The document discusses the European Union's Energy Union strategy aimed at reducing energy dependence and enhancing energy security through projects like the Southern Gas Corridor and increased interconnectivity. It highlights the EU's goals for renewable energy and the development of a market stability reserve to regulate carbon prices under the EU emissions trading system. Additionally, the document outlines ongoing projects and the challenges faced in achieving consensus among member states regarding emission rights management.

1. Energy Union
10/03/2015

2. Energy Union
• Reduce dependence on single suppliers:
– Southern Gas Corridor from Azerbeidjan to Italy
– Strategy for LNG and its storage
– Liquid hubs in Central, Eastern Europe and Spain
• More power and independence for EU regulator ACER
• Align security supply legislation and coordinate capacity
mechanism development
• Energy flows:
– 10% interconnectivity by 2020 (probably 15% by 2030)
– 27% renewable energy by 2030
• Energy efficiency and decarbonisation in buildings and
transport sector
• Market Stability Reserve mechanism to fix EU ETS

3. Energy flows – How about Belgium?
• Current situation:
– Physical capacity: 6.247 MW
– Commercial capacity: + 3.500 MW
• Current projects:
• Total production capacity 2013: 20 860,2 MW
• Statistics 2013: https://www.febeg.be/statistiek-elektriciteit
Project Border Capacity
(MW)
Commisioning
Stevin North Sea-BE 6.000 Early 2018
Brabo BE-NL 1.000 Late 2018
Alegro BE-DE 950-1.200 Early 2019
Nemo BE-UK 1.000 Early 2019
Creos BE-LU 1.000 2020

4. EU Emission Trading System
• Installed in 2005 to incentivize green technology investment
• Non-dynamic supply side caused oversupply of emission rights (crisis
and industrial lobby) and too low carbon prices (04/03/2015: 7,08 €/t)
• EU aims to fix system through:
– Backloading emission rights to end of trading period (executed in
2013)
– Market Stability Reserve (MSR): central bank system for emission
rights to lift and control carbon price (target price: 30 €/t)
• Original proposal: start in 2021 (new trading period)
• Proposal being discussed: start in 2019 (withhold backloaded emission rights)
• Timing new proposal:
– Industry committee failed to form positive opinion (non binding)
– Environment committee approved proposal on February 24th 2015
– Council of the EU (member states) unable to find common negotiation position
• Main conclusions:
– No decision on MSR possible as long as member states are unable to
find majority in favor
– Continue with current strategy until decision is taken

5. Other interesting sources
• Five views on the Energy Union:
http://www.naturalgaseurope.com/five-views-energy-
union-assessment-hurdles-22407

6. Joke Bruneel
Marketing & Communications Officer
m: +32 56 25 24 25