2011/2034(INI)

Energy infrastructure priorities for 2020 and beyond

Procedure completed

Activites

  • 2011/07/05 Text adopted by Parliament, single reading
    • T7-0318/2011 summary
    • Results of vote in Parliament
  • 2011/07/04 Debate in Parliament
  • 2011/06/14 Committee report tabled for plenary, single reading
  • 2011/06/14 Committee report tabled for plenary, single reading
  • #3097
  • 2011/06/10 Council Meeting
  • 2011/05/26 Vote in committee, 1st reading/single reading
  • 2011/03/17 Deadline Amendments
  • 2011/03/04 Committee draft report
  • 2011/02/17 Committee referral announced in Parliament, 1st reading/single reading
  • 2011/02/10 EP officialisation
  • 2010/11/17 Non-legislative basic document published
    • COM(2010)0677 summary
  • 2010/11/17 Date
  • 2010/11/17 Non-legislative basic document
    • COM(2010)0677 summary
    • DG Energy, OETTINGER Günther

Documents

AmendmentsDossier
686 2011/2034(INI) Energy infrastructure priorities for 2020 and beyond
2011/03/24 REGI 71 amendments...
source: PE-462.568
2011/03/28 ITRE 580 amendments...
source: PE-460.899
2011/04/05 ENVI 35 amendments...
source: PE-464.732

History

(these mark the time of scraping, not the official date of the change)

2012-02-09
activities added
  • date
    2010-11-17
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2010&nu_doc=0677
      text
      • PURPOSE: to present the priorities for the next two decades with regard to energy infrastructure.

        BACKGROUND: the Energy Policy for Europe, agreed by the European Council in March 2007, establishes the Union's core energy policy objectives of competitiveness, sustainability and security of supply. The internal energy market has to be completed in the coming years and by 2020 renewable sources have to contribute 20% to our final energy consumption, greenhouse gas emissions have to fall by 20% and energy efficiency gains have to deliver 20% savings in energy consumption.

        Adequate, integrated and reliable energy networks are a crucial prerequisite not only for EU energy policy goals, but also for the EU's economic strategy. A new EU energy infrastructure policy is needed to coordinate network development on a continental scale. The challenge of interconnecting and adapting our energy infrastructure to the new needs concerns all sectors. Currently, the EU is paying the price for its outdated and poorly interconnected energy infrastructure. The risk and cost of disruptions and wastage will become much higher unless the EU invests as a matter of urgency in smart energy networks, and exploits its potential for energy efficiency improvements. In the longer term, these issues are compounded by the EU decarbonisation goal to reduce our greenhouse gas emissions by 80-95% by 2050, and raise the need for further developments, such as an infrastructure for large-scale electricity storage, charging of electric vehicles, CO2 and hydrogen transport and storage.

        Around EUR 1 trillion must be invested in our energy system between today and 2020 in order to meet energy policy objectives and climate goals. About half of it will be required for networks, including electricity and gas distribution and transmission, storage, and smart grids. Of this, about EUR 200 billion are needed for energy transmission networks alone. However, only about 50% of the required investments for transmission networks will be taken up by the market by 2020. This leaves a gap of about EUR 100 billion. Realising all investments needed in transmission for infrastructure would create an additional 775,000 jobs during the period 2011-2020 and add EUR 19 billion to our GDP by 2020, compared to growth under a business-as-usual scenario. 

        CONTENT: this Communication outlines a blueprint which aims to provide the EU with a vision of what is needed for making our networks efficient. . It puts forward a new method of strategic planning which includes the following:

        • identify the energy infrastructure map leading towards a European smart supergrid interconnecting networks at continental level;
        • focus on a limited number of European priorities which must be implemented by 2020 to meet the long-term objectives and where European action is most warranted;
        • based on an agreed methodology, identify concrete projects necessary to implement these priorities (declared as projects of European interest); 
        • support the implementation of projects of European interest through new tools, such as improved regional cooperation, permitting procedures, better methods and information for decision makers and citizens and innovative financial instruments.

        The Commission proposes the following short term priorities to make energy infrastructure suitable for the 21st century.

        1) Making Europe's electricity grid fit for 2020. It is proposed to focus attention on the following priority corridors :

        • offshore grid in the Northern Seas  and connection to Northern as well as Central Europe - to integrate and connect energy production capacities in the Northern Seas with consumption centres in Northern and Central Europe and hydro storage facilities in the Alpine region and in Nordic countries;
        • interconnections in South Western Europe to accommodate wind, hydro and solar, in particular between the Iberian Peninsula and France, and further connecting with Central Europe, to make best use of Northern African renewable energy sources and the existing infrastructure between North Africa and Europe;
        • connections in Central Eastern and South Eastern Europe - strengthening of the regional network in North-South and East-West power flow directions, in order to assist market and renewables integration, including connections to storage capacities and integration of energy islands;
        • completion of the BEMIP (Baltic Energy Market Interconnection Plan) - integration of the Baltic States into the European market through reinforcement of their internal networks and strengthening of interconnections with Finland, Sweden and Poland and through reinforcement  of the Polish internal grid and interconnections east and westward.

        2) Diversified gas supplies to a fully interconnected and flexible EU gas network. Three priority corridors have been identified:

        Southern Corridor to diversify sources at the EU level and to bring gas from the Caspian Basin, Central Asia and the Middle East to the EU;

        linking the Baltic, Black, Adriatic and Aegean Seas through in particular: (i) the implementation of BEMIP and  (ii) the North-South Corridor in Central Eastern and South-East Europe;

        North-South Corridor in Western Europe to  remove internal bottlenecks and increase short-term deliverability, thus making full use of  possible alternative external supplies, including from Africa.  

        3) Ensuring the security of oil supply: the aim of this priority is to ensure uninterrupted crude-oil supplies to land-locked EU countries in Central-Eastern Europe, currently dependent on limited supply routes, in case of lasting supply disruptions in the conventional routes. Diversification of oil supplies and interconnected pipeline networks would also help not to increase further oil transport by vessels, thus reducing the risk of environmental hazards in the particularly sensitive and busy Baltic Sea and Turkish Straits.

        4) Roll-out of smart grid technologies: the aim of this priority is to provide the necessary framework and initial incentives for rapid investments in a new "intelligent" network infrastructure to support i) a competitive retail market, ii) a well-functioning energy services market which gives real choices for energy savings and efficiency and iii) the integration of renewable and distributed generation, as well as iv) to accommodate new types of demand, such as from electric vehicles. The Commission will set up a smart grids transparency and information platform.

        The Commission goes on to set out certain objectives for the longer term networks, such as European Electricity Highways and a European CO2 transport infrastructure. 

        From priorities to projects: first project lists should be ready in the course of 2012.  The projects identified would be examined at EU level to ensure consistency across the priorities and regions and ranked in terms of their urgency with regard to their contribution to the achievement of the priorities and Treaty objectives.  Projects meeting the criteria would be awarded a 'Project of European Interest' label.

        In order to improve preparation and implementation of the project, the Commission proposes regional cooperation between different countries. It also proposes creating a stable framework for financing by working on two fronts: (i) further improving the cost allocation rules and (ii) optimising the European Union's leverage of public and private funding.

        Based on the views expressed by the institutions and stakeholders on this blueprint, the Commission intends to prepare in 2011, appropriate initiatives as part of its proposals for the next multiannual financial framework.

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      text
      • PURPOSE: to present the priorities for the next two decades with regard to energy infrastructure.

        BACKGROUND: the Energy Policy for Europe, agreed by the European Council in March 2007, establishes the Union's core energy policy objectives of competitiveness, sustainability and security of supply. The internal energy market has to be completed in the coming years and by 2020 renewable sources have to contribute 20% to our final energy consumption, greenhouse gas emissions have to fall by 20% and energy efficiency gains have to deliver 20% savings in energy consumption.

        Adequate, integrated and reliable energy networks are a crucial prerequisite not only for EU energy policy goals, but also for the EU's economic strategy. A new EU energy infrastructure policy is needed to coordinate network development on a continental scale. The challenge of interconnecting and adapting our energy infrastructure to the new needs concerns all sectors. Currently, the EU is paying the price for its outdated and poorly interconnected energy infrastructure. The risk and cost of disruptions and wastage will become much higher unless the EU invests as a matter of urgency in smart energy networks, and exploits its potential for energy efficiency improvements. In the longer term, these issues are compounded by the EU decarbonisation goal to reduce our greenhouse gas emissions by 80-95% by 2050, and raise the need for further developments, such as an infrastructure for large-scale electricity storage, charging of electric vehicles, CO2 and hydrogen transport and storage.

        Around EUR 1 trillion must be invested in our energy system between today and 2020 in order to meet energy policy objectives and climate goals. About half of it will be required for networks, including electricity and gas distribution and transmission, storage, and smart grids. Of this, about EUR 200 billion are needed for energy transmission networks alone. However, only about 50% of the required investments for transmission networks will be taken up by the market by 2020. This leaves a gap of about EUR 100 billion. Realising all investments needed in transmission for infrastructure would create an additional 775,000 jobs during the period 2011-2020 and add EUR 19 billion to our GDP by 2020, compared to growth under a business-as-usual scenario. 

        CONTENT: this Communication outlines a blueprint which aims to provide the EU with a vision of what is needed for making our networks efficient. . It puts forward a new method of strategic planning which includes the following:

        • identify the energy infrastructure map leading towards a European smart supergrid interconnecting networks at continental level;
        • focus on a limited number of European priorities which must be implemented by 2020 to meet the long-term objectives and where European action is most warranted;
        • based on an agreed methodology, identify concrete projects necessary to implement these priorities (declared as projects of European interest); 
        • support the implementation of projects of European interest through new tools, such as improved regional cooperation, permitting procedures, better methods and information for decision makers and citizens and innovative financial instruments.

        The Commission proposes the following short term priorities to make energy infrastructure suitable for the 21st century.

        1) Making Europe's electricity grid fit for 2020. It is proposed to focus attention on the following priority corridors :

        • offshore grid in the Northern Seas  and connection to Northern as well as Central Europe - to integrate and connect energy production capacities in the Northern Seas with consumption centres in Northern and Central Europe and hydro storage facilities in the Alpine region and in Nordic countries;
        • interconnections in South Western Europe to accommodate wind, hydro and solar, in particular between the Iberian Peninsula and France, and further connecting with Central Europe, to make best use of Northern African renewable energy sources and the existing infrastructure between North Africa and Europe;
        • connections in Central Eastern and South Eastern Europe - strengthening of the regional network in North-South and East-West power flow directions, in order to assist market and renewables integration, including connections to storage capacities and integration of energy islands;
        • completion of the BEMIP (Baltic Energy Market Interconnection Plan) - integration of the Baltic States into the European market through reinforcement of their internal networks and strengthening of interconnections with Finland, Sweden and Poland and through reinforcement  of the Polish internal grid and interconnections east and westward.

        2) Diversified gas supplies to a fully interconnected and flexible EU gas network. Three priority corridors have been identified:

        Southern Corridor to diversify sources at the EU level and to bring gas from the Caspian Basin, Central Asia and the Middle East to the EU;

        linking the Baltic, Black, Adriatic and Aegean Seas through in particular: (i) the implementation of BEMIP and  (ii) the North-South Corridor in Central Eastern and South-East Europe;

        North-South Corridor in Western Europe to  remove internal bottlenecks and increase short-term deliverability, thus making full use of  possible alternative external supplies, including from Africa.  

        3) Ensuring the security of oil supply: the aim of this priority is to ensure uninterrupted crude-oil supplies to land-locked EU countries in Central-Eastern Europe, currently dependent on limited supply routes, in case of lasting supply disruptions in the conventional routes. Diversification of oil supplies and interconnected pipeline networks would also help not to increase further oil transport by vessels, thus reducing the risk of environmental hazards in the particularly sensitive and busy Baltic Sea and Turkish Straits.

        4) Roll-out of smart grid technologies: the aim of this priority is to provide the necessary framework and initial incentives for rapid investments in a new "intelligent" network infrastructure to support i) a competitive retail market, ii) a well-functioning energy services market which gives real choices for energy savings and efficiency and iii) the integration of renewable and distributed generation, as well as iv) to accommodate new types of demand, such as from electric vehicles. The Commission will set up a smart grids transparency and information platform.

        The Commission goes on to set out certain objectives for the longer term networks, such as European Electricity Highways and a European CO2 transport infrastructure. 

        From priorities to projects: first project lists should be ready in the course of 2012.  The projects identified would be examined at EU level to ensure consistency across the priorities and regions and ranked in terms of their urgency with regard to their contribution to the achievement of the priorities and Treaty objectives.  Projects meeting the criteria would be awarded a 'Project of European Interest' label.

        In order to improve preparation and implementation of the project, the Commission proposes regional cooperation between different countries. It also proposes creating a stable framework for financing by working on two fronts: (i) further improving the cost allocation rules and (ii) optimising the European Union's leverage of public and private funding.

        Based on the views expressed by the institutions and stakeholders on this blueprint, the Commission intends to prepare in 2011, appropriate initiatives as part of its proposals for the next multiannual financial framework.

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    • The Committee on Industry, Research and Energy adopted the own-initiative report drafted by Francisco SOSA WAGNER (NI, ES) in response to the Commission communication entitled 'Energy infrastructure priorities for 2020 and beyond - a blueprint for an integrated European energy network'.

      I. Strategic planning of energy infrastructure: Members believe that an EU approach - developed in cooperation with all stakeholders - is needed in order fully to exploit the benefits of new infrastructure, and stresses the need to develop a complementary harmonised method, in line with the rules of the internal market, for the selection of infrastructure projects. They consider that this method should take into consideration the European and regional perspectives in order to remove disparities and to optimise the socio-economic and environmental effects.

      In this context, the report stresses that the planning of energy infrastructure projects should comply fully with the precautionary principle. Action plans should be subject to thorough environmental impact assessments on a case-by-case basis, taking into account local and regional environmental conditions. It stresses the need to ensure an adequate degree of security of energy supply for the EU, and to develop favourable relations with non-EU energy supplying and transit countries by means of cooperation in connection with regional and global energy supply transport systems.

      According to Members, the reference scenario used for assessing the energy infrastructure for 2020 needs to be transparent and consistent: (i) with the overall energy policy objectives enshrined in the Treaty on European Union and the EU's 2050 roadmap; (ii) with other EU policies (such as transport, buildings and the Emission Trading Scheme (ETS)), with the energy efficiency policies required to deliver the 20% energy savings target (in particular the energy efficiency plan), with the potential impact of technological advances, notably for renewable energy and the increasing role of electric vehicles, and with the deployment of smart grids and the 'smart cities and regions' initiatives.

      II. A comprehensive infrastructure development scenario: Members consider that the Ten-Year Network Development Plan (TYNDP) identifies relevant electricity and gas infrastructure projects and should contribute to setting the priorities for the selection of projects of European interest to be developed in order to achieve EU energy and climate goals, without interfering with the functioning of the internal market. The report points out that the geographical obstacles inherent in their location make islands and mountain areas very difficult to integrate into the EU energy network and therefore calls on the Commission to take into account the diverse circumstances in the regions and to focus expressly on regions with specific geographical and demographic characteristics, such as islands, mountain regions and regions with low population density, in order to achieve greater diversification of energy sources and the promotion of renewables so as to reduce dependence on imported energy.

      Members call on the Commission, with a view to ensuring better governance of future EU electricity and gas infrastructure planning, to present a concrete proposal to improve transparency and public participation in determining EU priorities, within a broader stakeholder participation process (including, for example, the energy sector, independent experts, consumer organisations and NGOs).

      According to Members, fostering the building of transmission and distribution infrastructure for efficient and intelligent integration of renewable energy and new electricity uses (such as electric or plug-in hybrid vehicles) is critical for the successful achievement of overall energy objectives. In this context, they welcome the priority given to the future European super-grid. The Commission is asked to consult all relevant stakeholders with a view to speeding up the identification of electricity highways as an integrated hub-based grid infrastructure in order to optimise connectivity, system resilience and operational flexibility and to reduce costs, without excluding any wider European geographical territory, and calls the Commission to present an outline to Parliament by mid-2014, which addresses as fully as possible the specific needs arising from the transmission of renewable energies.

      The report endorses the importance of efficient gas infrastructure in enhancing diversification and security of supply, in contributing to better internal energy market functioning, and thus in reducing energy dependence. It highlights the need for additional and correct implementation of flexibility requirements in gas infrastructure, in particular with a view to ensuring reverse flows and interconnections, and stresses that gas infrastructure should be developed, with full account being taken of the contribution of LNG and CNG terminals, transport ships and storage facilities, as well as the development of gasified biomass and biogas

      III. Smart grids: the report stresses that the roll-out of smart grids should be one of the energy infrastructure priorities with a view to achieving EU energy and climate objectives. It notes the need to create a stable regulatory framework in order to promote the very large investment needed in Europe to establish smart grids. The Commission is urged to facilitate the urgent deployment of large smart-grid demonstration projects as the best way to measure the costs and benefits to European society.

      Members stress that smart grid standardisation and interoperability shall be a priority: Members States are urged, in liaison with European and international standardisation bodies and industry, to speed up work on technical and safety standards for electric vehicles, charging infrastructure, smart grids and smart metering, with a view to its completion by the end of 2012. Technologies should be based on open international standards so as to ensure their cost-effectiveness, which will enhance the interoperability of the system and will provide consumers with a choice of solutions.

      In this context, the report acknowledges that standardisation work in smart metering is progressing and hat technical standards for smart meters should take into account the additional functionalities identified in the final report of the CEN/CENELEC/ETSI Smart Meters Coordination Group (SM-CG), namely: (i) remote reading or metrological registers; (ii) two-way communication; (iii) support for advanced tariffication/pre-payment; (iv) remote enablement and disablement of supply and power limitation; (v) communication with and, where appropriate, direct control of individual devices within homes and buildings; (vi) provision of information via web portal/gateway to an in-home display.

      Members stress that grids should be adapted for new entrants, in order to facilitate small-scale new production sources, such as households and SMEs.

      IV. Defining clear and transparent criteria for priority projects: Members welcome the priority corridors identified by the Commission and agree on the need to optimise limited funds. They call for a clear and transparent methodology leading to the selection of priority projects that meet pressing European needs and emphasise that the selection of projects of European interest (PEIs) should be conducted on the basis of objective and transparent criteria and with the involvement of all stakeholders.

      The committee recalls that PEIs should should be capable of contributing substantially to:

      • increasing market integration, competition and market liquidity and reducing market concentration,
      • putting an end to energy islands,
      • reducing network losses, preventing transmission bottlenecks - including in respect of internal projects as long as they contribute to the development of cross border interconnection - and relieving cross-border transmission,
      • resolving single supplier dependency,
      • diversification with regard to transit routes and the origin of resources,
      • integration of renewable energy to the grid and increasing the use of renewable energy sources by reducing renewable energy curtailment.

      Members consider that, to justify projects being accorded priority, the following criteria should be taken into account:

      • the project must have a European dimension (= clear EU public interest),
      • its necessity must be demonstrated on the basis of the infrastructure hierarchy,
      • it must be in line with climate, energy efficiency and environmental objectives,
      • it must be consistent with long-term EU energy policy (allowing flexible and multifunctional application and avoiding lock-in effects),
      • it must offer a good cost-benefit ratio and cost efficiency,
      • it must be technically sound.

      V. Fast and transparent permit-granting procedures: Members welcome the establishment of a national contact authority (one-stop shop) for each European interest project as a single administrative interface between developers and the various authorities involved in the authorisation procedure. They take the view that, with regard to cross-border projects, further coordination between national one-stop shops and an increased role for the Commission in such coordination should be ensured. They stress that any national contact authority must be independent and free from political or economic influence. In addition, PEIs must be processed in order of submission and within the time limit set out in the future Commission proposal.

      The report stresses the need for a more participatory approach, and recognises that securing greater acceptance by local people of energy infrastructure projects goes hand in hand with providing adequate information about the purpose of the projects, and with local involvement in their development at the earliest possible stage. It calls for the participation, at all levels of civil society, of NGOs, industry, the social partners and consumer organisations in the consultation process for projects of European interest. The Commission is called upon to set up a consultation and assessment system in order to identify and disseminate best practices and knowledge in relation to public acceptance of infrastructure.

      VI. Financing instruments: the report stresses that the effective functioning of the market should provide a large part of the cost of the requisite infrastructure investment, on the basis of principles of proper cost-allocation, transparency, non-discrimination and cost-effectiveness and in line with the 'user pays' principle. The Commission is requested to assess where the existing regulatory incentives are sufficient to send the necessary signals to the market, and what complementary measures, including those improving cost allocation rules, are needed.

      Members take the view that, when no regulatory alternative is available and the market alone can not cover the investments needed, EU funding may be required to fund some limited PEIs the specific characteristics of which make them commercially unviable but the development of which is necessary to achieve EU energy policy objectives. Public funding may be used to lever private investment by setting up an innovative mix of financial instruments, provided that it does not distort competition.

      The committee considers that the fullest possible use should be made of market-based tools, including improvements to rules on cost allocation, project bonds, revolving funds, renewable energy equity funds, loan guarantees, non-commercial risk-sharing facilities, incentives for funding public-private partnerships, partnerships with the EIB - by improving its intervention capacity and available resources - and use of ETS auction revenue for projects linked to renewable energy sources and energy efficiency, as well as, where appropriate, other innovative financing instruments.

      Lastly, Members support the idea of issuing common European project bonds to finance Europe's significant infrastructure needs and structural projects in the framework of the EU 2020 agenda, including the new Strategy on Energy Infrastructure Development.

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    • The Commission informed the Council about this topic as requested by the European Council of 4 February 2011, during which the Commission was invited to report by June 2011 to the Council on figures for the investments likely to be needed, on suggestions as to how to respond to financing requirements and on how to address possible obstacles to infrastructure investment.

      The Commission's report contains its analysis with regard to the investment needs of European relevance in electricity (about EUR 140 billion) and gas infrastructures (about EUR 70 billion) for the period up to 2020, the investments at risk of not being delivered due to various obstacles as well as the measures proposed to respond to the financing requirements and overcome the obstacles identified.

      A Commission's legislative proposal in this field is expected to be presented in October 2011.

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Energy infrastructure priorities for 2020 and beyond
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© European Union, 2011 – Source: European Parliament