The increase in wholesale electricity prices that Europe is experiencing is triggering concerns and political debate across the continent. The Electrification Alliance, an alliance of 10 European associations that firmly believe electrification is the future of the European Union’s energy system, would like to share its insights on the situation and offer you some responses and recommendations.
See more Advocacy content in the Members Area such as National Energy & Climate Plans, Advocacy and Meeting reports.
- Electrification Alliance letter on the increase in wholesale electricity prices in Europe October 2021
- Fit for 55% Package: joint position June 2021
The Electrification Alliance establishes the priorities for the Fit for 55 package with dedicated recommendations on key legislative files :
- Carbon pricing and energy taxation e.g. to:
- Ensure a level playing field between energy carriers
- Set standards to avoid double taxation of end-use flexibility solutions
- Renewable energy – revision of the Renewable Energy Directive e.g. to:
- Increase the 2030 renewable energy target to levels in line with the European Commission impact assessment
- Promote and accelerate demand-side flexibility efforts
- Remove obstacles to solar, wind & electricity grid deployment, e.g. in relation to permitting
- Keep the RED II unambiguously for renewable energies
- Energy system efficiency – revision of the Energy Efficiency Directive e.g. to:
- Increase the 2030 energy efficiency target
- Ensure that the energy efficiency first principle is applied at system level
- Review the Primary Energy Factor (PEF) for electricity
- Electrification of buildings – revisions of the Energy Performance in Buildings Directive e.g. to:
- Integrate buildings and transport sectors through direct electrification ready for smart charging
- Increase the required shares of renewables and energy efficiency improvements in heating and cooling systems
- Accelerate the deployment of on-site renewable electricity and demand-side flexibility sources
- Electrification of road transport – revisions of the CO₂ emission performance standards for cars and vans Regulation and the Alternative Fuels Infrastructure Directive e.g. to:
- Tighten the CO₂ emission standards for cars and vans for 2025 and 2030
- Set an ambitious framework for a goal-driven, intelligent and dynamic roll out of charging infrastructure in Europe
- Prioritise roll-out flexible charging infrastructure (smart charging)
- Carbon pricing and energy taxation e.g. to:
- Electrification Alliance response to the revision of the TEN-E regulation March 2021
The Electrification Alliance welcomes the proposal put forward by the European Commission for the revision of the TEN-E Regulation. A revision of the Regulation is much needed in light of the EU’s 2030 and 2050 objectives and in order to channel investments in smart, reliable and efficient infrastructure that can deliver the transition to a net zero economy. There are still a number of areas in which changes could be made to improve the revised TEN-E Regulation, notably on:
- PCI selection criteria;
- Governance; and
- Network optimisation, transformation and decentralisation.
- Power Generation and transmission thresholds in the EU Taxonomy Delegated Act on climate change mitigation and adaption January 2021
Following the publication of the European Commission’s draft Delegated Act on the EU Sustainable Taxonomy, we are writing to express our strong support for the taxonomy thresholds based on climate and environmental science. We welcome the 100g CO2e/kWh life-cycle intensity limit for substantial contribution to climate mitigation, which is derived through a robust and scientific process, and was recommended by TEG. Emissions from fossil fuels are beyond this threshold and we applaud the Commission for upholding it in the draft Delegated Act.
- The Recovery and Resilience Facility: a once in a generation opportunity to prioritise green investments and boost progress towards climate neutrality November 2020
The EU’s renewable energy industries commend the European institutions for agreeing that 37% of Recovery & Resilience Facility funds should be used for climate-related spending. As the discussions enter the trilogue phase WindEurope and eight other renewable energy associations call on the co-legislators to ensure that the Recovery & Resilience Plans are fully consistent with the EU’s commitments under the Paris Agreement and the EU’s own objective of climate neutrality by 2050.
- Electrification Alliance position on the revision of the TEN-E regulation November 2020
The Electrification Alliance welcomes the initiative by the European Commission (EC) to revise the Trans-European Networks – Energy regulation (TEN-E) as part of its Green Deal agenda. The revision offers an important opportunity for the EU to give priority and funding to future-proof Europe’s energy infrastructure, in a cost-effective manner. The priority corridors and areas, as well as the eligibility criteria set out in the TEN-E regulation, were defined in 2013 with market integration and security of supply as the ultimate goal. That approach is no longer in line with the 2030 and 2050 decarbonisation goals. Getting energy infrastructure regulation right is central to reaching these objectives.
- Joint WindEurope-T&D Europe statement on the Expiry Review of the trade measures on grain-oriented electrical steel (GOES) October 2020
On 30 October the European Commission announced the start of an Expiry Review of the Minimum Import Price/anti-dumping measures on imports of grain-oriented electrical steel that have been in place since 2015. It is estimated that the measures have caused up to a double-digit percentage increase in the costs for transformers, substantially increasing the cost of the clean energy transition and directly impacting the viability and competitiveness of the EU transformer industry. T&D Europe and WindEurope previously asked the Commission to allow the measures to lapse without review. WindEurope and T&D Europe have published a joint statement expressing disappointment with the European Commission’s decision to proceed with a review.
- Joint letter on the Recovery & Resilience Facility October 2020
The Recovery & Resilience Facility should channel funding towards renewable, smart, and efficient electricity-based solutions that deliver a green and digital recovery and a just transition. It should exclude support for fossil fuel investments that generate stranded assets.
- European standards for safe and secure truck parking areas and widening the scope to zero-emission trucks and refrigerated trailers July 2020
The ongoing European Commission initiative to develop new standards for safe and secure truck parking areas in Europe, is highly relevant, to ensure safe and good resting conditions for European truck drivers. We therefore very much welcome this initiative. However, in the context of the European Green Deal and given the urgency to decarbonise the road transport sector to reach climate neutrality in 2050, we are concerned that the current needs of refrigerated trailers and the future needs of zero-emission trucks are not taken into account.
The signatories of the letter therefore ask for:
- plug-in stations for refrigerated trucks for all new parking areas and the ones undergoing important upgrades;
- an assessment of the existing grid capacity of the parking areas to be able to plan ahead future needs of zero-emission trucks ; and
- EU funding to be linked to these standards, i.e. only parking areas offering this services and providing this information should have access to CEF funding for Safe and Secure Truck Parking.
- Electrification Alliance letter on channeling the resources of the Just Transition Fund towards renewable, smart and electric-based solutions to deliver a green recovery and fair transition July 2020
The Just Transition Fund (JTF) is a key pillar of the Green Deal to address the disproportionate effects that the energy transition may have on some regions, jobs and economic activities in the EU. In particular, the JTF offers a lifeline to Europe’s most vulnerable regions and is essential to support those with a different starting point in the decarbonisation journey.
To be an instrument of solidarity, the Fund must accelerate the deployment of clean solutions that deliver decarbonisation, are cost-effective and create the jobs and skills of the future in coal regions and across the EU. These solutions include smart electric based solutions and related infrastructure1, renewables, circular economy and environmental remediation.
The members of the Electrification Alliance call on the European Parliament to ensure that the JTF supports the deployment of renewable, smart and electric-based solutions rather than any unsustainable continued use of fossil fuels, including natural gas.
- Taking an integrated approach to building decarbonisation in the EU: 10 Principles for a successful Renovation Wave June 2020
The Electrification Alliance welcomes the upcoming Renovation Wave initiative of the European Commission. We believe that the following 10 principles will help make it a success and speed-up the full decarbonisation of the EU building stock:
- Acknowledge the multiple benefits for EU citizens and the energy system
- Take an ambitious approach to building renovation and electrification
- Prioritise the electrification of heating and cooling in buildings
- Accelerate on-site renewable electricity generation
- Deploy e-mobility smart charging infrastructure
- Foster the demand-side flexibility of buildings
- Align internal electrical installations with a higher level of ambition and safety
- Encourage innovative business models enabled by digitalization
- Set up up-to-date skills programmes for workers
- Make the best use of the Clean Energy Package laws
- EU and UK trade bodies call for an efficient future EU-UK energy relationship June 2020
WindEurope has joined with the British Irish Chamber of Commerce, the European Federation of Energy Traders, the Electricity Association of Ireland, Energy UK, and Eurelectric to call on the EU and the UK to ensure maximum continuity with existing provisions applicable to the EU-UK energy relationship. Key to this will be comparable systems of carbon pricing, regulatory cooperation, safeguarding the Single Electricity Market on the island of Ireland, guaranteeing continued cross-border trading, and maintaining cooperation on offshore grid projects in the North Seas. Naturally, the Paris Agreement commitments must underpin legislation and targets from both sides.
- Contribution from the Electrification Alliance on the Smart Sector Integration Strategy May 2020
The Electrification Alliance welcomes the initiative by the European Commission to set out a comprehensive strategy for smart sector integration, which, we believe, can greatly contribute to a “green” and “digital” recovery from the COVID-19 crisis. Enhanced smart sector integration is mostly a matter of making electrification work. Direct electrification must be the top priority of the Strategy as we must ramp up rates of direct electrification from today’s 24% to at least 50% by 2050. Investing in power grids and in the technologies and supply chains that will deliver climate neutrality must be central to the EU’s plan for a speedy and future-proof recovery.
Here are the 5 priorities of the Alliance for a successful roadmap on the Smart Sector Integration Strategy:
- Prioritise direct electrification, as it is the most cost-effective way to decarbonise the EU economy
- Enhance demand-side flexibility across all sectors to smartly manage an energy system with large shares of renewables and reduce costs for grid extension
- Accelerate the deployment of a smart and climate-resilient electricity grid infrastructure
- Revise the Energy Taxation Directive to ensure that all energy sources can compete on an equal footing, promote clean innovative technologies and ensure competitive energy costs in Europe
- Allow renewable-based indirect electrification to play a key role for “harder to abate” sectors
- Joint letter from the European renewable energy industries on permitting for new renewables investments May 2020
Getting the permitting of renewables investments right will be critical to deliver the European Green Deal. Permitting for new and repowered renewable energy projects remains today too complex to unlock the scale of renewable energy capacities required to kick start the European economy post COVID-19 and to meet Europe’s 2030 & 2050 energy & climate targets. The European renewable energy industries called on the European Commission to ensure Member States 1) transpose and enforce the new EU rules on simplified permitting for 2030; 2) beef up administrative and human resources to process permit applications and 3) ensure the industry can deploy the most efficient technology available for a specific site.
- Call to EU leaders: an EU Green Recovery to restart Europe March 2020
As the fight against COVID-19 has brought the EU economy close to a standstill, together with 37 signatories from Europe’s electricity, heating, cooling, building and transport sectors, WindEurope calls for the European institutions to stand behind the European Green Deal to restart Europe. The EU institutions should fully integrate the proposed national and European economic packages with the European Green deal and help accelerate the necessary investments, notably to drive a renewable-based electrification.
- Comments from the Electrification Alliance on the ENTSO-E and ENTSO-G draft TYNDP 2020 scenario report February 2020
Formed in 2017, the Electrification Alliance brings together AVERE, Eurelectric, European Climate Foundation, European Copper Institute, European Heat Pump Association, Europe-On, smartEn, SolarPower Europe and WindEurope calling for clean electricity to be recognised as the key energy carrier for an efficient and decarbonised European future. In doing so, the Alliance members are working towards enabling technologies to advance Europe’s competitiveness, economic growth, job creation, and the promotion of a sustainable society for European citizens.
The Electrification Alliance is concerned regarding the joint ENTSOs’ Ten-Year Network Development Plan draft scenario report for 2020 (TYNDP 2020) on the preliminary results. Therefore, the members of the Electrification Alliance do not consider the current TYNDP 2020 scenarios as a relevant basis for future energy infrastructure prioritisation, including the 5th PCI list. We invite the European Commission to take the initiative and the opportunity to fast-track the revision of the relevant EU infrastructure regulations.
- Delivering green growth for Europe: an EU industrial strategy for renewables February 2020
Reaching climate-neutrality by 2050 means the EU will be increasingly reliant on the supply of innovative and cost-competitive renewables. 10 leading European renewable energy associations have joined forces to highlight the strategic importance of renewables for the delivery of the EU Green Deal and how an industrial strategy for renewables can boost their deployment.
- Letter from the Electrification Alliance on the next European Commission work programme March 2019
Formed in 2017, the Electrification Alliance brings together a variety of stakeholders calling for clean electricity to be recognised as the key energy carrier for an efficient and decarbonised European future. In doing so, the Alliance members are working towards enabling technologies to advance Europe’s competitiveness, economic growth, job creation, and the promotion of a sustainable society for European citizens.
In this regard, the new Commission should demonstrate ambitious climate and industrial leadership during its next term in order to deliver on the ambition of the Long Term Strategy. This letter lays out a series of measures to achieve a deep decarbonisation of the EU economy based on renewables-based electrification.
- Joint letter on climate earmarking in Horizon Europe February 2019
WindEurope and other trade associations and technology platforms on renewable energy have sent a letter to the Council of the European Union ahead of this week’s Working Party meetings on the Horizon Europe programme. The signatories call on the council representatives to support a more robust target of 35% for climate related research & innovation in the upcoming framework programme. Climate mainstreaming deserves clear and consistent governance. Innovation policy must supply new technology to bring down the investment cost of decarbonising the European energy system.
- Joint letter for ENVI resolution on EU 2050 Strategy January 2019
WindEurope and other trade associations sent a letter to Members of the European Parliament ahead of the vote of the ENVI committee on a resolution regarding the EU 2050 climate strategy. The signatories call for acknowledging the key role of demand-side flexibility to enable the clean energy transition. In most scenarios proposed by the European Commission the shares of variable renewable energy sources is set to increase. Ensuring decentralised energy resources (demand response, storage, self-generation…) can interact with the electricity system through smart and digital solutions will provide the necessary flexibility to integrate renewables in a cost-efficient way while delivering consumers with significant costs savings.
- Joint letter on energy & climate in Brexit Political Declaration November 2018
WindEurope and a wide range of signatories sent a letter to the Secretary of State for Exiting the EU, Dominic Raab and the European Chief Negotiator, Michel Barnier calling for energy and climate change to be included in the Brexit Political Declaration.
- Unleashing distributed flexibility into the grid November 2018
The right Electricity Market Design is key to enable the achievement of a successful and cost-efficient energy transition. Grasping all the benefits provided by shorter and more dynamic electricity markets and building a future-proofed electricity grid infrastructure is needed to provide robust, smart, flexible and ready solutions to integrate more renewables and efficient distributed generation, while optimizing the overall efficiency of Europe’s electricity system.
- Enabling the uptake of decentralised storage and demand response September 2018
Decentralised demand response and energy storage at commercial and residential level, including electric vehicles, can greatly facilitate the integration of ever larger shares of variable renewables in the grid. As EU energy ministers gather in Linz on 17/18 September to discuss the reform of electricity market design, co-signatories of this declaration call on Member States to grasp the immediate opportunity provided by this reform to unlock their vast potentials. Specific recommendations include: simultaneous participation in all markets individually or through aggregators, inclusion in grid planning process and clearer ownership rules by regulated entities for storage assets.
- Prioritising EU27 / UK cooperation on climate change and energy September 2018
EU27 and UK businesses point to a sensible landing point for Brexit negotiations on energy and climate change. Specific recommendations include: UK/EU post Brexit cooperation on setting long-term GHG emission targets; For climate change and energy to be addressed together in a comprehensive Climate and Energy Chapter so that respective EU and UK climate and energy interests can be balanced; Agreement to prioritise delivering zero tariff and non-tariff barriers to trade between the EU27 and UK in low carbon goods and services; Agreement to no tariffs on energy trading, efficient trading arrangements across UK/EU interconnectors and cooperation in developing markets for shared electricity balancing services.
- Keeping EU energy and emissions markets protected from VAT fraud beyond 2018 September 2018
Missing Trader Intra-Community Value Added Tax fraud remains a persistent threat to the integrity and well-functioning of electricity, gas and emission allowance markets in Europe1. Billions of euros had been defrauded from European Exchequers before the Council of the EU decided on the introduction of a derogation from the VAT Directive2 for electricity, gas and emission allowance transactions. The derogation enables Member States to apply the Domestic Reverse Charge Mechanism (DRCM) to these goods and services. Should the existing derogation not be proactively prolonged by the Council before the end of the year, it will automatically expire at midnight on 31 December 2018 as stipulated in the built-in sunset clause in Article 199a3 of the VAT Directive.
- Governance Coalition letter June 2018
Ahead of the final negotiation round on the Governance Regulation on 19 June, leading organisations call on European institutions to deliver a robust governance system for the Energy Union. The post-2020 governance regime should ensure long-term climate and energy strategies are in line with the Paris agreement, should provide adequate measures to deliver on EU targets and should support integrated planning for the energy transition.
- Brexit coalition letter April 2018
As leading European and UK companies and investors, we recognise that climate change poses one of the greatest long-term threats to our economies and societies. We strongly urge both the UK and EU27 to commit to continuing to work together to meet the commitments set out in the Paris Agreement, in any future relationship. To ensure this is achieved, we call on you, in the Brexit negotiations, to develop a comprehensive Climate and Energy Chapter, which covers both trade and non-trade issues.
- The Electrification Alliance on the Mobility Package March 2018
Transport is the only sector in Europe in which emissions have increased in the last decades. Today,
transport emissions are nearly 20% higher than in 1990, while European transport needs are expected to grow significantly until 2050.
Without ambitious action, transport is set to be the biggest GHG emitter in Europe by 2030.
In parallel, from 1990 till 2015, the carbon intensity of electricity in Europe decreased by more than
33% and is on track to complete carbon-neutrality well before 2050.
- Open letter from the Eletrification Alliance on the Multi-Annual Financial Framework March 2018
The co-signatories of this letter represent a broad cross-section of European interests striving to support the EU’s efforts to meet its climate commitments under the Paris Agreement and the UN’s Sustainable Development Goals (SDGs).
We highlight the opportunities coming from the smart and efficient electrification of European energy use as a means to achieving the EU’s climate commitments while improving its competitiveness, creating high quality jobs, and asserting global industrial leadership in the development and deployment of new technologies.
Electrification is further driven by trends in the economy on fuel efficiency, digitalisation and automation, which in turn can make technology work for vulnerable sectors of society such as low income households, local actors and SMEs. It is also a driver for cost reductions and increasing shares of renewables.
We would like to express the importance of aligning the upcoming Multiannual Financial Framework (MFF) post-2020 with these commitments and opportunities, which we believe requires the European Commission to revisit its approach to energy infrastructure spending.
- Joint statement on Guarantees of Origin February 2018
The signatories of this statement believe that Guarantees of Origin (GOs) are a reliable instrument to track and prove to consumers that a given share of electricity supplied to their home or business comes from renewable sources.
The Clean Energy Package offers a unique opportunity to strengthen the GO system as more countries, consumers, and electricity suppliers begin to use it . As both European Parliament and Council have now agreed on their respective positions on the Renewable Energy Directive, this paper aims to draw the attention of policy makers to some key issues ahead of the trilogue negotiations.
- Joint statement on regulated retail prices February 2018
WindEurope and other associations from the power sector call on the European Parliament and the Council to phase out regulated prices as part of the ongoing reform of the Electricity Directive. Enabling consumers to base their decisions during scarcity periods on market price signals is essential to further develop demand response and drive a cost-effective integration of renewables into the power system.
The persistence of regulated electricity tariffs is one the reason why consumers have not fully benefited from the downward trend that wind power produces on the wholesale market. The future electricity market design should seek for an increased link between wholesale prices and retail prices in order to guarantee such pass-through effect to consumers.
- Joint industry letter for a simple and effective ‘Smartness Indicator’ November 2017
WindEurope has joined efforts with other industry associations and NGOs from the energy, manufacturing, standardisation, construction and building sectors to raise the need for an effective smartness indicator for buildings. This indicator is introduced by the proposal for a revised Energy Performance of Buildings Directive. It aims at indicating a building’s ability to actively manage its internal, self-generation and/or storage for both heat and electricity. The European Commission is now working with a consortium of consultancies led by VITO on a joint study that should develop a common definition and methodology for this indicator.
WindEurope and other associations call on the consortium to focus on active measures of flexibility in their study, and not the passive efficiency measures within a building which are already addressed by the Energy Performance Certificate. This would be the best way to ensure that the indicator becomes a meaningful tool for building owners and occupants in order to unlock the vast flexibility of Europe’s building stock, and eventually support the wider energy system to integrate larger shares of renewables.
- Strengthening the regional approach to system operation to boost renewables’ integration October 2017
Europe needs to integrate ever-growing shares of renewable energy sources into the wholesale power market. This path is a no brainer for Europe and for the signatories of this statement.
Today however, a number of hurdles are in the way of reaching this goal. This is in particular the case for cross-border capacity allocation. As wholesale markets are increasingly interconnected and coupled, further progress is fundamentally needed to reach the objective of a truly integrated Internal Energy Market.
In particular, we call for on policy-makers to support a step-wise regional approach to system operation that optimise social welfare beyond national borders.
- Support a reliable regulatory framework for renewable energies in Europe October 2017
The Clean Energy Package for all Europeans is an ambitious response to the climate challenges we are facing in Europe today.
The ongoing decarbonisation, decentralisation and digitalisation of the energy sector offer ample of opportunities, as electricity becomes increasingly decarbonised and electrification of all sectors of the European economy progresses.
The signatories of this statement call on the European Parliament and the Council of the European Union to support the development of a stable and predictable regulatory framework for renewable energies.
- European wind energy sets out concerns on a new governance mechanism in Clean Energy Package October 2017
The wind industry today issued a letter to the European Council, setting out concerns regarding the ongoing Council deliberations on a new governance mechanism in the context of the Clean Energy Package.
The European wind industry can make a substantial contribution to the energy transition. Onshore wind is now the cheapest form of new power generation capacity, and offshore is not far behind. Technology developments have also made it much easier and cheaper to integrate variable renewables in the energy system. Wind creates growth and jobs (now 300,000 across Europe) and reduces fossil fuel imports. And of course it also reduces CO2 emissions.