EU members collaborate to create revised electricity market
The European Commission (EC) is working to build partnerships around the region, and participated in the signing of three different agreements for regional cooperation of energy infrastructure recently.
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Miguel Arias Cañete. Credit: European Union |
The first Memorandum of Understanding, to modernize and strengthen the reinforced Baltic Energy Market Interconnection Plan (BEMIP), was signed by Estonia, Finland, Germany, Latvia, Lithuania, Poland, Sweden, and Norway -- with Denmark planning to sign at a later date. The agreement's goal is to end the energy isolation of the Baltic Sea Region and to integrate the region into existing EU energy markets -- including internal energy markets, interconnections, and power generation -- as well as new areas, like energy efficiency, renewables, and security of supply.
Twelve European countries also signed a declaration for regional cooperation on security of electricity supply within the European internal market. The countries -- Germany, Denmark, Poland, Czech Republic, Austria, France, Luxembourg, Belgium, the Netherlands, Sweden, Switzerland, and Norway -- sets political commitments for the coordination of energy policies across nations -- including for security of supply; a more efficient use of existing electricity networks; and increasing the integration of renewable energies to the national markets.
Through the declaration, the union hopes to bring the countries together to address challenges and opportunities of EU member states, and explained that they are working on proposals for a revised electricity market. The revised electricity market design is expected to be released in 2016.
Numerous countries -- including Austria, Belgium, France, Germany, Luxembourg, and the Netherlands -- also signed the second political declaration of the Pentalateral Energy Forum. More than one-third of the EU population, and more than 40 percent of the electricity generation in the EU, is included in the forum, which "aims to foster open and transparent regional dialogue in order to increase security of supply, further market integration and pursue greater market flexibility," EU explained. "In particular, it will elaborate a common methodology for assessing the security of supply risks at regional level and to create right conditions for cross-border electricity trade."
The European Union has been making an effort to partner with nearby countries to help grow the infrastructure of the EU grid. The EC said the signings are important in ensuring reliable energy supplies as well as keeping prices affordable for customers. They will also help EU achieve market integration of renewable energy on their grid.
"These agreements are a first milestone. They give the political backing to a stronger energy co-operation in Europe," Climate Action and Energy Commissioner Miguel Arias Cañete said in a statement. "The signatory countries are determined to enhance security of supply through further market integration. This is one of the main building blocks of the Energy Union which is one of the key priorities of the Juncker Commission. Today the Member States begin synchronising their efforts and working together towards cheaper and more effective solutions. Where there is a will there is a way. Today Member States are showing their will."
EC's goals include cutting emissions by 40 percent by 2030; improving energy savings to at least 27 percent; and increasing the share of renewable energy to 27 percent -- all by 2030, from 1990 levels. EC established the goals in October 2014 as an update to a previous goal of 20 percent integration by 2020, which the nations are about to reach.
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