EC Works to Improve Transparency on Investment Projects in Europe's Energy Infrastructure
July 21, 2009 // Published as a news service by IHS
The proposal will establish greater transparency on the likely evolution of energy infrastructure in main energy sectors, such as oil (including biofuels), electricity (including nuclear electricity) and natural gas, as well as in related areas, such as the transport and storage of carbon related to energy production.
The EC maintains that transparency on planned and ongoing investment projects will help to assess whether there is a risk of infrastructure gaps over the coming years, as a significant proportion of ageing capacities have to be renewed or new capacities have to be built in order to make the EU's goal of a low-carbon energy mix a reality.
"Today's energy challenges and our ambitious commitments to the 20-20-20 framework require massive investment into energy infrastructure. The Commission is interested in monitoring whether investment projects will become a reality in time to meet future demand while satisfying our energy and climate targets," said EC Energy Commissioner Andris Piebalgs.
"This is a particular concern for the Commission, especially at a time when a severe financial and economic crisis is causing cuts and delays to energy investment and is increasing uncertainty related to future energy projects. Improving transparency of investment projects constitutes an important feature for the long-term development of our energy system," Piebalgs added.
The new proposal will strengthen the collection and analysis of data on investment projects into oil, gas, electricity and biofuels infrastructure within the EU and into the transport and storage of carbon dioxide (CO2) produced by energy production.
EU member states and industry will notify data and information to the EC, which will analyze investment trends. The results of this cross-sector analysis at the EU level will be shared with member states and stakeholders and made public. Future developments on the supply side will be contrasted with regular outlooks for energy demand in the EU.
The EC's proposal is a complement to other EU initiatives: the EU has adopted a framework of internal energy market rules and targets for the energy mix, and it has earmarked €3.98 billion for investment into energy infrastructure in the context of the European Economic Recovery Plan.
Given the challenges ahead and the massive investment needed, the EC will further contribute to shaping a favorable investment climate for economic operators, with regular monitoring and an improved transparency on investment projects at the EU level. It will also be better equipped to anticipate potential infrastructure gaps and threats to a secure and sustainable energy supply for the EU.
The EC expects the new regulation will be adopted by the European Council in early 2010.
Background
Between now and 2030, it is estimated that up to €1 trillion will have to be spent on the EU's electricity network and generation capacity, and €150 billion on gas networks - excluding import pipelines from third countries. By 2020, it is estimated that the necessary capacity expansion for power generation will amount to about 360 gigawatts, which corresponds to about half of the current installed capacity.
This proposal for a new regulation was initially announced by the EC in its Second Strategic Energy Review, adopted on Nov. 13, 2008.
For more information, see:
- EU Energy Security and Solidarity Action Plan: 2nd Strategic Energy Review, MEMO/08/703
- The Commission launches a major Recovery Plan for growth and jobs, to boost demand and restore confidence in the European economy, IP/08/1771
- Commission welcomes adoption of climate and energy package, IP/09/628
- EC web page on Second Strategic Energy Review
Source: European Commission (EC).