European energy policy Mechthild Wörsdörfer Directorate-General for Energy European Commission February 2011

Achievements of European Energy Summit "Europeanisation" of energy policy Confirms energy at top of political agenda Top level endorsement for key points of Commission's Energy 2020 strategy: completion of internal market, external coordination, more collaboration on both 2020 and 2050 goals So, at this stage of our strategy, what can we expect for the future? To answer this, let me explain what happened at the European Council Summit on Energy on 4 February. One of the main achievements was to demonstrate a more “European” and less nationalistic approach to energy policy.

Boost to internal market Concrete timetable for completing internal market and integrating networks Endorsement for Commission's proposal for new legal instrument to speed up new infrastructure investments Support in principle for public sector support for strategic projects which are unable to attract enough market-led investment On the internal market, the date of 2014 was agreed to complete the internal market. There was also a promise that by 2015 no Member State should be isolated from the European network or have its supply security be threatened by lack of interconnections. The Council also agreed with the need for a new Infrastructure Instrument, and the need to consider public funding where projects do not attract enough market-led investment.

More attention to energy efficiency, consumer dimension Deadline of Jan 2012 for EU driven energy efficiency standards in public procurement in buildings and services EU should consider new measures after 2013 on top of new Energy Efficiency Action Plan if necessary Clear plans were laid out to ensure we improve energy efficiency as promised…

Clear priorities for technology and innovation Renewed focus on European Strategic Energy Technology Plan, specifically renewables and "safe and sustainable low carbon technologies" (i.e. including nuclear) Call for new EU initiatives, e.g. smart grids linked to electric vehicles, storage etc And new efforts will be made to consolidate EU leadership in key sectors.

A more pro-active approach to external energy policy European Council calls for new proposals on external dimension from Commission Member States are invited to inform Commission from Jan 2012 of any new and existing bilateral agreements with third countries High Representative invited to take account of energy security dimension in her work. Energy security should also feature in EU Neighbourhood Policy EU urged to play a full role in international energy relations and negotiations Recognition of need for level playing field for EU and non-EU players in international markets Call for deepening and extending Energy Community Support for new gas import developments, such as Southern Corridor International cooperation to address volatility of international energy prices External energy policy was a particular focus of the summit. The need for greater integration in energy policy externally, in parallel to integration at home, was a theme.

Framework for longer term action – Energy Roadmap 2050 2050 GHG emissions reduction target means a revolution in energy systems – which must start now Commitment by European Council to keep developments towards 2050 under review Trio of EU energy policy objectives – energy security, climate, competitiveness Some decisions and actions needed now, some much later And the Council agreed a longer term vision, towards 2050. This must assure the longer term perspective which investors need.

Range of pathways seem possible Scenarios Scenarios for the transition to a low-carbon energy system in 2050 – will look at feasibility of transition Range of pathways seem possible Energy mix in 2050 – MS competence within EU energy policy and internal market framework Scenarios will show possible interplay of technologies over time

EU policy and internal market should facilitate the transition Energy efficiency – crucial in a cost-effective transition An internal energy market which encourages investments where they make most sense, cost-effective energy security, and an adequate return on investments; any support should be compatible with the evolving internal energy market Infrastructures Carbon price SET-Plan Solidarity and effective eternal relations

NEXT STEPS Full implementation of internal market legislation by MS "Early adoption" of REMIT by Council and Parliament Commission urged to Take forward work on standards for electric vehicles, smart grids and smart meters Give more attention to position of vulnerable consumers in internal market reporting New proposals from the Commission in 2011: Infrastructure Instrument, with list of European priority infrastructure projects and analysis of needs and possible sources of finance for these projects (July) Energy Efficiency Action Plan (March 2011) Communication on an external energy policy (3rd quarter 2011, public consultations) 2050 Energy Roadmap (complementary to low-carbon and transport Roadmaps) (4th quarter 2011) Proposal on smart grids for end 2011 So what can we look forward to in 2011: Full implementation of existing legislation is top priority; Speedy adoption of proposals on the table, particularly REMIT; Council has urged Commission to continue work on strategic technologies and on monitoring position of consumers in the internal market; In addition, the Commission will present a number of new initiatives in 2011: Infrastructure Energy efficiency External policy 2050 Roadmap Smart grids

For more information on energy strategy and European Energy Summit http://ec.europa.eu/energy/time_to_act_en.htm Presentation on international relations priorities 2011 by Paula Abreu Marques planned for 25/1.