Press review


UFE/Press review of 01/06/18

THE FRENCH HIGH COURT ALLOWS REGULATED TARIFFS BUT PARTIALLY CANCELS THE TARIFFS ADOPTED IN 2017
In its decision on July 27th, 2017, the Government fixed the regulated tariffs for electricity as from August 1st, 2017. Engie and Anode brought the case to the French Administrative High Court, requesting the annulation of this decision. The High Court published its judgement on May 18th, 2018: on the one hand, it allows regulated tariffs for electricity but, on the other hand, it partially annulled the decision, considering that "the regulation of electricity tariffs is disproportionate to the objective pursued on two points". It considers, firstly, that a periodic review of the principle of regulation should be introduced; and secondly, that the scope of professional beneficiaries is too wide between “professionals with low electricity consumption” and “non-residential sites owned by large enterprises”.
Source: Conseil d’État (French Administrative High Court), May 5th, 2018
MULTIANNUAL ENERGY FRAMWORK: EDF AND ENGIE SUBMITTED THEIR ROADMAP
EDF is prioritizing carbon neutrality by 2050, mostly thanks to the energy efficiency in buildings and the electrification of transport. Concerning nuclear power plants, the group announced that "most of the current power plants will (...) be shut down by 2050. At that time, we must guarantee the complete decarbonization of the electricity system (...), which will remain based on the complementarity between renewables and nuclear, with a sharp increase of the share of renewables. (...) EDF (...) is now working to finalize a simplified EPR reactor, of easy and competitive construction." For Engie, energy efficiency in buildings must also be accelerated, but "the use of electricity for all uses (...) would lead to overinvestments (...) with a risk of degrading service quality and security of supply". The utility is therefore counting on the greening of energies (natural gas, renewable heating and electricity) for a "more balanced energy mix".
Source: Journal de l’environnement, May 5th, 2018
NICOLAS HULOT LAUNCHES HYDROGEN PLAN FOR 100M€
En savoir plus... On June 1st, the Minister for Ecological and Inclusive Transition unveiled the Hydrogen Plan aiming at making France a "world leader" in this technology. With a budget of €100 million from 2019, the objective is to decarbonize 10% of hydrogen production by 2023 using electrolysis technology with renewable energy sources. One of the measures aims at installing around 100 hydrogen-fueled stations and deploy 5,000 commercial vehicles and 200 heavy vehicles by 2023, that will be co-financed by Ademe, the governmental agency for environment and energy management. In terms of safety, the Directorate General for Risk P(DGPR) will draft the prevention rules near the stations. Nicolas Hulot also wants to "identify the services provided by hydrogen" to RTE (main French TSO) and Enedis (main French DSO), in order to "develop hydrogen business models". Another measure to be stressed is that "gas DSOs will have to elaborate the technical and economic conditions" of "power-to-gas".
Source: Hydrogen deployment plan for the energy transition, June 1st, 2018
THE EUROPEAN COMMISSION IS WORKING ON ITS CLIMATE STRATEGY FOR 2050
Upon the request of Member States, the European Commission will publish in November 2018 a long-term strategy for reducing greenhouse gas emissions, in line with the commitments made in the Paris Agreement. This strategy aims at setting a 2050 emission reduction target and will detail possible pathways. This will not be a legislative proposal, but the objective will be debated by the co-legislators. The European Commissioner for Climate Action and Energy, M. Arias Cañete, spoke in favour of a net-zero emission target by 2050.
Source: Contexte, May 24th, 2018
THE EUROPEAN COMMISSION PRESENTED THE FIRST PROPOSALS OF ITS ACTION PLAN ON SUSTAINABLE FINANCE
On May 24th, the European Commission presented the first concrete proposals of its action plan on sustainable finance, aiming at involving the financial sector in financing the energy transition. While the annual investment gap to meet the EU's climate and energy targets is estimated around €180 billion, the European Commission wants to redirect capital flows towards sustainable investments. A regulation on a European taxonomy was presented, aiming at establishing a classification system and harmonised criteria for determining the environmental sustainability of an economic activity. In addition, the European Commission proposed a new benchmark for market standards, reflecting the carbon footprint. Finally, the emphasis was put on informing clients about sustainability: institutional investors will have to specify how they take environmental and social factors into account in their decision-making process.
Source: European Commission, May 24th, 2018
MARKET DESIGN TRILOGUES IN PREPARATION
The Bulgarian Presidency announced that a first trilogue on the Market Design Regulation and Directive will be held on June 27th, before the end of its mandate. Three technical meetings will be held in the Council on June 15th, 22nd and 25th, to prepare for the interinstitutional meeting. On the European Parliament side, the negotiating team could be weakened by the increasing involvement of rapporteur Krisjanis Karins (EPP, LV) and shadow rapporteur Kaja Kallas (ALDE, EE) in their respective national legislative campaigns, and by the departure at the end of June of Claude Turmes, shadow rapporteur for the Green Group. He will join the Luxembourgish Government as Secretary of State for the Environment.
Source: Contexte, May 31st, 2018
INSTITUTIONAL AGENDA
European Commission, June 6th and 7th, Brussels:
- Publication of financial programs related to strategic investment and common market (06/06) and Research & Development (07/07)
Transport, Telecom and Energy Council, from June 7th to 11th, Brussels
- Transport Council (07/06): progress report on the Clean Vehicle Directive
- Telecom Council (08/06): political debate on the PSI Directive, adoption of the general approach on Cybersecurity Act, progress report on the Parliament legislative work on the free flow of non-personal data Regulation
- Energy Council (11/06): adoption of the general approach on the ACER regulation, progress report on interinstitutional negotiations on the Governance of the Energy Union Regulation and on Energy Efficiency and Renewable Energy directives
Energy Working Party, Council of the EU, June 15th and 22nd, Brussels
Environment Working Party, Council of the EU, June 11th and 14th, Brussels


Environment, Public Health and Food Safety Committee (ENVI) of the European Parliament, June 7th, 20th and 21st, Brussels
- Report back on ongoing interinstitutional negotiation on the Renewable Energy Directive (07/06)
- Consideration of draft opinion on the own-initiative report on deployment of infrastructure for alternative fuels in the EU: time to act!
Industry, Research and Energy Committee of the European Parliament (ITRE), June 18th and 19th, Brussels
-Report back on ongoing interinstitutional negotiation on the Governance of the Energy Union Regulation
Internal Market and Consumer Protection Committee (IMCO) of the European Parliament, June 18th, Brussels
Transport and Tourism Committee (TRAN) of the European Parliament, June 7th h, Brussels

Consideration of draft report on the own-initiative report on deployment of infrastructure for alternative fuels in the EU: time to act!

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