The Energy Council Meeting March 12, 2010 - results

On energy, the Council reached a political agreement on the proposal for a Council regulation concerning the notification to the Commission of investment projects in energy infrastructure within the European Union; adopted conclusions on the Strategic Energy Technology Plan (SET-Plan); heard a presentation from the Commission of its communication "EUROPE 2020" and held an exchange of views on energy issues on the basis of that communication, in order to prepare its contribution to the European Council of 25 and 26 March. Over lunch, Ministers discussed the Commission's work programme on energy with the new Energy Commissioner, Günther Oettinger.

Items debated:

The Council reached political agreement on this proposal (6687/10) which establishes a common framework for the notification by member states of data and information on investment projects in energy infrastructure in the oil, natural gas, electricity (including from renewable sources), and bio‑fuel sectors, and on investment projects related to the capture and storage of carbon dioxide. More and better data on planned investments will contribute to drawing up a clear and complete picture of development and needs of energy infrastructure in the Union and subsequently allow for the anticipation of potential risks and for better coordination between member states concerned and at Community level.

This regulation constitutes an important link in the Union's energy policy instruments, taking into account the changing nature of the energy structure within and outside the Community, the increasing inflow of energy from renewable sources from a growing number of producers and recurring supply problems, the security of energy supply, the completion of the internal market and the transition towards a low-carbon economy.

Reporting under this regulation will concern projects on which construction has started or on which a final investment decision has been taken; in addition, member states may report on projects on which construction work is scheduled to start in five years or which are scheduled to be decommissioned within three years. As regards all existing energy infrastructure in operation, only the total volume of installed production, transmission and storage capacities has to be reported. The Commission is preparing a notification template which will be presented at a later stage.

The current proposal is a follow-up to the Action Plan 2007-09 on Energy Policy for Europe (7224/07, Annex I.) and to the Second Strategic Energy Review (6692/09): the Commission and the member states had been invited to identify investment required to satisfy EU strategic needs in relation to gas and electricity supply and demand. Consultation of the European Parliament was optional but the Council has included amendments from Parliament in the text.

The Council adopted the following conclusions on the Strategic Energy Technology Plan (SET- Plan) (6688/10 + 6688/10 COR 1), on the basis of the Commission communication "Investing in the Development of Low Carbon Technologies"(14230/09), presented at the TTE (Energy) Council in December 2009.

The SET Plan will contribute to accelerating the development and widespread application of clean, sustainable and efficient energy technologies, while promoting the EU leadership in the Research & Development areas concerned, as well as the EU's competitiveness and security of supply. These technologies will also make it possible to achieve the EU`s ambitious energy and climate goals for 2020 (at least quadrupling the global investments in energy R&D, in particular in the area of renewable energy and energy efficiency), as well as the EU’s intention to make the transition to a low-carbon economy by 2050.

The implementation of the SET Plan has progressed well: the European Industrial Initiatives (EII) (The European wind initiative, the solar Europe initiative, the European electricity grid initiative, the sustainable bio-energy Europe initiative, the European CO2 capture, transport and storage initiative, the sustainable nuclear fission initiative, and the initiative on fuel cells and hydrogen.), have developed their Technology Roadmaps (2010-2020) and are working towards the establishment of effective European programmes, the European Energy Research Alliance (EERA) is ready to launch its first research activities and the Smart Cities initiative is being developed. All identified EIIs should be launched by 2011 at the latest and already in 2010 those EIIs that demonstrate their maturity, as well as their cost-effectiveness.

Ministers heard the presentation of the Commission's communication "EUROPE 2020" (7110/10) by Commissioner Oettinger.

One of the "EUROPE 2020" three priority areas is promoting a more resource efficient, greener and more competitive economy, which includes achieving the EU's climate/energy goals. Concerning energy, the "Resource efficient Europe" is one of seven flagship initiatives put forward by the Commission and it aims at dissociating economic growth from the use of resources, including energy resources, supporting the shift towards a low carbon economy, increasing the use of energy from renewable sources, modernising the transport sector and promoting energy efficiency.

The Communication was well received by ministers and constituted the background for the exchange of views, in the framework of the two questions prepared by the presidency:

1. How can European energy policy, and in particular the development of energy infrastructure - as established in the Second Strategic Energy Review -, contribute to stronger economic growth and more job creation in Europe?

2. How - in practical terms - can the TTE (Energy) Council contribute to the European Strategy for Growth and Jobs?

Ministers considered that an Energy Policy for Europe should be based on the three pillars of competitiveness, security of supply and sustainability. The TTE (Energy) Council had a crucial role in actively supporting the Europe 2020 Strategy for smart, sustainable and inclusive growth.

Several of the actions listed under the flagship initiative "Resource efficient Europe" already match Council priorities regarding infrastructure, in particular, completion of the internal market, revision of the Energy Efficiency Action Plan, investing in energy efficient buildings, integrating renewable energy into the grid (smart grids and super‑grids), promoting hybrid and electric cars.

Investment in energy infrastructure is all closely linked with energy security and therefore a clear, energy cooperation policy should be established, making full use of EU financial instruments so as to establish public‑private partnerships. The internal market should also constitute a means for making affordable energy available to individuals and businesses.

The transition to a low-carbon economy on the one hand requires significant R&D development, and on the other hand, the new skills and human resources needed to the deployment of renewable energy will foster job creation or conversion, particularly for small and medium‑sized businesses and other small‑scale organisations throughout the EU. The use of information and communications technology will in turn require training, another component of the EU 2020 strategy.

The implementation of these policies by the Commission will have to be carried out in a consistent and carefully scheduled manner, focusing on initiatives with a clear European added value, both at internal and external level, and should be centred on three areas: physical capital (infrastructure); technological capital (low‑carbon, renewable energy), human capital (education).

On the basis of the debate, the presidency drew conclusions which will be conveyed to the European Council via the General Affairs Council.

Any Other Business connected with Energy

The presidency informed the Council on the outcome of the meeting in Seville, on 15‑16 January 2010, on the basis of information contained in document 6689/10.

Commissioner Oettinger informed the Council on the state of play concerning relations between Russia and Ukraine in the energy field, on the basis of an information note (6690/10).

Commissioner Oettinger presented to the Council the Commission's annual report on the functioning of the internal market for gas and electricity (7474/10), summarised in an information note (6691/10).

The Hungarian minister briefed the Council on the outcome of the Visegrad Group (Poland, Czech Republic, Slovakia, Hungary) Energy Security Summit that was held in Budapest, on 24 February 2010, on the basis of an information note (6954/10).

Source: Rapid - EU Press Releases