European Union’s Current Energy Regulations According to the European Green Deal and the Clean Energy for All Europeans Package

Introduction

Energy storage plays a significant role to in supporting intermittent renewable energy and adding balance and flexibility to the grid to reach the goal to be carbon neutral until 2050 in accordance with the European Green Deal. At the same time energy storage; accelerate  the decarbonization of the electricity grid by improving  the management of  distribution networks locally, reducing costs and increasing  efficiency thus facilitating the introduction of renewable energies to the market.[1]  The Directive on Common Rules for the Internal Market for Electricity (EU) 2019/944, which replaces Electricity Directive (2009/72/EC); providing more flexibility to accommodate the growing share of renewable energy in the electricity grid   will contribute to  the fulfillment  of  the goals of  the European Green Deal  and the European Union’s goal of becoming the world leader in energy production in renewable energy sources.[2]

With renewable energy sources  electricity generation is expected to grow more than %50 until 2030,and accordingly, it is important to regulate new electricity market design rules that will increase investments in energy storage resources that can compensate energy production and that are in line with the needs of renewable energy. [3]. The Clean Energy for All Europeans Package (“Package“) was  regulated in 2019 in order to correct and regulate that disruptions in 2019. With this Package, an important contribution is also made to the long-term strategy of the European Union to achieve the carbon neutral target by 2050, aiming to achieve a fair agreement for energy consumers, primarily energy efficiency, the European Union’s global leadership in global warming and renewable energy. [4] Within the scope of the Package, four regulations were adopted to help the EU Market Rules adapt to new market realities.

[1]  https://ec.europa.eu/energy/sites/ener/files/energy_storage.pdf ,Available, 29.12.2020

[2]   https://ec.europa.eu/energy/topics/markets-and-consumers/market-legislation/electricity-market-design_en#the-electricity-directive-and-electricity-regulation ,Available, 29.12.2020

[3]  https://ec.europa.eu/energy/sites/ener/files/energy_storage.pdf ,Available, 29.12.2020

[4] https://ec.europa.eu/energy/sites/ener/files/documents/1_en_act_part1_v7_864.pdf , Available,29.12.2020

The Directive on Common Rules for the Internal Market for Electricity (EU) 2019/944

Electricity Directive (2009/72/EC) will remain in force until the end of  2020 and  The Directive on Common Rules for the Internal Market for Electricity (EU) 2019/944  was created by amending this Directive.[1] This Directive is one of the four elements of the Electricity Market Design elements sets common rules for electricity generation, transmission, distribution, energy storage and supply along with consumer protection provisions in order to create truly  integrated, competitive, consumer-centered, flexible, fair and transparent electricity markets within the Union.

Using the advantages of an integrated market, this Directive aims to provide affordable, transparent energy prices and costs for consumers, a high degree of security of supply and a smooth transition to a sustainable low-carbon energy system.[2]

[1]   https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32019L0944 ,Available,29.12.2020

[2]  https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32019L0944 ,Available,29.12.2020

Electricity Regulation (EU) 2019/943

By replacing the Electricity Regulation (2019/941 / EC), this Regulation aims to establish a higher share of renewable energy sources, supply security, grid flexibility, sustainability and decarbonization, and create the basis for effectively achieving the Energy Union and especially the 2030 climate and energy targets , by determining the basic principles for well-functioning, integrated electricity markets, to enable all resource providers and electricity consumers to access the market without discrimination, to strengthen, protect and raise awareness of consumers, ensuring competition in the global market, energy storage and energy efficiency, and market and sectoral integration of electricity generated from renewable sources, allow for market-based pricing; setting fair rules for cross-border exchanges of electricity, providing mechanisms for harmonizing cross-border shopping rules thus facilitating the emergence of a well-functioning and transparent wholesale market, including the establishment of a compensation mechanism for cross-border electricity flows, taking into account the specific characteristics of national and regional markets.[1]

[1]  https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R0943&from=EN ,Available,29.12.2020

Risk Preparedness (EU) 2019/941

In accordance with the Risk Preparedness Regulation in the Electricity Sector (EU) 2019/941, in order to increase the durability of the electricity system the European Union requires the countries of the European Union to identify all possible risky scenarios that can be realized at national and regime scale by using common methods and to prepare a “Risk Preparation” plan according to them .[1]  In order for each Member State to take action and cope up with  potential electricity crisis, they require to prepare “Risk Preparation” plans,as well as work in cooperation with neighboring Member States by  determining the appropriate tools for these plans.

[1]  https://ec.europa.eu/energy/topics/markets-and-consumers/market-legislation/electricity-market-design_en#the-electricity-directive-and-electricity-regulation ,Available,29.12.2020

Conclusion

The European Union has adopted a series of more pro-consumer plans / legislation that better integrate renewable energy under the “Clean Energy Package for All Europeans”. These new rules and the new market design aim to provide a comprehensive framework for consumer protection, information and empowerment, ensure the active participation of the consumer in the market by generating, selling, or providing energy storage services to the individual or community.

As a result, the European Union’s New Market Design Rules allow the European Union Electricity Market to move freely in the EU energy market, through cross-border trade of electricity and through better regional cooperation. In addition to that the Package aims to make the European Union Electricity Market a more stable, efficient and decarbonized Electricity Market by taking action at the European Union level based on renewable energy and cross-border cooperation. It seems that the  compatibility the New Package’s objectives of being carbon neutral and harmonizing the electricity market with the needs of renewable energy and the targets of the European Union Green Agreement will be effective in reaching these targets in a shorter time.

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