In 2005, EU heads of state recognised the need for a more coherent EU energy policy at the Hampton Court Summit under the UK Presidency of the EU. This prompted a renewed debate across the European Union about how the EU's Member States should work together to tackle today's energy challenges and, in 2006, the Member States asked the European Commission to prepare a European Energy Action Plan. The vision: secure, reliable, affordable and sustainable energy for Europe the future.

The Commission published its response in the form of a Strategic Energy Review in January 2007. The main proposals in the review include objectives to reduce greenhouse gas emissions within the EU and internationally; targets for renewable energy including biofuels; ways to improve the functioning of the internal electricity and gas markets; priorities for action to improve energy efficiency; and plans to encourage construction of up to 12 demonstration plants for carbon capture and storage.

This led to an agreement by EU heads of state in March 2007 on three priorities for the EU's energy policy in the coming years:
1. Addressing climate change, in conjunction with international partners;
2. Improving our energy security;
3. Completing the EU's internal electricity and gas market as a means to enhance security of supply and increase business competitiveness in the EU.

Since March 2007, the European Commission has come forward with a number of proposals to achieve these aims.

 

Climate Change and Energy Package

In January 2008, the European Commission presented an integrated energy and climate change package aimed at delivering the commitment made by EU heads of state in 2007 to source 20% of the EU’s energy from renewables by 2020 (covering electricity, heating/cooling and transport) and to reduce the EU's greenhouse gas emissions by  20% by 2020, with a view to increasing this to 30% as part of a wider international agreement to reduce emissions.

The package included a draft Directive on how the 20% renewables target will be shared amongst Member States. This proposal is currently being negotiated by the Council and the European Parliament. EU Member States have agreed that they should reach agreement on the package by the end of 2008, during the French Presidency of the EU.

The UK is committed to delivering our share of this ambitious target and we have already started work to significantly increase the amount of energy we get from renewables sources. The Department for Business, Enterprise and Regulatory Reform (BERR) launched a consultation the Government's new renewable energy strategy in June 2008 and the full renewable energy strategy will be published in spring 2009.

In the meantime, we have already begun work to significantly increase the amount of energy we get from renewables sources. We have doubled the amount of renewable electricity to almost 5% and will triple that again to 15% by 2015 and while it took the UK 14 years to build its first gigawatt of wind power, it only took 20 months for the second.

You can find out more about our work on the Climate Change and Energy Package in the section: What We Do: Environment.

 

Completing the EU's internal energy market

In September 2007, the European Commission presented a third package of measures to promote the EU's internal energy market. Key elements were requirements for more effective unbundling of transmission networks from generation and supply activities, enhanced powers and independence of national regulators, the need to co-ordinate regulatory action at EU level and extensive transparency requirements. There was also a proposal to restrict third country control of transmission networks.

The UK has broadly supported these proposals. Our main objective is to deliver effective unbundling, which is most easily achieved through independent ownership of transmission networks.  We believe that a fully liberalised EU energy market will put downward pressure on prices and give consumers greater choice and a better level of service.

Energy Ministers from across the EU reached broad agreement on compromise proposals at the Energy Council in June 2008. The agreement includes the measures needed for the internal market to function effectively: effective unbundling of transmission networks, powerful and independent regulators, greater transparency and an agency to deal with cross-border issues.

These legislative texts will now need to be finalised within the Council and then agreed with the European Parliament. We hope this process can be completed swiftly and the legislation brought into force in early 2009.

 

Second Strategic European Energy Review

The European Commission is expected to publish its 'Second Strategic European Energy Review' in November 2008, focussing on security of supply and developing the external aspect of Europe's energy policy, as agreed at the Spring European Council in 2008. France plans to take forward work on this review during its Presidency and we expect the Council to give its opinion on the way forward at the December Energy Council.