WP3 EU Legislation

Overview:

Driving forward the progress of opening up the markets for electricity and gas is one of the six priorities Energy Commissioner Andris Piebalgs has set at the beginning of his term in office. This objective also has a considerable impact on other key EU policy areas as the recently established high-level group on “Competitiveness, Energy and the Environment” confirms.

Being energy consumers and on-site power producers at the same time, industrial polygeneration plants play two roles in this process. On the one hand, they increase the number of market actors, hence increasing competition. On the other hand, they rely heavily on fair prices for electricity and gas, and on fair conditions for accessing energy networks. If properly implemented there is a high potential for a win-win situation between the two Community objectives of liberalising the markets and reducing energy demand.

This WP will therefore review the impact of opening up the markets for electricity and gas on the wider use of industrial polygeneration. This includes an analysis of EU law and national implementing measures. A special emphasis will be put on the Directives 2003/54/EC, 2004/8/EC, and on the Regulations 1228/2003 and 1775/2005. Moreover, the analysis will include a discussion on Community policy on state aid and possible impacts on industrial polygeneration.

• A detailed review of current and planned EU policies on the creation of an Internal Energy Market and their impact on industrial polygeneration.

• An identification of best practices in implementing EU policies across the EU-25.

• Recommendations on improving the legal framework at EU and at national level, so that the win-win potential between liberalisation and a wider use of industrial polygeneration is exploited in a better way.