Policy News

The recent EU Council Conclusions on May 22, 203 referred to “significant investments in new and intelligent energy infrastructure  to secure the uninterrupted supply of energy at affordable prices.” In addition the Council listed 7 priority areeas to facilitate investments, among which phasing out harmful subsidies for fossil fuels: 1. Swift implementation of the TEN-E Regulation and the adoption this autumn of the  list of projects of common interest with a view to supporting efforts across the EU to achieve effective interconnection between Member States 2. Adoption of the Directive on the deployment of alternative fuels infrastructure; 3.  Revision by the Commission of state aid rules to allow for targeted interventions to  facilitate energy and environmental investment, ensuring a level playing-field and  respecting the integrity of the single market; 4. Phasing out environmentally or economically harmful subsidies, including for fossil  fuels; 5. Presentation by the Commission of guidance on efficient and cost-effective support  schemes for renewable energies and on ensuring adequate generation capacity; 6. National and EU measures, such as the structural funds, project bonds and enhanced EIB support, to boost the financing of energy and resource efficiency, energy infrastructure  and renewables and promote the development of Europe’s technological and industrial  basis; 7. [...]

The EU Council on May 22 agreed to EU Commission president Barroso so-called “no regret energy scenario” for the coming years in view of the changing global energy outlook: One: complete the internal energy market. Two: invest in innovation and infrastructure. Three: commit to greater energy efficiency. Four: exploit renewable sources more cheaply. Five: diversify supplies. He also indicared EC support for th establishment of the European energy community, proposed by his predecessor Jacuqes Delors and former EU parliament president Jerzy Buzek.  

The EHA attended a seminar at the EU Parliament “Beyond the Hype, the economics of shale gas in Europe”. David Hughes of the Canadian based Post Carbon Institute stated that most shale gas exploration is not economic and that recently oil rigs dominate gas directed rigs. The top 6 locations in the US count for 88% of shale gas production and the highest producing well Haynesville become ‘middle aged” after 5 years. Gas prices will remain below $ 4,50/mcf fo the next 10 years.  According to Andreas Zittel of LBST gas production in Europe is in decline since 2000, except in Norway, unconventional gas reserves are zero and unconventional soureces are possibly large but estimates are uncertain. The development of shale gas wells in Europe requires rising natural prices of € 40-50 /MWh  in average (1Mwh = 3.3 mcf) meaning almost tripling today’s price levels.

On 22 April 2013, the Representation of the European Commission in Poland hosted a seminar on the “Clean Power for Transport” package, adopted by the Commission in January. Jose Fernandez Garcia from the DG Transport presented the proposal of the Directive on the deployment of alternative fuels infrastructure. As a result of the Directive, Poland will be obliged to build 460 000 charging stations for electric vehicles (currently 300) until 2020, for the estimated cost of €460 million. The proposal also requires the minimum distance between the hydrogen refueling points on the main Trans-European Networks to be 300 kilometers. This is to ensure, that in the countries where such infrastructure already exists, the circulation of hydrogen-fueled vehicles will become possible within the entire territory. Given that Poland does not yet have any hydrogen infrastructure, it will not be obliged to provide refueling stations until at least 2020. Around 30 vehicles and energy industry representatives gathered at the seminar. They were mostly interested in the LNG and CNG sector and during the discussion, they proposed stricter requirements for the deployment of CNG and LNG refueling points, so that the new requirements would stimulate the development of these technologies. Besides that, the [...]

The EU Parliament has approved a draft report setting out rules for achieving the 95g/km CO2 emissions target for 2020 car sales within Europe and added an indicative target range of 68-78g/km from 2025.

Robust fuel efficiency standards for cars could create up to 443,000 new jobs by 2030 and add €16 billion per year to Europe’s GDP, according to the first economic study of the effects of CO2 legislation on the auto-industry.

The EU Commission published its Green Paper on a 2030 Framework for Energy and Climate Policy on March 27, 2013

The Transport Council headed by Irish Minster for Communications, Energy and National Resources, Pat Rabitte held a public policy debate in Brussels last week, 22 February  2012. The meeting featured a policy debate on communication on the internal energy market that the commission published in December 2012.  The debate focused on Member State priorities for the successful completion of the internal market and on identifying ways to increase the role of consumers in the EU energy market. The debate will contribute to the preparation of the European Energy Council which will take place on 22 May which will focus on energy issues and later at the June Energy Council which will be held in Luxembourg.

The EU heads of State and government have decided on the EU budget for 2014-2020.  The EU Council has calculated the budget however they will await the final decision  of the European Parliament which is expected over the next few months.  Please find full figures here    

On January 24, 2013 EU Transport Commissioner Siim Kallas announced the  Clean Power for Transport for Europe package to put harmonised infrastructure for all alternative fuels including hydrogen and battery recharging on European roads.  Policy initiatives so far have mostly addressed the actual fuels and vehicles, without considering fuels distribution. Efforts to provide incentives have been un-co-ordinated and insufficient The EHA among others bared the wintery conditions to witness Siim Kallas, EC Vice  and Commissioner for Transport to give the official press release, wherein he stated “Developing innovative and alternative fuels is an obvious way to make Europe’s economy more resource efficient, to reduce our over dependence on oil and develop a transport industry which is ready to respond to the demands of the 21st century. Between them, China and the US plan to have more than 6 million electric   vehicles on the road by 2020. This is major opportunity for Europe to establish a strong position in a fast growing global market.”   To read the full communication follow this link or to read Siim Kallas’s  speech full.