Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the implementation of the Trans-European energy networks in the period 2007-2009 Pursuant to Article 17 of Regulation (EC) 680/2007 and Articles 9(2) and 15 of Decision 1364/2006/EC SEC(2010)505 final
Date: 2010-05-04
Institutions: European Commission
Subjects: EU aid, aid system, competitiveness, economic development, energy transport, financial aid, report, trans-European network, transport network

EN 

EN 

   EN 

 
 
EUROPEAN COMMISSION 

Brussels, 4.5.2010 
COM(2010)203 final 

REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 

ON THE IMPLEMENTATION OF THE TRANS-EUROPEAN ENERGY 
NETWORKS IN THE PERIOD 2007-2009 

Pursuant to Article 17 of Regulation (EC) 680/2007 
and Articles 9(2) and 15 of Decision 1364/2006/EC 

SEC(2010)505 final 

EN 

   EN 

 
 
 
  
 
REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 

ON THE IMPLEMENTATION OF THE TRANS-EUROPEAN ENERGY 
NETWORKS IN THE PERIOD 2007-2009 

Pursuant to Article 17 of Regulation (EC) 680/2007 
and Articles 9(2) and 15 of Decision 1364/2006/EC 

1. 

THE POLICY FRAMEWORK 

Europe's  future  economic  growth  and  stability  depend  on  timely  and  adequate 
investments in energy infrastructure. In 1996, as part of EU moves to complete the 
single  market,  the  trans-European  Networks  for  Energy  (TEN-E)  were  developed. 
Their  purpose  was  to  provide  a  more  political  impulse  to  energy  infrastructure 
investment.  The  focus  was  on  the  feasibility  stage  of  gas  and  electricity  network 
projects  which  contribute  to  the  working  of  the  single  market,  particularly  cross-
border  initiatives.  At  that  time,  the  EU  had  no  energy  policy  remit  and  no  internal 
energy market. National state-run companies managed network investments projects 
where the overriding aim was security of supply. 

Later revisions to TEN-E  incorporated sustainability  and supply security criteria. It 
was assumed throughout that EU intervention in the implementation phases of such 
projects  would  not  be  necessary,  as  commercial  interests  would  drive  projects 
forward.  The  TEN-E  budget  consequently  remained  very  low  –  some  €  22  million 
annually in the period of this report. 

This  report  summarises  the  progress  which  TEN-E  has  achieved  in  2007-2009  in 
helping  Europe's  energy  industry  devise  and  implement  strategic  network  projects. 
The  period  covered  in  this  report  falls  under  the  TEN-E  Guidelines1  adopted  in 
September 2006, replacing those of 19962 and 20033. The new Guidelines reviewed 
the objectives of the policy and introduced a number of new concepts and tools such 
as  different  priority  levels  and  European  coordinators  with  the  aim  of  ensuring  a 
more  targeted  approach  to  project  implementation  and  better  coordination  between 
Member States along transnational corridors. The report also sets out to assess where 
TEN-E has had a positive impact as well as analysing its weaknesses. 

Detailed  information  on  the  projects  of  European  interest  and  the  priority  projects 
can  be  found  in  the  Annex4.  The  Annex  includes  a  summary  description  of  the 
projects,  describes  progress  of  their  implementation  and  presents  the  sources  of 

1 
2 
3 
4 

Decision No 1364/2006/EC 
Decision No 96/391/EC 
Decision No 1229/2003/EC 
SEC(2010)xxx 

EN 

2 

   EN 

 
 
                                                 
financing during the period 2007-2009. It includes a detailed assessment of problems 
encountered during the implementation of the projects. 

The  framework  for  energy  policy  in  the  EU  has  been  fundamentally  transformed 
during the period of this report. Ambitious energy and climate objectives (20-20-20 
targets)  and  third  internal  energy  market  package  were  adopted.  These  targets  now 
form  a  central  part  of  the  new  EU2020  strategy5  launched  by  the  Commission  in 
March  2010.  Also,  during  this  period,  the  EU  has  been  subject  to  the  greatest 
economic crisis in its history. In addition, the geopolitics of energy has changed with 
the emergence of China and other emerging countries as major energy importers. 

This  report  highlights  the  importance  of  energy  infrastructure  to  the  overall  energy 
policy aims of the EU and the delivery of its 20-20-20 objectives. It provides input 
into the preparation of a proposal for a new EU Energy Security and Infrastructure 
Instrument, as requested by the European Council in March 20096 and anticipated in 
the  Communication  on  the  Second  Strategic  Energy  Review  (2008)7  and  on  the 
Green Paper on energy networks (2008)8. 

2. 

PROGRESS IN TEN-E PROJECT IMPLEMENTATION 

The  TEN-E  policy  has  been  developed  and  shaped  in  the  1990’s  through  the 
successive  TEN-E  Guidelines  and  the  corresponding  Financial  Regulation.  The 
current objectives of the TEN-E policy are to (1) support the completion of the EU 
internal energy market, (2) reduce the isolation of less-favoured and island regions, 
(3)  secure  and  diversify  the  EU's  energy  supplies  also  through  co-operation  with 
third  countries,  (4)  contribute  to  sustainable  development  and  protection  of  the 
environment.  The  current  TEN-E  policy  framework  includes  electricity,  gas  and 
olefin transmission networks. 

The  Guidelines  for  trans-European  energy  networks  introduced  in  2006  listed  the 
projects  eligible  for  Community  co-financing  according  to  the  above-mentioned 
objectives and priorities. In total there are approximately 550 TEN-E projects, ranked 
in  three  categories,  according  to  their  perceived  importance  in  producing  wider 
European benefits. 

Projects  of  European  interest  have  a  cross-border  nature  or  have  a  significant 
impact  on  trans-border  capacity.  They  have  first  priority  for  funding  from  the 
Community TEN-E budget. 

Out  of  the  32  electricity  and  10  gas  projects  of  European  interest,  9  projects  have 
been completed, of which five in the electricity sector and four in the gas sector. In 
addition, 12 projects are under construction of which nine in the electricity sector and 
three  in  the  gas  sector  since  2007.  Only  a  very  limited  number  of  projects  of 
European interest have faced serious delays, such as Yamal (study phase not started) 
or  the  Baltic  Interconnector  (construction suspended  though  required authorisations 

5 
6 
7 
8 

EU 2020 - A European strategy for smart, sustainable and inclusive growth, 3 March 2010 
Brussels European Council, 19-20 March 2009, Presidency Conclusions 7880/1/09 
COM(2008)781 
COM(2008)782 

EN 

3 

   EN 

 
                                                 
have been granted). One project was abandoned (Stupava (SK) - south-east Vienna 
(AT) line). 

Priority projects have a significant impact on the functioning of the internal market, 
on the use of renewable energy sources and/or on security of supply. The projects are 
selected  from  the  projects  of  common  interest  and  have  second  priority  for 
Community financial assistance. 

The  number  of  electricity  and  gas  priority  projects  amount  to  some  140  and  100 
respectively.  21  have  been  finalised  in  2007-2009,  respectively  9  and  12  in  the 
electricity and gas sector. Furthermore, 46 projects are under construction up today – 
of which 33 in the electricity sector and 13 in the gas sector. 

Projects  of  common  interest  meet  the  objectives  and  priorities  laid  down  in  the 
Guidelines and display potential economic viability as determined by a cost-benefit 
analysis in terms of the environment, security of supply and geographical cohesion. 
The Guidelines list 164 electricity and 122 gas projects of common interest. 

Over  the  period  of  this  report,  several  projects  in  each  of  the  three  categories  have 
been  re-defined  following  changes  in  market  demand  or  difficulties  encountered 
during their implementation. This implies the need for a more flexible definition of 
the TEN-E projects to better respond to network development needs. 

TEN-E has been most effective in those projects which were selected for first priority 
funding, namely projects of European interests, and which had considerable political 
support as well as commercial potential. There is a need to narrow the focus of TEN-
E on a limited number of strategic projects demonstrating European priorities. At the 
same  time,  the  definition  of  projects  should be  flexible  to  better  respond  to  market 
development. 

3. 

FINANCING TEN-E INFRASTRUCTURE  

In  the  EU,  energy  infrastructure  is  mainly  financed  by  Transmission  System 
Operators  (TSOs)  through  tariffs  (“user  pays  principle”).  The  TSOs  own  resources 
amount to approximately 20-100% of the total investment required, depending on the 
scale  of  the  overall  investment.  The  rest  is  typically  covered  by  loans  from 
international financial institutions or commercial banks. Partnerships with companies 
active  in  the  gas  and  power  sector,  other  than  TSOs,  may  sometimes  also  offer 
additional  capital.  Member  States  in  most  cases  do  not  participate  directly  in 
financing TEN-E projects as these are usually undertaken and financed by the TSOs. 

EU-funded support to TEN-E projects passes through a number of instruments: 

–  The TEN Financial Regulation9, revised in June 2007, complements the TEN-E 
Guidelines.  The  budget  of  the  TEN-E  funding  programme  amounts  to  €  155 
million  for  the  budget  period  2007-2013  of  which  some  €  70  million  for  the 
period  2007-2009.  Although  the  maximum  co-financing  rate  is  up  to  50%  for 

9 

Regulation (EC) No 680/2007 

EN 

4 

   EN 

 
                                                 
studies and 10% of eligible costs of works, it rarely amounts to more than 0,01-
1% of the total investment cost of a project. 

–  The European Investment Bank plays an important role in the implementation 
of the TEN-E projects. In 2007-2009 the financial envelopes amounted to € 2.561 
million and € 3.407 million, respectively  for gas and electricity projects. 

–  In  recognition  of  their  social  and  economic  importance,  energy  infrastructure 
projects  have  risen  in  priority  in  other  EU  funding  sources,  including  the 
Structural  Funds,  Instruments  for  Pre-Accession  (IPA)  and  European 
Neighbourhood  Policy  (ENPI10/NIF11),  RTD  Framework  Programme.  These 
programmes  have  a  significantly  larger  budget  than  TEN-E  for  energy-related 
measures. However, the absolute amounts, however, remained low except for the 
Structural  Funds,  where  the  support  to  TEN-E  projects  reached  almost  €  700 
million. 

–  In  2009,  the  Council  agreed  exceptionally  to  allocate  €3.98  billion  to  energy 
infrastructure  and  technology  in  the  European  Energy  Programme  for 
Recovery (EEPR). The 2009 economic crisis had a major impact on commercial 
infrastructure  projects.  These  funds  targeted  projects  where  delays  caused  by 
credit  withdrawal  would  be  not  only  detrimental  to  the  EU's  security  of  supply, 
and  therefore  to  future  economic  growth,  but  also  have  a  serious  impact  on 
employment  and  skills  in  the  energy  and  construction  sectors,  inhibiting  the 
introduction  of  renewable  and  low  carbon  technologies  into  energy  networks.  A 
large  proportion  of  EEPR  funding  will  benefit  projects  which  are  TEN-E 
priorities. 

The  TEN-E  budget  is  being  used  more  effectively  by  increasing  coordination  with 
other  energy  infrastructure  activities  and  instruments  in  the  EU.  The  potential  for 
more  effective  coordination,  including  with  national  measures,  could  be  better 
structured  to  strengthen  synergies  and  the  delivery  of  results,  not  only  in  financial 
terms  but  also  to  ensure  overall  coherence  of  EU  actions  and  policies.  Increased 
coordination  between  TEN-E  and  IPA/ENPI  instruments  is  needed  in  order  to 
generate more possibilities for network and market integration and to better take into 
account  issues  such  as  the  development  of  smart  networks  as  well  as  the 
improvement of interconnections between the new Member States (Structural Funds 
and  EIB)  and  third  countries  (IPA,  ENPI/NIF).  The  impact  of  TEN-E  could  be 
considerably enhanced by reinforcing this approach. 

4. 

ENHANCING POLITICAL IMPACT 

The  2006  Guidelines  reiterated  the  long-standing  goals  of  TEN-E,  namely  to 
encourage the effective operation and development of the internal energy market and 
to  reduce  the  isolation  of  less-favoured  and  island  regions.  They  also  put  renewed 
emphasis on the need to reinforce the security of energy supplies and confirmed the 

10 
11 

European Neighbourhood and Partnership Instrument 
Neighbourhood Investment Facility 

EN 

5 

   EN 

 
                                                 
new  objective  to  contribute  to  sustainable  development  and  protection  of  the 
environment. 

During the reporting period, the TEN-E programme has positively contributed to the 
development  and  operation  of  the  internal  energy  market.  In  particular,  the  eleven 
completed cross-border electricity projects accelerated by TEN-E policy framework 
have  permitted  increased  energy  trade  and  more  competition,  contributing  to  the 
convergence of average energy prices and stimulating market integration and thus the 
development of a true internal 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 respect, TEN-E has contributed 
to  greater  diversity  in  gas  supplies.  However,  it  is  only  through  the  EEPR  that 
significant  investments  are  being  made  in  gas  reverse  flow  technology  for  new 
and/or existing gas interconnectors, strengthening thus security of supply. 

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  versus 
renewables) is a brake on infrastructure developments in isolated markets. 

In recent years, the TEN-E framework has been strengthened by extending the aims 
beyond  market  interconnection  to  security  and  diversification  of  supply  and 
sustainability  objectives.  However,  the  delivery  of  the  programme  remains  to  be 
most effective in the case of major interconnector projects which are largely supply-
driven. The impact of TEN-E has been less relevant in dealing with the more recent 
challenges concerning the EU's strategic energy policy goals and targets . 

5. 

STRENGTHENING COORDINATION AND COOPERATION 

The Guidelines  established a framework for closer cooperation including through a 
better  exchange  of  information  and  coordination  between  Member  States.  In  this 
period  of  reporting,  TEN-E  for  the  first  time  was  used  to  appoint  European 
Coordinators  and  in  September  2007,  four  Coordinators  were  appointed  for  four 
years12. 

The  role  of  the  Coordinators  was  to  mediate  in  strategic  cross-border  projects  to 
resolve  practical  difficulties  holding  up  those  projects.  Two  years  later  two  of  the 
Coordinators  have  successfully  completed  their  mandate  and  two  are  still  active. 
Coordinators  were  most  effective  where  they  were  able  to  bring  Member  States 
together at the highest level to iron out political or administrative problems. This was 
possible due to their impartiality and political experience, clear mandate, tight time 
schedule  and  close  interaction  with  the  Commission  and  Member  States  at  the 
highest level. A drawback is the risk of confusion between the relative roles of the 

12 

Mr  Mario  Monti,  Mr  Josiaz  van  Aartsen,  Mr  Georg  Wilhelm  Adamowitsch  and  Prof  Wladyslaw 
Mielczarski.  See  the  annual  reports  and  other  relevant  documents  from  European  Coordinators  at: 
http://ec.europa.eu/energy/infrastructure/tent_e/coordinators_en.htm. 

EN 

6 

   EN 

 
                                                 
Coordinators  and  the  Commission,  in  particular  if  their  mandate  covers  projects 
going beyond the borders of the EU. 

In parallel, the Commission has taken an active role in bringing relevant stakeholders 
together with the aim to build consensus on the way ahead of politically sensitive and 
complex  regional  projects.  These  include  in  particular  the  Baltic  Energy  Market 
Interconnection Plan (BEMIP), the Southern Corridor including Nabucco, as well as 
the support to regional initiatives such as the Pentalateral Forum (gas and electricity), 
and  the  new  Heptalateral  Forum  (in  electricity)  now  promoted  by  Germany  and 
Poland. 

Coordination between Member States and national regulatory authorities has become 
more important as work to complete a fully interconnected European electricity and 
gas network intensifies. 

The  intervention  of  the  European  Coordinators  has  addressed  some  of  the 
weaknesses  in  the  existing  TEN-E  framework.  Their  work  has  led  to  significant 
progress in the projects concerned, especially when the projects face clearly defined 
obstacles and involve a few countries and companies. 

The  role  of  the  Commission  to  facilitate  the  implementation  of  complex  regional 
projects  involving  several  countries  and  companies  and  requiring  a  multi-sectoral 
approach has proven essential. 

6. 

AUTHORISATION PROCEDURES 

By  definition,  nearly  all  TEN-E  projects  face  some  obstacles  during  their 
implementation.  The  obstacles  are  related  mainly  to  financial  and  technical 
constraints,  particular  problems  of  the  chosen  route  and  legal  and  political 
framework.  However,  one  of  the  greatest  obstacles  is  related  to  authorisation 
procedures. TEN-E has no remit to tackle this issue. 

The  TEN-E  Guidelines  require  Member  States  to  take  all  necessary  measures  to 
reduce  delays  to  projects  (in  particular  the  projects  of  European  interest)  whilst 
complying  with  environmental  procedures.  This  applies  also  to  third  countries 
involved, in accordance with the Energy Charter Treaty. However, the unpredictable 
length  of  authorisation  procedures,  which  may  sometimes  be  several  years,  even 
decades,  is  a  growing  problem.  In  rural  areas  this  can  be  exacerbated  by 
environmental requirements and public opposition to major construction projects. In 
long-distance  projects,  which  TEN-E  projects  often  are,  the  problems  can  be 
multiplied for each commune, region and country the project passes. 

Most, if not all, Member States are aware of this problem and some have begun to 
tackle  them  through  new  national  legal  acts  aiming  at  the  acceleration  or 
simplification of the authorisation procedures. Since this legislation is very new, its 
vulnerability to legal challenges and other practical problems has not yet been tested. 

To ensure the necessary support at national level some Member States may declare 
certain  projects  as  projects  of  national  interest.  This  can  avoid  delays  during  the 
authorisation procedure and speed up the implementation of infrastructure projects. 

EN 

7 

   EN 

 
Yet,  this  has  not  been  done  in  all  Member  States  and  is  often  not  coordinated  at  a 
wider  regional  or  European  level  for  cross-border  projects.  In  addition,  currently, 
there  is  no  mechanism  in  the  TEN-E  guidelines  that  would  ensure  consistency 
between European and national energy infrastructure priorities. 

There is a clear need to streamline planning and authorisation procedures in the case 
of  projects  which  cross  several  jurisdictions.  In  the  last  two  years,  there  has  been 
some  progress 
for  major  energy 
infrastructure projects in Member States. However, there is a need for action at EU 
level to ensure more coordination and consistency. 

in  simplifying  authorisation  procedures 

7. 

CONCLUSIONS AND OUTLOOK 

The  TEN-E  has  made  a  positive  contribution  to  selected  projects  by  giving  them 
political visibility and helping leverage funds from the financial market. The "TEN-E 
label"  given  to  projects  with  the  highest  European  interest  and  the  creation  of 
European Coordinators have been conducive in delivering these results. 

However, the European energy policy framework has undergone a dramatic change 
in the recent years, calling for a thorough review of both the concept and rationale of 
the TEN-E framework. Already in 2008, the European Commission's Green Paper on 
energy networks examined the suitability of TEN-E for the delivery of the 20-20-20 
targets and security of goals. The Green Paper suggested that a new instrument was 
required to tackle the growing challenges of energy security and network investment 
in  the  EU.  The  European  Council  endorsed  these  conclusions  in  March  2009.  This 
report  substantiates  theses  arguments  further.  This  report  also  coincides  with  the 
conclusions of the European Council in March 2009 which call on the Commission 
to develop a new Energy Security and Infrastructure Instrument. 

The  agreement  on  a  EU  Energy  Policy13  in  2007  set  ambitious  goals  and  binding 
targets on both greenhouse gas emissions14 and energy from renewable sources15 in 
order  to  fight  against  climate  change,  improve  competitiveness  and  guarantee 
security  of  energy  supply  for  European  consumers.  An  appropriate  energy 
infrastructure development is needed to enable meeting these objectives particularly 
concerning the integration of renewable energy sources into the grid, the mitigation 
of  the  higher  technological  risks  of  low-carbon  technologies,  the  integration  of  the 
European energy markets and to ensure security of supply. 

The  regulatory  framework  related  to  gas  and  electricity  infrastructure  has 
considerably  evolved:  the  3rd  internal  energy  market  package16  was  adopted  in 
summer  2009  and  is  under  implementation.  It  provides  new  instruments  for  better 
cooperation  between  Transmission  System  Operators  and  Regulators.  The  Agency 

13 
14 

15 
16 

COM (2007) 1 endorsed by the Council conclusions in spring 2007  
Directive 2009/29/EC amending Directive 2003/87/EC so as to improve and extend the greenhouse gas 
emission  allowance  trading  scheme  of  the  Community,  Decision  No  406/2009/EC  on  the  effort  of 
Member  States  to  reduce  their  greenhouse  gas  emissions  to  meet  the  Community’s  greenhouse  gas 
emission reduction commitments up to 2020 
Directive 2009/28/EC on the promotion of the use of energy from renewable sources (“RES directive”) 
Directives 2009/72-73/EC, Regulations (EC) 713-714-715/2009 

EN 

8 

   EN 

 
                                                 
for the Cooperation of Energy Regulators (ACER) will start operations in 2011, with 
the  objective  to  ensure  coordination  of  rules  on  network  access  and  investment 
across  borders.  The  European  Network  of  Transmission  System  operators  for  gas 
(ENTSO-G)  and  electricity  (ENTSO-E)  are  tasked  to  put  the  market  integration  in 
practice by providing a European view on network access and network investments. 
One of their key tasks is the elaboration of Ten-Year Network Development Plans; a 
first draft for gas was published in December 2009 and for electricity in March 2010.  

In  July  2009,  following  up  on  the  Second  Strategic  Energy  Review  of  November 
2008  and  calls  from  Council  and  Parliament  amplified  by  the  January  2009  gas 
crisis,  the  European  Commission  proposed  a  new  regulation  concerning  the 
measures  to  safeguard  security  of  gas  supply.  Whilst  the  regulation  places  the 
main  emphasis  on  the  internal  market  as  best  guarantee  for  security  of  supply,  it 
provides for common standards for security of supply - the infrastructure standard (n-
1) and supply standards for protected customers. It also requires reverse flows to be 
established  on  all  interconnection  within  2  years  from  its  entry  into  force  (some 
exemptions). 

To  stimulate  economic  recovery,  the  European  Energy  Recovery  Programme 
allocated  almost  €4  billion  to  leverage  private  funding  in  gas  and  electricity 
infrastructure,  off-shore  wind  and  carbon  capture  and  storage  projects.  It  provides 
useful  lessons  on  the  benefits  of  greater  Member  State  collaboration  and  strategic 
involvement at a high level.  

Against this background, the weaknesses of TEN-E have come to the fore in 2007-
2009. The programme has responded too slowly to the major challenges which have 
emerged in recent years, and is poorly equipped to deal with the growing challenges 
which will arise from the 2020 and 2050 ambitions.  

The  new  policy  environment  creates  a  challenge  for  TEN-E,  which  has  neither  the 
resources  nor  the  flexibility  to  make  a  full  contribution  to  the  delivery  of  the 
ambitious  energy  and  climate  goals.  In  the  course  of  2010,  the  Commission  will 
examine  the  need  for  a  new  instrument  which  fully  reflects  the  importance  of 
infrastructure to the delivery of policy targets.  

Based  on  the  findings  of  this  report,  the  following  priorities  emerge  which  will  be 
further  elaborated  and  analysed  in  the  forthcoming  revision  of  the  TEN-E  and  its 
accompanying impact assessment. 

First, EU energy infrastructure strategic priorities need to be better defined. The 
energy  networks  must  be  modernised  to  allow  Europe  to  meet  its  energy  policy 
goals, including the 20/20/20 targets. Networks need to become more Europe-wide, 
to enable the development and  proper functioning of  the internal energy market, to 
strengthen security of supply but also to allow new technologies to be applied. The 
networks must also become flexible, to allow a variety of renewable sources, more 
decentralised  power  generation,  incorporating  smart  energy  demand  technologies, 
including the concept of an EU-wide "super grid" for electricity and gas as well as 
the  networks  for  carbon  capture  and  storage  (CCS).  The  external  dimension  of 
infrastructure and the diversification of supply routes and sources will also need to be 
looked at, especially in the gas sector but possibly also for oil. 

EN 

9 

   EN 

 
Second, a new approach is needed to project definition. The current categorisation 
is  confusing  and  fails  to  give  a  clear  overview  of  the  objectives.  The  approach 
adopted  in  the  Commission's  second  Strategic  Energy  Review,  whereby  multiple 
projects are brought together into a regional initiative, such as the Southern Corridor 
for  gas  imports  from  the  Caspian,  or  the  Baltic  Interconnection  Plan,  may  be 
pursued. A thorough political debate is needed to decide what the future priorities of 
European infrastructure should be. 

Third,  the  potential  for  cooperation  between  Member  States  involved  in 
individual projects must be better exploited. This applies at the level of planning 
and  at  the  level  of  political  coordination.  Situations  where  projects  of  European 
interest are not given national priority status, or where these projects are not equally 
supported  by  all  Member  State  involved  are  untenable.  The  possibility  should  be 
explored  of  setting  up  of  one  (central)  authorising  body  within  a  Member  State,  at 
least for the cross-border projects to speed up implementation. 

Fourth,  a  stronger  EU  infrastructure  strategy  needs  to  attract  investment  at  a 
level commensurate with the challenges. The funding of network investments from 
tariffs paid by network users is the established approach in Europe. This will remain 
the  main  feature  also  in  the  future.  There  may,  however,  be  few  instances  where 
public  funding  can  be  motivated  due  to  widespread  European  benefits  and  clearly 
demonstrated  market  failures,  which  prevent  the  investment  to  be  undertaken. 
Existing  funding  available  under  other  EU  instruments  must  be  better  used  and 
coordinated with energy policy actions. 

The  Commission  presents  in  parallel  to  this  report  first  reflections  on  the  future 
Energy Action Plan, of which one of the top priorities should be the development of 
a  stronger  and  more  flexible  energy  infrastructure,  which  is  fully  attuned  to  the 
political challenges of our age. 

EN 

10 

   EN