Fundamentals of EU Energy Law Amended - `Clean Energy For All Europeans´ Package

On 14 June 2019 the last parts of the `Clean Energy For All Europeans´- package have been published in the Official Journal of the EU and went into force. Based on Commission proposals published in November 2016, the clean energy for all Europeans package has now been published in full. After political agreement by the Council and the European Parliament in 2018 and early 2019, enabling all of the new rules to be in force by mid-2019, EU countries have 1-2 years to transpose the new directives into national law.

The package consists of 8 Regulations and Directives, which the EU grouped into 5 different categories. The relevant parts of the relevant press release of the EU are reproduced below:

Energy performance in buildings

Buildings are responsible for approximately 40% of energy consumption and 36% of CO2 emissions in the EU, making them the single largest energy consumer in Europe. By improving energy performance in buildings, the EU can more readily achieve its energy and climate goals. The energy performance in buildings directive (EPBD) outlines specific measures for the building sector to tackle challenges, updating and amending many provisions from the 2010 EPBD.

Renewable energy

The EU has set a binding target of 32% for renewable energy sources in the EU’s energy mix by 2030. The recast renewable energy directive entered into force in December 2018.

Energy efficiency

Putting energy efficiency first is a key objective in the package, as energy savings are the easiest way of saving money for consumers and for reducing greenhouse gas emissions. The EU has therefore set binding targets of at least 32.5% energy efficiency by 2030, relative to a ‘business as usual’ scenario. The amending directive on energy efficiency has been in place since December 2018.

Governance regulation

The package includes a governance system for the energy union, through which each Member State is required to draft integrated 10-year national energy and climate plans (NECPs) for 2021 to 2030 outlining how they will achieve their respective targets on all dimensions of the energy union, including a longer-term view towards 2050. With the governance Regulation in force since December 2018, all Member States submitted their draft NECPs by early 2019. As required under the rules, the Commission published an analysis of each draft plan with recommendations to be taken into account, as EU countries seek to finalise the NECPs by the end of 2019.

Electricity market design

A further part of the package seeks to establish a modern design for the EU electricity market, adapted to the new realities of the market – more flexible, more market-oriented and better placed to integrate a greater share of renewables. The electricity market design elements consist of four dossiers - a new electricity regulation, and amending electricity directive, risk preparedness and a regulation outlining a stronger role for the Agency for the Cooperation of Energy Regulators (ACER).