete ownership unbundling, due to transmission system operators being both operators and owners of the system, or on introduction of an independent transmission system operator for maintenance, development and operation of the systems, which remain the property of the vertically integrated companies.

Complete ownership unbundling appears to be the most economically effective way to ensure development of a real internal energy market. Not only does it eliminate the different interests of system operators but also avoids the need for excessively detailed and complex regulations ensuring independence of vertically integrated system operators.

  • Strengthening of the role of regulators at national and Community level

The regulatory framework and therefore the powers of the regulators must be strengthened to ensure the conditions of transparency, stability and non-discrimination necessary for development of competition and for investment.

Better coordination of national regulators at European level is, in addition, needed to mitigate the market segmentation resulting from the regulatory differences between Member States. In this sense, it is possible either to improve the present approach, with the disadvantage of continuing to rely on voluntary agreements between 27 national regulators often with different interests, or to formalise the role of the European Regulators Group for Electricity and Gas (ERGEG) into a European Network of Independent Regulators (ERGEG +), or lastly to set up a new single body at Community level.

  • Cooperation of transmission system operators (TSOs)

To enable free circulation of gas and electricity within the EU, it is essential to establish compatible technical rules and regular exchange of information, increase investment in the network and, in particular, in cross-border interconnections, and move towards regional system operators.

  • Reduction in possibilities for unfair competition

Due to the monopolies held by the traditional operators before liberalisation, the lack of integration and their natural characteristics, in particular low elasticity of demand, the gas and electricity markets are particularly exposed to the risk of dominant positions.

Greater transparency, recourse to the ‘use-it-or-lose-it’ principle, genuine access to gas storage facilities and maintenance of incentives in favour of new storage capacities would facilitate the transition to a more competitive gas and electricity market.

  • Encouragement of investment in electricity power plants and gas infrastructures

Creating a stable environment for investment is a priority. Other factors may also influence investment, such as the award of emission certificates or specific incentive measures, for example for production of electricity from renewable energy sources.

  • Consumer protection

Consumer protection and public service obligations must be an integral part of the process of opening up the gas and electricity markets. An energy consumers’ charter must therefore protect their essential rights: the right to relevant information on the different suppliers and supply possibilities, the right to a straightforward procedure for changing supplier, protection against energy poverty for the most vulnerable consumers, protection against unfair commercial practices, etc.

Background

The internal energy market has been put in place gradually, starting with Directive 96/92/EC laying down rules for the internal market in electricity and Directive 98/30/EC laying down rules for the internal market in natural gas, which were replaced respectively by Directives 2003/54/EC and 2003/55/EC.

The Commission draws conclusions from the review of the internal gas and electricity market drawn up by its sector inquiry, and announces that a third legislative package will be added to the current rules.

Related Acts

Report from the Commission to the Council and the European Parliament – Progress in creating the internal gas and electricity market [COM(2008) 192 final – Not published in the Official Journal].

The report presents the progress made on the internal gas and electricity market since the opening of national markets to competition on the 1st July 2007. Among the main advances it highlights regional initiatives which have stimulated cross-border cooperation.

Three years after the deadline of July 2004 for implementation passed, it nevertheless appears that the requirements of the directives on electricity and gas have not been appropriately implemented in certain Member States.
A notable finding of this report is that regulatory oversight, unbundling and regulated supply tarifs, as well as the communication of Public Service Obligations, are not satisfactory.

Communication from the Commission to the European Council and the European Parliament of 10 January 2007 entitled “An energy policy for Europe” [COM(2007) 1 final – Not published in the Official Journal].

Communication from the Commission of 10 January 2003 entitled “Inquiry pursuant to Article 17 of Regulation (EC) No 1/2003 into the European gas and electricity sectors (Final Report)” [COM(2006) 851 final – Not published in the Official Journal]

Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC [Official Journal L 176, 15.7.2003].

Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC [Official Journal L 176, 15.7.2003].

Trans-European energy networks

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Trans-European energy networks

Outline of the Community (European Union) legislation about Trans-European energy networks

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Regional policy > Management of regional policy > Trans-european networks

Trans-European energy networks

Document or Iniciative

Decision No 1364/2006/EC of the European Parliament and of the Council of 6 September 2006 laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC.

Summary

The new guidelines for trans-European energy networks (TEN-E) list and rank, according to the objectives and priorities laid down, projects eligible for Community assistance. They also introduce the concept of ‘project of European interest’.

Defining the objectives of the TEN-E

The interconnection, interoperability and development of trans-European networks for transporting electricity and gas are essential for the effective operation of the internal energy market in particular and the internal market in general. Users should have access to higher-quality services and a wider choice as a result of the diversification of energy sources, at more competitive prices. Closer links should therefore be established between national markets and the EU as a whole. With that in mind, the new Member States are now fully incorporated into the Community TEN-E guidelines.

TEN-E also play a crucial role in ensuring the security and diversification of supply. Interoperability with the energy networks of third countries (accession and candidate countries and other countries in Europe, in the Mediterranean, Black Sea and Caspian Sea basins, and in the Middle East and Gulf regions) is essential.

Access to TEN-E also helps to reduce the isolation of the less-favoured, island, landlocked or remote regions, thus strengthening territorial cohesion in the European Union (EU).

The interconnection of TEN-E also promotes sustainable development, in particular by improving the links between renewable energy production installations and using more efficient technologies, thus reducing losses and the environmental risks associated with the transportation and transmission of energy.

Projects of common interest, priority projects and projects of European interest

Decision 1364/2006/EC lists projects eligible for Community assistance under Regulation (EC) No 2236/95 and ranks them in three categories.

Projects of common interest relate to the electricity and gas networks referred to in the Decision meeting the objectives and priorities laid down in it. They must display potential economic viability. The economic viability of a project is assessed by means of a cost-benefit analysis in terms of the environment, the security of supply and territorial cohesion. Projects of common interest are listed in Annexes II and III to the Decision.

Priority projects are selected from among the projects of common interest. To be eligible, they must have a significant impact on the proper functioning of the internal market, on the security of supply and/or the use of renewable energy sources. Priority projects, which are listed in Annex I to the Decision, have priority for the granting of Community financial assistance.

Certain priority projects of a cross-border nature or which have a significant impact on cross-border transmission capacity are declared to be projects of European interest. Also listed in Annex I, projects of European interest have priority for the granting of Community funding under the TEN-E budget and particular attention is given to their funding under other Community budgets.

A favourable framework for the development of TEN-E

The Community guidelines for TEN-E stress the importance of facilitating and speeding up the completion of projects, in particular projects of European interest.

The Member States must take all measures necessary to minimise delays while complying with environmental rules. The authorisation procedures must be completed rapidly. The third countries involved must also facilitate the completion of projects partly situated on their territory in accordance with the Energy Charter Treaty.

The new guidelines also establish a framework for closer cooperation, in particular for projects of European interest. They provide for an exchange of information and the organisation of coordination meetings between the Member States for implementing the cross-border sections of networks.

The intervention of a European coordinator is provided for where a project of European interest encounters significant delays or implementation difficulties. His or her tasks include facilitating coordination between the various parties involved in implementing the cross-border section of a network and monitoring the progress of the project.

A European coordinator may also intervene in the case of other projects relating to TEN-E at the request of the Member States concerned.

The exceptional nature of the aid

The budget allocated to the TEN-E (around EUR 20 million per year) is mainly intended for financing feasibility studies. Other Community instruments may also step in to part-finance investments, for example the Structural Funds in the convergence regions.

However, such financial assistance is exceptional and may not lead to any distortion of competition. As a rule, the construction and maintenance of energy infrastructure should be subject to market principles.

Background

The establishment and development of trans-European networks, including in the energy sector, are set out in Article 154 of the Treaty establishing the European Community. Articles 155 and 156 of the EC Treaty provide for the adoption of guidelines to define the objectives, priorities and broad lines of measures for them.

The new Community guidelines update the guidelines adopted in 2003, which themselves updated the original guidelines adopted in 1996.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Decision 1364/2006/EC

12.10.2006

–

OJ L 262 of 22.9.2006

Cross-border exchanges in electricity

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Cross-border exchanges in electricity

Outline of the Community (European Union) legislation about Cross-border exchanges in electricity

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Energy > Internal energy market

Cross-border exchanges in electricity (from 2011)

Document or Iniciative

Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 (Text with EEA relevance).

Summary

This Regulation aims at laying down rules for cross-border exchanges in electricity with a view to improving competition and harmonisation in the internal market for electricity.

Certification of transmission system operators

National regulatory authorities shall send the European Commission notification of decisions concerning the certification of a transmission system operator. The Commission then has a period of two months to deliver its opinion to the national regulatory authority. The authority then adopts the final decision concerning the certification of the transmission system operator. This decision and the Commission’s opinion are published.

European Network of Transmission System Operators (ENTSO) for electricity

Creation of the ENTSO for Electricity

The European Network of Transmission System Operators (ENTSO) for electricity is responsible for managing the electricity transmission system and for allowing the trading and supplying of electricity across borders in the Community. By 3 March 2011, the transmission system operators for electricity shall submit to the Commission and to the Agency for the Cooperation of Energy Regulators the draft statutes for the ENTSO for electricity, a list of members and draft rules of procedure.

Tasks of the ENTSO concerning network codes

The Commission shall consult the Agency for the Cooperation of Energy Regulators and the ENTSO for Electricity in order to establish an annual list of the priorities which are to contribute to developing network codes. These codes shall be developed using a non-binding framework guideline submitted to the Commission by the Agency. The codes include rules and procedures relating in particular to:

  • network security and reliability;
  • data interexchange;
  • technical and operational exchanges;
  • transparency rules;
  • harmonised transmission tariff structures;
  • energy efficiency.

Tasks of the ENTSO for Electricity

The ENTSO for Electricity is responsible for adopting:

  • common network operation tools;
  • a ten-year network development plan;
  • recommendations relating to the coordination of technical cooperation between Community transmission system operators;
  • an annual work programme;
  • an annual report;
  • annual summer and winter generation supply outlooks.

Costs and financing

The costs related to the activities of the ENTSO for electricity shall be borne by the transmission system operators. They shall establish regional cooperation within the ENTSO for electricity and publish a regional investment plan every two years, on which investments may be based.

Transmission system operators shall receive compensation for costs incurred as a result of hosting cross-border flows of electricity on their networks. The compensation shall be paid by the operators of national transmission systems from which cross-border flows originate. The costs shall be established on the basis of forecasted costs.

Charges for access to networks shall also be applied by operators.

Information and congestion management

Transmission system operators shall put in place information exchange mechanisms to ensure the security of networks in the context of congestion management.

Network congestion problems shall be addressed with non-discriminatory solutions based on market mechanisms which give economic signals to the market participants and transmission system operators.

New interconnectors may, upon request, be exempted, for a limited period of time, from the general provisions governing congestion management on condition that:

  • their installation increases competition in electricity supply;
  • the level of risk necessitates the exemption;
  • the interconnection must be owned by a natural or legal person;
  • charges are levied on users of the interconnection;
  • the exemption must not be to the detriment of competition or the effective functioning of the internal market, or the efficient functioning of the of the regulated system to which the interconnector is linked.

This Regulation repeals Regulation (EC) No 1228/2003 as from 3 March 2011.

Context

The 1997 Commission Communication “An Energy Policy for Europe” highlighted the importance of creating an internal market for electricity and the implementation of fair competition between the various operators. As the rules and measures in force were not sufficient for achieving these objectives, it was necessary to adopt new provisions.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 714/2009

3.9.2009

–

OJ L211 of 14.8.2009

Related Act

Commission Regulation (EU) No 838/2010 of 23 September 2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging (Text with EEA relevance).

This Regulation establishes an inter-transmission system operator compensation mechanism (ITC mechanism) for the costs caused by hosting cross-border flows of electricity. The transmission system operators contribute to the ITC fund in proportion to the absolute value of net flows onto and from their national transmission system. Furthermore, this Regulation lays down the annual average transmission charges paid by electricity producers.

Agency for the Cooperation of Energy Regulators

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Agency for the Cooperation of Energy Regulators

Outline of the Community (European Union) legislation about Agency for the Cooperation of Energy Regulators

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Internal energy market

Agency for the Cooperation of Energy Regulators

Document or Iniciative

Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators (Text with EEA relevance).

Summary

This Regulation establishes the Agency for the Cooperation of Energy Regulators with the aim of exercising at Community level the tasks performed by the Member States’ regulatory authorities.

The Agency for the Cooperation of Energy Regulators is a Community body with legal personality. It shall issue opinions on all questions related to the field of energy regulators. It shall participate in the creation of network codes in the fields of electricity and gas and it can make decisions regarding cross-border infrastructure, including derogations from certain provisions in the applicable regulations.

Tasks

Tasks concerning the cooperation of transmission system operators

The Agency is responsible for issuing an opinion on the draft statutes, the list of members and the draft rules of procedure of the ENTSO (European Network of Transmission System Operators) for electricity and gas, and for monitoring the execution of the tasks. The Agency shall play an important role in drafting the framework guidelines which the network codes must comply with. In addition, the Agency shall monitor regional cooperation between transmission system operators in the electricity and gas sectors, and the execution of tasks by the ENTSO for electricity and gas.

Tasks concerning national regulatory authorities

The Agency is responsible for adopting, under certain conditions, individual decisions on technical issues. It may make recommendations with the aim of promoting the exchange of good practice between regulatory authorities and market players. It shall also provide a framework for cooperation between the national regulatory authorities.

The Agency may issue an opinion on whether a decision taken by a regulatory authority complies with the applicable Community rules. If its opinion is not followed, the Agency shall inform the European Commission and the Member State concerned.

The Agency is also responsible for determining, under certain conditions, the terms and conditions for access to and operational security of electricity and gas infrastructure, which connects at least two Member States.

Tasks concerning cross-border infrastructure

The terms and conditions for access applicable to cross-border infrastructure include:

  • a procedure for capacity allocation;
  • a time-frame for allocation;
  • shared congestion revenues;
  • the levying of charges on the users of the infrastructure.

The Agency is responsible for the terms and conditions for access and security only when the national regulatory authorities have not been able to reach an agreement within a period of six months or they have jointly requested it.

The Agency is responsible for monitoring the internal markets in electricity and natural gas, in particular the retail prices of electricity and natural gas.

Organisation

The Agency comprises:

  • an Administrative Board which shall adopt a multi-annual programme;
  • a Board of Regulators which is responsible for providing advice to the Director;
  • a Director, appointed for five years and responsible for managing the Agency;
  • a Board of Appeal.

Financial resources

The revenues of the Agency come from:

  • a subsidy from the general budget of the European Union;
  • fees paid to the Agency;
  • voluntary contributions from Member States;
  • legacies, donations or grants.

Participation of third countries

Third countries which have signed agreements with the Community may participate in the work of the Agency.

Context

To facilitate the consultation of Member States’ regulatory bodies, Commission Decision 2003/796/EC has established an independent consultation group for the electricity and gas sectors (European Regulatory Group for Electricity and Gas or ERGEG). Although the results of its work are positive, it became apparent that Member States need to cooperate under a Community structure in order to strengthen the internal market in gas and electricity.

REFERENCES

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 713/2009

3.9.2009

–

OJ L211 of 14.8.2009

Information on investment projects in energy infrastructure

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Information on investment projects in energy infrastructure

Outline of the Community (European Union) legislation about Information on investment projects in energy infrastructure

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > European energy policy

Information on investment projects in energy infrastructure

Document or Iniciative

Council Regulation (EU, Euratom) No 617/2010 of 24 June 2010 concerning the notification to the Commission of investment projects in energy infrastructure within the European Union and repealing Regulation (EC) No 736/96.

Summary

This Regulation defines a common framework for the notification to the European Commission of information relating to investment projects * in energy infrastructure *.

Sectors and types of investment projects concerned

This Regulation applies to energy infrastructure in the following sectors:

  • oil (refining, transport and storage);
  • natural gas (transmission, LNG terminals and storage);
  • electricity (production and transmission);
  • biofuel (production);
  • carbon dioxide (transport and storage).

Notification of information to the Commission

In the case of infrastructure which is planned or under construction, the following data shall be notified to the Commission:

  • the volume of the capacities planned or under construction;
  • the type and main characteristics of infrastructure or capacities planned or under construction;
  • the probable year of commissioning;
  • the energy source used;
  • the installations capable of responding to security of supply crises;
  • the equipment of carbon capture systems.

With regard to decommissioning, the Commission shall receive information on the character and the capacity of the infrastructure concerned, and the probable year of decommissioning.

Member States shall collect this data from the undertakings which make the investments concerned or by any other equivalent means. Member States shall notify the Commission of this data in aggregated form by 31 July of the reporting year. The first reporting year shall be 2011 and from then onwards every two years. This task may be delegated to a specific body *.

Member States may present estimated or preliminary information on investment projects for infrastructure falling within the scope of the Regulation if the work is scheduled to start within five years or for which decommissioning is scheduled within three years.

When this data is communicated, Member States shall ensure the quality, relevance, accuracy, clarity, timeliness and coherence thereof.

The Commission’s role

The Commission shall prepare an analysis of investment projects and development perspectives for the European energy system based on the data received. It shall discuss this analysis with interested parties such as the European Network of Transmission System Operators (ENTSO) for electricity, the ENTSO for gas, the Gas Coordination Group, and the Oil Supply Group. The Commission shall present the analysis to the Council, the European Parliament and the Economic and Social Committee, and shall publish its report.

The Commission may publish the data that it receives within the limits of personal data protection by virtue of Directive 95/46/EC and on condition that no confidential or sensitive information concerning an undertaking or installation is divulged.

This regulation repeals Regulation (EC) No 736/96.

Key terms of the Act
  • Investment projects: projects aiming at building new infrastructure, transforming, modernising, increasing or reducing capacities of existing infrastructure, partial or total decommissioning of existing infrastructure.
  • Infrastructure: any type of installations or part of installations related to production, transmission and storage.
  • Specific body: a body entrusted with the preparation and adoption of Union-wide multi-annual network development and investment plans in energy infrastructure.

Reference

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EU, Euratom) No 617/2010

4.8.2010

–

OJ L 180 of 15.7.2010

Related Acts

Commission Regulation (EU, Euratom) No 833/2010 of 21 September 2010 implementing Council Regulation (EU, Euratom) No 617/2010 concerning the notification to the Commission of investment projects in energy infrastructure within the European Union.
This Regulation indicates how Member States are to notify the European Commission of information on investment projects in the field of energy. It repeals Regulation (EC) No 2386/96.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 17 November 2010 – Energy infrastructure priorities for 2020 and beyond – A Blueprint for an integrated European energy network [COM(2010) 677 final – Not published in the Official Journal].

This Communication stresses the need to implement a new European energy infrastructure policy in order to achieve the objectives laid down by the Energy 2020 strategy.
By 2020, the European Commission believes that nearly one trillion euros will have to be invested in the European energy system, 200 billion of which will have to be devoted to energy transmission networks alone. Although the costs of these investments are huge, it would be more expensive not to carry them out because national solutions would be 20% more expensive.
In the longer term, the Commission wishes to introduce networks of the future comprising European Electricity Highways and European CO2 transport infrastructure. To accelerate the introduction of these projects, permit granting procedures should be made faster and more transparent, and a stable framework for financing should be created. The Commission therefore intends to propose new tools combining existing financial mechanisms with other innovations.

Community framework for the taxation of energy products and electricity

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Community framework for the taxation of energy products and electricity

Outline of the Community (European Union) legislation about Community framework for the taxation of energy products and electricity

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Taxation

Community framework for the taxation of energy products and electricity

Document or Iniciative

Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity [See amending acts].

Summary

Energy products and electricity are only taxed when they are used as motor or heating fuel, and not when they are used as raw materials or for the purposes of chemical reduction or in electrolytic and metallurgical processes.

On the basis of this principle, the directive sets minimum rates of taxation for motor fuel, motor fuel for industrial or commercial use, heating fuel and electricity. The “levels of taxation” * applied by the European Union (EU) countries may not be lower than the minimum rates set in the directive.

The minimum levels of taxation applicable to motor fuels are the following:

– Current minimum excise rates
Petrol (€/1000 l.)

421
Unleaded petrol (€/1000 l.)

359
Diesel (€/1000 l.)

330
Kerosene (€/1000 l.)

330
LPG (€/1000 l.)

125
Natural gas (€/gigajoule)

2.6

(The volumes are measured at a temperature of 15 °C).

No later than 1 January 2012, the Council acting unanimously after consulting the European Parliament must, on the basis of a report and a proposal from the Commission, decide upon the minimum levels of taxation applicable to gas-oil for a further period beginning on 1 January 2013.

The directive allows EU countries to differentiate between commercial and non-commercial use of gas-oil used as propellant, provided that the EU minimum levels are observed and the rate for commercial gas-oil used as propellant * does not fall below the national level of taxation in force on 1 January 2003, notwithstanding any derogations for this use laid down in the directive.

This differentiation enables EU countries to reduce the gap between the level of excise duty applicable to non-commercial gas-oil used in cars and that applicable to petrol, since there is no environmental or other justification for the lower minimum rate currently applicable to the use of gas-oil in cars.

The minimum levels of taxation applicable to fuels for industrial or commercial use are the following:

– Current minimum excise rates

Diesel (€/1000 l.)

21

Kerosene (€/1000 l.)

21

LPG (€/1000 kg.)

41

Natural gas (€/gigajoule)

0.3

(The volumes are measured at a temperature of 15 °C).

The directive specifies that industrial and commercial uses are:

  • agricultural, horticultural or piscicultural works, and forestry;
  • stationary motors;
  • plant and machinery used in construction, civil engineering and public works;
  • vehicles intended for use off the public roadway.

The minimum levels of taxation applicable to heating fuels and electricity are the following:

– Current minimum excise rates
(business use)		 Current minimum excise rates
(non-business use)

Diesel (€/1000 l.)

21

21

Heavy fuel oil (€/1000 kg.)

15

15

Kerosene (€/1000 l.)

0

0

LPG (€/1000 kg.)

0

0

Natural gas (€/gigajoule)

0.15

0.3

Coal and coke (€/gigajoule)

0.15

0.3

Electricity (€/MWh)

0.5

1.0

(The volumes are measured at a temperature of 15 °C).

Differentiated rates of taxation

Provided that they comply with the minimum levels of taxation prescribed by the directive and are compatible with EU law, differentiated rates of taxation may be applied by EU countries, under fiscal control, in the following cases:

  • when the differentiated rates are directly linked to product quality;
  • when the differentiated rates depend on quantitative consumption levels for electricity and energy products used for heating purposes;
  • for the following uses: local public passenger transport (including taxis), waste collection, armed forces and public administration, disabled people, ambulances;
  • between business and non-business use, for the energy products and electricity referred to above.

Exemptions and reductions

The following are exempt from taxation:

  • energy products and electricity used to produce electricity and electricity used to maintain the ability to produce electricity. However, EU countries may, for reasons of environmental policy, subject these products to taxation;
  • energy products supplied for use as fuel for the purpose of air navigation other than in private pleasure-flying;
  • energy products supplied for use as fuel for the purposes of navigation within EU waters, including fishing, other than private pleasure craft, and electricity produced on board a craft.

EU countries may limit the scope of the last two exemptions to international and intra-EU transport. Therefore, for all air or sea transport within an EU country or between two EU countries that have signed a bilateral agreement to this effect, the EU countries may apply a level of taxation lower than the minimum set by the directive.

EU countries may apply total or partial exemptions or reductions in the level of taxation to, inter alia:

  • energy products used under fiscal control in the field of pilot projects for the technological development of more environmentally-friendly products or in relation to fuels from renewable sources;
  • biofuels;
  • forms of energy which are of solar, wind, tidal or geothermal origin, or from biomass * or waste;
  • energy products and electricity used for the carriage of goods and passengers by rail, metro, tram and trolley bus;
  • energy products supplied for use as fuel for navigation on inland waterways (including fishing) other than in private pleasure craft, and electricity produced on board a craft;
  • natural gas and LPG used as propellants.

The directive takes account of the competitiveness of businesses by providing for measures to alleviate the tax burden on energy intensive businesses and/or businesses * that undertake to achieve environmental protection objectives or to improvements in energy efficiency.

It also provides that EU countries may refund, fully or in part, taxes paid by businesses that have invested in the rationalisation of their energy use. This refund may be as much as 100 % in the case of energy intensive businesses, and up to 50 % for other businesses.

Transitional periods

For some EU countries the directive defines transitional periods during which they are required to gradually reduce the gap between their rates and the new minimum rates of taxation. However, when the difference between the national rate and the minimum rate does not exceed 3 % of the minimum rate, the EU country may wait until the end of the period to adjust its national level.

Key terms used in the act
  • Level of taxation: the total charge levied in respect of all indirect taxes (except VAT) calculated directly or indirectly on the quantity of energy products and electricity at the time of release for consumption.
  • Commercial gas-oil used as propellant: gas-oil used as propellant for the carriage of goods for hire or reward, or on own account, by motor vehicles or articulated vehicle combinations intended exclusively for the carriage of goods by road and with a maximum permissible gross laden weight of not less than 7.5 tonnes and for the carriage of passengers, whether by regular or occasional service, by a motor vehicle of category M2 or category M3, as defined in Council Directive 70/156/EEC of 6 February 1970 on the approximation of the laws of the EU countries relating to the type-approval of motor vehicles and their trailers.
  • Biomass: the biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste.
  • Energy-intensive business: a business entity where either the purchases of energy products and electricity amount to at least 3.0 % of the production value, or the national energy tax payable amounts to at least 0.5 % of the added value.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Directive 2003/96/EC

31.10.2003

31.12.2003

OJ L 283 of 31.10.2003
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Directive 2004/74/EC

1.5.2004

1.5.2004

OJ L 195 of 2.6.2004
Directive 2004/75/EC

1.5.2004

1.5.2004

OJ L 195 of 2.6.2004

Successive amendments and corrections to Directive 2003/96/EC have been incorporated into the basic text. This consolidated version is for reference only.

European Energy Programme for Recovery

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European Energy Programme for Recovery

Outline of the Community (European Union) legislation about European Energy Programme for Recovery

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > European energy policy

European Energy Programme for Recovery

Document or Iniciative

Regulation (EC) No 663/2009 of the European Parliament and of the Council of 13 July 2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy. [See amending act(s)].

Summary

This Regulation is aimed at setting up a European Energy Programme for Recovery (EEPR) to fund projects in three main areas of the energy sector:

  • gas and electricity infrastructures*;
  • offshore wind energy*;
  • carbon capture and storage*.

This Regulation also establishes a financial instrument, detailed in Annex II, the aim of which is to support initiatives related to energy efficiency and renewable energy.

Gas and electricity infrastructures

The programme finances interconnection projects with the following objectives:

  • security and diversification of sources of energy and supplies;
  • optimisation of the capacity of the energy network and the integration of the internal energy market;
  • development of the network;
  • connection of renewable energy sources;
  • safety, reliability and interoperability of interconnected energy networks.

A list of projects eligible for EEPR assistance is given in Annex I, part A. Proposals corresponding to these projects may be submitted only by Member States and, with the agreement of the Member States concerned, by international organisations, public or private undertakings or bodies.

The European Commission selects proposals which are eligible for EEPR funding mainly on the basis of the technical, financial, environmental or socio-economic criteria laid down in the Regulation. It also determines the amount of aid to be awarded to them.

Offshore wind projects

The offshore wind projects which are eligible for funding are indicated in part B of Annex I to the Regulation. Proposals must be submitted by one or several undertakings acting jointly. They are selected on the basis of the following criteria:

  • the improvement in installations and infrastructures;
  • the construction of infrastructures;
  • the innovative features of the project;
  • the project’s contribution to the Community’s offshore wind grid system.

Carbon capture and storage

A list of projects relating to carbon capture and storage which are eligible for EEPR funding is given in part C of Annex I.

Projects must demonstrate that they have the ability to capture at least 80 % of CO2 in industrial installations. If capture takes place in a power installation, the latter must have an output equivalent to at least 250 MW. Projects may be submitted by one or several undertakings, acting jointly. They must undertake to make the knowledge generated in this field available to other undertakings.

The Commission awards the project to the undertaking which meets appropriate financial and technical criteria, as well as criteria including the complexity of the project and the level of innovation of the installation, and the soundness and adequacy of the management plan.

Financial instrument

The financial instrument aims at supporting the development of projects related to the energy, energy efficiency and renewable energies economy. It facilitates the financing of investments by local, regional and, in sufficiently justified cases, national public administrations.

This instrument may be used for projects such as:

  • the development of public and private buildings which integrate technical solutions which promote energy efficiency and renewable energies;
  • investment in efficient combined heat and power;
  • clean urban transport;
  • energy efficient technologies.

Technical assistance may be granted to local, regional and national authorities in order to support the development of their projects.

One or several financial intermediaries are responsible for putting this instrument in place. The Commission shall ensure that the costs related to these operations are limited.

Budget

A financial envelope of EUR 3 980 million is devoted to the three sub-programmes and the financial instrument, allocated as follows:

  • gas and electricity infrastructure projects receive EUR 2 267 million;
  • offshore wind energy projects receive EUR 565 million;
  • carbon capture and storage projects receive EUR 1 000 million;
  • the financial instrument receives EUR 146 million.

Context

This Programme is introduced in the context of the energy and financial crisis. In response to this dual crisis, in late 2008 the European Commission presented an ‘Economic Recovery Plan’, of which the European Energy Programme for Recovery is a key element.

Key terms of the Act
  • Gas and electricity interconnections: all high-voltage lines, excluding those of distribution networks, and submarine links, provided that this infrastructure is used for interregional or international transmission or connection, any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems, high-pressure gas pipelines, excluding those of distribution networks, underground storage facilities connected to high-pressure gas pipelines, reception, storage and regasification facilities for liquefied natural gas (LNG), any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems;
  • Offshore wind energy: electric power generated from turbine engines powered by wind and situated in the sea, whether near or far from the shore;
  • Carbon capture and storage: a way of mitigating climate change consisting of the capture of carbon dioxide (CO2) from industrial installations, its transport to a storage site and its injection into a suitable underground geological formation for the purposes of permanent storage.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 663/2009/EC

1.8.2009

–

OJ L 200, 31.7.2009
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EU) No 1233/2010

30.12.2010

–

OJ L 346, 30.12.2010

Successive amendments and corrections to Regulation (EC) 663/2009/EC have been incorporated in the basic text. This consolidated versionis for reference purposes only.

Related Acts

Report from the Commission to the Council and the European Parliament of 27 April 2010 on the implementation of the European Energy Programme for Recovery [COM(2010) 191 final – Not published in the Official Journal].

Report from the Commission to the Council and the European Parliament of 20 April 2011 on the implementation of the European Energy Programme for Recovery [COM(2011) 217 final – Not published in the Official Journal].

This Report demonstrates that after the launch phase, the EEPR is now fully in the implementation phase. Considerable progress has been achieved since the publication of the first report on the implementation of the EEPR in April 2010. The EEPR has proved a valuable tool at EU level that has accelerated implementation of major energy projects and played its role as a stimulus to economic recovery.

Cogeneration

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Cogeneration

Outline of the Community (European Union) legislation about Cogeneration

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Energy efficiency

Cogeneration

Document or Iniciative

Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC [See amending act].

Summary

The principle of cogeneration

Cogeneration is a technique allowing the production of both heat and electricity. The heat is in the form of high pressure water vapour or hot water.

An electricity/heat cogeneration plant operates by means of gas turbines or engines. Natural gas is the form of primary energy most commonly used to fuel cogeneration plants. However, renewable energy sources and waste can also be used.

Unlike traditional power stations where exhaust gases are directly evacuated by the chimney, the gases produced by cogeneration are first cooled before being evacuated by the chimney, releasing their energy into a hot water/steam circuit.

Electricity/heat cogeneration installations can achieve energy efficiency levels of around 90 %. The development of cogeneration could avoid the emission of some 250 million tonnes of greenhouse gas emissions in 2020.

Promotion of cogeneration

The objective of this Directive is to establish a transparent common framework to promote and facilitate the installation of cogeneration plants. This overall objective comprises two specific aims:

  • in the short term, the Directive should make it possible to consolidate existing cogeneration installations and promote new plants;
  • in the medium to long term, the Directive should create the necessary framework for high efficiency cogeneration to reduce emissions of CO2 and other substances and to contribute to sustainable development.

There are already examples of regulatory developments in some Member States, such as Belgium (green certificates and cogeneration quotas), Spain (a decree on the sale of cogeneration electricity) or Germany (a law on cogeneration).

The Commission has established harmonised efficiency reference values for separate production of electricity and heat (see under “Related Acts”). Member States must ensure, on the basis of the harmonised efficiency reference values and within six months of their adoption, that the origin of electricity produced from high-efficiency cogeneration can be guaranteed according to objective, transparent and non-discriminatory criteria laid down by each Member State.

Member States must ensure that the guarantee of origin of the electricity enables producers to demonstrate that the electricity they sell is produced from high-efficiency cogeneration.

A guarantee of origin must:

  • specify the lower calorific value of the fuel source from which the electricity was produced, specify the use of the heat generated together with the electricity and the dates and places of production;
  • specify the quantity of electricity from high-efficiency cogeneration that the guarantee represents (this quantity being calculated in accordance with Annex II);
  • specify the primary energy savings calculated in accordance with Annex III based on harmonised efficiency reference values established by the Commission.

Member States must analyse the national potential for the application of high-efficiency cogeneration.

Background

Cogeneration saves energy and improves security of supply. However, there is still considerable unexploited potential for cogeneration in the Member States. Moreover cogeneration would make it possible to:

  • reduces losses on the electrical grid because cogeneration installations are usually closer to the consumption point;
  • increase competition among electricity producers;
  • set up new enterprises;
  • save energy in isolated or extremely remote areas.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Directive 2004/8/EC

21.2.2004

21.2.2006

OJ L 52 of 21.2.2004
Amending act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 219/2009

20.4.2009

–

OJ L 87 of 31.3.2009

Successive amendments and corrections to Directive 2004/8/EC have been incorporated into the basic text. This consolidated versionis for information only.

Related Acts

Proposal for a Directive

Proposal for a Directive of the European Parliament and of the Council of 22 June 2011 on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC [COM(2011) 370 final – Not published in the Official Journal].

The European Commission has set itself the overall objective of reducing energy consumption by 20 % by 2020. To that end, it proposes a new energy efficiency strategy which follows on from its Energy Efficiency Plan 2011. This Proposal for a Directive includes elements of that Plan with a view to making them legally binding.
It also proposes to repeal Directives 2004/8/EC and 2006/32/EC insofar as they no longer make it possible to tap energy saving potential to the full.

Communication

Communication from the Commission to the European Parliament and the Council –Europe can save more energy by combined heat and power generation [COM(2008) 771 final – Not published in the Official Journal officiel].
The European Commission reports on the application of Directive 2004/8/EC in the Member States. 22 Member States have partially transposed the Directive and published reports on their cogeneration potential, and on the administrative changes that have been implemented. 11 Member States have communicated an analysis of their national potential.
The Commission underlines the obstacles impeding the development of cogeneration and states that further efforts are still required. It therefore invites Member States to apply the Directive as a matter of urgency. Infringement procedures could be implemented if this is not the case.

Directives

Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings [Official Journal L 153 of 18.6.2010].

Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market [Official Journal L 283 of 27.10.2001].

Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels [Official Journal L 167 of 22.6.1992].

Decisions

Commission Decision 2007/74/EC of 21 December 2006 establishing harmonised efficiency reference values for separate production of electricity and heat in application of Directive 2004/8/EC of the European Parliament and of the Council [Official Journal L 32 of 6 February 2007].

Commission Decision 2008/952/EC of 19 November 2008, establishing detailed guidelines for the implementation and application of Annex II to Directive 2004/8/EC of the European Parliament and of the Council [Official Journal L 338 of 17 December 2008].