The Fee has printed the State of the Power Union Report 2024 which describes how the EU has managed unprecedented challenges within the power coverage panorama throughout this Fee’s mandate, equipping the EU with a regulatory framework for pursuing the clear power transition and laying the foundations for renewed financial progress and competitiveness.
Crucially, over the previous years, the EU has managed to face up to essential dangers to its safety of power provide, regain management over the power market and costs, and speed up the transition in direction of local weather neutrality:
- Renewable power technology is breaking new capability information. Within the first half of 2024, half of the EU’s electrical energy technology got here from renewable sources.
- The share of Russian gasoline in EU imports dropped from 45% in 2021 to 18% by June 2024, whereas imports from trusted companions like Norway and the US have elevated.
- We diminished gasoline demand between August 2022 and Might 2024 by 138 billion cubic meters.
- The EU reached its 90% winter gasoline storage goal on 19 August 2024, nicely forward of the 1 November deadline.
- Power costs are morestable and stay considerably beneath the height ranges of the power disaster of 2022.
- The EU’s greenhouse gasoline emissions fell by 32.5% from 1990 to 2022, whereas the EU economic system has grown by round 67% in the identical interval.
- At worldwide degree, the EU led the worldwide initiative to triple renewable power capability and double power effectivity enhancements as a part of the transition away from fossil fuels, which was endorsed by all Events at COP28 in Dubai.
Vital progress has been made on renewable power. Wind energy overtook gasoline to develop into the EU’s second largest supply of electrical energy behind nuclear, and by the primary half of 2024 renewables generated 50% of electrical energy within the EU. In 2022 the EU’s main power consumption renewed its downward development, falling by 4.1%. Nonetheless, power effectivity efforts will must be stepped up additional for the EU to fulfill the 11.7% closing power consumption discount goal by 2030. Additional enchancment is required, not least within the electrification of heating tools throughout the board and the speed of renovation of buildings. Strengthened efforts are wanted to deal with highenergy costs. That is key to enhance the competitiveness of EU trade, and to speed up investments in Europe’s built-in infrastructure networks, that are important for the electrification of the European economic system.
The report remembers that every one member states should submit their closing up to date Nationwide Power and Local weather Plans as quickly as potential, to make sure collective achievement of the 2030 power and local weather objectives. The evaluation of the draft up to date NECPs printed in December 2023 reveals that Member States have taken a step in the precise course, however that is not but ample to scale back web greenhouse gasoline emissions by no less than 55% by 2030 and they should take into consideration the Fee’s suggestions for his or her closing Plans. In the present day, the Fee additionally printed a report on the functioning of the Regulation on the Governance of the Power Union and Local weather Motion, which concludes that the regulation is enjoying an essential position in holding the EU on observe to fulfill its 2030 targets by making planning and reporting extra coherent, built-in, and less complicated.
New and rising challenges will must be addressed sooner or later, resembling the present ambition hole in renewables and power effectivity targets, the rise of power poverty, the power worth differential in comparison with different world opponents, and the danger of latest strategic essential dependencies. They are going to require a decisive coverage response and a step change in efforts at EU and Member State degree, via extra coordination, market integration and joint motion.
The EU has continued to face by Ukraine within the face of relentless Russian assaults on its power system. The synchronisation of the Ukrainian and Moldovan grids with the Continental European Community helped stabilise Ukraine’s electrical energy system and the capability for electrical energy exchanges has now reached 1.7 GW for business commerce. It additionally permits Ukraine to learn from emergency imports. By 31 July 2024, over 40% of all donations from Member States had been devoted to the power sector, with the Union Civil Safety Mechanism’s whole contribution estimated at over €900 million. The Ukraine Power Help Fund (UESF) additionally mobilised over €500 million by June 2024. As well as, the EU’s €50 billion Ukraine Facility will present constant funding to assist Ukraine’s restoration and sustainable financial progress as much as 2027.
Enhancing power safety and competitiveness
EU producers face rising competitors in net-zero applied sciences on world and home markets. The Report remembers the significance of the Internet-Zero Trade Act and the Vital Uncooked Supplies Act, alongside the reform of the Electrical energy Market Design to face these challenges. In the present day’s report additionally recognises the have to construct on partnerships with trade to speed up the event of net-zero applied sciences and strengthen the EU’s manufacturing base. Industrial alliances such because the European Battery Alliance, European Clear Hydrogen Alliance, Photo voltaic PV Trade Alliance, Renewable and Low-Carbon Fuels worth chain Industrial Alliance and Alliance on Small Modular Reactors will play an essential position. The Fee’s clear transition dialogues with trade and social companions will assist the implementation of the European Inexperienced Deal.
TheInnovation Fund, with its estimated price range of round €40 billion till 2030, additionally performs a vital position. The European Hydrogen Financial institution, financed from the EU ETS Innovation Fund, is up and working and has performed a primary profitable spherical of EU auctions awarding almost €720 million to 7 renewable hydrogen initiatives in Europe.
Empowering shoppers within the clear transition
With new power market laws, such because the reformed Electrical energy Market Design, essentially the most weak will likely be higher protected from disconnection. In case of a pure gasoline worth disaster, Member States can introduce measures to guard shoppers and guarantee entry to inexpensive power and important social companies. This contains via interventions on worth settings at retail degree to defend shoppers from excessively excessive costs.
The Social Local weather Fundmay also be a key instrument, to mobilise no less than €86.7 billion for 2026-2032, financed from ETS revenues and no less than 25% Member State co-funding. The Fund will assist structural measures and investments in power effectivity renovations, entry to inexpensive and energy-efficient housing, clear heating and cooling and integration of renewable power in addition to in zero- and low-emission mobility and transport. There’s additionally an possibility to offer short-term direct revenue assist.
Background
This report is printed annually to take inventory of the EU’s progress in direction of the targets of the Power Union. Following final yr’s State of the Power Union report coping with the challenges and achievements in 2020-2023, this yr’s report provides an replace on how the EU efficiently acted on unprecedented developments and challenges within the final yr of this Fee’s mandate.
The primary a part of the report reveals how the excessive power and local weather ambition underneath the European Inexperienced Deal offered the premise for the EU’s disaster response technique and the REPowerEU Plan. It additionally outlines steps to reinforce the competitiveness of European trade. The second half analyses the state of play within the implementation of the Power Union in all its 5 dimensions: (1) safety, solidarity and belief; (2) a totally built-in inside power market; (3) power effectivity; (4) local weather motion and decarbonizing the economic system; and (5) analysis, innovation and competitiveness. This yr’s report is accompanied by an annex containing info on voluntary and nationwide schemes on bioenergy within the Member States.
For Extra Data
State of the Power Union Report 2024
Factsheet State of the Power Union Report 2024
State of the Power Union 2024 – Nation fiches
State of the Power Union Report webpage (with full set of paperwork and studies)
Nationwide Power and Local weather Plans (NECPs)
Delivering the European Inexperienced Deal
“Whereas we preserve dwelling in turbulent instances and now we have challenges forward, right this moment’s report reveals the unprecedented progress now we have made on this mandate to strengthen our Power Union. Emissions are falling, and renewables play a distinguished position in our power system right this moment. We must always swiftly implement the brand new coverage and regulatory framework to deal with the elevated power costs, and speed up growth of infrastructure. We may also carry the lesson realized on overdependency on one provider with us and proceed with our undertaking of joint buying expanded to new commodities as guaranteeing industrial competitiveness will likely be key for the EU’s future financial success.”
European Inexperienced Deal, Interinstitutional Relations and Foresight Vice President Maroš Šefčovič
“This yr’s report reveals that we’re now not on the mercy of Putin’s pipelines, and we preserve standing by our Ukrainian companions as winter approaches. The report highlights the progress now we have made underneath this mandate in direction of a safe, aggressive, and inexpensive power sector within the EU. The EU is nicely outfitted to navigate the profound adjustments and challenges that lie forward and ship on its commitments in direction of the planet and its residents. Our Power Union is stronger and greener than ever earlier than.”
Power Commissioner Kadri Simson