During the informal energy and transport ministers' meeting in Tallinn on 20 September, EU energy ministers, together with European Commission Vice-President for Energy Union Maroš Šefčovič and Commissioner for Climate Action and Energy Miguel Arias Cañete, discussed the operation of a unified European electricity market. The discussions focused on key aspects of the electricity market design, in particular the role of consumers, regional cooperation, renewables, and capacity mechanisms. It was stressed that the Commission's electricity market package can provide real European added value if the EU's 2030 energy and climate targets are achieved: a 1 per cent increase in GDP, up to €177bn injected into the European economy and as many as 900,000 jobs created.
Broad support was shown for a legal framework that enables consumers to become active participants in energy markets and reap the benefits of the energy transition and technological developments by bringing down costs, combatting energy poverty, and making it easier to switch suppliers. Regional cooperation was also high on the agenda, and the discussion confirmed the large support that exists for enhanced cross-border cooperation to improve security of supply.
Participants also welcomed the "Tallinn E-electricity declaration" signed on 19 September, which will harness the benefits of digitalisation to drive the energy transition.
At the meeting, Commissioner Cañete said:
Capacity mechanisms will not be used as a backdoor subsidy of high-polluting fossil fuels.
Capacity mechanisms are used to subsidize back-up power capacity to avert blackouts and guarantee supply during periods of peak demand. The Commission's proposal aims to set a cap of 550 grams of carbon dioxide per kilowatt-hour for new power stations.
You can watch in full the informal Council press conference, with the participation of Estonian Minister for Economic Affairs and Infrastructure Kadri Simson, Commissioner Miguel Arias Cañete, and Vice-President Maroš Šefčovič.