The Fee has revealed the State of the Power Union Report 2024 which describes how the EU has managed unprecedented challenges within the vitality coverage panorama throughout this Fee’s mandate, equipping the EU with a regulatory framework for pursuing the clear vitality transition and laying the foundations for renewed financial development and competitiveness.
Crucially, over the previous years, the EU has managed to resist crucial dangers to its safety of vitality provide, regain management over the vitality market and costs, and speed up the transition in direction of local weather neutrality:
- Renewable vitality 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 decreased gasoline demand between August 2022 and Could 2024 by 138 billion cubic meters.
- The EU reached its 90% winter gasoline storage goal on 19 August 2024, effectively forward of the 1 November deadline.
- Power costs are morestable and stay considerably beneath the height ranges of the vitality 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 vitality capability and double vitality 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 vitality. Wind energy overtook gasoline to turn out to be 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 vitality consumption renewed its downward development, falling by 4.1%. Nonetheless, vitality effectivity efforts will must be stepped up additional for the EU to satisfy the 11.7% last vitality consumption discount goal by 2030. Additional enchancment is required, not least within the electrification of heating gear 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 last up to date Nationwide Power and Local weather Plans as quickly as doable, to make sure collective achievement of the 2030 vitality and local weather targets. The evaluation of the draft up to date NECPs revealed in December 2023 reveals that member states have taken a step in the proper route, however that is not but ample to cut back internet greenhouse gasoline emissions by no less than 55% by 2030 and they should consider the Fee’s suggestions for his or her last Plans. Right now, the Fee additionally revealed 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 vital function in preserving the EU on monitor to satisfy 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, similar to the present ambition hole in renewables and vitality effectivity targets, the rise of vitality poverty, the vitality value differential in comparison with different world opponents, and the danger of recent strategic crucial dependencies. They may require a decisive coverage response and a step change in efforts at EU and member state degree, by way of extra coordination, market integration and joint motion.
The EU has continued to face by Ukraine within the face of relentless Russian assaults on its vitality 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 industrial commerce. It additionally permits Ukraine to profit from emergency imports. By 31 July 2024, over 40% of all donations from Member States had been devoted to the vitality sector, with the Union Civil Safety Mechanism’s complete 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 development as much as 2027.
Enhancing vitality 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 Business Act and the Essential Uncooked Supplies Act, alongside the reform of the Electrical energy Market Design to face these challenges. Right now’s report additionally acknowledges 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 Business Alliance, Renewable and Low-Carbon Fuels worth chain Industrial Alliance and Alliance on Small Modular Reactors will play an vital function. 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 function. The European Hydrogen Financial institution, financed from the EU ETS Innovation Fund, is up and working and has carried out a primary profitable spherical of EU auctions awarding almost €720 million to 7 renewable hydrogen tasks in Europe.
Empowering shoppers within the clear transition
With new vitality market laws, such because the reformed Electrical energy Market Design, essentially the most weak will probably be higher protected from disconnection. In case of a pure gasoline value disaster, Member States can introduce measures to guard shoppers and guarantee entry to inexpensive vitality and important social companies. This contains by way of interventions on value settings at retail degree to protect shoppers from excessively excessive costs.
The Social Local weather Fund can even be a key instrument, to mobilize 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 vitality effectivity renovations, entry to inexpensive and energy-efficient housing, clear heating and cooling and integration of renewable vitality in addition to in zero- and low-emission mobility and transport. There may be additionally an possibility to offer short-term direct earnings assist.
Background
This report is revealed annually to take inventory of the EU’s progress in direction of the goals 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 vitality and local weather ambition underneath the European Inexperienced Deal supplied 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 vitality market; (3) vitality effectivity; (4) local weather motion and decarbonising the economic system; and (5) analysis, innovation and competitiveness. This yr’s report is accompanied by an annex containing data on voluntary and nationwide schemes on bioenergy within the Member States.
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 experiences)
Nationwide Power and Local weather Plans (NECPs)
Delivering the European Inexperienced Deal
“Whereas we maintain residing in turbulent occasions and we now have challenges forward, at present’s report reveals the unprecedented progress we now have made on this mandate to strengthen our Power Union. Emissions are falling, and renewables play a outstanding function in our vitality system at present. We must always swiftly implement the brand new coverage and regulatory framework to deal with the elevated vitality costs, and speed up improvement of infrastructure. We can even deliver the lesson discovered on overdependency on one provider with us and proceed with our venture of joint buying expanded to new commodities as guaranteeing industrial competitiveness will probably be key for the EU’s future financial success.”
European Inexperienced Deal, Interinstitutional Relations and Foresight Govt Vice President Maroš Šefčovič
“This yr’s report reveals that we’re now not on the mercy of Putin’s pipelines, and we maintain standing by our Ukrainian companions as winter approaches. The report highlights the progress we now have made underneath this mandate in direction of a safe, aggressive, and inexpensive vitality sector within the EU. The EU is effectively geared up 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