The European Union urgently needs to take action to encourage investment in the power sector, EURELECTRIC told EU ministers at the informal Environment and Energy Council in Horsens, Denmark, this week. According to IEA estimates, massive investments of up to 3 trillion euros are needed by 2035 to decarbonise the electricity system. But policy uncertainty - in particular on the ETS and the policy framework beyond 2020 - is making utilities "un-investable", EURELECTRIC warned.
Environment Council: Re-establishing confidence in the ETS
In a video presentation on the EU Emissions Trading Scheme (ETS) to yesterday's informal Environment Council meeting, EURELECTRIC President Fulvio Conti and Vice-President Johannes Teyssen affirmed the sector's commitment to achieving carbon-neutrality by 2050. They therefore urged environment ministers to re-establish confidence in the carbon market by:
- Reaffirming the essential role of the ETS as the cornerstone of EU climate policy,
- Discussing immediate measures to rebalance CO2supply and demand in 2013-2014, and
- Promoting a single driver for decarbonisation, to avoid overlapping targets for renewables, energy efficiency and CO2 reductions and a resulting inefficient use of financial resources.
Energy Council: Developing a coherent approach to the energy transformation
In a separate speech on the Energy Roadmap 2050 at today's informal Energy Council meeting, EURELECTRIC President Fulvio Conti welcomed the Roadmap's recognition that electricity will play a much greater role in decarbonising transport and heating/cooling. In particular, Mr Conti discussed with energy ministers the "no regrets" renewables and infrastructure policies for 2030, calling for:
- A least-cost approach delivered through markets,
- A coherent system approach to the energy transformation, based on policies which:
- Are EU-wide, rather than 27 national variations,
- Are clear and consistent over time,
- Provide a level playing field for all generation technologies,
- Support a coordinated approach to the expansion of generation and grids, and
- Do not contradict each other.
EURELECTRIC emphasised that the key policies to achieve this are:
- Completion of a well-functioning internal energy market, and
- Early agreement on a firm 2030 climate target with the ETS as its central policy instrument.