Debate: Internal markets for renewable gas, natural gas and hydrogen  - Common rules for the internal markets for renewable gas, natural gas and hydrogen  - Union’s electricity market design: Regulation - Union’s electricity market design: Directive
Date: THURSDAY, 11 APRIL 2024
Speaker: Didier Reynders
Language: EN

These legislative initiatives are key for the decarbonisation of our energy system, for improving European energy security and for boosting the competitiveness of the EU economy. This is achieved by bringing stability and predictability to the cost of energy and to investments. The EU integrated and interconnected energy market is our biggest asset and its proper functioning is crucial. That is exactly what these legislative initiatives are about. Well-functioning energy markets are key to delivering the EU Green Deal and REPowerEU plan objectives. The value that the markets create contributes directly to EU competitiveness.  I convey my warmest thanks to the rapporteurs, Mr Buzek and Mr González Casares, and to the team of shadow rapporteurs, for all your efforts and remarkable work in bringing these important files to a successful and ambitious conclusion. Parliament played a key role in delivering this file.  First and foremost, these legislative initiatives will accelerate the deployment and integration of renewable energy sources and create a more effective enabling framework. The electricity market design reform will promote power purchase agreements and contracts for differences. These instruments will ensure that the low and predictable costs of renewables are better reflected in consumer bills, and thereby contribute to the affordability of prices. At the same time, these instruments will enhance revenue certainty for investors and thereby incentivise investments in renewables and low-carbon solutions that are needed to boost the energy transition.  The hydrogen and gas package will enhance production and better integration in the gas network of renewable and low-carbon gases, including hydrogen and biomethane. The new framework also creates legal certainty for much-needed investments into the decarbonisation of the gas sector. For hydrogen, the new regulatory framework is based on proven principles of energy regulation, which already apply to natural gas and electricity, notably third party access and unbundling of energy networks. The reinforced requirements for mandatory ten-year network planning at national level will improve the efficiency of network development and frame the development of the distribution network. The balanced compromise reached by the co-legislators on the European Organisation of Hydrogen Network Operators will benefit this network planning and the setting of network rules.  These legislative acts will also make our energy system more resilient and competitive. With the electricity market design reform, the energy bills of European consumers and companies will be more independent from the short-term market price of electricity that is still often determined by power production using expensive, fossil technologies.  The gas package will strengthen the solidarity mechanism between the Member States to ensure security of supply, even in the most challenging circumstances. It will also give the Member States an opportunity to restrict access to Russian gas, in line with the REPowerEU objectives. The gas package also foresees the establishment of a permanent and voluntary mechanism for demand aggregation and the joint purchasing of natural gas. Building on the experience of AggregateEU, this mechanism will contribute to the further diversification away from Russian fossil fuels and displays a high level of cooperation among Member States, in line with the objectives defined again in REPowerEU.  In addition, the Gas and Hydrogen Regulation provides for a five-year pilot mechanism for hydrogen market development, which will help connect Europe hydrogen offtakers to producers within the EU and globally.  Finally, but equally as important, consumers are now better protected and empowered. Consumers will gain long-awaited rights and protections in the gas market, bringing them up to date with their rights as electricity consumers. Thanks to the electricity market design reform, energy sharing and diverse new electricity offers will become a reality, helping consumers to better control their energy bills.  I am looking forward to the plenary vote for these legislative files. Swift transposition and implementation of the new rules will be key to ensure that European citizens and companies can reap the benefits of a well-functioning internal energy market. The Commission will be a strong ally to Member States, stakeholders, people and businesses, by fostering best practices for a smoother and more sustainable energy market for all.