Timely development of transmission infrastructure critical to achieve 2030 energy and climate policy objectives

ENTSO-E statement on the European Commission's White Paper and European Council Conclusions of 20-21 March

Brussels, (PresseBox) - .
- EU's 2030 energy and climate policy framework must support the timely development of an interconnected European network.

- Transmission network planning occurs at least a decade in advance; early agreement on the 2030 framework will significantly facilitate TSOs' tasks in terms of planning, developing and operating the grid to ensure a continuous and secure energy.

- A review of the current market design is required to match the physical reality of the changing power system.

Electricity transmission infrastructure is a key enabler of Europe's energy and climate policy objectives.

Therefore, when defining energy and climate policies, ENTSO-E urges Europe's leaders to consider the economic, technical and operational impact such policies have on the power system and market so that they can be fully endorsed by all Member States and implemented by regulators, transmission system operators (TSOs) and stakeholders.

Renewable (RES) integration and carbon reduction objectives will only be achieved if the right infrastructure is in place on time. ENTSO-E fully supports the Commission's and Member States' intent to define a stable energy and climate policy for the 2030 time horizon. This will provide much-needed investment certainty, limiting the risk of stranded investments being borne by European citizens.

It is important that agreement is reached on a clear 2030 framework as speedily as possible to facilitate TSOs' in their tasks of planning, developing and operating the grid to ensure a continuous and secure energy supply for Europe and a well functioning market with unconstrained cross-border electricity exchanges.

TSOs struggle to build urgently required infrastructure projects due to a lack of public support and understanding of the need for such projects. It is thus essential that the EU's 2030 energy and climate policy framework - however ambitious - supports the further development of the interconnected European network by way of smooth adoption of the European network codes, appropriate regulatory regimes and permit granting procedures to enable TSOs to make the required investments on time.

This requires a combined effort by policy makers, legislators, regulators and TSOs.

ENTSO-E reinforces the ten-year network development plan (TYNDP) as the most appropriate tool to develop the power grid adequately and translate the 2030 framework into transmission infrastructure investment needs. Underpinned by system adequacy analyses, the biennial TYNDP applies continuously improved methodologies to assess investments against cost efficiency and overall contribution to Europe's energy and climate policy objectives. It highlights essential cross-border interconnections that will provide cost-effective contributions to overall system adequacy and improve the explicit acceptance of supranational security of supply targets.

Investments in pan-European energy infrastructure are equally indispensable for the creation of a well-functioning internal energy market (IEM). The completion of the IEM will not only support the EU's low-carbon ambitions but will also provide consumers and businesses with a more competitive energy supply. In this regard, we expect economic drivers to have a stronger influence on the development of the power system.

Finally, as renewable energy technologies get mature, market mechanisms and exposure to price signals will need to replace old subsidy schemes. ENTSO-E therefore believes that a review and adjustment of the current market design is needed in order to continuously match the physical reality of the changing power system and to integrate adequately the increasing share of renewable energy sources into the European electricity market.

ENTSO-E looks forward to a constructive discussion with policy-makers on the further design and governance of the 2030 framework, and to facilitating the implementation of the decided policy targets.

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