S.12. Winter Package

D.

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Important provisional agreements for the “Clean Energy for All Europeans” Package

Tuesday, October 23, 2018


The EU trilogue negotiators reached important agreements on the four remaining files of the Package, while the EC aims to have a provisional final agreement by early December 2018.

Following the latest trilogues on the four remaining files of the “Clean Energy for All Europeans” Package, the negotiators reached some important compromises, thereby bringing the files closer to their final form and possible final agreement by the end of 2018.

The third trilogue on the proposed Directive ‘on common rules for the internal market in electricity (recast)’ and Regulation ‘on the internal market for electricity (recast)’ took place on 18 October 2018. During these meetings, certain controversial issues (such as the capacity mechanisms and regulated prices) were discussed without any significant agreement while others saw important developments, namely a provisional agreement on the Regional Coordination Centres and on the restrictions on virtual power plants.

Under the agreement, virtual power plants or “aggregators” would not be required to obtain permission from energy suppliers prior to entering the market, while energy suppliers would be compensated (the amount of compensation still has to be agreed) if their produced electricity is lost. Additionally, all energy suppliers will also be required to offer dynamic price contracts.

The EU negotiators also reached a provisional agreement for all TSOs to establish and participate in regional cooperation centres (RCCs) by 2023, which was previously a highly debated issues. The newly created RCCs will play an important role in balancing markets, which should enhance cross-border balancing and further facilitate market integration.

Furthermore, negotiators made progress albeit without a significant breakthrough during the first trilogue on 25 September 2018 on the proposed Regulation ‘on risk-preparedness in the electricity sector’, which was followed by the first trilogue on the Regulation ‘establishing a European Union Agency for the Cooperation of Energy Regulators (recast)’ on 26 September 2018. A month later, during the second trilogues for both files on 23 October 2018, the negotiators made significant progress on the former and reached important compromises on the proposed extended role of ACER. According to DG EENR’s Director-General Dominique Ristori, negotiators would be getting closer to a final agreement on risk-preparedness.

The next trilogues on the four remaining files are expected in November 2018. According to EU Commissioner for Climate Action and Energy Miguel Arias Cañete, the EC is looking forward to reaching a provisional trilogue agreement on the files before the upcoming 24th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) on 03 December 2018 in Katowice, Poland.