Proper interconnections are needed if Europe is to have an energy market where energy flows across borders and competition is facilitated, European Energy Commissioner Miguel Arias Cañete said at the Eurelectric Annual Conference in Brussels at the start of June.

Underlining that the power sector is undergoing one of the most profound changes in its history, the Commissioner said that this change has brought about serious challenges for many utilities. He said that, if the internal energy market is to succeed, it must achieve three key objectives: become a driver for investment by offering the level playing field that investors need, be reshaped so that it can drive the development of renewables and, finally, it must accommodate consumers who want to be active market players.

With a view to achieving these objectives, the Commissioner said that, in July, the Commission would set out its initial views and start a consultation on how to reform the electricity market design.

With respect to the first of these objectives, Commissioner Arias Cañete said that the European Commission would support the financing of interconnection projects, for example from the Connecting Europe Facility, but stressed that public resources alone would not be enough, and that this support should be used to leverage private investments.

At the United Nations Climate Change Conference in Paris later this year, the Commissioner said that he would agree on a global climate deal which would put renewables front and centre of the European energy system in 2030 and beyond. However, he said that for this to happen, the energy system would have to become smarter and smoothly integrate increasing levels of renewables.

Mr. Arias Cañete said that, to create a consumer-led energy market where consumers can positively affect the cost, quality and choice of available energy services, they would need to be given the tools they need to be active participants and to control their consumption, lower their bills and benefit from new smart energy technologies. To facilitate this, alongside its market design initiative the European Commission will propose its views on how retail markets will have to change.

The European Commission will set the basis for achieving the three objectives outlined above with its upcoming proposals on market design and retail markets. However, Mr. Arias Cañete stressed that it would not be possible to achieve anything without working hand-in-hand with industry. Industry’s buy-in and support will be needed to ensure that the maximum benefit is received from the opportunities ahead, the Commissioner said.

For more information:
http://europa.eu/rapid/press-release_SPEECH-15-5084_en.htm