https://czech-presidency.consilium.europa.eu/en/news/energy-ministers-ap...
Transport, Telecommunications and Energy Council (Energy), 19 December 2022
https://www.consilium.europa.eu/en/meetings/tte/2022/12/19/
Main results
Energy prices
EU energy ministers reached a political agreement on a proposal for a Council Regulation establishing a market correction mechanism to protect citizens and the economy against excessively high gas prices.
We have succeeded in finding an important agreement that will shield citizens from skyrocketing energy prices. We will set a realistic and effective mechanism, which includes the necessary safeguards that will steer us clear from risks to security of supply and financial markets stability. Once again, we have proved that the EU is united and will not let anybody use energy as a weapon.
Jozef SÍKELA, Czech minister of industry and trade
Infographic - A market mechanism to limit excessive gas price spikes
See full infographicThe Regulation is a temporary emergency measure that aims to limit episodes of excessive gas prices that do not reflect world market prices, while ensuring security of energy supply and the stability of financial markets.
- Council agrees on temporary mechanism to limit excessive gas prices (press release, 19 December 2022)
- Proposal for a regulation on enhancing solidarity through better coordination of gas
- Energy prices and security of supply (background information)
Ministers formally adopted a Council regulation on enhancing solidarity through better coordination of gas purchases, exchanges of gas across borders and reliable price benchmarks. The content of this regulation was agreed in the Energy Council on 24 November 2022.
Ministers reached a political agreement on a Council regulation laying down a temporary framework to accelerate the deployment of renewable energy. Most of the content of this regulation was agreed in the Energy Council on 24 November 2022. Ministers today added a provision to fast track and simplify the roll out of grids.
Infographic - Fit for 55: cutting methane emissions in fossil fuels
See full infographicEU energy ministers reached a general approach on a proposal on methane emissions reduction in the energy sector.
The general approach would require the oil, gas and coal sectors to measure, report and verify methane emissions. It would propose strict rules to detect and repair methane leaks and to limit venting and flaring to narrow cases.
This proposal is part of the second batch of proposals under the 'Fit for 55' package that aims to align EU climate and energy laws with the European Climate Law's 2030 emission reduction targets.
- Member states agree on new rules to slash methane emissions (press release, 19 December 2022)
- Fit for 55 the EU's plan for a green transition (background information)
REPowerEU energy
The Council adopted a general approach on the proposal for a REPowerEU directive that brings targeted amendments to EU legislation on renewable energy. Member states will design dedicated ‘go-to areas' for renewables with shortened and simplified permitting processes in areas with lower environmental risks.
The Council confirmed the target of the share of energy from renewable sources in the Union’s gross final consumption of energy, of at least 40% in 2030, as in its general approach on the renewable energy directive adopted in June 2022.
This proposal is part of the second batch of proposals under the 'Fit for 55' package that aims to align EU climate and energy laws with the European Climate Law's 2030 targets.
- REPowerEU: Council agrees on accelerated permitting rules for renewables (press release, 19 December 2022)
- Fit for 55 the EU's plan for a green transition (background information)
Gas package
The presidency presented a progress report on the gas package, which includes a proposal for a directive and a proposal for a regulation on common internal market rules for renewable and natural gases and hydrogen.
The proposals seek to facilitate the penetration of renewable and low-carbon gases into the energy system, enabling a shift away from natural gas and to allow for these new gases to play their role towards the goal of EU climate neutrality in 2050.
The Council took note of the progress report.
- Presidency progress report on the gas package
- Proposal for a directive on common rules for the internal markets in renewable and natural gases and in hydrogen
- Proposal for a regulation on the internal markets for renewable and natural gases and for hydrogen
- Fit for 55 the EU's plan for a green transition (background information)
Other business
Under any other business, the presidency provided information on current legislative proposals, including the revision of the energy efficiency directive and the renewable energy directive, that are currently being negotiated in trilogues between the Council and the European Parliament. The presidency debriefed ministers on the SET Plan Conference and the European Nuclear Energy Forum (ENEF).
The Commission informed ministers about the revision of the electricity market design. The Commission also gave information on recent developments in the field of external energy relations.
Hungary presented information on the Janaf oil pipeline. Luxembourg informed ministers on short-term energy savings potential in data centres.
Sweden presented the work programme of its incoming presidency.
The Council also adopted the items included in the list of 'A-items' below, with the exception of the Council Regulation laying down a temporary framework to accelerate the deployment of renewable energy, which will be formally adopted at a later stage.
The package of measures had already been prepared by the ministers at the extraordinary Energy Council in November, and today they successfully concluded the negotiation of the most complex of them. “Before the actual conclusion of the Czech Presidency, we have succeeded in negotiating a compromise on a regulation to introduce a price cap for gas. This measure will operate as an emergency brake, and so its task will be to keep gas prices under control to prevent a repeat of the situation this summer when gas prices were multiple times higher than previous peaks,” said Minister of Industry and Trade Jozef Síkela, adding: “In addition, we have definitively approved a new framework to accelerate the building of renewable sources, mutual solidarity and a mechanism for joint gas purchases. This package of measures will significantly help Europe in its preparations for next winter to ensure that European households and businesses have sufficient energy at affordable prices.”
At the meeting, ministers succeeded in finding agreement on the form of an emergency correction mechanism for the gas market. The measure will ensure that prices cannot climb to such dizzying heights as last summer, and will thus prevent negative impacts on European citizens and businesses by setting a dynamic price cap. This will be triggered if, for a period of three days, the month-ahead TTF futures contract price exceeds EUR 180/MWh and, at the same time, is at least EUR 35/MWh higher than a reference price calculated based on current global prices for liquefied natural gas. The approved form of the mechanism will also contain safeguards against threats to cross-border flows of gas in the EU and the security of supplies to the European Union to ensure the market remains attractive for gas suppliers from third countries.
“Although this is a relatively concise proposal, it is a very complex mechanism with many technical elements created after intense negotiations between the Member States, and it required a very sensitive approach to find a compromise solution acceptable for all parties,” Minister Síkela concluded.
During his presidency, Minister of Industry and Trade Jozef Síkela has called five extraordinary Energy Councils as a result of the energy crisis. The Czech Presidency has succeeded in getting measures adopted that under normal circumstances would have taken months or years to approve. This is one of the reasons why the Czech Presidency has received its nickname of the “Energy Presidency”.
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