Energy – Another Successfully Closed Field of the Presidency

The energy ministers of the EU adopted Council conclusions at their meeting chaired by Minister for National Development Tamás Fellegi, held in Luxembourg on 10 June 2011 to review the Energy Efficiency Action Plan. The Energy Council was informed of the progress made during the Hungarian Presidency in the negotiations on the draft regulation about the transparency of wholesale energy markets.

The parties discussed the measures following their May 2011 informal meeting on the Energy Roadmap. To top off the efficient operation seen in the past months, the last formal meeting under the Hungarian Presidency also yielded success in energy.

In March the European Commission released a communication about the review of the Energy Efficiency Action Plan issued in 2006. The purpose of the Hungarian Presidency was to adopt Council conclusions in this subject – and during today’s session this aim was achieved without debate. Improvement in energy efficiency is a fundamental precondition to the realisation of the EU’s overall objectives regarding a low carbon economy and the Energy 2020 commitments. The conclusions outline policy potentials that may significantly contribute to the 20% energy efficiency goal set for the end of this decade.

In connection with the draft regulation on the transparency of wholesale energy markets, as a minimum requirement the Hungarian Presidency expected the adoption of a policy agreement leading to the Council closing of the first reading. However, in light of the favourable developments in negotiations, having exceeded the original target now we endeavour to achieve an agreement at first reading, perhaps already by the end of the month, after the trilateral consultations to start on this topic next week. The purpose of the draft regulation is to set up a framework for monitoring the energy markets in order to successfully detect and prevent market abuses and manipulations.

The Council also discussed progress in the 2050 Energy Roadmap. Tamás Fellegi called the attention of his fellow-ministers to the fact that the sizes and financing requirement of projects, the long time of design and operation and numerous uncertainties surrounding energy demand meticulous deliberation of the common European energy policy by the Member States. The Roadmap that serves decision-making based on facts must be sufficiently flexible to facilitate technological development and social acceptance. As such flexibility may be improved by expanding the scope of available technologies, the European Union needs to give more pronounced assistance to research and development and practical application. Investors and the markets, on the other hand, needed agreeably stable and long-term indications, Mr Fellegi added.

The ministers also touched upon the stress tests of nuclear plants. As from 1 June 2011, the affected Member States started to perform these security tests of agreed content, which will provide an input to the European Union’s report that will be submitted to the European Council’s 9 December 2011 meeting. Tamás Fellegi also noted that evaluation, a regulatory and specialist task, must be clearly separated from the subsequent policy decisions, which affect the future of the nuclear sector. While adopting these decisions, the extraordinary interconnection of the electricity market as well as the consequences experienced in the other Member States as a result must be kept in sight.

On the eve of the Council meeting, Mr Fellegi discussed the North-South Energy Corridor with the ministers of the affected countries and Commissioner for Energy Oettinger. During the working supper, the parties summed up the achievements of the high-level working group set up for the successful realisation of the project aimed at developing the natural gas and mineral oil networks and electricity grids. By October this year, the working group will compile an action plan for the options of realising one of the most significant strategic initiatives having long-term impacts in the Central European region.

(Ministry of National Development , Department of Communication)