Difference between revisions of "Competitiveness"

From Power Shifts wiki
Jump to: navigation, search
(Created page with "== Introduction == Energy has always been a major point of the European construction. The treaty of Paris signed in 1951, establish European Coal and Steel Community (ECSC)....")
 
 
(39 intermediate revisions by 3 users not shown)
Line 1: Line 1:
== Introduction ==
+
The European Union aims to integrate its Member States' fragmented electricity and natural gas markets into a '''single energy market''', under the pillar of economic [[competitiveness]] which is one of the three key objectives of its [[Energy Strategy]].
Energy has always been a major point of the European construction. The treaty of Paris signed in 1951, establish European Coal and Steel Community (ECSC). The aim was to create a common market for coal and steel among Belgium, France, West Germany, Italy and the Netherland, in order to neutralise competition between European nations over natural resources and ensure a good energy supply within those countries.
 
  
The implementation of the Energy Union strategy with a forward looking climate change policy was launched as one of the political priorities of the Juncker Commission in February 2015. The goal of the union is to make energy more secure, affordable and sustainable. It will allow a free flow of energy across borders and a secure supply in every EU country through one unique internal energy market.
+
Energy and [[competitiveness]] policy has progressed in the last 20 years with a focus on the single energy market and investment on '''infrastructure''', as well as with constant support for '''research and innovation'''. <ref name="EPgov">European Parliament: [http://www.europarl.europa.eu/RegData/etudes/STUD/2015/518776/IPOL_STU(2015)518776_EN.pdf  EU Energy Governance for the Future]</ref>
  
== Consumption and energy supply within the EU ==
+
=Single market=
- outlines
 
- place of the renewable
 
- dependency on suppliers (e.g. gas from Russia)
 
  
→ Need an strong cooperation so an internal market
+
== The three phases of market deregulation ==
 +
The energy market has been a policy topic since the 90s, which was expressed in particular by the three energy market packages (in 1996-1998, 2003 and 2009).
  
 +
===The First and Second Energy Packages===
 +
The first two phases towards the so-called free market, are following the adoption of Directive 96/9 2 of 19 December 1996 which established the principle of opening up sites of over 100 GW/year in national energy markets. Due to the limited success of this first Directive, it was repealed in 2003 and replaced by [http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32003L0054 Directive 2003/54/EC] that aimed at speeding up liberalisation. This is commonly referred to as the '''second energy-climate package'''.
 +
* In France, these two Directives have been included in National law through law 2000-108 of 10 February 2000 and 2004-803 of 9 August 2004, amended by Law No. 2003-8 of 3 January 2003 and Law No 2006-1537 of 7 December 2006.
  
== The three phases in the deregulation of the market: ==
+
=== The Third Energy Package package ===  
 
The first two phases, so-called free market, are following the adoption of Directive 96/9 2 of 19 December 1996 which established the principle of opening up sites of over 100 GW / year in national energy markets. Due to the limited success of this first Directive, it was repealed in 2003 and replaced by Directive 2003/54 / EC that aimed at speeding up liberalization. This is commonly referred to as "the second energy-climate package". In France, these two Directives have been included in National law through law 2000-108 of 10 February 2000 and 2004-803 of 9 August 2004, amended by Law No. 2003-8 of 3 January 2003 and Law No 2006-1537 of 7 December 2006.
 
 
 
== EU Energy Markets Legislation : the 3rd package ==  
 
  
 
The third package of energy market liberalisation rests on 5 pillars:  
 
The third package of energy market liberalisation rests on 5 pillars:  
# Unbundling
+
==== Unbundling ====
# Independent regulators
+
Requires an ownership separation for [[Powergrids|electricity generation and transmission networks]]. Companies active in both generation and transmission are therefore required to split up. This forced split aims at increasing competition.
# Co-operation of National regulators
 
# Cross-border cooperation of transmission operators
 
# Open and fair retail markets
 
 
 
=== 1. Unbundling: ===
 
Requires an ownership separation for electricity generation and transmission networks. Companies active in both generation and transmission are therefore required to split up. This forced split aims at increasing competition.
 
  
=== 2. Independent regulators ===
+
==== Independent regulators ====
 
Fostering a competitive energy market requires independent regulators. Among other aspects, regulators are required by law to run independent budgets and be able to impose binding decisions and penalties upon non-compliance.
 
Fostering a competitive energy market requires independent regulators. Among other aspects, regulators are required by law to run independent budgets and be able to impose binding decisions and penalties upon non-compliance.
  
=== 3. Co-operation of National regulators ===
+
==== Co-operation of national regulators ====
A new Agency, the Agency for the Cooperation of Energy Regulators (ACER), was formed to help national regulators coordinate the smooth functioning of an integrated energy market. The agency is independet of the European Commission, national governments, and energy companies. Areas of work for the agency include: deciding on cross-border issues in case of disagreement and monitoring e.g. retail prices.
+
A new Agency, the [[Agency for the Cooperation of Energy Regulators]] (ACER), was formed to help national regulators coordinate the smooth functioning of an integrated energy market. The agency is independent of the [[European Commission]], [[Shared Competence (EU)|national governments]], and energy companies. Areas of work for the agency include: deciding on cross-border issues in case of disagreement and monitoring e.g. retail prices.
  
=== 4. Cross-border cooperation of transmission operators ===
+
==== Cross-border cooperation of transmission operators ====
  
 
National transmission system operators are responsible for ensuring electricity and natural gas is effectively transported through pipelines and grids.
 
National transmission system operators are responsible for ensuring electricity and natural gas is effectively transported through pipelines and grids.
  
Due to the cross-border nature of Europe's energy market, they must work together to ensure the optimal management of EU networks. This is done through the European Network for Transmission System Operators for Electricity (ENTSO-E) and the European Network for Transmission System Operators for Gas (ENTSOG). (Taken from: https://ec.europa.eu/energy/en/topics/markets-and-consumers/market-legislation)
+
Due to the cross-border nature of Europe's energy market, they must work together to ensure the optimal management of EU networks. This is done through the [[European Network of Transmission System Operators for Electricity|European Network for Transmission System Operators for Electricity]] (ENTSO-E) and the European Network for Transmission System Operators for Gas <ref>European Commission [https://ec.europa.eu/energy/en/topics/markets-and-consumers/market-legislation Markets and consumers]</ref>
  
=== 5. Open and fair retail markets ===
+
==== Open and fair retail markets ====
 
Consumer protection is at the heart of the third package. Consumers should be enabled to freely choose or change their suppliers and be make decisions based on accurate information on what they consume.
 
Consumer protection is at the heart of the third package. Consumers should be enabled to freely choose or change their suppliers and be make decisions based on accurate information on what they consume.
  
 +
=Networks and infrastructure=
 +
In order for the single market to be realised, regulatory integration is needed next to '''infrastructure investments''' in order to have a reliable and integrated energy network in Europe. Financial aid for [[Trans-European Energy Networks]] has been provided since the 1990s and recently the [[Connecting Europe Facility]] has been established for this purpose. Part of this facility is the designation of priority infrastructure projects, which will receive financial as well as regulatory aid on an EU level.
 +
=Research and innovation=
 +
* [[Horizon 2020 work programme]]
 +
* [[SET-Plan]]
  
== Government intervention within the market ==
+
{{Reference}}
  
Governments and international accords intervene with structure of the energy market in Europe. Examples include the 2020-2030 Strategy or the Paris Agreement of 2015, as the first legally-binding climate change mitigation agreement.
+
[[Category:Economic Dimension]]
 +
[[Category:Technological Dimension]]
 +
[[Category:Economic Dimension]]

Latest revision as of 15:35, 27 October 2016

The European Union aims to integrate its Member States' fragmented electricity and natural gas markets into a single energy market, under the pillar of economic competitiveness which is one of the three key objectives of its Energy Strategy.

Energy and competitiveness policy has progressed in the last 20 years with a focus on the single energy market and investment on infrastructure, as well as with constant support for research and innovation. [1]

Single market

The three phases of market deregulation

The energy market has been a policy topic since the 90s, which was expressed in particular by the three energy market packages (in 1996-1998, 2003 and 2009).

The First and Second Energy Packages

The first two phases towards the so-called free market, are following the adoption of Directive 96/9 2 of 19 December 1996 which established the principle of opening up sites of over 100 GW/year in national energy markets. Due to the limited success of this first Directive, it was repealed in 2003 and replaced by Directive 2003/54/EC that aimed at speeding up liberalisation. This is commonly referred to as the second energy-climate package.

  • In France, these two Directives have been included in National law through law 2000-108 of 10 February 2000 and 2004-803 of 9 August 2004, amended by Law No. 2003-8 of 3 January 2003 and Law No 2006-1537 of 7 December 2006.

The Third Energy Package package

The third package of energy market liberalisation rests on 5 pillars:

Unbundling

Requires an ownership separation for electricity generation and transmission networks. Companies active in both generation and transmission are therefore required to split up. This forced split aims at increasing competition.

Independent regulators

Fostering a competitive energy market requires independent regulators. Among other aspects, regulators are required by law to run independent budgets and be able to impose binding decisions and penalties upon non-compliance.

Co-operation of national regulators

A new Agency, the Agency for the Cooperation of Energy Regulators (ACER), was formed to help national regulators coordinate the smooth functioning of an integrated energy market. The agency is independent of the European Commission, national governments, and energy companies. Areas of work for the agency include: deciding on cross-border issues in case of disagreement and monitoring e.g. retail prices.

Cross-border cooperation of transmission operators

National transmission system operators are responsible for ensuring electricity and natural gas is effectively transported through pipelines and grids.

Due to the cross-border nature of Europe's energy market, they must work together to ensure the optimal management of EU networks. This is done through the European Network for Transmission System Operators for Electricity (ENTSO-E) and the European Network for Transmission System Operators for Gas [2]

Open and fair retail markets

Consumer protection is at the heart of the third package. Consumers should be enabled to freely choose or change their suppliers and be make decisions based on accurate information on what they consume.

Networks and infrastructure

In order for the single market to be realised, regulatory integration is needed next to infrastructure investments in order to have a reliable and integrated energy network in Europe. Financial aid for Trans-European Energy Networks has been provided since the 1990s and recently the Connecting Europe Facility has been established for this purpose. Part of this facility is the designation of priority infrastructure projects, which will receive financial as well as regulatory aid on an EU level.

Research and innovation

Links for further research

  1. European Parliament: EU Energy Governance for the Future
  2. European Commission Markets and consumers

What links here