Presidency Priority Projects
EURELECTRIC has identified a select number of priority projects which it will focus on during the term of the current Presidency (June 2015 – June 2017).
These “Presidency Priority Projects (PPPs)” establish a clear strategic direction for EURELECTRIC’s work in this period and will ensure that EURELECTRIC provides proactive, coherent and effective input to key initiatives at the European and international level.
Revealing the real value of electricity as the key driver for a decarbonised, competitive and energy independent Europe
The price of electricity is probably the most recurring topic referred to whenever our sector comes up in conversation - but the real value of electricity, what it effectively adds to our everyday lives, is rarely addressed. So much concern is expressed about the price of electricity while very little discussion takes place regarding its real value. The electricity industry is therefore working to put this into the right perspective by revealing and promoting the value of electricity, including the vast potential that still lies untapped in our industry.
Electricity from carbon-neutral generation is the cleanest energy carrier, making it the main vector for a decarbonised energy future – especially in buildings and transport. Electrification is therefore the key vehicle for a decarbonised, competitive and energy independent Europe.
Achieving the Internal Energy Market under a revised market design to attract the needed investments
EURELECTRIC continues to voice its support for the implementation of the Internal Energy Market. This includes the implementation of the target model (e.g. completion of development of the intraday platform) and the reform of market regulation, which requires further consideration of the role of renewables and their impact on security of supply, as well as the promotion of EURELECTRIC’s Capacity Mechanism model.
Market Design issues need to be considered taking a holistic approach and from a broader perspective, covering wholesale and retail aspects.
Developing a pragmatic framework to pursue the Decarbonisation Agenda
The Commission has started tabling its legislative proposals on the implementation of the political agreements regarding the 2030 Climate and Energy Framework which are in the process of being discussed in the EU institutions. EURELECTRIC is further developing its position concerning the reform and strengthening of the Emissions Trading Scheme (EU ETS). Special focus is being given to the various proposals for strengthening the EU ETS in light of the Paris Agreement, the compensation mechanisms for carbon leakage, as well as aspects related to renewables and innovation.
As regards the sectors not falling under the EU ETS, EURELECTRIC is in the process of further developing its agenda while ensuring consistency with our views on the ETS. This will include expanding our messages on the roles of energy efficiency and electrification in the decarbonisation of the non-ETS Sector (e.g. electrification of transport).
The sector’s pragmatic approach to decarbonisation provided important input to the international climate change negotiations which culminated at the UNFCCC Conference in Paris in December 2015. The sector strongly welcomed the Paris Agreement as the outcome of these negotiations and will continue to provide input to the international process with a view to the implementation of this landmark agreement.
Reinforcing the focus on Retail anticipating the needs of empowered customers
Distinctions are required in the consideration of the downstream model between the market model and consumer protection, also taking into consideration the business model and innovation agenda.
As regards Retail, EURELECTRIC is working to ensure that a holistic market design that is fit-for-purpose is sketched out at the European level. This focuses on developing models that can work, without imposing an EU-wide regulatory straightjacket given the significant diversity of models currently existing across Europe. It is also important to consider the changing costs and price structures (from fixed to variable) and to define the substance of acceptable guidelines. This also requires further analysis on the changing business model and its impacts on networks.
Promoting the increasingly active role of DSOs as technological enablers and market facilitators
The increasingly active role of DSOs as technological enablers and market facilitators will be an important feature to consider in the coming years. Their increasing importance as active system managers implies that further work on the exact definition of their role will be needed. DSOs are not only technological enablers in the electricity system, but also have a role to play as neutral market facilitators.
Understanding the important role which DSOs will play as key players in terms of innovation will be a further important element that will feed into this discussion.
Achieving the Energy Union
The aforementioned priority projects will be complemented by a number of cross-cutting elements which will play a crucial role in their effective delivery. These include, in particular, aspects relating to a pan-European Governance framework and the development of the Energy Union. The Energy Union and Governance proposals still need to be fleshed out by the Commission and EURELECTRIC is committed to playing an active role in this process.
As concerns the Energy Union, the Europeanisation of energy policies (through a greater and more strategic leadership by the European Commission) will continue to be an important issue under consideration, as this will be not achieved solely through the completion of the internal electricity market. Particular focus will therefore be required in view of the European Commission’s agenda, specifically concerning aspects such as the consistency between European and national energy policies, greater regional cooperation on market developments and security of supply, and the need for the Commission to pursue a high-level strategy on energy that builds on mutually supportive tools and policies.