COMMON POSITION (EC) No 12/95 adopted by the Council on 29 June 1995 with a view to adopting a European Parliament and Council Decision of . . . laying down a series of guidelines on trans-European energy networks (95/C 216/04)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the first paragraph of Article 129d thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the Economic and Social Committee (2),

Having regard to the opinion of the Committee of the Regions (3),

Acting in accordance with the procedure referred to in Article 189b of the Treaty (4),

Whereas, because of the features specific to it, energy must be produced, distributed and used as rationally as possible, in the interests of sustainable development and whereas the capacity to enhance the use of renewable energy resources in the regions concerned must in no way be hindered or held back;

Whereas the establishment and development of trans-European energy networks contribute towards attaining major objectives of the Community, such as completion of the internal market and the strengthening of economic and social cohesion;

Whereas the establishment and development of trans-European energy networks throughout the territory of the Community also have the specific objectives of increasing the reliability and security of the Community's energy supplies and of allowing balanced operation of the internal energy market and an improvement in the Community's competitiveness;

Whereas, in order to contribute towards attaining the said objectives, the development of interconnections of electricity and natural gas transmission networks in the Community must be accelerated, particularly in the regions where improvements to the networks are necessary or in regions which are still isolated, and with the third countries in Europe and in the Mediterranean region;

Whereas, in order to complete the internal market in energy, measures must be incorporated in an overall energy strategy which not only specifies the main criteria and objectives of the Community in this field but also defines more particularly the conditions for liberalizing the market in energy products;

Whereas the interconnection of electricity and gas networks with third countries which are signatories to the Energy Charter Treaty (5) must be carried out in accordance with that Treaty;

Whereas action by the Community to establish guidelines on trans-European energy networks is necessary, subject to the principle of subsidiarity;

Whereas, in order to develop these networks on a Community-wide scale, it is necessary to identify projects of common interest and to create a more favourable context for the completion and interoperability of these networks;

Whereas projects of common interest must meet the said objectives and form part of the said priorities; whereas only those projects should be considered which display potential economic viability, taking into account economic, social and technical factors; whereas, in this context, the concept of viability includes not only the financial profitability of the projects but also other considerations such as the reliability and security of energy supplies, the strengthening of economic and social cohesion and protection of the environment in the Community;

Whereas private capital is used and will continue to be used in a majority of projects in the energy sector; whereas this means that the identification of projects of common interest will have to take particular account of the need to avoid distortions of competition;

Whereas, for the implementation of this Decision, it is necessary to set up a committee;

Whereas an agreement in the form of a modus vivendi between the European Parliament, the Council and the Commission concerning the implementing measures for acts adopted in accordance with the procedure referred to in Article 189b of the Treaty was reached on 20 December 1994,

HAVE ADOPTED THIS DECISION:

Article 1

Purpose

This Decision defines the nature and scope of the action by the Community on guidelines on trans-European energy networks. It establishes a series of guidelines covering the objectives, priorities and broad lines of measures by the Community on trans-European energy networks. These guidelines identify projects of common interest on trans-European electricity and natural gas networks.

Article 2

Scope

This Decision applies to:

1. in electricity networks:

- all high-voltage lines, excluding those of distribution networks, and submarine links, provided this infrastructure is used for inter-regional or international transmission,

- any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems;

2. in natural gas networks:

- high-pressure gas pipelines, excluding those of distribution networks, making it possible to supply regions of the Community from internal or external sources,

- underground storage facilities connected to the abovementioned high-pressure gas pipelines.

- reception, storage and regasification facilities for liquefied natural gas (LNG) and also gas carriers according to the capacities to be supplied,

- any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems.

Article 3

Objectives

The Community shall promote the interconnection, interoperability and development of trans-European energy networks and access to such networks in accordance with current Community law, with the aim of:

- allowing effective operation of the internal market in general and of the internal energy market in particular while encouraging the rational production, distribution and utilization of energy resources and the enhancement of renewable energy resources, so as to reduce the cost of energy to the consumer and render the European economy more competitive,

- facilitating the development and reducing the isolation of the less-favoured regions of the Community, thereby helping to strengthen economic and social cohesion,

- strengthening the security of the Community's energy supplies, including closer relations with non-Community countries in the energy sector in their mutual interest, in particular in the framework of the Energy Charter Treaty and cooperation agreements concluded by the Community.

Article 4

Priorities

The priorities for action by the Community on trans-European energy networks shall be as follows:

1. for electricity networks

- the connection of isolated electricity networks to the interconnected European networks (a),

- the development of interconnections between Member States (b) and of internal connections in so far as necessary in order to enhance these interconnections (c),

- the development of interconnections with third countries in Europe and the Mediterranean region which contribute to improving the reliability and security of the Community's electricity networks or to adding to electricity supplies to the Community (d);

2. for natural gas networks:

- the introduction of natural gas into new regions (e),

- the connection of isolated gas networks to the interconnected European networks, including the improvements needed to the existing networks for this purpose and the connection of the separate natural gas networks (f);

- increasing the transmission (gas delivery pipelines) (h), reception (LNG) and stoage (g) capacities needed to satisfy demand, and diversification of supply sources and routes for natural gas.

Article 5

Lines of action

The broad lines of action by the Community on trans-European energy networks shall be:

- the identification of projects of common interest,

- the creation of a more favourable context for development of these networks, in accordance with the third paragraph of Article 129d of the EC Treaty.

Article 6

Criteria

1. Any energy network project which satisfies all the following criteria may be of common interest:

- It falls within the scope of Article 2,

- it corresponds to the objectives and priorities set out in Articles 3 and 4 respectively,

- it displays potential economic viability.

2. An indicative list of projects of common interest is given in the Annex.

3. Any application, by a Member State or the Commission, for updating the Annex shall be submitted by the Commission and decided upon in accordance with the procedure laid down in Article 9.

The criteria set out in paragraph 1 shall apply when a decision is taken on applications of this nature.

Projects of common interest which relate to the territory of a Member State shall require the approval of the Member State concerned.

4. Member States shall take any measures they consider necessary to facilitate and speed up the completion of projects of common interest and to minimize delays while complying with Community law and international conventions on the environment. In particular, the necessary authorization procedures shall be completed rapidly.

5. Where parts of projects of common interest are situated within the territory of third countries, the Commission may, by agreement with the Member States concerned, put forward proposals, where appropriate within the framework of the management of the agreements between the Community and those third countries and in accordance with the Energy Charter Treaty in respect of third countries which are signatories to that Treaty, for the projects also to be recognized as of reciprocal interest by the third countries concerned, in order to facilitate their implementation.

6. The evaluation of the economic viability referred to in the third indent of paragraph 1 shall be based upon a cost-benefit analysis which shall take account of all costs and benefits, including those in the medium and/or long term, in connection with environmental aspects, security of supply and the contribution to economic and social cohesion.

Article 7

When projects are considered, an effort shall be made to take into account the effects on competition and the prospects of private financing or financing by the economic operators concerned.

Article 8

This Decision shall be without prejudice to any financial commitment by a Member State or the Community.

Article 9

Committee procedure

1. The Commission shall be assisted by a committee composed of the representatives of the Member States and chaired by the representative of the Commission.

2. The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the committee shall be weighted in the manner set out in that Article. The chairman shall not vote.

3. (a) The Commission shall adopt the measures envisaged if they are in accordance with the opinion of the committee.

(b) If the measures envisaged are not in accordance with the opinion of the committee, or if no opinion is delivered, the Commission shall, without delay, submit to the Council a proposal relating to the measures to be taken. The Council shall act by a qualified majority.

If, on the expiry of a period of three months from the date of referral to the Council, the Council has not acted, the proposed measures shall be adopted by the Commission.

Article 10

Every two years the Commission shall draw up a report on the implementation of this Decision, which it shall submit to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

Article 11

This Decision shall enter into force on the third day following its publication in the Official Journal of the European Communities.

Article 12

This Decision is addressed to the Member States.

Done at . . .

For the European Parliament

The President

For the Council

The President

(1) OJ No C 72, 10. 3. 1994, p. 10.

(2) OJ No C 195, 18. 7. 1994, p. 33.

(3) OJ No C 217, 6. 8. 1994, p. 26.

(4) Opinion of the European Parliament of 18 May 1995 (OJ No C 151, 19. 6. 1995), Council common position of . . . (not yet published in the Official Journal) and European Parliament Decision of . . . (not yet published in the Official Journal).

(5) OJ No L 380, 31. 12. 1994, p. 24.

ANNEX

TRANS-EUROPEAN ENERGY NETWORKS Indicative list of projects of common interest (1)

ELECTRICITY NETWORKS

a 1 United Kingdom Magee - Crytton - Moffat

a 4 Greece - Italy Ipiros - Puglia

b 1 Germany - Denmark Bjaeverskov - Bentwisch

b 4 France - Belgium Moulaine - Aubange

b 6 France - Italy Grande Ile - Piossasco

b 7 France - Spain Cazaril - Aragon

b 9 Belgium - Luxembourg Aubange - Bertrange

b 10 Spain - Portugal Aldeadavila - Douro Int. Meson - Lindoso

b 11 Finland - Sweden

c 2 Denmark: East-West link

c 3 Netherlands: North-East region Zwolle - Meeden - Eemshaven

c 4 France: North-East region Sierrentz - Mulbach

c 5 Italy: North-South and East-West routes 15 partial projects

c 6 Spain Bay of Biscay - Mediterranean route

c 7 Portugal: Improvements to the interconnection with Spain Pego - Rio Maior II Recarei - Doura Int.

c 8 Greece: East-West route

d 3 Germany - Norway including upgrading of grids in Norway

d 5 Italy - Switzerland Gorlago - Robbia

d 6 Austria - Italy Lienz - Sandrigo

d 9 Greece - Turkey Thessaloniki - Hamitabat

d 11 Norway - Netherlands including upgrading of grids in Norway

d 13 Spain - Morocco Pinar - Melloussa

d 14 Baltic ring: Denmark, Sweden, Finland, Estonia Latvia, Lithuania, Belarus, Poland, Germany GAS NETWORKS

e 4 Spain Galicia, Estremadura, Andalucia, Valencia - South Murcia, LNG Ferrol

e 5 Portugal Setubal - Braga

e 6 Greece Bulgaria - Athens, LNG Revithoussa

f 1 Ireland - Northern Ireland

f 2 United Kingdom - Continent Bacton - Zeebrugge

f 3a Luxembourg - Germany

f 6 Portugal - Spain Leiria - Cordoba, Braga - Tuy - Oviedo

g 1 Ireland LNG

g 3 France LNG Montoir

g 4 Italy LNG Montalto di Castro

g 8 Spain Storage facility Gaviota, Huete

g 9 Portugal Storage facility

g 11 Belgium Storage facility Loenhout

g 12 Denmark Storage facility

h 4 Algeria - Spain - France

h 5 Algeria - Tunisia - Italy

h 6 Russia - Ukraine - EU

h 7 Russia - Belarus - Poland - EU

h 11 Bulgaria - Greece

h 12 Belgium - Germany including Bernau - Eynatten link

(1) This Decision is without prejudice to the assessment of the environmental impact of projects

STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 8 February 1994 the Commission sent the Council a proposal, based on the first paragraph of Article 129d of the Treaty, for a Council and European Parliament Decision laying down a series of guidelines on trans-European energy networks.

2. The European Parliament delivered its opinion at first reading on 18 May 1995. The Economic and Social Committee and the Committee of the Regions delivered their opinions on 27 April 1994 and 17 May 1994 respectively.

On 31 May 1995 the Commission submitted an amended proposal to the Council pursuant to Article 189a (2) of the Treaty.

3. At its meeting on 29 June 1995, the Council adopted its common position pursuant to Article 189b of the Treaty.

II. OBJECTIVES

4. The proposal for a Decision defines the nature and scope of action on guidelines on trans-European energy networks.

In particular, it determines the scope, objectives, priorities, lines of action and criteria for projects of common interest on trans-European electricity and natural gas networks.

III. ANALYSIS OF THE COMMON POSITION

5. The Council adopted a large number of the amendments requested by the European Parliament and taken up by the Commission in its amended proposal. It adopted, verbatim or in substance, the following amendments:

- Amendment 1

The Council incorporated the substance of this European Parliament amendment in the first recital.

- Amendment 3

The Council incorporated in the fifth recital the substance of this amendment requested by the European Parliament, which places this Decision in the general framework of the energy sector.

- Amendments 4, 8 and 11

The Council incorporated in the relevant recitals and Articles the amendments requested by the European Parliament on the introduction of references to the Energy Charter Treaty.

- Amendment 6

The Council incorporated verbatim the amendment proposed by the European Parliament.

- Amendments 7 and 9

The Council included the substance of these two amendments requested by the European Parliament in the first indent of Article 3 on the grounds that it could support these points.

- Amendment 10

The Council adopted the substance of the amendment requested by the European Parliament.

6. The Council did not, on the other hand, take over the following two amendments which the Commission had included in its amended proposal:

- Amendment 5

The Council did not take up this European Parliament amendment as it considered that this recital did not seem necessary in view of the provisions of this Decision.

- Amendment 2

The Council did not adopt this amendment requested by the European Parliament, which would call into question a principle laid down in Article 129b of the Treaty.

7. The Council did not adopt amendments 12 and 13 as requested by the European Parliament. It did not consider that there was any justification for setting up an advisory committee since projects of common interest had to obtain the prior approval of the Member State concerned (second paragraph of Article 129d). On the other hand, it adopted the addition, proposed by the Commission in its amended proposal, to the 11th recital referring to the modus vivendi between the three institutions on implementing measures for acts adopted under the codecision procedure.

8. The Council considered that the indicative list of projects of common interest should not include projects already or about to be completed, or long-term projects, the potential viability of which could not be assessed at this stage. The Council thus adopted amendment 14, on the 'Baltic ring' project, which the Commission had not included in its amended proposal. On the other hand, like the Commission, it did not take up amendments 15 and 16.