EN EN 
  
 EN  EUROPEAN COMMISSION 
Brussels, 10.11.2010 
SEC(2010) 1346 final 
  
COMMISSION STAFF WORKING DOCUMENT 
State of play in the EU energy policy  
 
 
Accompanying document to the 
 
 
COMMUNICATION FROM THE COMMISSI ON TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EU ROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMI TTEE OF THE REGIONS 
Energy 2020 
A strategy for competitive, sustainable and secure energy 
  
{COM(2010) 639}  
 2    
Recent milestone developments:  
 
The past five years have significantly accelerat ed the construction of a comprehensive EU energy 
policy based on mutually complementing pillars of competitiveness, sustainability and security of 
supply. These developments go back to October 2005 when the European Council, gathered at the 
Informal Summit in Hampton Court, concerned by th e pressing need to address the climate change 
challenge and to react to oil price increase which approached $70 per barrel, requested the 
Commission to develop a long term and coherent energy policy .  
 The first step in this process was the Com mission's Green Paper ''A European Strategy for 
Sustainable, Competitive and Secure Energy''
1.  
 Next, in October 2006, the Commission adopted a comp rehensive Energy Efficiency Action Plan to 
create a coherent framework of legislation, pol icies and measures for achieving the 20% energy 
efficiency objective compared to what was expect ed to happen under business as usual scenario.  
 In January 2007, the Commission issued  the first EU Energy Action Plan
2 which was endorsed by 
the European Council in March 2007. At present, most of the Action Plan measures have been 
largely executed through new legislation and ongoing proposals that wi ll soon be agreed.  
 In September 2007, in order to comp lete the integration of the EU gas and electricity market, the 
Commission proposed further energy market liberalisation measures, the so called 'third package'. 
This legislation was agreed by the Co uncil and the Parliament in July 2009
3.  
 The Strategic Energy Technology (SET) Plan
4, presented by the Commission in November 2007 
and agreed in March 2008, introduced priori ties for future energy technologies.  
 In January 2008, the Commission proposed the Ener gy and Climate packag e with "20-20-20 by 
2020" goals: reduction in greenhouse gas emissions to 20% below 1990 levels, 30% in the context 
of a global agreement on climate; 20% share of renewables in the final energy consumption; 
reduction in primary energy use to 20% below the baseline pr ojection for 2020, which were 
subsequently translated into legally-bindi ng frameworks for greenhouse gas emissions and 
renewable energy
5. As part of the Energy and Climate package, the legal framework for CO 2 
capture and storage (CCS) technology was also created6. 
 In 2008, an action plan to strengthen EU energy s ecurity was put forward in the Second Strategic 
Energy Review
7. It emphasized the importance of infrastr ucture links needed to strengthen energy 
security and solidarity between Member States, as  well as introduced the perspective of low carbon 
economy to be achieved by 2050, which will necessita te a major shift towards low carbon energy 
technologies.                                                   
 
1 COM(2006) 105. 
2 COM(2007) 1. 
3 Directive 2009/72/EC, Directive 2009/73/EC, Regulation (EC) No 714/2009, Regulation (EC) No 715/2009, 
Regulation (EC) No 713/2009. 
4 COM(2007) 723. 
5 Directive on the Promotion of the use of energy from renewable sources (2009/28/EC), Emission Trading 
Scheme Directive (2009/29/EC) and the Effort Sharing Decision (406/2009/EC) covering non-ETS sectors 
6 Directive on the geological stor age of carbon dioxide (2009/31/EC). 
7 COM(2008) 781. 
 3   To speed up and secure investments in infrastruc ture and technology projects in the energy sector, 
the European Energy Programme for Recovery8 was agreed in July 2009 allocating €3.98 billion to 
finance mature energy infrastructure and techno logy - CCS and offshore wind - projects during 
2010 and 2011. This unprecedented financing stimulus package was added to the various existing energy financing instruments.   Also in the framework of the European Economic Recovery Plan
9, the European Regional 
Development Fund (ERDF) Regul ation was amended in May 200910, expanding the scope for 
sustainable energy investments in  buildings. Whereas Regional Polic y has traditionally financed 
energy efficiency investments only in public and commercial buildings, it is now possible to use 
these funds to improve resource effi ciency in the residential sector in all Member States. Up to 4% 
of the national ERDF allocations are now availabl e for energy investments in housing, thus adding a 
potential EUR 8 billion total throughout the EU. In addition, to encourage greater use of market 
instruments, another regulatory am endment was approved in June 201011, extending the use of 
financial engineering instruments to investments in energy effi ciency and renewable energy in 
buildings, including existing housing.  Further measures to strengthen EU  internal energy supply security  have been adopted. A legally 
binding framework for nuclear safe ty was agreed in June 2009. 
 Finally, the aim of a resource efficient and low-car bon economy that is efficient in the way it uses 
all resources and the aim to decouple EU economic  growth from resource and energy use, reduce 
CO
2 emissions, enhance competitiveness and promote gr eater energy security are integral parts of 
the Europe 2020 Strategy for smart, sustainable and inclusive growth12, and notably the Flagship 
Initiative 'Resource efficient Europe'.   
 
This evaluation report aims to present in a comprehensive manner main achievements under the 
above mentioned EU energy policy initiatives, stru ctured around four sectors:  (i) energy efficiency 
and savings; (ii) internal en ergy market, including consumers'  rights, and infrastructures' 
development; (iii) actions for a sustainable, secu re and competitive energy supply within the EU; 
and (iv) external supply security and promotion of sustainable use of energy worldwide. For each of 
the sector, an overview is given fo r already achieved results as well  as for identified shortcomings 
which require further ac tion during the Energy 2020
13 period to achieve  the 2020 EU binding 
targets and to prepare transiti on towards low carbon economy by 2050. 
 
 
                                                 
8 Regulation (EC) No 663/2009 of the European Parliament and of the Council establishing a programme to aid 
economic recovery by granting Community financial assistance to projects in  the field of energy. 
9 COM(2008) 800 , 26.11.2008. 
10 REGULATION (EC) No 397/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 6 
May 2009 amending Regulation (EC) No 1080/2006 on the European Regional Development Fund as regards the eligibility of energy efficiency and re newable energy investments in housing. 
11 REGULATION (EU) No 539/2010 OF THE EURO PEAN PARLIAMENT AND OF THE COUNCIL of 16 
June 2010 amending Council Regulation (EC) No 1083/2006 laying down general provisions on the European 
Regional Development Fund, the European Social Fund and the Cohesion Fund as regards simplification of 
certain requirements and as regards certain provisions relating to financial management. 
12 COM(2010) 2020. 
13 COM(2010) 639 [ ''A strategy for competitive, sust ainable and secure energy'']. 
 4   I - Reducing energy demand a nd promoting energy savings 
 
 Energy efficiency and savings is the most immedi ate and cost-effective way of addressing the EU's 
strategic energy and climate polic y objectives of fighting climate change, ensuring security of 
energy supply and establishing competitive and resource efficient economies, while creating jobs and making citizens benefit from lower energy b ills and better living conditions. It is widely 
recognized
14 that at least 20% of EU's primary en ergy demand (or 368 Mtoe) can be reduced by 
2020 compared to business-as-usu al PRIMES scenario of 2007 with cost-effective measures. 
 Though a number of initiatives were undertaken at EU level since the mid-1990s, the European 
Energy Efficiency Action Plan (EEAP)
15 adopted by the Commission in October 2006 created a 
coherent framework of legislati on, policies and measures on energy efficiency and savings with a 
view to intensify the process of  realising the 20% energy efficiency and saving objective. It 
identified six key areas with the highest poten tial for energy saving and proposed 85 actions and 
measures to be taken at EU, national and local level. EU Heads of Stat es and of Governments 
endorsed, at the Spring 2007 Council, the EEAP and the 20% EU objective16.  
 After years of growth, the EU primary energy c onsumption has stabilized  in 2005 and 2006 around 
1 825 Mtoe and slightly decreased in 2007 and 2008
17 to reach around 1 800 Mtoe. Although the 
economic crisis contributed to this decrease in  energy consumption in the EU, the recorded 
stabilisation provides a certain confirmation of the decoupling of  energy consumption and economic 
growth18. In addition, EU-27 energy intensity, measur ed as the ratio of gross inland energy 
consumption and the gross domestic product, ha s kept improving, decreasing from 187.3 in 2003 to 
167.4 in 2008 kgoe / EUR 1000 (see Annex I: EU –27 energy intensity in kgoe/EUR 1000, 2000 – 
2008).  The latest business-as-usual scenario projections  (PRIMES 2009) for the first time show a break in 
the trend of ever increasing energy demand
19. 
 However, EU is far from reaching its 20% objective.  The projections indicate that with the rates of 
implementation of the current ener gy efficiency policies in Member  States (until December 2009), a 
bit more than 8.9% primary energy consumption reduction will be achieved in 2020.                                                  
 
14 For example SEC(2006) 1174 and Fraunhofer et al. 2009. Study for the ESD. 
15 COM(2006) 545. 
16 7224/1/07 REV 1. 
17 2008 Eurostat data are the latest official data. 
18 See SEC(2008) 2871 and SEC(2009) 1734, Annual reports of the Market Observatory of the European 
Commission. 
19 The scenarios of the "Energy trends 2030" (updat e 2009) are accessible at the following address: 
http://ec.europa.eu/energy/observatory/trends_2030/doc/trends_to_2030_update_2009.pdf 
 5   20% energy saving objective 
vs. expected achievements of some major EEAP energy efficiency policies 
adopted until 2009 as projected by the energy model PRIMES  
 
 
 
 
The above projections do not take  fully into account policies in  the pipeline, especially the 
forthcoming Eco-design implementing measures a nd the recast Energy Performance of Buildings 
Directive, which could provide fu rther decrease in the consumption. Nevertheless, these projections 
give a good indication of the probable gap in  reaching the EU's energy saving objective. 
Furthermore, while the economic crisis contribute d to this decrease in energy consumption, it has 
also negatively impacted energy efficiency invest ment decisions at all levels - public, commercial 
and private.  The European EEAP has given a considerable impetus  to the adoption of a number of legislative 
and soft-law tools to capture ener gy savings potential. To date, progress has be en achieved on most 
measures, with only a very limited number seeing little progress or facing delays (see Annex II: 
Main achievements for the six EEAP key areas). Due to the overlapping effects and the early stages of the EEAP's implementation it is not possible to  make concrete quantitative evaluation of its' 
overall impact.  However, individual ex-ant e quantitative impact assessments of some already 
adopted measures are available
20 and Commission is currently pr eparing a progress report on the 
current implementation status of the EEAP. C onsidering the insufficient uptake of the energy 
savings potential, it is clear that more actions in  this area are needed. In  fact, EEAP was conceived 
as a first step towards reaching the 20% obj ective and its revision was foreseen for 2009. 
 Despite the measures taken at EU  and national levels, the existi ng cost-effective opportunities for 
energy savings and the related social, geopolitical a nd environmental benefits are yet not fully used 
in all economic sectors. This can be explained by th e prevailing market failures, such as asymmetric 
                                                
 
20 Impact assessment reports: http://ec.europa.eu/governance/impact/ia_carried_out/cia_2010_en.htm 

 6   information, split incentives, missing or incomplete  markets, as well as regulatory failures, 
including missing norms or poor implementation of  the existing ones that in many cases do not 
allow for the legislation to have the expected im pact. Therefore, in addition to full implementation 
of the current policy framework as set out in th e EEAP of 2006, further con certed action is needed 
to eliminate the barriers in each sector. New actio n should take into account what has been achieved 
so far and the needs of particular sectors in or der to establish a coherent policy mix, keeping in 
mind that many studies indicate that best results in energy savings are reached only via a set of 
parallel policy measures. Priori ties should focus on energy perf ormance requirements for products, 
buildings and services, on strengthen ing energy efficiency in the ut ility and transpor t sectors, on 
reviewing financing mechanisms and addressing pric ing aspects, as well as on changing energy use 
behaviour.   
 7   II – Deepening the internal energy market integration, strengthening 
consumers' rights and developing infrastructures 
 
 
• Integrating the EU in ternal energy market 
 
The competitive, integrated and fluid internal ener gy market is a strategic instrument in order to 
secure energy supply, give EU consumers a choi ce between different companies supplying gas and 
electricity at reasonable prices, and to make the market accessible for all suppliers, especially the 
smallest and those investing in renewable forms of energy. The integrated in ternal market is also 
crucial for the proper functioning of CO 2 emission trading mechanism. Over the coming two decades, 
the EU - like other parts of the world - has to addr ess the need for major investments in all types of 
energy infrastructure which will be crucial to overcome the longstanding fra gmentation of EU energy 
markets21. However, only a properly functi oning internal electricity and gas market can send the right 
price signals to encourage investments. The integrati on of the EU energy market is set to continue but 
it may take some time because the planning and buildi ng of relevant infrastructure requires long time-
horizons.  The process of opening the EU ener gy markets to competition started te n years ago. It has allowed EU 
citizens and industries to gain many benefits, such as more choice, more competition for better service 
and improved security of supply. Since July 2004, small-business customers in all EU countries have 
been free to switch their supplier for gas and electri city. In July 2007 all remaining consumers gained 
the same freedom (see Annex III on ma rket opening for gas and electricity).  
 Independent national regulatory authorities have been established in each EU country to ensure that 
suppliers and network companies operate correctly a nd actually provide the services promised to their 
customers. Since 2003, heads of the national energy regulatory au thorities meet in  the European 
Regulators Group for electricity and gas (ERGEG) set up by the Commissi on. ERGEG acts as an 
advisory group, assisting the Commission in consolidating the internal market for electricity and gas. Based on yearly reports by the national regulators,  the European Commissi on is monitoring the 
market closely, identifying obstacles and shortcomings. In 2008, the Market Observatory for Energy of the European Commission started its activities aime d at better monitoring developments on energy 
markets, in particular gas and electricity markets, and further in creasing transparency. 
 A comprehensive inquiry into the electricity  and gas sectors publis hed in January 2007
22 revealed 
that too many barriers to competition and too many differences across the Member States remain. 
The Commission subsequently came forward with the third internal  energy market liberalisation 
package, which foresees, among others, the effec tive separation of supply and production activities 
to make the market accessible for all suppliers, ha rmonization of the powers of national regulators, 
better cross-border regulation to  promote new investments and cross-border trade, effective 
transparency, as well as assuring that EU and th ird country companies compete in the EU on an 
equal footing. These proposals were  agreed by the Council and th e Parliament in July 2009 and 
should be implemented by 201123. 
                                                 
 
21 As for electricity for e.g., accord ing to ENTSO for Electricity, investme nt costs of transmission projects of 
European significance to be completed (i n order to reach the objectives of th e further integration of the internal 
market, RES integration and Security of supply) within the period 2010-2014 range between EUR 23 to 28 
billion. See ENTSO-E’s pilot Ten- Year Network Development Plan. 
22 COM(2006) 851. 
23 Some provisions will have to be implemented by 2012 and 2013. 
 8   In parallel, the Commission adopted in March 2009 the Benchmarking Report24 assessing the 
implementation of the then existing internal energy market legislation. It revealed a mixed picture 
of the accomplishment of the internal market. Besides the incomplete implementation of the 
legislation by the Member States that the Commission will continue addressing through 
infringement procedures, the Benchmarking Repor t highlighted the impact of the financial and 
economic crisis on the internal energy market25. Reduced economic activity resulted in a significant 
fall in the consumption of gas and electricity26. This lower consumption has had an important 
impact on the international oil prices, which in turn influenced gas and electricity prices27. 
However, the fall witnessed in international oil prices has not been entirely reflected in end user gas and electricity prices. The Report al so indicated that there are still high levels of concentration on 
the retail and wholesale market (see Annex IV  on Electricity and Gas market indicators).  
 The current work of national regulatory author ities is shifting the focus towards the consumer, 
including the roll-out of smart meters as the key component to introduction of smart grids in the 
internal energy market. This is a welcome trend that can lead to  a more active participation by 
customers in the internal energy market, increased energy efficiency and large-scale integration of 
renewables, as well as additional energy services, in creased market transparen cy and easier supplier 
switching. Additionally, cooperation between European  power exchanges and the increasing levels of 
trade are a promising sign of func tioning markets. This has resulted in  spreading the efficient methods 
for cross-border trade, namely imp licit auctions, in particular in th e Northern and Western parts of 
Europe. A further challenge is to spread this  method to areas, which are not yet applying it . 
 In 2007 and 2008 a great deal of ef fort was put into enhancing co mpetition on the wholesale market; 
significant progress was made throug h the regional initiatives such as  Baltic, Centra l-East, Central-
South, Central-West, North, South-West and the Fr ance-UK-Ireland regions for electricity and North-
West, South and South-Sout h East regions for gas. With respect to market concentration, progress has 
generally been slow. A number of  wholesale markets, in partic ular, still suffer from limited 
competition and the lack of liquidity. There are signs that the situation on the retail market is about to 
improve. Member States should put even more effort  into providing comprehensive data for supplier 
switching.   While short-term solutions, such as regulated prices, might appear to be advantageous in the light of 
rapidly increasing energy prices, the likely conseq uences of such measures are that investor 
confidence is undermined, market entry is deterred a nd the full benefits of th e internal energy market 
are placed at risk.  
 
• Actions to strengthen consumers' rights in a liberalised energy market 
 
Since the 1990's, opening up retail markets to competition has aimed to improve the services available to consumers and to al low free choice of supplier for c onsumers. Under EU legislation, 
                                                
 
24 COM(2010) 84. 
25 For detailed analyses, see the Quarterly reports on elect ricity and gas markets of the Market Observatory for 
Energy of the European Commission, accessible at the following address:  
http://ec.europa.eu/energy/observatory/index_en.htm 
26 The consumption of electricity was down by more than 5 % in the first semester of 2009 compared to the same 
period in 2008. In this period of time, the consumption of natural gas declined by 10%. Gross inland 
consumption for oil fell by 1.5% in 2008 compared to 2007 and by almost 6% in the first semester of 2009 
compared to the same period in 2008. 
27 The crude oil price (Dated Brent) fell from approximately US$ 140 per barrel in mid July 2008 to around $70 
per barrel by the end of June 2009. Between January 2008 and June 2009, the gas price decreased by 57% on 
the NBP spot market and by 25% on the year-ahead NBP forward market  while the electricity price decreased 
by 45% on the spot market (Platts PEP) and by 6% on the forward market (DE Y+2). 
 9   customers have clear rights to choose their supplie r, receive clear, detailed contracts and energy 
bills.  In 2003, the Electricity and Gas Di rectives for an internal ener gy market recognised electricity 
provision as a universal public servi ce, thus establishing the right to  be supplied with electricity and 
gas (subject to network provision)  at reasonable, easily and clearly comparable and transparent 
prices. This legislation introduced the concept of  protection of customer s in general, and of 
vulnerable customers in particular, by Member States.   The 2003 internal market legislation placed obliga tions on energy suppliers requiring them to 
achieve levels of supply quality and network security performance. In 2008, the European 
regulators carried out a benchmarking exerci se on the quality of electricity supply
28. The survey 
noted that overall the continuity of electricity supply in  Europe is improving with customer minutes 
lost per year decreasing al most continually since 2002. 
 In order to effectively benefit from offers av ailable on the market, the limit on switching supplier 
has been reduced to six weeks. Switching levels vary considerab ly across Member States, with 
some mature markets experiencing relatively high rates and a number of others showing little or no 
activity
29.  
 The third package on the internal market
30 of 2009 increases the levels of protection for consumers 
and improves the operation of the retail energy market. The legislation provides additional 
protection for vulnerable groups whic h have to be defined as well as  redress mechanisms. It also 
places new duties on energy companies, for example, to inform consumers about such issues as the 
provenance of their electricity, or ways of saving energy. Member Stat es are required to ensure that 
there are adequate safeguards to protect vulnera ble customers, including the non-disconnection of 
electricity in "critical times". It is important to note that a ny mechanism adopted to protect 
vulnerable consumers must not inte rfere with the operation of the market and must take into 
account other social policy measures in the Member State. It is in the interest of governments to 
help vulnerable consumers by improving their ener gy efficiency, and not only subsidizing their 
energy bills.  National energy regulators have the task of ensuring that consumers get the best prices, the widest 
choice of supplier and the best qua lity of service possible. The cr eation of a European Agency for 
the Cooperation of Energy Regulators will help strengthen regulators. 
 To inform consumers about their rights and ho w to use them, the 2009 legislation introduces a 
European Energy Consumer Checklist
31. The EU has also brought together national consumers 
groups, European umbrella groups, such as BEUC  (the European Consumers’ organisation), and 
representatives of the ener gy industry to help raise awareness of consumers' rights within the energy 
industry and vice-versa.   Issues of concern to consumers, such as transparen cy, clear billing, fair cont racts and a fair dispute 
settlements procedure, are discussed and monito red at the Citizens' Energy Forum (London Forum), 
launched in 2008. The Forum brings together the national and European c onsumer associations, 
                                                
 
28 4th Benchmarking Report on Electri city Quality of Supply Ref. C0 8-EQS-24-04, 10 December 2008.  
29 Report on retail electricity markets being prepared by Commission (SANCO) in 2010. 
30 Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common 
rules for the internal market in electricity.  
Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common 
rules for the internal market in natural gas. 
31 This Checklist is established to have practical answers to questions such as: who are the active suppliers in my 
area?, or where should I go if I have a complaint about my supplier?, etc. 
 10   representatives of the Member States, national energy regulators and representatives of the 
electricity and gas industr y to discuss ways of improving consumer service. 
 One of the main complaints from consumers is in accurate or incomplete billing; the introduction of 
communication technology will significantly remove  this as an issue for consumers. The 
introduction of bi-directional communication will allow the consumer to get a fair value for 
electricity that they generate as  well, thus facilitating the use of micro and renewable generation. 
Member States are to have an active role in any rollout by ensuring that  the systems that are 
implemented are interoperable and a dhere to the relevant internati onal standards and best practice. 
 In addition, new provisions on the introduction of Smart Metering is a key advance in the operation 
of retail markets that will result in improved re tail market competition. The new devices have the 
potential to improve information for consum ers and therefore provide for tariff innovation. 
Consumers will be able to respond to the price signa ls that are provided to them, which may be to 
decrease consumption, but it may also be to increas e consumption (for example by electric vehicles) 
depending on network conditions. Consumers can th erefore become a more active player in the 
market with the use of smart meters featuring th e right functionalities to provide them with the 
services they need, want and unde rstand, for their own benefit.  
 Nevertheless, there are still gaps between the intention of the EU le gislation, to improve services to 
energy consumers, and its delivery. Poor implem entation or ineffective regulation reduces the 
benefits to consumers. The Commission is pursu ing a number of Member States for not fully 
implementing EU rules for consumers. It will al so produce its first Benchmarking report on energy 
consumers in November 2010.   
• Developing infrastructures 
 
In the EU internal energy market, a key tool to  promote interconnections is the trans-European 
energy networks (TEN-E) programme. Following a review in 2006, the current objectives of the TEN-E policy
32 are to: (1) support the comple tion of the EU inte rnal energy market, (2) reduce the 
isolation of less-favoured and island regions, (3) s ecure and diversify the EU's energy supplies also 
through co-operation with third countries, (4) cont ribute to sustainable de velopment and protection 
of the environment.  Over the past years, the TEN-E programme has positively contributed to the development and 
operation of the internal energy market
33. In particular, the eleven completed cross-border 
electricity projects34 accelerated by the TEN-E policy framework have permitted increased energy 
trade and more competition, co ntributing to the convergence of  average energy prices and 
stimulating market integration and thus the de velopment of a true in ternal energy market. 
 Security of supply has also been reinforced through increased transmission capacity between as 
well as within Member States, both for electricity  and gas, as well as the three LNG terminal and 
gas storage projects. In this resp ect, TEN-E has contributed to great er diversity in gas supplies.  
 Progress has been more mitigated as regards the objectives to reduce the isolation of peripheral 
regions and islands. Four out of nine projects  are under construction. The uncertainty over the 
future electricity generation mix (imported gas ve rsus renewables) is a brake on infrastructure 
developments in isolated markets.                                                  
 
32 Decision No 1364/2006/EC. 
33 SEC(2010) 505. 
34 Identified as being of common interest in the TEN-E framework. 
 11   TEN-E contribution on sustainable development and the protection of the environment, a relatively 
new addition to TEN-E, has thus far been limited. There are a number of projects adapting the networks to increased availability of renewable energy, in the electric ity as well as in the gas sector. 
 In terms of political impact, TEN-E  has been most effective in thos e projects that were selected for 
first priority funding, namely proj ects of European interests, and that had considerable political 
support as well as commercial potential. It has ma de a positive contribution to selected projects by 
giving them political visibility and helping levera ge funds from the financial market. The "TEN-E 
label" given to projects with the highest Eur opean interest and the creation of European 
Coordinators in 2006 have been co nducive in delivering results. In view of these objectives some 
progress has been achieved in the implementation of  the TEN-E during the past years (see Annex V 
presenting a statistical overview of  the TEN-E implementation programme).  
 The Second Strategic Energy Review in 2008 already streamlined several infrastructure initiatives 
as energy security priorities for the EU: the Baltic  Interconnections Plan, a Southern Gas corridor 
for gas supply from Caspian and the Middle – Eastern sources, LNG capacity expansion, a 
Mediterranean energy ring, North – South gas and electricity interc onnections within Central and 
South-East Europe, a North Sea of fshore grid. In relation to the fi rst, in June 2009, the Baltic Sea 
Region States reached an agreement on the Baltic En ergy Market Interconnections Plan identifying 
a number of steps to improve energy security in the region. 
 Despite the progress achieved, the dramatic changes the EU energy policy framework has 
undergone in the recent years call for a thorough re view of both the concept and rationale of the 
TEN-E framework. The programme ha s responded too slowly to the major energy and climate goals 
of today, and is poorly equipped to deal with the growing challenges that will arise from the 2020 
and 2050 ambitions. As examined in the November  2008 reflection exercise about a possible new 
EU Energy Security and Infr astructure Instrument (EESII)
35 and identified in the TEN-E 
Implementation report36, the major shortcomings of the curr ent TEN-E framework include the lack 
of focus and definition of Eur opean priorities, lack of coor dination between TEN-E and other 
energy infrastructure activities and instruments (s uch as structural funds, EIB interventions, as well 
as IPA and ENPI/NIF instruments for third count ries), the challenge of lengthy authorisation 
procedures, lack of coordination and cooperation on trans-border pr ojects, as well as limited TEN-E 
budget (i.e., EUR 155 million for the period 2007- 2013, mainly awarding grants for studies and 
only to a minor extent for works).  Some of the shortcomings have already been tack led, paving the way for the forthcoming EESII. In 
2009, as the financial and economic crisis unfolded, public expenditure interv entions to facilitate 
investments in energy networks became necessary. EU institutions agreed on the creation of the 
European Energy Programme for Recovery (EEPR)
37. The EEPR is a financial instrument whose 
overall objective is to stimulate recovery fr om the downturn affecting the EU economy while 
enhancing the achievement of the EU's  energy and climate policy objectives. 
 The EEPR was endowed with a €3,980 million fina ncial envelope in support of three sub-
programmes. For gas and electric ity interconnection projects, the Regulation allocated respectively 
€2,365 million; and additional €565 million to offshore wind electricity projects; as well as €1,050 
million to carbon capture and storage projects (CCS).  
                                                 
 
35 COM(2008) 782. 
36 COM(2010) 203. 
37 Regulation (EC) No 663/2009 of the European Parliament and of the Council of 13 July 2009 establishing a 
programme to aid economic recovery by granting Community financial assistance to projects in the field of 
energy. 
 12   In order to maximise the impact in terms of bot h energy policy and economic recovery objectives, 
the EEPR focuses on a relatively small number of highly strategic projects38. The identification of 
the projects was driven by the EU  energy policy orientations set ou t in the Second Strategic Energy 
Review, taking into account progress made in th e implementation of the TEN-E programme and an 
adequate geographical balance, an d consultations with stakeholders  in the areas covered by the 
programme. Other key award criteria were the ex tent to which lack of access to finance was 
delaying the implementation of the action; the extent to which the Community grant would 
stimulate public and private investments; and the social, economic and environmental impact. 
 The EEPR has been from the beginning an accelerator  of infrastructure investments. Indeed, the 
selected projects although they  were technically mature, how ever, the perspective of the 
Community financial support for capital expenditure  has proven to be deci sive in enhancing the 
actual realisation of the projects. In particular, EEPR funding has proven to have a catalytic effect in 
attracting co-financers and encouraging them to make investment commitments. This has made 
possible the setting in motion of projects that otherwise could be delayed or abandoned due to 
funding constraints, particular ly severe under th e current economic circumstances. The EU 
contribution will have an important leverage ef fect. The expectation is that the €2.3 billion EEPR 
grants will help to lever up to €22 billion of privat e sector investment over the next 3 to 5 years. 
                                                  
 
38 COM(2010)191, Annex to the Report from the Commission to the Council and the European Parliament on the 
implementation of the European Energy Programme for Recovery. 
 13   III – Acting for a sustainable, secure and competitive energy supply within the 
EU  
 
 The EU primary energy consumption represents  1800 Mtoe (2008 data). EU indigenous energy 
production covered 850 Mtoe.   
 
  Source: Eurostat 
 
Therefore, energy imports, representing 1015 Mtoe, made the EU dependent on external energy 
supplies to the level of 54.8% all fuels taken together (see Annex VI on EU-27 energy demand 
developments and total final energy consumptio n by sectors; Annex VII on EU-27 energy imports 
dependency).   
 
• Promoting renewable energy  
 
Renewable energy sources (RES) have an important role to play in securing diversified, mainly 
indigenous, energy supplies and in combating clim ate change. Moreover, further deployment of 
renewable energy technologies has a potential to create hundreds of thousands of jobs in the EU.  
 Renewable energy production has gr own rapidly in the last ten ye ars, especially in a few key 
Member States with stable supportive policie s. Over 1997 - 2007 the RES and waste generation 
park
39 grew by around 80 GW whereas over 1990 – 1997 devel opments in this area represented just 
15 GW. The RES and waste additionally insta lled capacity amounted to  64.4 GW over 2000-2007 
while it was only 41.9 GW for thermal power plants . Wind power now forms the highest share of 
new production capacity and in 2007,  it accounted for 25% of the net RES installed capacities.  
                                                  
 
39 Classification category used by ESTAT. 
 14   Total RES and Waste
Hydro Power Stations
Wind-TurbinesThermal Power Stations
060120180240300360420480
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(GW)
Total RES and Waste Hydro Power Stations Wind-Turbines Solar Geothermal Plants Waste Thermal Power StationsEU-27 - Net installed electricity production capacity of renewable energy
 
Source: Eurostat 
 
(See Annex VIII for further details on re newable energy sources developments.)  
 EU level initiatives such as the so called "Green electricity Direc tive" (2001/77) and the "Biofuels 
Directive" (2003/30) have tried to  stimulate an increase in the consumption of renewable energy. 
The first one established an overa ll EU target of 21% and individua l national indicative targets for 
the RES shares in the final electr icity consumption to be realised by 2010. The second required that 
all Member States ensure at least 5.75% of their total trans port fuel consumption comes from 
biofuels and other renewable fuels. Despite the si gnificant growth achieved in the use of renewable 
energy over the last couple of y ears, the latest EURO STAT data on RES shares available for 2008 
(16,6% for green electricity and 3,5% for renewable fuels) indica te that 2010 targ ets will not be 
met. A few Member States were close to reaching their renewable electricity targets and a handful 
of them had already met their bi ofuels targets ahead of 2010 refe rence date. Most EU countries 
however were lagging behind in their efforts to increase the share of renewables
40. Next assessment 
of the Member States' progress will be issued before the end of 2010.  
 The new legal framework establishe d by the Renewable Energy Directive
41 agreed in December 
2008 for the first time sets out binding targets for all Member State in order to achieve the overall 20% renewable energy target for the EU by 2020. In addition, the directive also includes a 
mandatory 10% target for the shar e of renewable energy in trans port for all Member States and 
requires establishment of National Renewable En ergy Action Plans for the fulfilment of these 
targets. The new EU framework legislation for renewable energy also a ddresses the problems of 
administrative hindrances to the development of rene wables and their integration in the grids, as 
well as sustainability requirements for biofuels . By setting a longer term regulatory framework, it 
can be expected to deliver a significantly higher rate of increase in the consumption of renewable 
energy and create investor confidence over the period of the Energy Action Plan 2011-2020.  
 The table below gives an insight in renewabl e energy developments and defined targets. 
                                                 
 
40 COM(2009) 192, The renewable energy progress report. 
41 2009/28. 
 15   share of 
renewable 
energy in…  
2001  
most recent data  
target 2010 
(indicative)  
target 2020 
(binding) 
electricity generation 13.4% (36 Mtoe) 16.1% (47 Mtoe  - 2007) 21% no sectoral 
target 
road transport 0.3% (1 Mtoe) 3.4% (10 Mtoe - 2008) 5.75% 10%42 
heating43 9.1% (52 Mtoe) 11.5% (63 Mtoe - 2007) no target no sectoral 
target 
final energy consumption 7.6% (89 Mtoe) 9.8% (118 Mtoe - 2007) no target
44 20% 
 
Key issues for a further successful progress with re newable energy are related to cost-effectiveness, 
technological development and sustainability.   The use of renewable energy sti ll generally costs more than c onventional energy, although cost 
differences are falling
45. To achieve the targets, support systems are therefore needed. 
Responsibility for support falls mainly on Member States.  
 The so called "cooperation mechanisms", set up by the Directive, will contribute to cost-
effectiveness by allowing cheaper renewable energy that is produced and consumed in one Member 
State, perhaps with high potential, to contribute  to the target of another – perhaps with less 
potential, more expensive resources but a higher target
46. The functioning of  the cooperation 
mechanisms will have to be evaluated by 2014.  National support schemes for the renewable energy currently do not cover projects with a strong 
cross-border component, such as electricity grid development and offshore wind. Even at national 
level, more work is needed to improve the inte gration of renewable ener gy (electricity, biogas and 
biofuels) in energy distribution networks. Such integr ation and the increase in  the number of market 
players will increase competition in all three energy sectors. In the electricity sector it should also 
reduce balancing costs. Overall, it should result in cost savings fr om increased trade in energy.  
 The EU framework also includes guarantees of origin  as a tool to help stimulate the retail market 
for renewable energy products. As the Commission turns to improving the cost effectiveness and 
efficiency of the retail market for all elements of  the energy sector, this framework will also need 
attention.    Most of today's renewable energy is supplied by a few technologies: large hydropower, onshore 
wind, biomass and first-generati on biofuels. Progress towards en ergy decarbonisation after 2020 
will be easier and cheaper if more advanced technologies, such as offshore wind, solar power, renewable electricity use in transport, second-generation biof uels and biomass can also make a 
significant contribution. These prom ising technologies have been known for some time. Some, such 
as offshore wind and second-genera tion biofuels, are beginning to  show signs of good progress. 
Others, such as electric cars, are developing more slowly.                                                   
 
42 The 2020 target can be fulfilled th rough the use of renewable energy in all types of transport. Energy use in 
maritime and air transport counts only fo r the numerator, not the denominator. 
43 "Heating" is a catch-all term for energy consumption that is neither for transport nor in the form of electricity. 
44 A 1997 White Paper established an indicative target of 12% of primary energy consumption in 2020, but this 
was not translated into legislation. 
45 JRC analysis and IEA analysis ''Projected costs of generating electricity: 2010 edition''. 
46 The Directive's targets are based on a flat-rate elemen t and an element related to GDP per capita. They do not 
take into account potential. 
 16   The Commission's renewable energy policy duri ng 2011-2020 needs to lay the foundation for new 
technologies to make a major c ontribution in the decades that follow. On the research and 
development side, arrangements are being put in place in the framework of the SET Plan. On the 
implementation side, technological development is en couraged by a possibility to differentiate the 
support systems in favour of more promising tec hnologies. The use of advanced technologies such 
as renewable electricity in transport and second ge neration biofuels also broadens the diversity of 
our energy supply and helps prep are our energy sector for evol ving into a low carbon sector. It 
remains to be seen whether more will need to be  done to increase the pace of development of new 
technologies.  Sustainability scheme for biof uels and bioliquids set up by Renewable Energy Directive was the 
first of its type in the world and is still the most  stringent. The criteria it lays down apply to all 
biofuels whether domestically produced or import ed. Voluntary certification schemes, recognised 
by the Commission and subject to independent auditing, will play an important role.  
 For other types of biomass (solid and gaseous biomass in heating and electricity), a review in early 
2010
47 concluded that sustainability performance is presently sufficient to avoid the need for the 
introduction of a binding European sustainabi lity scheme. The Commission recommended that 
Member States choosing to introduce such a scheme at national level s hould use an appr oach that is 
consistent with each other and with the approach fo r biofuels. This issue will be further examined at 
the end of 2011.   
• Demonstrating CO
2 capture and storage on an industrial scale 
 
CO 2 capture and storage (CCS) has become an integr al part of European Union (EU) energy policy 
in recent years. In most future scenarios the de ployment of CCS is deemed to be a necessity for 
achieving GHG reduction targets. An alysis by the International Energy Agency suggests that 
without CCS, overall costs to reduce emissions to 2005 levels by 2050 increase globally by 70%. However, CCS is not currently an economically vi able climate change mitigation option and some 
de-risking of the technology is required to enable commercial  deployment before CCS can 
contribute to these climate goals. Consequently, the European Commission has identified the need 
for a Europe-wide programme of  CCS demonstration projects. 
 The first Communication from the Commission regarding CCS, entitled "Sustainable power generation from fossil fuels: aiming for near-zero emissions from coal after 2020", was published in 
January 2007. The Commission undertook to determine th e most suitable way to  support the design, 
construction and operation by 2015 of up to 12 large-s cale demonstrations of sustainable fossil fuel 
technologies in commercial power generation. Since then, all actions related to CCS and designed 
by the Commission take this objective into a ccount. The second CCS communication entitled 
"Supporting early demonstration of sustainable power  generation from fossil fuels" confirmed the 
Commission's commitment to make the technology commercially viable by 2020.  
 A CCS Directive was adopted in April 2009 as part  of the Energy and Clim ate Package and entered 
into force in June 2009. It establishes a comprehensive le gal framework to manage the 
environmental risks of capture, trans port and the geological storage of CO
2 and at the same time 
removes existing legal barriers in EU legislation. Whilst the Di rective itself focuses on the 
regulation of storage, risks relate d to capture and transport of CO 2 are dealt with through 
amendments of related EU legislation.                                                  
 
47 COM(2010) 11, Report from the Commission on sustainability requirements for the use of solid and gaseous 
biomass sources in electricity, heating and cooling. 
 17   A CCS Project Network was established in 2010 to facilitate knowledge shar ing, assist with public 
engagement to raise awareness of  the potential of CCS and intern ational co-opera tion in knowledge 
sharing. It additionally provides participating memb ers - large-scale demonstration projects - with a 
common European identity.  CCS was also included in the scope of the revi sed ETS Directive. It ensures that stored CO
2 is not 
regarded as emitted and provides therefore a financial incentive for CCS. In addition 300 m allowances from the New Entrants Reserve (NER ) shall be available to  support commercial-scale 
CCS and innovative RES demonstration projects in th e territory of the Uni on. The projects to be 
supported under the NER300 programme will be select ed in a competitive procedure to be launched 
in 2010.  Six large-scale CCS demonstration projects have already secured some f unding from the European 
Energy Programme for Recovery (EEPR). A total of €1 billion has been allocate d to projects in the 
UK, Germany, the Netherlands, Poland, Spain a nd Italy. The NER300 funding mechanism will 
provide complementary financin g for CCS demonstration project. The opening of a call for 
proposals is expected in autumn 2010.   Key issues for successful CCS progress are relate d to timely deployment of the demonstration 
plants, implementation of the legal framework by Member States, and addressing the issues of 
optimal infrastructure deployment and the current low levels of public awareness. The European 
Infrastructure Package, scheduled for the e nd of 2010, will consider future needs of CO
2 
infrastructure.  The most urgent priority remains the deploymen t of large-scale CCS demonstration projects by 
2015 to prove the technology can be economically  and environmentally viable around 2020. Both 
EEPR and NER 300 support schemes constitute a solid  base but in order to deploy a successful 
demonstration exercise in Europe more is need ed. The CCS Industrial Initi ative under the SET Plan 
referred to below shall be a driver for addressi ng the outstanding needs of industry and governments 
with respect to refinement of the technologies.   
• Completing the Community safety, security and non-proliferation framework for 
nuclear energy 
 
Alongside renewable energy sources, nuclear energy contributes to combating climate change and 
strengthening security of  supply, by reducing EU's external de pendence on oil and gas. As one of 
the cheapest low carbon energy sources, nuclear ener gy also contributes to the EU competitiveness. 
Over the last years, there has been a renewed and growing interest in nucl ear energy which is not 
only visible at global level, but also in EU Member States. A ma jority of Member States have 
chosen to use nuclear energy for power generation. The EU-27 has the largest number of commercial nuclear power stations in the world:  some 150 nuclear reactors are in operation, 
providing around one third of EU's  electricity and two thirds  of low carbon electricity.  
 
Based on the broad set of compet ences entrusted to the Community by the Euratom treaty, a wide 
range of initiatives have been launched over the last years with the objective to develop the most 
advanced framework for nuclear safe ty, security and non-proliferation. 
 Nuclear safety is and will remain one of the absolute priorities of the EU. In this field, the Commission – with the support of the European Council – brought together all national nuclear 
regulators in a European High Level Group on nuclear safety and waste management. A 
fundamental step was the adoption in June 2009 of a Directive establishing the basic framework for 
 18   nuclear safety48.  This new common EU framework provi des binding legal force to the main 
international nuclear safety standards (IAEA funda mental safety principles and Nuclear Safety 
Convention - CNS - obligations) a nd reinforces the independence and resources of the nuclear 
energy regulatory bodies in all EU Member States. When this Directive will be implemented the EU 
will be the first major nuclear player having common binding nuclear safety rules. Since the 
Euratom Community is a Contract ing Party to the CNS, the Co mmission presents the Euratom 
Report on behalf of Euratom and takes part in  the CNS Review Meetings, alongside the EU 
Member States.   In the context of enlargement of the EU, the Co mmission monitored and helped with the  safe 
decommissioning of nuclear power plants in Bulg aria, Lithuania and Slovakia, with substantial 
financing being provided, in cooperation w ith the EBRD. In 2006, the Commission published 
recommendation on the management of financial resources for the decommissioning of nuclear 
installations, spent fuel and radioactive waste
49.  
 The Commission also made full use of all key Community instruments under the Euratom Treaty, 
in particular in the field of  nuclear investments by providing Commission opinions on new build, 
radiation protection, research and technology, nucle ar safeguards and international relations. The 
framework for nuclear safeguards ha s also been strengthen ed through the introduction of integrated 
safeguards in all EU non-nuclear weapons stat es with significant nuclear installations. 
 Taking into account the importance that public accep tance and transparency play in relation to 
nuclear energy, the Commission launched in 2007 th e European Nuclear Energy Forum (ENEF) to 
debate risks, opportunities and tr ansparency of nuclear energy. 
 In parallel, Commission's activities were focu sing on investment asp ects and technological 
developments. Nuclear Illustrative Programme, the so called 'PINC report', giving a factual 
overview of investment projects was a dopted and revised respectively in 2007
50 and 200851.  
 In relation to technol ogies, in 2007, the Sustaina ble Nuclear Energy Technology Platform (SNETP; 
www.snetp.eu
) was launched with the endorsement of the EC. Its objective is to develop and 
implement a Strategic Research Agenda covering continued safe operation of current and new-build 
light water reactors (Generation II & III), the cogenera tion of electricity a nd heat for industrial 
processes using High / Very High Temperature Reactors, and the development of Generation IV 
Fast Neutron Reactors (FNR) and closed fuel cy cles for greatly increased sustainability. In 
particular, SNETP has established a Task Force of key industrial and research players to implement 
the European Sustainable Nuclear Industrial In itiative (ESNII) under the SET Plan. ESNII will 
design and construct Gen-IV FN R prototypes and demonstrators in order to demonstrate the 
technical, industrial and economic feasibility, increas ed sustainability through more efficient use of 
uranium resources52, and reduction of waste volumes and lifetimes. Then, in November 2009, the 
Technology Platform for Implementing Geologi cal Disposal of nuclear waste (IGDTP; 
www.igdtp.eu ) was launched with the objective of coordi nating the remaining R&D in the lead up 
to the construction and operation by 2025 of Europe’s (and the worl d’s) first deep geological 
repositories for high-level and l ong-lived radioactive waste.  
                                                 
 
48 Council Directive 2009/71/Euratom of 25 June 2009 establishing a Community framework for the nuclear 
safety of nuclear installations. 
49 2006/851/Euratom. 
50 COM(2007) 565. 
51 COM(2008) 776. 
52 FNRs can produce 50-100 more ener gy than current nuclear  reactors from a given quantity of uranium. 
 19   Furthermore, Statutes of the Euratom Supply Agency (ESA)53 were reviewed in 200854. In addition 
to its traditional role of ensuring  supply security of nuclear materi als to users in the Community by 
diversifying supply sources, th e Agency has now been required to monitor nuclear market 
developments and issues regular publications.   In the current context of renewed development of nuclear energy in the EU, the need for stronger EU nuclear policy actions is becoming even more ev ident. The EU should – in the interest of all 
Member States – complete the le gal framework for nuclear energy. Th is should cover in particular 
the area of nuclear waste management: a proposal for a directive has been adopted on 3 November 
2010. A more harmonized approach could be introdu ced towards design certi fication and licensing, 
as well as in relation to civil liability and education and training aspects. Moving towards 
harmonization in pre-licensing of nuclear power pl ants and nuclear liabil ity regimes would bring 
benefits in terms of increased nuclear safety, be tter protection and equal treatment of EU citizens, 
and a level playing field for the industry w ith more legal and regulatory certainty.  
  
• Guiding investments into smart a nd low carbon energy technologies 
 
To accelerate the development of low carbon t echnologies, in November 2007 the Commission 
presented the Strategic Energy Technology Plan (SET Plan). Endorsed by the Council in March 
2008, the SET Plan proposes to launch six European I ndustrial Initiative s (EIIs) in the areas of wind 
energy, solar energy, CO
2 capture and storage, advanced nuclear fission, electricity grid as well as 
bio-energy. More Industrial Initiatives are actually in the deve lopment phase. The objective of the 
Industrial Initiatives is to pool together all stakeholders to define and implement ambitious 
technology programmes with the aim to support the reaching of the 20-20-20 targets. In addition, 
the SET Plan also proposed the setting up of the European Energy Research Alliance (EERA), 
pooling together major European research orga nisations and asking them to perform Joint 
Programming in areas related to energy technologies.  During 2008-2009, extensive work has been undertaken by stakeholders, in part icular the European 
Technology Platforms (ETPs), to draft technology road maps for the European Industrial Initiatives, 
describing the scope of actions and defining an overa ll budget. This work has served as the basis for 
the Communication on Investing in Low Carbon Technology issued by the Commission in October 
2009, with EP Resolution and Council Conclusions  in March 2010. The overa ll required budget for 
the six initial Industrial Initiatives, now complemented by a few others (i.e., Smart cities) has been 
evaluated at €80 billion over ten years which roughl y means a three fold increase from the current 
level of investment (see Annex IX for Estima tion of the financing needs for key technology and 
actions proposed in the SET-Plan, 2010 – 2020). Th e financing will have to come from different 
coordinated sources and combining diverse fundi ng mechanisms: national/EU/corporate sources, 
public/private, and grants/loans/other financing engi neering tools. The EIB will certainly be a major 
player to ensure the success of this endeavour and specific dedicated t ools might have to be 
designed. In June 2010, four Eu ropean Industrial Initiatives on Wind, Solar, CCS and Grid have 
been officially launched in Madr id. At the same time as the la unch of the four first Industrial 
Initiatives, four Joint Program mes under EERA have also been launched on Wind, Solar, Grid and 
Geothermal energy. Two other Indu strial Initiatives on Advanced Nuclear Fission and Bioenergy 
are expected to be launched in November 2010 in  Brussels. The preparation of the Initiative on 
Smart Cities has also started.                                                  
 
53 Established by the Euratom Treaty, Art. 52. 
54 2008/114/EC, Euratom, Council decision of 12 February 2008, establishing Statutes for the Euratom Supply 
Agency. 
 20   Moreover, the energy demonstration part of the 7th research Framework Programme was radically 
changed. All new demonstration pr ojects have to fulfil very seve re conditions which are derived 
from the SET plan. Now all projects have to focus on the SET plan priorities; they have to have a 
very significant impact on ener gy efficiency and low carbon ener gy technologies; industry has to 
commit itself to deploy the demonstrated technologies  at large scale before 2020; all projects have 
to be clearly linked to the energy and climate change policy; about one third of the budget is spent 
on the electricity grid in order to solve bottlen ecks for rapid deployment of renewables. In 2010 
projects are on average about 10 times larger in budget and about 50 to 100 times larger in impact 
than in 2006.   Now that the research, developm ent and technology innovation agenda  of the EU energy policy is 
well defined, the key challenge is related to th e urgency to increase investments in research, 
technology development and demonstrati on in all SET-Plan initiatives.  
 
 
• Taking specific measures to strengthen supply security within the EU: 
 
Gas supply interruptions that the EU witne ssed in early 2006, 2008, 2009 a nd 2010, as well as EU's 
strong dependence on imports of petroleum products and the geopolitical uncertainty in many producer regions, accelerated th e revision of security of supply related legislation.  
 Since 1968, EU legislation imposes an  obligation on Member States to maintain minimum stocks of 
crude oil and/or petroleum products that can be used in the event of a supply cr isis to replace all or 
part of the shortfall. In  order to strengthen the Community's capacity to face a supply disruption, the 
Commission initiated in November  2008 the revision of the oil st ockholding system. Adopted in 
September 2009, the new directive
55 aligns the stockholding obl igation and the calculation 
methodology with those of the International Ener gy Agency (IEA), enables the EU – both IEA and 
non-IEA Member States – to contribute better to an IEA action and improves the availability of 
stocks. Member States have to transpose the new directive into national legislation by the end of 
2012. A new reporting system is under development to satisfy the requirements of the directive.  
 Security of gas supply is addressed in seve ral legal acts. The Gas Directive (2009/73/EC) 
recognizes the right of Member States to regard security of supply as a public service obligation. 
This Directive has established common rules for th e internal market in natural gas that enable 
Member States to take the requis ite measures to safeguard supply in the event of a sudden crisis in 
the energy market. The Directiv e 2004/67/EC established a Gas Coordination Group to facilitate 
coordination of security of supply measures by the Community in the event of a major supply 
disruption. This group could also a ssist Member States in coordina ting measures taken at national 
level.   In 2009, the Commission came forward with a propos al for a Regulation concerning measures to 
safeguard security of gas supply with the objecti ve to guarantee the permanent functioning of the 
internal market for gas and to establish a comm on legal and technical framework for tackling the 
effects of supply disruptions
56. This proposal defines the responsibil ities of all rele vant actors, for 
instance natural gas undertakings, competent authorities of the Member States and the European 
Commission in the area of security of supply. The competent authority designated by each Member 
State is responsible for carrying out  a Risk Assessment and establishing  a Preventive Action Plan 
with the measures to reduce the high risks identi fied. This Plan lays down national measures how 
                                                 
55 Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain 
minimum stocks of crude oil and / or petroleum products. 
56 COM(2009) 363 repealing the Directive 2004/67/EC; th e Regulation is expected to be adopted in autumn 
2010. 
 21   the Member State plans to fulfill the commonly defined infrastructure and supply standards, 
evaluates the risks, draws up preventive measur es and provides information on public service 
obligations. The competent authority is also requir ed to establish an Emergency Plan defining the 
measures to be taken in a crisis  situation to mitigate  the impact of a gas supply disruption. If the 
Plans are inconsistent, or nationa l measures endanger the security  of supply in another Member 
State, the Commission will have the opportunity to require the modification of the Plans or 
measures. The infrastructure standard shall cont ribute to infrastructure development through the so-
called N-1 standard, which ensures that the network is capable of compensating the loss of the 
single largest gas supply infrastruc ture, and the obligation to establ ish gas flows in both directions 
on interconnections. The supply standard shall provi de a common level of minimum obligations for 
the market to enable gas flows to protected cust omers even in extreme climatic conditions. These, 
and other additional public service obligations shall be made public thus further enhancing the level 
of transparency on the gas market. Cooperatio n among Member States and the Commission is 
strengthened both in the preventive and in the cr isis management stage. Declaration of Union or 
regional emergency shall be made by the Commission.  Electricity blackouts in the EU in November 2006 have highlig hted the need to define clear 
operational standards for transmi ssion networks and for correct maintenance and development of 
the network. Therefore, in order to ensure the functioning of the internal  energy market, the EU 
established obligations for the Me mber States to safeguard secu rity of electri city supply and 
undertake significant investment  in electricity networks
57. These requirements define the adequate 
level of interconnection between Member States, an adequate level of generation capacity and 
balance between supply and demand.   Given the massive investments in all types of ener gy infrastructure needed in the EU in order to 
meet the security of supply as well as the climate challenges of the EU energy policy, the 
Commission proposed in 2009 a monitoring of inve stment projects. In June 2010, the Council 
adopted a new Regulation which lays down the fram ework for a regular monitoring of investment 
projects in energy infrastructure within the EU
58. This should increase transp arency on the structural 
evolution of the EU energy system and enhance the ab ility of EU institutions to anticipate problems.  
 In addition, a network of energy security corres pondents (NESCO) of the EU Member States was 
created in 2007 to se rve as a system for an early exchange of information in ca se of signals of 
potential supply disruptions.   
 
                                                
 
57 Directive 2005/89/EC of the EP and of the Council of  18 January 2006 concerning  measures to safeguard 
security of electricity supply and infrastructure investment. 
58 Council Regulation (EC, Euratom) Nr 617/2010 concerning the notification to the Commission of Investment 
projects in energy infrastructure within the EU and repealing Regulation (EC) No 736/1996. 
 22   IV - Acting for EU's external supply security and sustainable use of energy 
worldwide 
 
 Given global challenges of energy security, slow  progress globally on combating climate change, 
EU’s rising external supply de pendence, the emergence of larg e new energy consumers, volatile 
energy prices and other factors, external dimens ion has become an integral part of the EU's 
developing energy policy.   
Over the years, successive European Councils, echoed by the European Parliament, stressed the 
need for a common approach to external energy policy. The Energy Action Plan of 2007 called for 
enhancing relations with EU's main supplier, consumer and tr ansit countries, identifying main 
partners as well as areas for action. The second Strategic Energy Review of November 2008 called 
for incorporating energy in the EU's internati onal relations and its ag reements and external 
assistance programmes. It pointed particularly to the need for more robust international legal 
frameworks based on balance of commitments and benefits and highlighted the role of energy 
infrastructure, including that from  third countries, in the EU's efforts to enhance energy security. 
 In line with these orientations, the Commission over the last several years has established or 
enhanced cooperation dialogues with the world's ma jor energy players, mainly in the forms of 
Memoranda of Understanding or energy dialogues. Often, energy cooperation ta kes place within the 
context of a broader multi-sector bilateral agreemen ts and instruments, for example, in the energy 
chapters of the European Neighbourhood Policy (E NP) Action Plans, Partnership and Cooperation 
agreements, Energy Partnership with Africa, and the Euromed cooperation. Moreover, energy 
cooperation with EU's partners is typically comprehensive in scope, encompassing issues from 
regulatory cooperation, infrastructure  development, and promotion of  sustainable policies to joint 
projects.  
 
Where possible, the attempt is be ing made to underpin th ese relations with so lid legal provisions. 
For example, it is foreseen that the bilateral agreements currently under  negotiation (such as the 
new EU-Russia Agreement, and Free Trade Agreement and Partnership and Cooperation 
Agreement with Ukraine) will include speci fic energy provisions, based on the EU energy acquis 
and the principles of the Energy Charter Treaty, as well as other existing international commitments 
on energy such as in the framework of the WTO.   The EU coordination in internatio nal organizations such as the In ternational Energy Agency, the 
Energy Charter and the G8/G20 has strengthened, a llowing for a greater i nput into global energy 
discussions.   Out of the notable achievements ove r the last several years are th e efforts to extend the Energy 
Community Treaty beyond Southeast Europe. Mo ldova became a full member in May 2010. The 
recent adoption of a new gas law in Ukraine paved the way for the signature in September 2010 of a 
Protocol on the accession of Ukraine to the Energy Community . Negotiations with Turkey are 
ongoing.  Efforts are also progressing to diversify the EU's suppliers and supply routes. EU cooperation with 
the Central Asia/Caspian region is pursued through regional cooperation (B aku Initiative) and the 
implementation of bilateral Memoranda of Understanding (Azerbaijan – November 2006, 
Kazakhstan – December 2006, Turkmenistan – May 2008). At the same time, the Commission has 
been engaging the countries in th e region on establishing a Sout hern Gas Corridor, including a 
trans-Caspian gas link, the impor tance of which was underlined in the Second Strategic Energy 
Review. An important milestone was set in 2009 with the signature of an Intergovernmental 
 23   Agreement on the Nabucco gas pi peline project. The Commission, European Investment Bank and 
the World Bank are currently investigating the feas ibility and possible struct ure of a mechanism for 
the purchase of Caspian gas, a "Caspian Devel opment Corporation" (CDC), which would also 
examine infrastructure aspects (across the Caspian).   The gas supply disruption in January 2009 was unpr ecedented event in the EU energy history. The 
EU response, including mediation efforts between Ru ssia and Ukraine and facilitating a monitoring 
mission, showed the benefit of coordinated European  action. Following the crisis, the Commission 
worked closely with Russia and Ukraine on bilateral basis to take steps that could help prevent a 
similar supply interruption in the future. This incl uded, for example, bringing together a number of 
international financial institutions  with the aim of supporting Ukrain e in modernising the gas transit 
system and the agreement on an Early Warning M echanism with Russia, w ith objective to set up 
operational procedures for notification, consultati on and implementation of solutions in case of 
potential or actual oil, gas or electricity supply interruptions.  
 
A high priority in the EU's external relations is given to the objective of promoting sustainable and 
safe energy use, the uptake of  energy efficiency and low carbon technologies worldwide.  
 Having identified the need for global action on energy efficien cy, the Commission has proposed 
and worked closely with the G8 partners on the es tablishment of the International Partnership on 
Energy Efficiency Cooperation (IPEEC). Agreed by the G8 countries, China, India and South Korea 
in 2008, IPEEC is a high level forum to facilitate actions that yiel d high energy efficiency gains and 
improvements.   The Commission has supported the efforts to advan ce the uptake of renewable energy worldwide, 
including through the efforts of the new internationa l organization in this field – the International 
Renewable Energy Agency (IRENE), which will pr omote the widespread and increased adoption 
and sustainable use of all forms of renewable energy. 
 
In the nuclear field, international cooperation ha s been strengthened through Euratom agreements 
with key partners (revised agreements are bein g negotiated with major EU suppliers of nuclear 
materials – Australia and Canada, while an ag reement with the Russian Federation is under 
preparation), as well as with the International At omic Energy Agency (IAEA). The right of scrutiny 
of the Commission
59 to any draft agreement concluded by a Member State and a third Country 
ensures coordination of national and EU level approaches in this area. Moreover, the achieved 
results in terms of nuclear safety and security  at the EU level make a good case for the EU to 
encourage and convince third countries to make international nuclear sa fety, security and non-
proliferation standards legally binding. In the area of nuclear researc h, two major multilateral 
frameworks - the International Thermonuclear Expe rimental Reactor (ITER) for fusion technologies 
and the Generation IV International Forum for adva nced fission technologies  – contribute to the 
international dimension of the nucle ar component of the EU SET-plan. 
 Despite these developments and improved channels  of cooperation, the EU still does not leverage 
an influence commensurate with its size as a regional player, particul arly vis-à-vis supplier 
countries, even if it is often seen by external pa rtners as a frontrunner in  energy policy development 
and an attractive partner due  to its size and the degr ee of market integration. 
 There is thus both a need and an opportunity for the EU to assert itself more effectively in bilateral 
relations with key partners and in global discussions, pursuing it s diversification objectives and 
contributing to global debate in a way that pr omotes understanding of key supply and demand 
                                                
 
59 Article 103 of the Euratom treaty. 
 24   drivers, well-functioning, open, transparent and competitive energy markets, good governance, and 
comprehensive and sustainable energy policies.   Effective planning and coordination at the Community and Member State level, which is necessary 
to harness the EU collective weight and to avoid situations of multiple di alogues and contradicting 
messages with the same cooperation partner, is not yet in place. Further work is required to 
reinforce synergies between the external dimensi on of the EU energy policy, as newly defined in 
Article 194 TFEU, and other EU policies (trade, development, climate ch ange, etc.) and their 
instruments. Finally, there is still a need to fine -tune priorities and strategies for cooperation with 
EU's main partners as well as to focus the effo rts on a limited number of concrete cooperation areas 
to maximise mutual interest and benefit.  
 25   - ANNEXES - 
 
  
Annex I 
 
 
 
 
Source: Eurostat 
 
 
 26   Annex II 
 
 
Main achievements for the six key areas of the Energy Efficiency Action Plan (EEAP): 
 
 
(1) Energy performance requirements for products, buildings and services:  
Among the biggest successes of the current EEAP is the setting of an  ambitious legal framework for 
buildings and products. The existing Energy Perfo rmance of Buildings Di rective (2002/91/EC) and 
its recast60 go a long way for introducing ambitious but realizable energy performance requirements 
for buildings and increase consumers' awareness. 
The Eco-Design (2005/32/EC) and Energy Labelling (92/75/EEC) fram ework Directives and their 
recasts are significant steps with regard to produ ct policy. The adopted nine implementing measures 
in 2008 (e.g. for electric motors, TVs and domestic, street and office lighting) and the forthcoming 
15 (e.g. water heaters, air-conditioning and ventil ation) will bring ve ry important savings. 
The Energy End-Use Efficiency and Energy Services Directive (ESD)61 has set the general 
framework for many saving actions , including national,  indicative, quantit ative energy saving 
targets and National Energy Efficiency Action Plan s (NEEAPs). However, its soft wording led to 
unsatisfactory progress as rega rds some of its provisions. 
(2) Energy efficiency in the utility sector:  
This has not been sufficiently tackled, and the pr ogress in the sector will mainly result from the 
implementation of the CHP Directive. Certain improvements due to the inclusion of energy 
generation in the ETS are also be note d but the full potential is not achieved. 
(3) Transport:  
Energy consumption in the sector is still incr easing. Nevertheless, a num ber of measures and 
initiatives were adopted tackling the CO 2 emissions from new passenger cars and light commercial 
vehicles, increased fuel efficiency  and improved sustainability, especi ally in the urban areas, of the 
sector. Aviation was included in th e ETS and a Sesar Joint Undertak ing was establis hed in 2007 to 
promote energy efficiency in this sector. 
(4) Financing and pricing:  
Some progress has been made but there are still failures that pr event the investments in energy 
efficiency. Innovative financi ng instruments are being deve loped by EIB, EBRD, national 
promotional banks and private banks. Investments in en ergy efficiency in the residential sector were 
made eligible for support in all Member States u nder Cohesion Policy in May 2009 (at the outset of 
the 2007-2013 period, they were eligible only in EU-12) and the thematic  scope of Financial 
Engineering Instruments was extended in June  2010, now offering an a dditional opportunity to 
support also repayable investments in energy efficiency in buildi ngs, including in existing housing. 
In order to mobilize the sustaina ble energy investments in cities  and regions, 'ELENA' technical 
assistance facility has been launched by the Co mmission and EIB in late 2009. Investments in 
excess of €1 billion have been enabled by the facility so far.  
(5) Changing energy behaviour:  
Some progress has been made to implement th e EEAP 2006 measures but user behaviour still a 
challenge. A number of project s to study and address this as pect were supported under the 
Intelligent Energy Europe Programme. Another initia tive that stemmed out of the current EEAP is 
the 'Covenant of Mayors' which has been a majo r success with more th an 1900 cities, covering 
                                                 
60 COM(2008) 780. 
61 2006/32/EC. 
 27   more than 120 million EU citizens, committing to go beyond the 20% greenhouse gas reduction 
target through development and implementation of  their Sustainable Energy Action Plans (SEAPs). 
More than 85 regions, provinces and networks ha ve joined the initiative so far as supporting 
structures. The Commission has developed and implemented a methodology for development and 
monitoring of the SEAPs, includ ing GHG baseline emission inventor ies of participating cities. 
Further, the extension of the Covenant of Mayors concept towa rds the EU Neighbourhood countries 
has been launched by the Commission. 
(6) International Partnership:  
Some progress achieved with the launching of the International Pa rtnership for Energy Efficiency 
(IPEEC) and a number of bilateral discussions. 
 
 28   Annex III 
 
Market opening gas & electr icity: Proportion of mark et open to competition 
Eligible consumption TWh/ GWh by annual consumption in the country 
Source: SEC(2010)251 final  
 
 
                       
 
                                                
 
62 No developed gas market. 
63 Transitional period, for 2009: 35%, 2013: 100%. 
64 All customers eligible except for micro-systems on all interconnected islands. 
65 Derogation until 2010. 
66 Derogation until 2010. 
67 No natural gas supply. In view of its small and isolated energy system Malta has been granted a permanent 
unconditional and nominative derogation through Commission Decision 2006/859/EC, also featuring in the electricity internal market Directive 2009/72/EC. In view of this derogation, Malta does not have a rate of 
market opening 
68 Derogation until 2010.  
% Market opening 
 
Electricity Gas   
  2007 2008 2007 2008 
Austria 100 100 100 100 
Belgium 100 100 100 100 
Bulgaria 100 100 100 100 
Cyprus62 31,8 31,8 0 0 
Czech Republic 100 100 100 100 
Denmark 100 100 100 100 
Estonia 13 1363 100 100 
Finland 100 100 0 0 
France 100 100 100 100 
Germany 100 100 100 100 
Great Britain 100 100 100 100 
Greece 90,1 90,164 73 90 
Hungary 22,29 64,4 24,96 34,04 
Ireland 100 100 100 100 
Italy 100 100 100 100 
Latvia 100 100 NAP NAP65 
Lithuania66 74 100 100 100 
Luxembourg 100 100 100 100 
Malta67 NA NA NA NA 
Northern Ireland NA 100 NA 100 
Norway 100 100 : : 
Poland 100 100 100 100 
Portugal 100 100 42,9 42,968 
Romania 100 100 100 100 
Slovak Republic 100 100 100 100 
Slovenia 100 100 100 100 
Spain 100 100 100 100 
Sweden 100 100 100 100 
The Netherlands 100 100 100 100 
 29   
 30   Annex IV-1 
 
 
Electricity market indicators: degree of concentration 
 
 Electricity (generation) 
Very highly concentrated  
[HHI above 5000] BE, FR, EL,  LV, LU,  SK, 
CY 
Highly concentrated  
[HHI 1800-5000] CZ, DE, LT, PT, SI, RO, HU,  
DK, NO 
Moderately concentrated  
[HHI 750-1800] FI, PL, UK, ES, IT, NL, AT 
 
Source: Regulators’ submissions, DG TREN calculations, SEC(2010)251 final  
 
 
(HHI by capacity – sum of squared shares of individual companies)  
 31   Annex IV – 2 
 
Wholesale Market Positi on Electricity – 2007/2008 
Number of companies with 
more than 5 % share of 
generation capacity (%) Share of 3 biggest 
companies (by capacity) 
(%) HHI (by capacity) ELECTRICITY 
  
  
  
  2007 2008 ∆ 2007 2008 ∆ 2007 2008 ∆ 
Austria 5 6 1 51,2 50 -1,2 NA NA  
Belgium 2 2 0 99,9 97,5 -2,4 8390 7206 -1184 
Bulgaria 6 6 0 56,4 56,4 0 NA NA  
Cyprus 1 1 0 100 100 0 1 1 0 
Czech Republic 1 1 0 76,85 75,31 -1,54 NA NA  
Denmark 2 2 0 75 75 0 NA NA  
Estonia 1 1 0 99 99 0 NA NA  
Finland 4 4 0 68 68 0 NA NA  
France 1 1 0 93 93 0 6960 NA  
Germany 4 4 0 85,4 84,7 -0,7 NA 2008  
Great Britain 8 8 0 41 42 1 986 901 -85 
Greece 1 1 0 NA NA  10000 10000 0 
Hungary 5 5 0 67 67,9 0,9 2119 1911 -208 
Ireland 5 4 -1 71 86 15 NA NA  
Italy 5 5 0 61,2 57,6 -3,6 2126 1351 -775 
Latvia 1 1 0 93 94 1 8110 8110 0 
Lithuania 3 3 0 84 85 1 3160 3095 -65 
Luxembourg 3 3 0 80 79 -1 5843 5682 -161 
Malta 1 1 0 NA NA 0 NA NA  
Northern Ireland NA 4  NA 86  NA 4096  
Norway 6 6 0 40 43 3 NA 1826  
Poland 5 5 0 50,9 52,5 1,6 1312,7 1363,3 50,6 
Portugal 2 2 0 72,5 72,2 -0,3 4472 4521 49 
Romania 5 5 0 63,7 70,98 7,28 1813 2116 303 
Slovak Republic 1 1 0 85,2 83,9 -1,3 6930 5019,922 -1910,08 
Slovenia 3 3 0 92,7 92,5 -0,2 7208 4369 -2839 
Spain 5 5 0 76 72,9 -3,1 1827 1716 -111 
Sweden 3 3 0 78 74,7 -3,3 NA NA  
The Netherlands 6 4 -2 61 69,9 8,9 1592 1551  -41  
Source: Regulators data, ∆ calculations DG TREN, SEC(2010)251 final  
 
 
32 
 Annex IV – 3 
 
Retail Market position  Electricity – 2007/2008 
Number of 
nationwide 
suppliers Companies with market share 
over 5% in the whole retail 
market (%) Market share of three largest 
companies in whole retail 
market (%) ELECTRICITY 
  
  
  
  2008 2007 2008 ∆ 2007 2008 ∆ 
Austria 10 7 6 -1 64 62 -2 
Belgium 12 4 NA 1 NA NA NA 
Bulgaria 1 3 3 0 97,5 97,5 0 
Cyprus 1 1 1 0 100 100 0 
Czech Republic 310 3 3 0 99 99 0 
Denmark 16 7 7 0 NA NA  
Estonia 3 1 1 0 99 99 0 
Finland 25 4 4 0 40 40 0 
France 17 1 1 0 94 97 3 
Germany 17 3 3 0 46,1 52 5,9 
Great Britain 17 NA NA  NA NA  
Greece 37 1 1 0 100 100 0 
Hungary 78 4 4 0 87,18 80,73 -6,45 
Ireland 9 4 4 0 85 84 -1 
Italy 23 3 3 0 60 59 -1 
Latvia 2 1 1 0 100 100 0 
Lithuania 2 1 1 0 100 100 0 
Luxembourg 7 3 4 1 93 94 1 
Malta 1 1 1 0 NA NA  
Northern Ireland 18 NA 4  NA 90  
Norway 26 5 5 0 31,2 36 4,8 
Poland 19 6 6 0 44,9 44,3 -0,6 
Portugal 4 2 2 0 99,6 99,6 0 
Romania 138 5 5 0 44 48 4 
Slovak Republic 176 3 3 0 35 60 25 
Slovenia 13 7 7 0 68 58 -10 
Spain 75 4 4 0 83,9 84,8 0,9 
Sweden 104 3 3 0 NA NA  
The Netherlands 21 4 4 0 NA NA  
Source: Regulators data, ∆ calculations DG TREN, SEC(2010)251 final  
33 
 Annex IV – 4 
 
Market Structure in Import and Production of Gas 
Number of companies 
with more than 5 % 
share of available gas 
(%)69 Share of 3 biggest 
companies by 
available gas (%) HHI GAS 
2006 2008 ∆ 2007 2008 ∆ 2008 
Austria 4 4 0 80 86 6 4290 
Belgium 2 4 2 99,4 92 -7,4 5438 
Bulgaria 1 1 0 32,47 89 56,53 NA 
Cyprus NA NA  NA NA  NA 
Czech Republic 1 2 1 NA NA  NA 
Denmark 3 3 0 NA NA  NA 
Estonia 2 2 0 99 99 0 NA 
Finland 1 1 0 100 100 0 NA 
France 2 2 0 88,97 88 -0,97 6324 
Germany NA 7  58,65 61,82 3,17 1706 
Great Britain NA NA  28 NA  NA 
Greece 1 1 0 100 100 0 10000 
Hungary 4 4 0 92,8 86,9 -5,9 3066 
Ireland NA 5  NA 81,64  2499 
Italy 3 3 0 86,7 85,2 -1,5 4336 
Latvia 1 1 0 100 100 0 10000 
Lithuania 2 2 0 100 100 0 5800 
Luxembourg 1 2 1 100 100 0 9057 
Malta NA NA  NA NA  NA 
Northern Ireland NA 5  NA 82,7  10000 
Norway        
Poland 1 1 0 100 100 0 9624 
Portugal 0 0 0 0 0 0 NA 
Romania 4 3 -1 74 83,19 9,19 NA 
Slovak Republic 1 1 0 100 100 0 10000 
Slovenia 1 2 1 100 100 0 8981 
Spain 4 4 0 75 66 -9 1887 
Sweden 5 NA  NA NA  NA 
The Netherlands 4 1 -3 NA 87,8  6841,24 
Source: Regulators data, ∆ calculations DG TREN, SEC(2010)251 final 
 
                                                 
69 Note: No answer to this question was required in 2007. 
34 
 Annex IV – 5 
 
Structure of Gas retail market 
Number of 
nationwide 
suppliers Companies with market 
share over 5% in the 
whole retail market (%) Market share of three 
largest companies in 
whole retail market (%) GAS 
2008 2007 2008 ∆ 2007 2008 ∆ 
Austria 5 5 5 0 NA 80  
Belgium 8 NA NA 0 92,3 NA  
Bulgaria 32 5 4 -1 32,47 12,87 -19,6 
Cyprus 1 NA NA  NA NA  
Czech Republic 14 7 8 1 NA 47,35  
Denmark 2 4 4 0 NA NA  
Estonia 0 1 1 0 99 99 0 
Finland 1 6 6 0 NA NA  
France 13 3 2 -1 98,5 NA  
Germany NA 4 4 0 26,3 35,2 8,9 
Great Britain 24 NA NA  72 72 0 
Greece 1 1 1 0 100 100 0 
Hungary 14 7 7 0 75 72,6 -2,4 
Ireland 5 2 2 0 100 100 0 
Italy 4 3 4 1 66,5 63,4 -3,1 
Latvia 2 1 1 0 100 100 0 
Lithuania 2 2 2 0 100 100 0 
Luxembourg  4   88,5   
Malta NA NA NA  NA NA  
Northern Ireland 0 NA 4  NA 86  
Norway        
Poland 1 1 1 0 100 100 0 
Portugal 0 0 0 0 0 0 0 
Romania 24 4 6 2 83 59,11 -23,89 
Slovak Republic 1 1 1 0 100 100 0 
Slovenia 3 2 4 2 86 82 -4 
Spain 34 5 5 0 74 71 -3 
Sweden 0 5 5 0 NA NA  
The Netherlands 14 4 3 -1 NA NA  
Source: Regulators data, ∆ calculations DG TREN, SEC(2010)251 final 
 
  
35 
 Annex V  
  
Statistical overview of TEN-E programme achievements 
according to project classification
70 
 
 
 
Progress with the implementation of projects of European interest, electricity lines (32 
projects) 
Diagram 1 - Projects of European Interest - Electricity lines - Progress in 
Implementation (March 2010)
3%
18%
16%
13%16%13%6%6%3%6%Study phase not yet started
Study phase
Authorisation phase
Construction phase 
Finalised
Authorisation / Construction phase
Study / Authorisation phase
Authorisation phase / Finalised
Construction phase / Finalised
Reconsidered
 
Progress with the implementation of projects  of European interest, gas pipelines (10 
projects) 
Diagram 2 - Projects of European interest - Gas pipelines
Progress in implementation (March 2010)
20%
10%
10%
10%40%10%
0%Finalised
Authorisation/ Construction phase /
Finalised
Construction phase
Finalised / Authorisation phase
Authorisation phase
Study phase
Study phase not yet started
 
 
                                                 
70 Numbers include only those proj ects for which feedback was provided in the context of the TEN-E 
Survey 2010, previous stakeholder consultations and data provided by project promoters. 
36 
 Annex VI 
 
 
EU-27 energy demand developments and fi nal energy consumption by sectors  
 
 
 
Source: Eurostat 
   
 
Source: Eurostat 
  
37 
 Annex VII 
 
EU-27 energy imports dependency 
 
 
 
Source: Eurostat 
 
 
EU-27 net imports of energy  
 
 
 Source: Eurostat 
38 
 Annex VIII 
   
-20%0%20%40%60%80%100%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(agr)
Total RES and Waste Hydro Power Stations Wind-Turbines Solar Geothermal Plants WasteEU-27 - Annual growth rate 
of the net installed electricity production capacity of renewable energy
 
Source: Eurostat 
  
 
  
 
Source: Eurostat 
39 
 Annex IX 
 
  
Estimation of the financing needs for key technology and actions proposed in the SET-
Plan (2010-2020) 
   
 Sector Estimated 
investment 
needed for the 
next 10 years 
(B€) Justification for the estimation 
Hydrogen and fuel cells 5 Updated estimation of resources needed made by 
stakeholders – 'Implementation Plan' of the hydrogen and 
fuel cell technology platform (Study by the JRC) 
Wind 5.5 Estimation of resources needed made by stakeholders – 
Costing of the Wind Industrial Initiative 
Solar  16 Estimation of resources needed made by stakeholders – 
Costing of the Solar Industrial Initiative 
CCS 10.5 - 16.5 Estimation of resources needed made by stakeholders – 
Costing of the CCS EII (including the 7-12 B€ CCS 
demonstration projects - Study by McKinsey) 
Bio-energy 8.5 Estimation of resources needed made by stakeholders– 
Costing of the Bio-fuels Industrial Initiative 
Smart Grids 2 Estimation of resources needed made by stakeholders for 
transmission and by Commission for distribution – Costing 
of the Smart Grid Industrial Initiative 
Nuclear Fission  5 - 10 Estimation of resources needed made by stakeholders – 
Costing of the Nuclear fission Industrial Initiative 
Smart Cities 10 - 12 Estimation based on experience from CIVITAS and 
CONCERTO initiatives and reviewed by the JRC 
European Energy 
Research Alliance 
(EERA) 5 Estimation of resources needed made by the Commission in 
consultation with EERA – Based on input from EERA 
assuming that 30% of their future activities are jointly 
planned and implemented. 
Total  67.5 - 80.5  
Current investment 
contributing to these 
objectives 14 - 20 The Commission estimates that 50 to 70% of the current 
investment can be direct ed to these objectives. 
Additional financial 
needs 47.5 – 60.5