Powering a climate-neutral economy: An EU Strategy for Energy System Integration

Summary:

Communication published by the European Commission on 8 July 2020, setting out a strategy to support further integration of energy systems across the European Union (EU).

Further information:

Energy systems are seen as essential to deliver on climate neutrality and decarbonisation goals set out by the European Green Deal. However, these are still built on several parallel, vertical energy value chains, which rigidly link specific energy resources with specific end-use sectors. Market rules are also largely specific to different sectors. The Commission argues that such model of separate silos will not be able to delivery a climate neutral economy, as it becomes technically and economically inefficient. Energy system integration - i.e. the coordinated planning and operation of the energy system 'as a whole', across multiple energy carriers, infrastructures, and consumption sectors - should be the pathway towards an effective, affordable and deep decarbonisation of the European economy.

Greater energy system integration has already been supported by declining costs for renewable energy technologies, market developments, innovation on storage systems, electric vehicles and digitalisation. However, the need remains to connect the missing links in a consistent and cost-effective manner. Not only that is line with the European Green Deal, with may disclose investment and growth to support economic recovery as stated by the Commission's Recovery Plan for Europe.

The 2018 Clean Energy Package provides a basis for better integration across infrastructure, energy carriers and sector, but there are still regulatory and practical barriers. This Strategy sets out a vision on how to accelerate the transition towards a more integrated energy system. It proposes concrete policy and legislative measures at EU level to shape a new integrated energy system, while respecting the differing starting points of Member States.

• Primary Source

Commentary and Analysis

European Files, 10/07/2020: Leveraging on the key role of cities in the EU strategy on energy system integration https://www.europeanfiles.eu/energy/leveraging-on-the-key-role-of-cities-in-the-eu-strategy-on-energy-system-integration

EUI: Florence School of Regulation, 22/12/2020: Sector Coupling and Energy System Integration https://fsr.eui.eu/sector-coupling-and-energy-system-integration/

Smart Energy International, 11/05/2021: Energy efficiency key to EU’s integrated energy system https://www.smart-energy.com/industry-sectors/energy-efficiency/energy-efficiency-key-to-eus-integrated-energy-system/

EPRS: At a Glance, May 2021: EU strategies on hydrogen and energy system integration https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2021)690599

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News

EurActiv, 05/04/2021: What now? Policymakers mull options for greater energy system integration https://www.euractiv.com/section/energy/news/what-now-policymakers-mull-options-for-greater-energy-system-integration/

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Official

European Parliament: Legislative Observatory: Procedure File for Own-Initiative on A European Strategy for Energy System Integration (2020/2241(INI)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/2241(INI)

European Commission: Press Release, 08/07/2020: Powering a climate-neutral economy: Commission sets out plans for the energy system of the future and clean hydrogen https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1259

European Commission: Questions and answers: An EU Strategy for Energy System Integration (8 July 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_1258

European Commission: Executive Vice-President Frans Timmermans' and Commissioner Kadri Simson's press remarks on the energy sector integration and hydrogen strategies (8 July 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_1310

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