Europe’s Energy Union: ever closer, but not ever calmer

5 months ago 22

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There will almost certainly be a renewed drive to knit together Europe’s energy systems in the European Commission’s next term.

In the conclusions of their 17-18 April Council meeting, national leaders echoed Enrico Letta’s call for a deeper Energy Union. Yesterday (23 April) European Commission President Ursula von der Leyen reiterated the message in a speech to the Parliament in Strasbourg.

There is wide acceptance amongst national governments that the cost, security of supply and climate benefits all justify a more integrated European energy system, even if countries still jealously guard the right to choose their own energy mix.

But don’t think that closer integration means fewer conflicts. There is still plenty of scope for fights in Europe’s energy sector.

Political scraps between parties are heating up ahead of the June elections – Nikolaus J Kurmayer has the story on the climate rivalry between the greens and the socialists.

And as countries rely more and more upon neighbouring infrastructure, you can expect more grumbling over the fees to be paid – already Austria is challenging Germany’s gas network tariffs.

More contentious reforms of electricity market rules will also be needed – Paul Messad explores the aspects that are likely to prove the most challenging.

And energy policies remain tightly interwoven with global economic competition, so expect plenty more international manoeuvring here. In the latest riposte, European Energy Commissioner Kadri Simson warned the globe against an over-reliance on China for renewable energy technologies.

While the past five years have been dramatic in the energy policy world, the coming five years look like they will be no less intense.

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Russia aims to destroy Ukraine’s energy generation capacity – By Clara Marchaud
2024 election: Little consensus amongst French candidates on future of EU Green Deal – By Paul Messad

Biden announces $7 billion in grant funding for solar power programmes. US President Joe Biden announced $7 billion worth of grants for American solar power programmes under the Inflation Reduction Act on Monday (22 April), according to a press release from the US Environmental Protection Agency.

The ‘Solar for All’ grant money will allow states, territories, tribal governments, municipalities, and nonprofits to create programmes designed to enable more than 900,000 low-income American households to power their homes with solar energy.

“The selectees will advance solar energy initiatives across the country, creating hundreds of thousands of good-paying jobs, saving $8 billion in energy costs for families, delivering cleaner air, and combating climate change,” EPA Administrator Michael S. Regan is quoted as saying.

“Residential solar electricity leads to … ultimately healthier communities, but too often, low-income and disadvantaged communities have been left out,” US Department of Housing and Urban Development Acting Secretary Adrianne Todman is quoted as saying.

“Today’s announcement will invest billions to ensure that affordable housing across the U.S. can access solar and increase energy efficiency and climate resilience.”

[Olivia Gyapong]

Finance-COP hot phase kicks off. The annual climate diplomacy circuit will enter its traditional hot phase at the German Petersberg Climate Dialogue on Thursday (25 April). All eyes are on national climate plans, known as NDCs that are due by February 2025, that will set a path until 2035 – and the ever pertinent question of climate finance.

With the $100 billion annual goal likely having been met in 2023, the deliberation turns to what sum is apt past 2025 – the hot topic of COP29 hosted in Azerbaijan, Baku, this year around. Expect Germany, co-host of the Petersberg dialogue, to have strong opinions – and the new US climate envoy John Podesta to make his first splash. The EU’s Climate Commissioner Wopke Hoekstra is a sitting duck, this close to the elections.

[Nikolaus J. Kurmayer]

Europe has yet to achieve a genuine green industry deal – By Sirpa Pietikäinen
It will take an energy transition to keep the lights on in Ukraine – By Monika Morawiecka
Attacks on the US LNG Pause are Dangerous and Unfounded – Here’s Why – By Frida Kieninger
Germany, Poland and France: Recasting a Green Weimar Triangle – By Marion Guénard and Sylwia Andralojc-Bodych
How regulatory stability, enhanced coordination and joint funding are crucial to transform European Industry – By Laura Ballarín, Matthias Ecke, Mohammed Chahim and Raphael Glucksmann

22-25 APRIL. Last Parliament plenary session before the European elections
30 MAY. Energy Council
SPRING 2024. First European Climate Risk Assessment
6-9 JUNE: European elections
17 JUNE. Environment Council (Luxembourg)
27-28 JUNE. European Council

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[Edited by Alice Taylor]