The
International Network
for Sustainable Energy
Update, September , 2006
The directive to "safegaurd security of supply, infrastructure investments" for electricity was agreed by the EU countries with a legal act of 18/1 2006. The directive entered into force 24/2 2006. The European Parliament had discussed the proposed directivein 2005 and agreed its position 5/7 2005.
On November 29, 2004 the EU energy ministers discussed important parts of the "energy package": they agreed to a "general approach" to the directive "to safegaurd security of supply, infrastructure", unfortunately without demand-side measures. The did not agree to the directive to increase energy efficiency (see below).
June 10-11, the EU energy ministers discussed the four proposals in the energy package but only on the gas directive was reached a common position . For the guidelines of trans-European networks, the ministers reached "agreement on a general approach on the operative part" of the guidelines, but they have to discuss the issue again after getting the comments from the Parliament.
On
December 10, 2003, the EU Commission proposed four measures for energy
infrastructure and security of supply. Although, formally, this was the
result of the debate on the EU Green Paper for Security of Supply, actualy,
it appears to be a quick response to the black-outs and shortages of
electric power this summer. The proposal includes:
- A directive to safeguard Security of
Supply and Infrastructure investments in eleectricity, proposing to
require construction of enough infrastructure to guarantee security of
electricity supply; either of power plants or power line interconnections.
- A directive to increase energy efficiency by 1% per year and promote
energy services
- A revision of the guidelines for Trans-European Networks on electricity
and gas, to promote more interconnectors.
- A Regulation on cross-border trade in gas, to strengthen the gas market.
Directive to Safeguard and Security of Electricity Supply and Electricity Infrastructure
The Directive’s purpose is to establish measures to safeguard the security of electricity supply, to guarantee an adequate level of generation capacity; to guarantee an adequate balance between supply and demand and to set up an appropriate level of inter-connection between EU countries. Further, the Directive establishes a framework in which the EU countries are to define policies on security of electricity supply compatible with the internal market for electricity.
The Directive oblige the EU countries to ensure a high level of security of electricity supply by setting up a stable investment climate and by defining the roles and responsibilities of the various authorities. For operational network security, the Directive specifies that the countries must ensure that the transmission system operators set minimum operational rules and obligations on network security. In turn, the distribution system operators are expected to comply with these rules. In particular, the countries shall ensure that interconnected transmission and distribution system operators exchange information relating to the operation of networks.
For maintaining a balance between supply and demand, the EU countries must take appropriate measures to maintain a balance between the demand for electricity and the availability of generation capacity. This shall be done by encouraging the establishment of a wholesale market framework that provides suitable price signals for generation and consumption and by requiring transmission system operators to ensure that an appropriate level of generation reserve capacity is available for balancing purposes and/or to adopt equivalent market based measures.
The Directive states that the countries may take additional measures:
- That facilitate new generation capacity and the entry of new generation companies to the market.
- Remove barriers that prevent the use of interruptible contracts.
- Remove barriers that prevent the conclusion of contracts of varying lengths for both producers and customers.
- For the adoption of real-time demand management technologies such as advanced metering systems and energy conservation measures.
Regarding network investment the Directive obliges the EU countries to establish a regulatory framework that provides investment signals for both the transmission and distribution system network operators to develop their networks in such a way that they can meet foreseeable demand and that facilitates maintenance as well as the renewal of their networks. Merchant investments in interconnections should be allowed. However, any such investment must be taken in close co-operation between the relevant transmission system operators.
To complement the provisions of the Directive, specific reporting procedures are specified.
The EU countries must bring into force all the necessary provisions by 24 February 2008. By, 1 December 2007, the Member States must inform the Commission of the text of the natiola laws they will adopt to implement this Directive.
Opinion by INFORSE-Europe
The
focus on new infrastructure, in particular on interconnectors, is not necessarily
the best way to increase security of supply and energy
efficiency. Interconnectors are not the most reliable part of the power
system, and
can actually
decrease
security of supply, if failures in one system spread to other power systems,
as it was seen in the USA and Canada in 2003, and to a smaller
degree in Sweden, Denmark, and Italy later. The construction of new power
plants must be part
of
a general development of a more sustainable energy system, not just a
response to a short-term supply problem.
The national provisions for investments in power production and transmission infrastructure must not threaten to bypass Environmental Impact Analysis and public consultations for the infrastructure projects.
The proposal of merchant investments in interconnections must not lead to extra high profit rate for construction of interconnectors. There is not need and no benefits in favouring such supply-side initiatives over demand-side measures of local, renewable supply.
The proposal does not address the problem that new transmission lines also can promote import of power produced on sub-standard power plants including unsafe nuclear power plants. Such import is distorting the market and cannot be relied upon to increase security of supply.
The directives provisions for inclusion of energy conservation measures should be included in national implementation of the directive.
Description
The
proposal was (COM
2003 - 740) , the final act is Directive 2005/89/EC
Read the proposals progress in Parliament (enter above reference)
Proposed
Revision of the Guidelines for Trans-European Energy Networks
(electricity and gas networks, proposal to promote more interconnectors).
See: Trans-European Energy
Networks (TEN-E's) with update, INFORSE-Europe's opinion, and
descriptions.
A
Regulation on Conditions of Access to Gas Transmission Networks
(to promote
cross-border trade in gas, to strengthen the gas
market).
Description
The
proposed regulation aims at completing the Internal Gas Market Directive
(2003/55/EC) by setting detailed rules for a number of aspects relevant
for third-party
access to Member States' gas transmission networks. It should
be seen as a parallel to Regulation (EC) 1228/2003 on conditions
for access to the network for cross-border exchanges in electricity,
adopted in June last year.
The proposal is referred to as (COM
2003 - 741) and the final act as Regulation
1775/ 2005.
The directive entered into force November 23, 2005 and was to be implemented by the EU countries by July 1, 2006
The proposal was adopted by the EU countries as legal act of September 28, 2005.
Next step is a second reading by the Parliament, March 8, 2005.
The proposal was discussed by the EU Parliament April 20, 2004, where a resolution was adopted calling for amendments.
The EU energy ministers agreed a common position November 11, 2003
The EU Energy ministers
reached a political agreement at their meeting June 10-11, 2003.
Read the Parliaments
Procedure (enter above reference)
Proposed
Directive on Energy end-use Efficiency and Energy Services
Read also comments
at www.wwf.org/epo