Common Position (EC) No 1/2006 of  1 December 2005  adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a decision of the European Parliament and of the Council laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC
Date: 2005-12-01
Institutions: Council of the European Union
Subjects: electrical energy, energy grid, energy policy, natural gas, trans-European network

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I

(Information)

COUNCIL

COMMON POSITION (EC) No 1/2006

adopted by the Council on 1 December 2005

with a view to adopting Decision No …/2006/EC of the European Parliament and of the Council of
… laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC
and Decision No 1229/2003/EC

(2006/C 80 E/01)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO-
PEAN UNION,

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 156 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and
Social Committee (1),

Following consultation of the Committee of the Regions,

Acting in accordance with the procedure laid down in
Article 251 of the Treaty (2),

Whereas:

(1)

(2)

to

the

adoption

Subsequent
of Decision No
1229/2003/EC of the European Parliament and of the
Council of 26 June 2003 laying down a series of guide-
lines for trans-European energy networks (3), the need
has arisen to integrate fully the new Member States
accession and candidate countries in those guidelines
and to adapt further, as appropriate, those guidelines to
the new proximity policy of the European Union.

The priorities for trans-European energy networks stem
from the creation of a more open and competitive
internal energy market as a result of the implementation
of Directive 2003/54/EC of the European Parliament and
of the Council of 26 June 2003 concerning common
in electricity (4) and of
rules for the internal market

(1) OJ C 241, 28.9.2004, p. 17.
(2) Opinion of

the European Parliament of 7 June 2005 (not yet

published in the Official Journal).

(3) OJ L 176, 15.7.2003, p. 11.
(4) OJ L 176, 15.7.2003, p. 37. Directive as amended by Council Direc-

tive 2004/85/EC (OJ L 236, 7.7.2004, p. 10).

Directive 2003/55/EC of the European Parliament and of
the Council of 26 June 2003 concerning common rules
for the internal market in natural gas (5). Those priorities
follow the conclusions of
the Stockholm European
Council of 23 and 24 March 2001 concerning the devel-
opment of the infrastructure needed for the operation of
the energy market. A special effort should be undertaken
to achieve the objective of making greater use of renew-
able energy sources as a contribution to further a
sustainable development policy. However, this should be
achieved without creating disproportionate disturbances
to the normal market equilibrium. Full account should
also be taken of the objectives of the Community's trans-
port policy and specifically the opportunity to reduce
road traffic by using pipelines.

(3)

(4)

This Decision serves to move closer towards the target
for
the level of electricity interconnection between
Member States which was agreed by the Barcelona Euro-
pean Council of 15 and 16 March 2002, and thus
improve network reliability and integrity, ensure that
there is security of supply and that the internal market
functions properly.

As a rule, the construction and maintenance of energy
infrastructure should be subject to market principles.
This is also in line with the common rules for the
completion of the internal market in energy and the
common rules on competition law which aim at the
creation of a more open and competitive internal energy
market. Community financial aid for construction and
maintenance should therefore remain highly exceptional.
Those exceptions should be duly justified.

(5) OJ L 176, 15.7.2003, p. 57.

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(5)

(6)

(7)

(8)

(9)

(10)

Energy infrastructure should be constructed and main-
tained so as to enable the internal energy market to
operate efficiently, with due regard to existing proce-
affected, without
for
dures
detracting
appropriate,
universal service criteria and public service obligations.

consulting the people
from strategic

and, where

In the light of potential synergies between natural gas
networks and olefin networks, due importance should be
given to the development and integration of olefin
networks in order to meet the olefin gas consumption
needs of the industries in the Community.

The priorities for trans-European energy networks also
stem from the growing importance of the trans-Euro-
pean energy networks for securing and diversifying the
Community's energy supplies, incorporating the energy
networks of
the new Member States, accession and
candidate countries, and ensuring the coordinated opera-
tion of the energy networks in the Community and in
neighbouring countries after consulting the Member
States concerned. Indeed neighbouring countries to the
Community play a vital role in the Community's energy
policy. They supply a major part of the Community's
requirements of natural gas, are key partners for the
transit of primary energy to the Community and will
progressively become more important players in the
Community,s internal gas and electricity markets.

it

Among the projects relating to trans-European energy
networks,
the priority
is necessary to highlight
projects, which are very important for the operation of
the internal energy market or the security of energy
supply.

in the

context of

identifying projects of common
The procedure for
trans-European energy
interest
networks
should ensure the smooth application of
Council Regulation (EC) No 2236/95 of 18 September
1995 laying down general rules for the granting of Com-
munity financial aid in the field of
trans-European
networks (1). That procedure should distinguish two
levels: a first level establishing a restricted number of
criteria for the identification of such projects, and a
second level describing the projects in detail, referred to
as 'specifications'.

for

funding pursuant

Priority
to Regulation (EC)
No 2236/95 should be given to projects of European
interest, i.e. projects of common interest referred to in

(1) OJ L 228, 23.9.1995, p. 1. Regulation as last amended by Regu-
(EC) No

lation of the European Parliament and of the Council
807/2004 (OJ L 143, 30.4.2004, p. 46).

this Decision and included in the axes for priority
projects set out in this Decision.

(11) Member States, when submitting projects under the rele-
should give
vant Community financial
appropriate priority to projects covered by Annex I that
meet the criteria of this Decision.

instruments,

(12)

Since the project specifications are liable to change, they
can only be given by way of indication. The Commission
should therefore be empowered to update them. Since
the projects may have considerable political, environ-
mental and economic implications,
it is important to
find the appropriate balance between legislative over-
sight and flexibility in determining projects that deserve
potential Community support.

(13) Where appropriate for certain priority projects, or
sections of priority projects, or groups of priority
projects in order
to improve their preparation and
implementation for the duration of the priority projects
concerned, the Commission,
in consultation with the
Member States involved, should ensure and coordinate
cooperation with users and operators, with a view to
ensuring that the necessary monitoring is carried out in
order to keep the Community informed of progress. In
so doing, the Commission should consult, together with
the Member States concerned, operators, users, regional
and local authorities and representatives of civil society
with a view to gaining fuller knowledge of demand for
transmission services, of
the
service parameters required to optimise the use of the
infrastructure concerned.

the constraints and of

(14) Member States should be invited to coordinate imple-
mentation of certain projects, in particular cross-border
projects or sections of cross-border projects.

(15) A more favourable context for the development and
construction of trans-European energy networks should
be created, mainly by providing stimulus for technical
cooperation between the
for
networks, by facilitating the implementation of authori-
sation procedures applicable for network projects in the
Member States in order to reduce delays and by mobi-
lising as appropriate the Funds, instruments and financial
programmes of the Community available for network
projects. The Community should support Member States'
measures taken in pursuit of that objective.

responsible

entities

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(16)

(17)

(18)

is

the Community

Since the budget allocated to the trans-European energy
networks is mainly intended to finance feasibility studies,
it
financial
programmes and instruments that could enable, if neces-
sary, funding to be provided for such, in particular inter-
regional, interconnection networks.

Structural

Funds,

The identification of projects of common interest, their
specifications and priority projects should be without
impact
prejudice to the results of the environmental
assessment of
the plans or
the projects
programmes.

and of

The measures necessary for the implementation of this
Decision should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down
the procedures for the exercise of implementing powers
conferred on the Commission (1).

(19)

The Commission should periodically draw up a report
on the implementation of this Decision.

(20)

Since this Decision covers the same subject matter and
scope as Council Decision 96/391/EC of 28 March 1996
laying down a series of measures aimed at creating a
more favourable context for the development of trans-
European networks in the energy sector (2) and Decision
No 1229/2003/EC,
should be
repealed,

those two Decisions

HAVE ADOPTED THIS DECISION:

Article 1

Subject matter

This Decision defines the nature and scope of Community
action to establish guidelines
trans-European energy
for
networks.
It establishes a series of guidelines covering the
objectives, priorities and broad lines of action by the Com-
munity in respect of trans-European energy networks. These
guidelines identify projects of common interest, including those
which have priority, among trans-European electricity and gas
networks.

(a) all high-voltage lines, excluding those of distribution
networks, and to submarine links, provided that this
infrastructure is used for inter-regional or international
transmission or connection;

(b) any equipment or installations essential for the system
including protection,

in question to operate properly,
monitoring and control systems;

2.

in gas networks (transporting natural gas or olefin gases), to:

(a) high-pressure gas pipelines, excluding those of distribu-
tion networks, making it possible to supply regions of
the Community from internal or external sources;

(b) underground storage facilities connected to the afore-

mentioned high-pressure gas pipelines;

(c) reception, storage and regaseification facilities for lique-
fied natural gas (LNG) and also LNG carriers according
to the capacities to be supplied;

(d) any equipment or installations essential for the system
including protection,

in question to operate properly,
monitoring and control systems.

Article 3

Objectives

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

in particular, while

(a) encouraging the effective operation and development of the
the internal energy
in general and of
internal market
rational
market
production, transportation, distribution and use of energy
resources and the development and connection of renew-
able energy resources, so as to reduce the cost of energy to
the consumer and contribute to the diversification of
energy sources;

encouraging the

Article 2

Scope

This Decision shall apply:

1.

in electricity networks, to:

(1) OJ L 184, 17.7.1999, p. 23.
(2) OJ L 161, 29.6.1996, p. 154.

(b) facilitating the development and reducing the isolation of
the less-favoured and island regions of the Community,
thereby helping to strengthen economic and social cohe-
sion;

(c) reinforcing the security of energy supplies, for example by
strengthening relations with third countries in the energy
sector in the mutual interest of all parties concerned,
in
particular in the framework of the Energy Charter Treaty
and cooperation agreements concluded by the Community;

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(d) contributing to sustainable development and protection of
the environment, inter alia, by involving renewable energies
and by reducing the environmental risks associated with
the transportation and transmission of energy.

Article 5

Lines of action

Article 4

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

(a) the identification of projects of common interest referred to

in Article 6;

Priorities for action

(b) the creation of a more favourable context for development

of those networks.

The priorities for action by the Community on trans-European
energy networks shall be compatible with sustainable develop-
ment and shall be as follows:

1. for both electricity and gas networks:

(a) adapting and developing the energy networks in support
of the operation of the internal energy market and, in
particular, solving the problems of bottlenecks, espe-
cially transfrontier bottlenecks, congestion and missing
links, and taking account of the needs arising from the
functioning of the internal market for electricity and
natural gas and the enlargement of the European Union;

(b) establishing energy networks in island, isolated, periph-
eral and ultraperipheral regions while promoting the
diversification of energy sources and the use of renew-
able energy sources, together with the connection of
those networks, where necessary;

2. for electricity networks:

(a) adapting and developing networks to facilitate the inte-
gration and connection of renewable energy production;

Article 6

Projects of common interest

1.
The generic criteria to be applied when a decision is
taken on identification, modifications, specifications to or appli-
cations for updating projects of common interest shall be the
following:

(a) the projects fall within the scope of Article 2;

(b) the projects meet the objectives and priorities for action set

out in Articles 3 and 4 respectively;

(c) the projects display potential economic viability.

The evaluation of the economic viability shall be based upon a
cost-benefit analysis which takes account of all costs and bene-
fits,
in
including those in the medium and/or long term,
connection with environmental aspects, security of supply and
the contribution to economic and social cohesion. Projects of
common interest which relate to the territory of a Member
State shall require the approval of the Member State concerned.

(b) ensuring interoperability of electricity networks within
the Community, and with those in the accession, candi-
date countries and other countries in Europe and the
Mediterranean and Black Sea basins;

2.
Additional criteria for identifying projects of common
interest are set out in Annex II. Any changes to the additional
criteria for identifying projects of common interest set out in
Annex II shall be decided upon in accordance with the proce-
dure laid down in Article 251 of the Treaty.

3. for gas networks:

(a) developing of natural gas networks in order to meet the
Community's natural gas consumption needs and to
control its natural gas supply systems;

(b) ensuring interoperability of natural gas networks within
the Community and with those in accession candidate
countries and other countries in Europe, in the Mediter-
ranean Sea, Black Sea and Caspian Sea basins, as well as
in the Middle East and the Gulf regions, and diversifica-
tion of natural gas sources and supply routes.

3.
Only those projects listed in Annex III which fulfil the
criteria laid down in paragraph 1 and those set out in Annex II
shall be eligible for Community financial aid provided for
pursuant to Regulation (EC) No 2236/95.

The indicative project

4.
specifications, comprising the
detailed description of the projects and, where appropriate,
their geographical description, are set out in Annex III. These
specifications shall be updated in accordance with the proce-
dure referred to in Article 11(2). Updates shall be of a technical
nature and shall be limited to technical changes of projects, or
to modification of a part of the specified routing, or to limited
adaptation of the location of the project.

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5. Member States shall
take any measures they consider
necessary to facilitate and speed up the completion of projects
of common interest and to minimise delays while complying
with Community law and international conventions on the
environment. In particular, the necessary authorisation proce-
dures shall be completed rapidly.

6. 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
the
proposals, where appropriate within the framework of
management of the agreements between the Community and
those third countries and in accordance with the Energy
Charter Treaty and other multilateral agreements in respect of
third countries which are parties to that Treaty, for the projects
also to be recognised as being of reciprocal interest by the third
countries concerned, in order to facilitate their implementation.

Article 7

Priority projects

1.
The projects of common interest referred to in Article
6(3) and covered by the axes for priority projects set out in
Annex I shall have priority for the grant of Community finan-
cial aid provided for pursuant to Regulation (EC) No 2236/95.
Amendments to Annex I shall be decided upon in accordance
with the procedure laid down in Article 251 of the Treaty.

2.

(a) As regards cross-border investment projects, Member
States shall take the steps required to ensure that, under
national authorisation procedures,
that such
projects increase the capacity for interconnection of two
or more Member States and consequently strengthen
Europe-wide security of supply, is treated as a criterion
for the assessment by the competent national authori-
ties.

the fact

(c) they shall result in an increase in the use of renewable ener-

gies.

Article 8

More-favourable context

for

the development of

In order to contribute to creating a more favourable
1.
trans-European energy
context
networks and their interoperability, the Community shall take
account of Member States' efforts made in line with that objec-
tive, shall attach the greatest importance to and shall promote
as necessary the following measures:

(a) technical cooperation between the entities responsible for
the trans-European energy networks, in particular for the
proper functioning of the connections mentioned in Annex
II, points 1, 2 and 7;

(b) facilitating implementation of the authorisation procedures
for projects on trans-European energy networks in order to
reduce delays;

(c) the provision of assistance to the projects of common
interest from Community Funds, instruments and financial
programmes applicable to those networks.

The Commission shall,

2.
in close collaboration with the
Member States concerned, take all initiatives for promoting the
coordination of the activities referred to in paragraph 1.

3.
The measures necessary for the implementation of the
activities referred to in points (a) and (b) of paragraph 1 shall
be decided upon by the Commission in accordance with the
procedure referred to in Article 11(2).

Article 9

Effects on competition

(b) The Member States concerned and the Commission shall
endeavour, each within its own sphere of competence,
together with the responsible companies, to further the
carrying out of the priority projects, especially cross-
border projects.

When projects are considered, their effects on competition and
on security of supply shall be taken into account. Private finan-
cing or financing by the economic operators concerned shall
be the main source for financing and shall be encouraged. Any
shall be
competitive distortion between market operators
avoided, in accordance with the provisions of the Treaty.

Priority projects shall be compatible with sustainable

3.
development and meet the following criteria:

(a) they shall have a significant impact on the competitive

operation of the internal market; and/or

Article 10

Restrictions

(b) they shall strengthen security of supply in the Community;

and/or

This Decision shall not prejudice financial commitments

1.
entered into by a Member State or by the Community.

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This Decision shall be without prejudice to the results of
2.
the environmental
impact assessment of projects and of the
plans or programmes which define the future authorisation
framework for such projects. The results of the environmental
impact assessments, where such an assessment is requested in
accordance with relevant Community legislation, shall be taken
into consideration before a decision on the carrying out of the
projects is actually taken in accordance with the relevant Com-
munity legislation.

Article 11

Committee procedure

1.

The Commission shall be assisted by a Committee.

2. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

3.

The Committee shall adopt its rules of procedure.

Article 12

Report

which concern cross-border connections as mentioned in
Annex II, points 2, 4 and 7, as well as the detailed arrange-
ments of their financing, especially as regards the contribution
of Community funding.

Article 13

Repeal

Decision 96/391/EC and Decision No 1229/2003/EC are
hereby repealed.

Article 14

Entry into force

This Decision shall enter into force on the 20th day following
its publication in the Official Journal of the European Union.

Article 15

Addressees

This Decision is addressed to the Member States.

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 European Economic and
Social Committee and the Committee of the Regions.

In this report, attention shall be given to the implementation
and progress made in the carrying out of priority projects

Done at …

For the European Parliament

The President

For the Council

The President

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ANNEX I

TRANS-EUROPEAN ENERGY NETWORKS

Axes for Priority projects as defined in Article 7

Priority projects included on each axis are listed

ELECTRICITY NETWORKS

EL.1. France — Belgium — Netherlands — Germany: electricity network reinforcements in order to resolve congestion

in electricity flow through the Benelux States.

Priority projects include:

Avelin (FR)-Avelgem (BE) line

Moulaine (FR)-–ubange (BE) line

EL.2. Borders of Italy with France, Austria, Slovenia and Switzerland: increasing electricity interconnection capacities.

Priority projects include:

Lienz (AT)-Cordignano (IT) line

New interconnection between Italy and Slovenia

Udine Ovest (IT)-Okroglo (SI) line

S. Fiorano (IT)-–Nave (IT)-Gorlago (IT) line

Venezia Nord (IT)-Cordignano (IT) line

St Peter (AT)-Tauern (AT) line

Südburgenland (AT)-Kainachtal (AT) line

Austria-Italy (Thaur-Brixen) interconnection through the Brenner rail tunnel

EL.3. France — Spain — Portugal: increasing electricity interconnection capacities between these countries and for the

Iberian Peninsula and grid development in island regions.

Priority projects include:

Sentmenat (ES)-Becanό (ES)-Baixas (FR) line

Valdigem (PT)-Douro Internacional (PT)-Aldeadávila (ES) line and 'Douro Internacional' facilities

EL.4. Greece — Balkan countries — UCTE System: development of electricity infrastructure to connect Greece to the

UCTE System and to enable the development of the South-Eastern Europe electricity market.

Priority projects include:

Philippi (EL)-Hamidabad (TR) line

EL.5. United Kingdom — Continental Europe and Northern Europe: establishing/increasing electricity interconnection

capacities and possible integration of offshore wind energy

Priority projects include:

Undersea cable to link England (UK) and the Netherlands

EL.6. Ireland — United Kingdom: increasing electricity interconnection capacities and possible integration of offshore

wind energy.

Priority projects include:

undersea cable to link Ireland and Wales (UK)

EL.7. Denmark — Germany — Baltic Ring (including Norway — Sweden — Finland — Denmark — Germany —
Poland — Baltic States — Russia): increasing electricity interconnection capacities and possible integration of
offshore wind energy.

Priority projects include:

Kassø (DK)-Hamburg/Dollern (DE) line

Hamburg/Krümmel (DE)-Schwerin (DE) line

Kassø (DK)-Revsing (DK)-Tjele (DK) line

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Vester Hassing (DK)-Trige (DK) line

Submarine cable Skagerrak 4: between Denmark and Norway

Poland-Lithuania link, including necessary reinforcements of the Polish electricity network and the PL-DE profile
in order to enable participation in the internal energy market

Submarine cable Finland-Estonia (Estlink)

Submarine cable Fennoscan' between Finland and Sweden

Halle/Saale (DE)-Schweinfurt (DE)

EL.8. Germany — Poland — Czech Republic — Slovakia — Austria — Hungary — Slovenia: increasing electricity inter-

connection capacities.

Priority projects include:

Neuenhagen (DE)-Vierraden (DE)-Krajnik (PL) line

Dürnrohr (AT)-Slavetice (CZ) line

New interconnection between Germany and Poland

Veľké Kapušany (SK) — Lemešany (SK) — Moldava (SK) — Sajóivánka (HU)

Gabčíkovo (SK)-Vel'ký Ďur (SK)

Stupava (SK) — south-east Vienna (AT)

EL.9. Mediterranean Member States — Mediterranean Electricity Ring: increasing electricity interconnection capacities
between Mediterranean Member States and Morocco — Algeria — Tunisia — Libya — Egypt — Near East coun-
tries — Turkey

Priority projects include:

electricity connection to link Tunisia and Italy

GAS NETWORKS

NG.1. United Kingdom — Northern Continental Europe, including the Netherlands, Belgium, Denmark, Sweden and

Germany — Poland — Lithuania — Latvia — Estonia — Finland — Russia:

gas pipelines to connect some of the main sources of gas supply in Europe, improve network interoperability,
and increase security of supply, including natural gas pipelines via the offshore route from Russia to the EU and
the onshore route from Russia to Poland and Germany, new pipeline building and network capacity increases in
and between Germany, Denmark, and Sweden, and in and between Poland, the Czech Republic, Slovakia,
Germany, and Austria.

Priority projects include:

North European gas pipeline

Yamal-Europe gas pipeline

Natural gas pipeline linking Denmark, Germany and Sweden

Increase in transmission capacity on the Germany-Belgium-United Kingdom axis

NG.2. Algeria — Spain — Italy — France — northern continental Europe: construction of new natural gas pipelines
from Algeria to Spain, France and Italy, and increasing network capacities in and between Spain, France and Italy.

Priority projects include:

Algeria-Tunisia-Italy gas pipeline

Algeria-Italy gas pipeline, via Sardinia and Corsica, with a branch to France

Medgas gas pipeline (Algeria — Spain — France — continental Europe)

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NG.3. Caspian Sea countries — Middle East — European Union: new natural gas pipeline networks to the European
Union from new sources, including the Turkey-Greece, Greece-Italy, Turkey-Austria, and Greece-Slovenia-Austria
(via the western Balkans) natural gas pipelines.

Priority projects include:

Turkey-Greece-Italy gas pipeline

Turkey-Austria gas pipeline

NG.4. Liquefied natural gas (LNG) terminals in Belgium, France, Spain, Portugal, Italy, Greece, Cyprus and Poland: diver-

sifying sources of supply and entry points, including the LNG terminals' connections with the transmission grid.

NG.5. Underground natural gas storage in Spain, Portugal, France, Italy, Greece and the Baltic Sea Region: increasing
capacity in Spain, France, Italy and the Baltic Sea Region and construction of the first facilities in Portugal,
Greece, and Lithuania.

NG.6. Mediterranean Member States — East Mediterranean Gas Ring: establishing and increasing natural gas pipeline

capacities between the Mediterranean Member States and Libya — Egypt — Jordan — Syria — Turkey.

Priority projects include:

Libya-Italy gas pipeline

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ANNEX II

TRANS-EUROPEAN ENERGY NETWORKS

Additional criteria for identifying projects of common interest referred to in Article 6(2)

ELECTRICITY NETWORKS

1. Developing electricity networks in island, isolated, peripheral and ultraperipheral regions while promoting the diver-
sification of energy sources and enhancing the use of renewable energy, and connection of the electricity networks
of those regions, if appropriate.

— Ireland — United Kingdom (Wales)

— Greece (islands)

— Italy (Sardinia) — France (Corsica) — Italy (mainland)

— Connections in island regions, including connections to the mainland

— Connections in ultraperipheral regions in France, Spain, Portugal

2. Developing electricity connections between the Member States needed for the functioning of the internal market

and in order to ensure the reliability and dependability of the operation of electricity networks.

— France — Belgium — Netherlands — Germany

— France — Germany

— France — Italy

— France — Spain

— Portugal — Spain

— Finland — Sweden

— Finland — Estonia — Latvia — Lithuania

— Austria — Italy

— Italy — Slovenia

— Austria — Italy — Slovenia — Hungary

— Germany — Poland

— Germany — Poland — Czech Republic — Austria — Slovakia — Hungary

— Hungary — Slovakia

— Hungary — Austria

— Poland — Lithuania

— Ireland — United Kingdom (Northern Ireland)

— Austria — Germany — Slovenia — Hungary

— Netherlands — United Kingdom

— Germany — Denmark — Sweden

— Greece — Italy

— Hungary — Slovenia

— Malta — Italy

— Finland — Estonia

— Italy — Slovenia

3. Developing electrical connections within the Member States where this is needed in order to take advantage of the
connections between the Member States, the functioning of the internal market or the connection of renewable
energy sources.

— All Member States

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4. Developing electricity connections with the non-Member States, and more particularly with the candidate countries,
thus contributing towards interoperability, the operational reliability and dependability of the electricity grids or the
supply of electricity within the European Community.

— Germany — Norway

— Netherlands — Norway

— Sweden — Norway

— United Kingdom — Norway

— Baltic Electricity Ring: Germany — Poland — Belarus — Russia — Lithuania — Latvia — Estonia — Finland —

Sweden — Norway — Denmark

— Norway — Sweden — Finland — Russia

— Mediterranean Electricity Ring: France — Spain — Morocco — Algeria — Tunisia — Libya — Egypt — Near

Eastern countries — Turkey — Greece — Italy

— Greece — Turkey

— Italy — Switzerland

— Austria — Switzerland

— Hungary — Romania

— Hungary — Serbia

— Hungary — Croatia

— Italy — Tunisia

— Greece — Balkan countries

— Spain — Morocco

— Spain — Andorra — France

— EU — Balkan countries — Belarus — Russia — Ukraine

— Black Sea Electricity Ring: Russia — Ukraine — Romania — Bulgaria — Turkey — Georgia

— Bulgaria — Former Yugoslav Republic Of Macedonia/Greece — Albania — Italy or Bulgaria — Greece — Italy

5. Actions improving the functioning of the interconnected electricity networks within the internal market and, in par-
ticular, identifying the bottlenecks and missing links, developing solutions in order to deal with congestion and
adapting the methods of forecasting and of operating electricity networks.

— Identifying the bottlenecks and missing links, especially cross-border, within electricity networks

— Developing solutions for electricity flow management in order to deal with the problems of congestion within

electricity networks

— Adapting the methods of forecasting and of operating electricity networks required by the functioning of the

internal market and the use of a high percentage of renewable energy sources

GAS NETWORKS

6. Introducing natural gas into new regions, mainly island, isolated, peripheral and ultraperipheral regions and devel-

oping natural gas networks in these regions.

— United Kingdom (Northern Ireland)

— Ireland

— Spain

— Portugal

— Greece

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— Sweden

— Denmark

— Italy (Sardinia)

— France (Corsica)

— Cyprus

— Malta

— Ultraperipheral regions in France, Spain, Portugal

7. Developing natural gas connections in order to meet the needs of the internal market or strengthening of the

security of supply, including connection of separate natural gas and olefin gas networks.

— Ireland — United Kingdom

— France — Spain

— France — Switzerland

— Portugal — Spain

— Austria — Germany

— Austria — Hungary

— Austria — Hungary — Slovakia — Poland

— Poland — Czech Republic

— Slovakia — Czech Republic — Germany — Austria

— Austria — Italy

— Greece –Balkan countries

— Austria — Hungary — Romania — Bulgaria — Greece — Turkey

— France — Italy

— Greece — Italy

— Austria — Czech Republic

— Germany — Czech Republic — Austria — Italy

— Austria — Slovenia — Croatia

— Hungary — Croatia

— Hungary — Romania

— Hungary — Slovakia

— Hungary — Ukraine

— Slovenia — Balkan countries

— Belgium — Netherlands — Germany

— United Kingdom — The Netherlands — Germany

— Germany — Poland

— Denmark — United Kingdom

— Denmark — Germany — Sweden

— Denmark — Netherlands

8. Developing capacities for receiving LNG and for storage of natural gas, needed in order to meet demand, control

gas supply systems, and diversify sources and supply routes.

— All Member States

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9. Developing natural gas transport capacity (gas supply pipelines) needed in order to meet demand and diversify

supplies from internal and external sources, as well as supply routes.

— Nordic Gas Grid: Norway — Denmark — Germany — Sweden — Finland — Russia — Baltic States — Poland

— Algeria — Spain — France

— Russia — Ukraine — EU

— Russia — Belarus — Ukraine — EU

— Russia — Belarus — EU

— Russia — Baltic Sea — Germany

— Russia — Baltic States — Poland — Germany

— Germany — Czech Republic — Poland — Germany — other Member States

— Libya — Italy

— Tunisia — Libya — Italy

— Caspian Sea countries — EU

— Russia — Ukraine — Moldavia — Romania — Bulgaria — Greece — Slovenia — other Balkan countries

— Russia — Ukraine — Slovakia — Hungary — Slovenia — Italy

— Netherlands — Germany — Switzerland — Italy

— Belgium — France — Switzerland — Italy

— Denmark — Sweden — Poland

— Norway — Russia — EU

— Ireland

— Algeria — Italy — France

— Algeria — Tunisia — Italy

— Middle East — East Mediterranean Gas Ring — EU

— Winksele blending installation on north-south axis (blending of H gas with nitrogen)

— Capacity upgrade on east-west axis: Zeebrugge — Eynatten

10. Actions improving the functioning of the interconnected natural gas networks within the internal market and
transit countries, in particular, identifying the bottlenecks and missing links, developing solutions in order to deal
with congestion and adapting methods of forecasting and of operating natural gas networks efficiently and safely.

— Identifying the bottlenecks and missing links, especially cross-border, within the natural gas networks

— Developing solutions for natural gas flow management in order to deal with the problems of congestion within

the gas networks

— Adapting the methods of forecasting and operating natural gas networks required by the functioning of the

internal market

— Increasing the overall performance, safety and security of the natural gas networks in transit countries.

11. Developing and integrating olefin gases transport capacity needed in order to meet demand within the internal

market.

— All Member States

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ANNEX III

TRANS–EUROPEAN ENERGY NETWORKS

Projects of common interest and their specifications, currently identified according to the criteria set out in
Annex II

ELECTRICITY NETWORKS

1.

Developing electricity networks in isolated regions

1.1.

Submarine cable Ireland-Wales (UK)

1.2. Connection of southern Cyclades (EL) (to the Interconnected System)

1.3. 30 kV Underwater cable link between the islands of Faial, Pico and S. Jorge (Azores, PT)

1.4. Connection and reinforcement of the grid in Terceira, Faial and S. Miguel (Azores, PT)

1.5. Connection and reinforcement of the grid in Madeira (PT)

1.6.

Submarine cable Sardinia (IT)-Italy mainland

1.7.

Submarine cable Corsica (FR)-Italy

1.8. Connection Italy mainland-Sicily (IT): doubling of the connection Sorgente (IT)-Rizziconi (IT)

1.9. New connections in the Balearic and Canary Islands (ES).

2.

Developing electricity connections between the Member States

2.1. Moulaine (FR)-Aubange (BE) line

2.2. Avelin (FR)-Avelgem (BE) line

2.3.

Interconnection between Germany and Belgium

2.4. Vigy (FR)-Marlenheim (FR) line

2.5. Vigy (FR)-Uchtelfangen (DE) line

2.6.

La Praz (FR) phase transformer

2.7.

Further increase of capacity through existing interconnection between France and Italy

2.8. New interconnection between France and Italy

2.9. New trans-Pyrenean interconnection between France and Spain

2.10. Eastern Pyrenees connection between France and Spain

2.11. Connections between northern Portugal and north-western Spain

2.12. Sines (PT)-Alqueva (PT)-Balboa (ES) line

2.13. Connection between southern Portugal and south-western Spain

2.14. Valdigem (PT)-Douro Internacional (PT)-Aldeadávila (ES) line and 'Douro Internacional' facilities

2.15. Connections north of the Gulf of Bothnia and and Fennoscan submarine cable between Finland and Sweden

2.16. Lienz (AT)-Cordignano (IT) line

2.17. Somplago (IT)-Wiirmbach (AT) interconnection

2.18. Austria-Italy (Thaur-Brixen) interconnection through the Brenner rail tunnel

2.19. Connection between Ireland and Northern Ireland

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2.20. St Peter (AT)-Isar (DE) line

2.21. Submarine cable between south-east England and central Netherlands

2.22. Reinforcement of connections between Denmark and Germany, e.g. the Kassø-Hamburg line

2.23. Reinforcement of the connections between Denmark and Sweden

2.24. New interconnection between Slovenia and Hungary: Cirkovce (SI)-Hévíz (HU)

2.25. Sajóivánka (HU)-Rimavská Sobota (SK)

2.26. Moldava (SK)-Sajóivánka (HU)

2.27. Stupava (SK)-south-east Vienna (AT)

2.28. Poland-Germany line (Neuenhagen (DE)-Vierraden (DE)-Krajnik (PL))

2.29. Poland-Lithuania link (Elk-Alytus)

2.30. Submarine cable to link Finland and Estonia

2.31. Installation of flexible alternating current transmission systems linking Italy and Slovenia

2.32. New connections to link the UCTE and Centrel systems

2.33. Dürnrohr (AT)-Slavetice (CZ)

2.34. Submarine electricity connection to link Malta (MT) and Sicily (IT)

2.35. New interconnections between Italy and Slovenia

2.36. Udine Ovest (IT)-Okroglo (SI) line

3.

Developing electrical connections within the Member States

3.1. Connections on the Danish east-west axis: connection between Denmark's western (UCTE) and eastern (NORDEL)

networks

3.2. Connection on the Danish north-south axis

3.3. New connections in northern France

3.4. New connections in south-west France

3.5. Trino Vercellese (IT)-Lacchiarella (IT) line

3.6. Turbigo (IT)-Rho (IT)-Bovisio (IT) line

3.7. Voghera (IT)-La Casella (IT) line

3.8.

S. Fiorano (IT)-Nave (IT)-Gorlago (IT) line

3.9. Venezia Nord (IT)-Cordignano (IT) line

3.10. Redipuglia (IT)-Udine Ovest (IT) line

3.11. New connections on the east-west axis of Italy

3.12. Tavarnuzze (IT)-Casellina (IT) line

3.13. Tavarnuzze (IT)-S.Barbara (IT) line

3.14. Rizziconi (IT)-Feroleto (IT)-Laino (IT) line

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3.15. New connections on the north-south axis Italy

3.16. Network modifications for facilitating renewables connections in Italy

3.17. New wind energy connections in Italy

3.18. New connections on the north axis of Spain

3.19. New connections on the Mediterranean axis of Spain

3.20. New connections on the Galicia (ES)-Centro (ES) axis

3.21. New connections on the Centro (ES)-Aragón (ES) axis

3.22. New connections on the Aragón (ES)-Levante (ES) axis

3.23. New connections on the Spanish south-centre axis (ES)

3.24. New connections on the Spanish east-centre axis (ES)

3.25. New connections in Andalucía (ES)

3.26. Pedralva (PT)-Riba d'Ave (PT) line and Pedralva facilities

3.27. Recarei (PT)-Valdigem (PT) line

3.28. Picote (PT)-Pocinho (PT) line (upgrading)

3.29. Modification of the current Pego (PT)-Cedillo (ES)/Falagueira (PT) line and Falagueira facilities

3.30. Pego (PT)-Batalha (PT) line and Batalha facilities

3.31. Sines (PT)-Ferreira do Alentejo (PT) I line (upgrading)

3.32. New wind energy connections in Portugal

3.33. Pereiros (PT)-Zêzere (PT)-Santarém (PT) lines and Zêzere facilities

3.34. Batalha (PT)-Rio Maior (PT) I and II lines (upgradings)

3.35. Carrapatelo (PT)-Mourisca (PT) line (upgrading)

3.36. Valdigem (PT)-Viseu (PT)-Anadia (PT) line

3.37. Deviation of the current Rio Maior (PT)-Palmela (PT) line to Ribatejo (PT) and Ribatejo facilities

3.38. Thessaloniki (EL), Lamia (EL) and Patras (EL) substations and connecting lines

3.39. Connections of the regions of Evia (EL), Lakonia (EL) and Thrace (EL)

3.40. Strengthening of existing connections of peripheral regions in the mainland in Greece

3.41. Tynagh (IE)-Cashla (IE) line

3.42. Flagford (IE)-East Sligo (IE) line

3.43. Connections in the north-east and west of Spain, in particular to connect to the network wind-power generation

capacities

3.44. Connections in the Basque country (ES), Aragón (ES) and Navarra (ES)

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3.45. Connections in Galicia (ES)

3.46. Connections in Central Sweden

3.47. Connections in Southern Sweden

3.48. Hamburg (DE)-Schwerin region (DE) line

3.49. Halle/Saale region (DE)-region Schweinfurt (DE) line

3.50. New wind energy connections off and onshore in Germany

3.51. Upgrading of 380 kV grid in Germany for connection of offshore windmill parks

3.52. Connections in Northern Ireland, in relation to the interconnections with Ireland

3.53. Connections in the north-west of the United Kingdom

3.54. Connections in Scotland and England, with a view to the greater use of renewable sources in electricity generation

3.55. New offshore wind energy connections in Belgium, including upgrade of 380 kV grid

3.56. Borssele substation (NL)

3.57. Implementation of reactive power compensation equipment (NL)

3.58. Installation of phase shifters and/or capacitor batteries in Belgium

3.59. Upgrading of 380 kV grid in Belgium to increase import capacity

3.60. St Peter (AT)-Tauern (AT) line

3.61. Süd-Burgenland (AT)-Kainachtal (AT) line

3.62. Dunowo (PL)-Żydowo (PL)-Krzewina (PL)- Plewiska (PL)

3.63. Pątnów (PL)-Grudziądz (PL)

3.64. Ostrów (PL)-Plewiska (PL)

3.65. Ostrów (PL)-Trębaczew (Rogowiec) (PL)

3.66. Plewiska (PL)-Pątnów (PL)

3.67. Tarnów (PL)-Krosno (PL)

3.68. Ełk (PL)-Olsztyn Matki (PL)

3.69. Ełk (PL)-Narew (PL)

3.70. Mikułowa (PL)-Świebodzice-Dobrzeń (Groszowice) (PL)

3.71. Pątnów (PL)-Sochaczew (PL)-Warszawa (PL)

3.72. Krsko (SI)-Bericevo (SI)

3.73. Upgrade of Slovene transmission system from 220 kV to 400 kV

3.74. Medzibrod (SK)-Liptovská Mara (SK)

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3.75. Lemešany (SK)-Moldava (SK)

3.76. Lemešany (SK)-Veľké Kapušany (SK)

3.77. Gabčíkovo (SK)-Veľký Ďur (SK)

3.78. Connections in northern Sweden

3.79. Transferring Saaremaa (EE) supply to 110 kV

3.80. Improving Tartu (EE) power supply

3.81. Renovation of Eesti (EE) substation (330 kV)

3.82. Renovation of Kiisa (EE), Püssi (EE), and Viljandi (EE) substations (110kV)

3.83. Nošovice (CZ)-Prosenice (CZ): rebuilding of 400 kV single line as 400 kV double-circuit line

3.84. Krasíkov (CZ)-Horní Životice (CZ): new 400 kV single line

3.85. New wind energy connections in Malta (MT)

4.

Developing electricity connections with the non-member States

4.1. New interconnection Italy-Switzerland

4.2.

Philippi (EL)-Maritsa 3 (Bulgaria) line

4.3. Amintaio (EL)-Bitola (Former Yugoslav Republic Of Macedonia) line

4.4. Kardia (EL)-Elbasan (Albania) line

4.5.

Elbasan (Albania)-Podgorica (Serbia and Montenegro) line

4.6. Mostar (Bosnia and Herzegovina) substation and connecting lines

4.7.

Ernestinovo (Croatia) substation and connecting lines

4.8. New connections between Greece and Albania, Bulgaria and Former Yugoslav Republic of Macedonia

4.9.

Philippi (EL)-Hamidabad (TR) line

4.10. Submarine cable between the north-east/east England and southern Norway

4.11. Eemshaven (NL)-Feda (NO) link

4.12. Submarine cable between southern Spain and Morocco (strengthening of existing connection)

4.13. Connections for
Denmark-Belarus

the Baltic Electricity Ring: Germany-Poland-Russia-Estonia-Latvia-Lithuania-Sweden-Finland-

4.14. Southern Finland-Russia links

4.15. New connections between north Sweden and north Norway

4.16. New connections between mid-Sweden and mid-Norway

4.17. Borgvik (SE)-Hoesle (NO)-Oslo region (NO) line

4.18. New connections between the UCTE/Centrel system and the Balkan countries

4.19. Connections and interface between the UCTE system and Belarus, Russia and Ukraine, including relocation of
HVDC conversion stations operating previously between Austria and Hungary, Austria and the Czech Republic,
and Germany and the Czech Republic

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4.20. Connections in the Black Sea Electricity Ring: Russia-Ukraine-Romania-Bulgaria-Turkey-Georgia

4.21. New connections in the Black Sea area with a view to interoperability of the UCTE system with the networks in

the countries covered

4.22. New connections in the Mediterranean Electricity Ring: France-Spain-Morocco-Algeria-Tunisia-Libya-Egypt-near-

east Countries-Turkey-Greece-Italy

4.23. Submarine cable between southern Spain and north-west Algeria

4.24. Submarine cable between Italy and North Africa (Algeria, Tunisia, Libya)

4.25. Electricity connection between Tunisia and Italy

4.26. New connections in the Barents region/area

4.27. Upgrading of connections between Denmark and Norway

4.28. Obermoorweiler (DE)-Meiningen (AT)-Bonaduz (CH): further capacity increase

4.29. Békéscsaba (HU)-Oradea (RO)

4.30. Pécs (HU)-Sombor (Serbia and Montenegro)

4.31. Pécs (HU)-Ernestinovo (HR)

4.32. Vel'ké Kapušany (SK)-Ukraine border

4.33. Andrall (ES)-Encamp (AD): capacity increase to 220 kV

4.34. Spain-Andorra-France: upgrade of connections

5.

Actions improving the functioning of the interconnected electricity networks within the internal market

(No specifications defined yet)

GAS NETWORKS

6.

Introducing natural gas into new regions

6.1. Developing gas network from Belfast towards the north-west region of Northern Ireland (UK) and, if appropriate,

to the western coast of Ireland

6.2.

LNG in Santa Cruz de Tenerife, Canary Islands (ES)

6.3.

LNG in Las Palmas de Gran Canaria (ES)

6.4.

LNG in Madeira (PT)

6.5. Development of gas network in Sweden

6.6. Connection between the Balearic Islands (ES) and mainland Spain

6.7. High pressure branch to Thrace (EL)

6.8. High pressure branch to Corinth (EL)

6.9. High pressure branch to north-west Greece (EL)

6.10. Connection of Lolland (DK) and Falster (DK) islands

6.11. LNG in the island of Cyprus, Vasilikos Energy Centre

6.12. Connection between Vasilikos (CY) LNG plant and Moni (CY) power station

6.13. LNG in the island of Crete (EL)

6.14. High pressure branch to Patra (EL)

6.15. LNG in Malta

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7.

Developing gas connections in order to meet the needs of the internal market or strengthening of the
security of supply, including connection of separate natural gas networks

7.1. Additional gas interconnection pipeline between Ireland and Scotland

7.2. North-south interconnection, including Dublin-Belfast pipeline

7.3. Compression station on the Lacq (FR)-Calahorra (ES) pipeline

7.4.

Lussagnet (FR)-Bilbao (ES) pipeline

7.5.

Perpignan (FR)-Barcelona (ES) pipeline

7.6.

Increasing transport capacity of gas pipelines supplying Portugal through South Spain and Galicia and Asturias
through Portugal

7.7.

Puchkirchen (AT)-Burghausen (DE) pipeline

7.8. Andorf (AT)-Simbach (DE) pipeline

7.9. Wiener Neustadt (AT)-Sopron (HU) pipeline

7.10. Bad Leonfelden (AT)-Linz (AT) pipeline

7.11. North-west Greece-Elbasan (AL) pipeline

7.12. Greece-Italy interconnection pipeline

7.13. Compression station on the main pipeline in Greece

7.14. Connection between the networks of Austria and Czech Republic

7.15. Gas transport corridor in south-east Europe across Greece, Former Yugoslav Republic of Macedonia, Serbia and

Montenegro, Bosnia and Herzegovina, Croatia, Slovenia and Austria

7.16. Gas transport corridor between Austria and Turkey through Hungary, Romania and Bulgaria

7.17. Interconnecting pipelines between United Kingdom, the Netherlands and Germany, linking the main sources and

markets of north-wWest Europe

7.18. Connection between north-east Germany (Berlin area) and north-west Poland (Szczecin area) with a branch from

Schmölln to Lubmin (DE, Greifswald area)

7.19. Cieszyn (PL)-Ostrava (CZ) pipeline

7.20. Görlitz (DE)-Zgorzelec (PL): extension and interconnection of natural gas networks

7.21. Bernau (DE)-Szczecin (PL) extension

7.22. Connection between offshore facilities in the North Sea, or from Danish offshore to United Kingdom onshore

facilities

7.23. Reinforcement of the capacity of transport between France and Italy

7.24. The Baltic gas interconnector between Denmark–Germany-Sweden

7.25. Winksele (BE) blending station on north-south axis

7.26. Zeebrugge (BE)-Eynatten (BE) capacity upgrade

7.27. Upgrading of capacity along north-west axis: Zelzate (BE)-Zeebrugge (BE)

7.28. Building of gas pipeline linking Denmark and the Netherlands and connecting existing North Sea production facil-

ities

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8.

Developing capacities for receiving LNG and for storage of natural gas

8.1.

LNG at Le Verdon-sur-mer (FR, new terminal) and pipeline to Lussagnet (FR) storage

8.2.

LNG at Fos-sur-mer (FR)

8.3.

LNG at Huelva (ES), extending existing terminal

8.4.

LNG at Cartagena (ES), extending existing terminal

8.5.

LNG at Galicia (ES), new terminal

8.6.

LNG at Bilbao (ES), new terminal

8.7.

LNG in the Valencia Region (ES), new terminal

8.8.

LNG in Barcelona (ES), extending existing terminal

8.9.

LNG in Sines (PT), new terminal

8.10. LNG at Revithoussa (EL), extending existing terminal

8.11. LNG on the north Adriatic Coast (IT)

8.12. LNG offshore in the north Adriatic Sea (IT)

8.13. LNG on the south Adriatic Coast (IT)

8.14. LNG on the Ionian coast (IT)

8.15. LNG on the Tyrrhenian coast (IT)

8.16. LNG on the Ligurian coast (IT)

8.17. LNG at Zeebrugge (BE, second phase of capacity extension)

8.18. LNG at Isle of Grain, Kent (UK)

8.19. Construction of a second LNG terminal in continental Greece

8.20. Developing underground gas storage facilities in Ireland

8.21. Storage at South Kavala (EL), conversion of an offshore depleted gas field

8.22. Storage at Lussagnet (FR), extending existing site

8.23. Storage at Pecorade (FR), conversion of a depleted oil field

8.24. Storage in Alsace region (FR), developing of saline cavities

8.25. Storage in Centre region (FR), developing water table.

8.26. Storage on the north-south axis of Spain (new sites) in Cantabria, Aragon, Castilla y León, Castilla-La Mancha and

Andalucia

8.27. Storage on the Mediterranean axis of Spain (new sites) in Catalonia, Valencia and Murcia

8.28. Storage in Carriço (PT), new site

8.29. Storage at Loenhout (BE), extending existing site

8.30. Storage at Stenlille (DK) and Lille Torup (DK), extending existing site

8.31. Storage at Tønder (DK), new site

8.32. Storage at Puchkirchen (AT), extending existing site, including pipeline to the Penta West system near Andorf

(AT)

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8.33. Storage at Baumgarten (AT), new site

8.34. Storage at Haidach (AT), new site, including pipeline to the European gas grid

8.35. Developing underground gas storage facilities in Italy

8.36. Storage at Wierzchowice (PL), extending existing site

8.37. Storage at Kossakowo (PL), developing underground storage

8.38. Malta (MT)-Sicily (IT) gas pipeline

8.39. Storage in Lithuania (new site)

9.

Developing gas transport capacity (gas supply pipelines)

9.1. Creation and development of connections Nordic Gas Grid: Norway-Denmark-Germany-Sweden-Finland-Russia-

Baltic States-Poland

9.2. The mid-Nordic gas pipeline: Norway, Sweden, Finland

9.3. The north European gas pipeline: Russia, Baltic Sea, Germany

9.4. Gas pipeline from Russia to Germany, via Latvia, Lithuania and Poland, including developing underground gas

storage facilities in Latvia ('Amber' project)

9.5. Gas pipeline Finland-Estonia

9.6. New gas pipelines from Algeria to Spain and France and related capacity increase of the internal networks in

these countries

9.7.

Increasing transport capacity of the Algeria-Morocco-Spain (up to Córdoba) pipeline

9.8. Córdoba (ES)-Ciudad Real (ES) pipeline

9.9. Ciudad Real (ES)-Madrid (ES) pipeline

9.10. Ciudad Real (ES)-Mediterranean coast (ES) pipeline

9.11. Branches in Castilla-La Mancha (ES)

9.12. Extension towards north-west Spain

9.13. Algeria-Spain submarine pipeline and pipelines for the connection to France

9.14. Increasing transport capacity from Russian resources to the European Union, via Ukraine, Slovakia and the Czech

Republic

9.15. Increasing transport capacity from Russian resources to the European Union, via Belarus and Poland

9.16. Yamal-Europe II natural gas pipeline

9.17. Yagal Sud gas pipeline (between the Stegal pipeline leading to the DE, FR, CH triangle)

9.18. SUDAL East gas pipeline (between Midal pipeline near Heppenheim to Burghausen connection with the PENTA

pipeline in Austria)

9.19. Increasing transport capacity of the Stegal gas pipeline for transport of additional gas from the Czech-German

border and from the Polish-German border through Germany to other Member States

9.20. Gas pipeline from Libyan resources to Italy

9.21. Gas pipeline from resources in the Caspian Sea Countries to the European Union

9.22. Greece-Turkey gas pipeline

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9.23. Increasing transport capacity from Russian resources to Greece and other Balkan countries, via Ukraine, Moldavia,

Romania and Bulgaria

9.24. St Zagora (BG)-Ihtiman (BG) gas pipeline

9.25. Trans-Adriatic pipeline — Natural gas pipeline to transport natural gas imported from the Caspian Sea region,

Russia, or the Middle East, connecting Italy and the South-East European energy markets

9.26. Connecting pipelines between the German, Czech, Austrian and Italian gas networks

9.27. Gas pipeline from Russian resources to Italy, via Ukraine, Slovakia, Hungary and Slovenia

9.28. Increasing transport capacity of the TENP gas pipeline running from the Netherlands through Germany to Italy

9.29. Taisnieres (FR)-Oltingue (CH) gas pipeline

9.30. Gas pipeline from Denmark to Poland, possibly via Sweden

9.31. Nybro (DK)-Dragør (DK) gas pipeline, including connecting pipeline to the storage at Stenlille (DK)

9.32. Gas network from the Barents Sea resources to the European Union, via Sweden and Finland

9.33. Gas pipeline from the Corrib field (IE), offshore

9.34. Gas pipeline from Algerian resources to Italy, via Sardinia with a branch to Corsica

9.35. Gas network from resources in the Middle East to the European Union

9.36. Gas pipeline from Norway to the United Kingdom

9.37. Pécs (HU)-Croatia connection

9.38. Szeged (HU)-Oradea (RO) connection

9.39. Vecsés (HU)-Slovakia connection

9.40. Beregdaróc (HU)-Ukraine capacity increase

10. Actions improving the functioning of the interconnected gas networks within the internal market

(No specifications defined yet)

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STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

On 10 December 2003, the Commission presented a proposal for a Decision of the European Parlia-
ment and of the Council laying down guidelines for trans-European energy networks and repealing
Decision 96/391/EC and Decision No 1229/2003/EC (1).

The European Economic and Social Committee delivered its pinion (2) on 2 June 2004. The Committee
of the Regions decided not to present an opinion.

The European Parliament adopted its opinion (3) at first reading on 7 June 2005.

On 8 December 2005, the Council adopted its Common Position in accordance with Article 251 of
the Treaty.

II. OBJECTIVE OF THE PROPOSAL

The main purpose of this proposal is to adapt the trans-European energy guidelines adopted in June
2003 (4), in particular with respect to new Member States, and allow for funding (5) of projects of
common interest to the enlarged Union. The revision of the guidelines includes projects which will
facilitate the integration of new Member States into the internal market of electricity and gas. It
addresses also the need to include projects involving the ‘neighbouring countries’.

Furthermore, with respect to the mechanisms provided for the preparation and implementation of
priority projects, the Commission proposed two new provisions, namely:

(a) a Declaration of European Interest for cross-border priority projects having a significant impact on

the integration of the networks concerned; and

(b) the possibility for the Commission to appoint a European coordinator for a given priority axis or

for an individual priority project.

Finally, the proposal also includes ‘olefin gases’ in the scope of the Decision; however, projects related
to olefin gases would not be eligible for Community funding under Regulation (EC) No 2236/95.

III. ANALYSIS OF THE COMMON POSITION

1. General remarks and main changes introduced by Council

Generally speaking, the Council endeavoured to simplify the structure of the Decision (in terms of
levels of priorities and number of Annexes) and keep it as close as possible to Decision No
1229/2003/EC.

Council supports the main aim of the Commission's proposal: to adapt the trans-European energy
network guidelines to the consequences of the recent enlargement of the Union. However, Council
did not accept the new elements introduced by the Commission in this proposal (as compared to
Decision No 1229/2003/EC) i.e. the creation of a new, additional category of ‘projects of European
interest’ (Article 8), combined with provisions concerning the implementation of such projects
(Article 9) and the European coordinator (Article 10).

(1) Doc. 6218/04 ENER 49 RELEX 62 CODEC 198, not published in the Official Journal.
(2) OJ C 241, 28.9.2004, p. 17.
(3) Doc. 9835/05 CODEC 471 ENER 92 RELEX 295, not published in the Official Journal.
(4) Decision No 1229/2003/EC of 26 June 2003 laying down a series of guidelines for trans-European energy networks

and repealing Decision No 1254/96/EC (OJ L 176, 15.7.2003, p. 11).

(5) It is recalled that the granting of Community financial aid in the field of trans-European networks is governed by

Regulation (EC) No 2236/95 as amended by Regulation (EC) 807/2004 of 21 April 2004.

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It has been argued that these new provisions have been accepted by Council in relation with trans-
European transport networks. However, two significant differences distinguish the trans-European
energy networks from the trans-European transport networks: the very limited budget available for
trans-European energy networks and the fact that energy infrastructure projects are normally under-
taken by private investors. Thus, the effect that the creation of an additional category of ‘projects of
European interest’ could have in practice would be to effectively exclude TEN-financing altogether
for a ‘normal priority project’ which a private investor would be willing to consider. Regarding the
provisions on a possible ‘European coordinator’, the Council is of the view that far less bureaucratic
provisions could be retained for the same purpose as noted by the European Parliament itself in its
amendment 21.

The Council notes in this respect the wide scope of the enabling provision set out in Article 8(2).
Taking into account the aforementioned two differences, and the negative effect which the creation
of an extra category could have on the realisation of other viable projects, has led Council to the
conclusion that the added cost and administrative burdens, imposed on Member States as a result of
the provisions contained in Articles 8 to 10 of the Commission's proposal, are disproportionate in
relation to their potential benefit.

During an informal trialogue with the EP which took place during the preparation of the common
position, compromises were reached on the issues of appropriate references to olefin gases and
renewable sources of energy; these compromises are included in the common position.

2. European Parliament amendments

Concerning the 30 amendments adopted by the European Parliament, the Council has accepted the
following 20 amendments:

— fully (sometimes with redrafting): 1, 2, 4, 5 (recital 6), 6 (recital 11), 8 (recital 14a), 11, 16, 22

(Article 8(1), 23 (Article 9), 30;

— partly: 7 (recital 14), 12, 17, 24 — 29 (1).

Council rejected the following 10 amendments: 3, 9, 10, 13, 14, 15, 18, 19, 38, 21.

3. Other changes introduced by the Council

Concerning the Commission proposal, the Council has introduced a number of changes which are
reflected below.

— In line with the deletion of Articles 8, 9 and 10, the Council also deleted in the recitals the refer-
ences to the Declaration of European interest (Recital 6, second sentence) and the European
coordinator (recital 9). However, in order to retain certain elements contained in these Articles
and recitals, Council inserted new recitals 9, 10, 12 and 13 in its common position. A new
recital 5 on olefins was also added.

— In Article 4(2)(b), a reference to ‘candidate countries’ was inserted; the reference to olefin gases

was deleted (Article 4(3)(c) in the Commission proposal).

— The reference to ‘priority projects’ was deleted in Article 5(a).

(1) Note: in amendments 24 to 29 which concern the annexes, Council did not accept the references to ‘projects of Euro-

pean interest’ as well as the changes made to Annex I, Electricity networks, EL.7.

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— In Article 6(6), ‘after consulting’ [the Member States] was replaced with 'by agreement with', and

a reference to multilateral agreements was added.

— A reference to ‘responsible companies’ was added to Article 7(2).

— In Article 12 (Article 9 of the common position), it was specified that private financing or finan-

cing by economic operators shall be ‘the main source for financing’.

— As regards the annexes, it is recalled that Annexes I and IV were merged, and that some addi-
tional changes and corrections to the projects were made with the agreement of the Commis-
sion; these changes are reflected in Parliament's amendments 24 to 30.

IV. CONCLUSION

Council supports the main aim of the Commission's proposal, which is to adapt the trans-European
energy network guidelines to the consequences of the recent enlargement of the Union. It has accepted,
in the framework of an informal trialogue, compromise solutions on various issues. In view of the
importance which the adaptation of the trans-European energy network guidelines holds, for the
Union as a whole and in particular for the new Member States, Council is in favour of a quick adop-
tion of an easy-to-implement Decision.