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#EnergyLabelling: Making it easier to buy energy-efficient appliances

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Using energy more efficiently is one of the easier ways to cut your bills. Many household appliances, such as lamps, televisions and vacuum cleaners, carry a standardised label to help assess their energy efficiency, The European Commission is now proposing to simplify this labelling system to make it even easier for consumers to compare. Parliament's energy committee approved the plan on 14 June. Check out our infographic to find out how energy consumption is measured and how much it costs.

Energy efficiency is about being able to provide the same performance with less energy. To promote it, the EU introduced the first energy label in 1994, classifying applicances from G (least efficient) to A (most efficient). As manufacturers improved the efficiency of their products, the label was extended to A+++. However, the introduction of A+ and higher classes reduced the effectiveness of the energy label as most products now tended to be in Class A or higher.
The Commission is now proposing to restore the original A-G scale and to establish a mechanism for rescaling to accommodate further improvements in energy efficiency without having to create new classes. The proposal also includes measures to improve the monitoring of national markets and the creation of a new product database.

On Tuesday 14 June Parliament's energy committee approved a draft report proposing changes to the original Commission proposal. MEPs have tabled more than 500 amendments and Italian EFDD member Dario Tamburrano, who is in charge of steering the proposal through Parliament, has proposed 39 compromise amendments.

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Click here for more details about the committee vote on 14 June.

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Energy

Kazakhstan joins race to produce 'green' hydrogen

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German investors intend to establish the production of “green” hydrogen in Mangystau region. The road map for the implementation of the project was signed at the meeting with the President of SVEVIND Wolfgang Kropp, organized during the visit of the Kazakh delegation headed by the Deputy Minister of Foreign Affairs of Kazakhstan Almas Aidarov to Sweden. 

SVEVIND activities are aimed at long-term investment of the company’s own and attracted funds, as part of the further development of low-carbon energy in the Republic of Kazakhstan through large-scale production of “green” hydrogen for further export to the EU countries and other foreign markets.

The investor plans to build wind and solar power plants with a capacity of 30 GW, and use these resources to produce up to 2 million tons of hydrogen per year.

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 “SVEVIND aims to combine the outstanding natural resources in Kazakhstan with SVEVIND’s long-time experience and passion in project development to supply Kazakhstan and Eurasia with green, sustainable energy and products, “powered by nature”. The green hydrogen facilities will lift Kazakhstan among the global leaders of renewable energy and green hydrogen. We are very excited to take the next step in the project development, and we are thankful for the outstanding support of the Kazakh government”, - said Wolfgang Kropp, President of SVEVIND. 

 “Hydrogen energy is one of the most promising fields that may displace all traditional methods of energy extraction in the future. Currently, we have the availability of all the required resources such as wind, solar, water, land and the know-how of SVEVIND. We are looking forward to interesting, large-scale and challenging projects moving forward”, - added the Deputy Minister of Foreign Affairs of Kazakhstan Almas Aidarov during the meeting with the Head of SVEVIND.

During the visit, the Kazakh delegation got acquainted with the progress of the company's current project in Sweden and the largest wind farm in Europe “Markbygden 1101”.

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In June this year, SVEVIND signed a Memorandum of Understanding with KAZAKH INVEST. Within the framework of the agreement, the national company and relevant government agencies will provide to the investors full support and comprehensive assistance in the implementation of the project at all stages - from obtaining permits to commissioning. 

SVEVIND is a German company with many years of experience in large-scale renewable energy projects. The company implemented Europe's largest project of an onshore wind generating complex - the Markbygden 1101 cluster of wind farms in Sweden with a capacity of more than 4 GW. The company is represented in the markets of Sweden, Finland and Germany.

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Energy

Energy prices: Commission presents a toolbox of measures to tackle exceptional situation and its impacts

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The Commission has adopted a Communication on Energy Prices, to tackle the exceptional rise in global energy prices, which is projected to last through the winter, and help Europe's people and businesses. The Communication includes a “toolbox” that the EU and its member states can use to address the immediate impact of current prices increases, and further strengthen resilience against future shocks. Short-term national measures include emergency income support to households, state aid for companies, and targeted tax reductions. The Commission will also support investments in renewable energy and energy efficiency; examine possible measures on energy storage and purchasing of gas reserves; and assess the current electricity market design.

Presenting the toolbox, Energy Commissioner Kadri Simson said: “Rising global energy prices are a serious concern for the EU. As we emerge from the pandemic and begin our economic recovery, it is important to protect vulnerable consumers and support European companies. The Commission is helping Member States to take immediate measures to reduce the impact on households and businesses this winter. At the same time, we identify other medium-term measures to ensure that our energy system is more resilient and more flexible to withstand any future volatility throughout the transition. The current situation is exceptional, and the internal energy market has served us well for the past 20 years. But we need to be sure that it continues to do so in the future, delivering on the European Green Deal, boosting our energy independence and meeting our climate goals."

A toolbox of short- and medium-term measures

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The current price spike requires a rapid and coordinated response. The existing legal framework enables the EU and its Member States to take action to address the immediate impacts on consumers and businesses.

Priority should be given to targeted measures that can rapidly mitigate the impact of price rises for vulnerable consumers and small businesses. These measures should be easily adjustable in the Spring, when the situation is expected to stabilise. Our long-term transition and investments in cleaner energy sources should not be disrupted.

Immediate measures to protect consumers and businesses:

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  • Provide emergency income support for energy-poor consumers, for example through vouchers or partial bill payments, which can be supported with EU ETS revenues;
  • Authorise temporary deferrals of bill payments;
  • Put in place safeguards to avoid disconnections from the grid;
  • Provide temporary, targeted reductions in taxation rates for vulnerable households;
  • Provide aid to companies or industries, in line with EU state aid rules;
  • Enhance international energy outreach to ensure the transparency, liquidity and flexibility of international markets;
  • Investigate possible anti-competitive behaviour in the energy market and ask the European Securities and Markets Authority (ESMA) to further enhance monitoring of developments in the carbon market;
  • Facilitate a wider access to renewable power purchase agreements and support them via flanking measures.

The clean energy transition is the best insurance against price shocks in the future, and needs to be accelerated. The EU will continue to develop an efficient energy system with high share of renewable energy. While cheaper renewables play an increasing role in supplying the electricity grid and setting the price, other energy sources, including gas, are still required in times of higher demand. Under the current market design gas still sets the overall electricity price when it is deployed as all producers receive the same price for the same product when it enters the grid - electricity. There is general consensus that the current marginal pricing model is the most efficient one, but further analysis is warranted. The crisis has also drawn attention to the importance of storage for the functioning of the EU gas market. The EU currently has storage capacity for more than 20% of its annual gas use, but not all Member States have storage facilities and their use and obligations to maintain them vary.

Medium-term measures for a decarbonised and resilient energy system:

  • Step up investments in renewables, renovations and energy efficiency and speed up renewables auctions and permitting processes;
  • Develop energy storage capacity, to support the evolving renewables share, including batteries and hydrogen;
  • Ask European energy regulators (ACER) to study the benefits and drawbacks of the existing electricity market design and propose recommendations to the Commission where relevant;
  • Consider revising the security of supply regulation to ensure a better use and functioning of gas storage in Europe;
  • Explore the potential benefits of voluntary joint procurement by Member States of gas stocks;
  • Set up new cross-border regional gas risk groups to analyse risks and advise member states on the design of their national preventive and emergency action plans;
  • Boost the role of consumers in the energy market, by empowering them to choose and change suppliers, generate their own electricity, and join energy communities.

The measures set out in the toolbox will help to provide a timely response to the current energy price spikes, which are the consequence of an exceptional global situation. They will also contribute to an affordable, just and sustainable energy transition for Europe, and greater energy independence. Investments in renewable energy and energy efficiency will not only reduce dependence on imported fossil fuels, but also provide more affordable wholesale energy prices that are more resilient to global supply constraints. The clean energy transition is the best insurance against price shocks like this in the in the future, and needs to be accelerated, also for the sake of the climate.

Background

The EU, like many other regions in the world, is currently experiencing a sharp spike in energy prices. This is principally driven by increased global demand for energy, and in particular gas, as the economic recovery after the height of the COVID-19 pandemic gathers speed. The European carbon price has also risen sharply in 2021, but at a lesser rate than gas prices. The effect of the gas price increase on the electricity price is nine times larger than the impact of the carbon price increase.

The Commission has been consulting widely on the appropriate response to the current situation, and has participated in debates on this issue with Members of the European Parliament and Ministers in the Council of the European Union, while also reaching out to industry and to international energy suppliers. Several Member States have already announced national measures to mitigate price rises, but others are looking to the Commission for guidance on what steps they can take. Some international partners have already indicated plans to increase their energy deliveries to Europe.

The toolbox presented today allows for a coordinated response to protect those most at risk. It is carefully designed to tackle the short-term needs of bringing down energy costs for households and businesses, without harming the EU internal energy market or the green transition in the medium-term.

Next Steps

Commissioner Simson will present the Communication and toolbox to Members of the European Parliament on Thursday 14 October and to Energy Ministers on 26 October. European Leaders are then due to discuss energy prices at the upcoming European Council on 21-22 October. This Communication is the Commission's contribution to the continued debate among EU policy makers. The Commission will continue its exchanges with national administrations, industry, consumer groups and international partners on this important topic, and stands ready to respond to any additional requests from member states.

More information

Communication on Energy Prices

Questions and Answers on the Communication on Energy Prices

Factsheet on the EU Energy Market and Energy Prices

Factsheet on the toolbox

EU energy prices webpage

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Defence

Essential infrastructure: New rules to boost co-operation and resilience

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Civil Liberties Committee MEPs endorse new rules to better protect essential services like energy, transport and drinking water.

With 57 votes in favour and six against (no abstentions), the Committee adopted its negotiation position on new rules on EU critical infrastructure entities. MEPs are aiming to better protect essential services (e.g. energy, transport, banking, drinking water and digital infrastructure) by improving member state resilience strategies and risk assessments.

Climate change is included as a potential source of disruption of essential infrastructure, and cyber-security is seen as an important aspect of resilience. As services are increasingly interdependent, the reformed directive requires local authorities to set up a single point of contact responsible for communicating with other jurisdictions. It also creates a new Critical Entities Resilience Group to facilitate communication between stakeholders, with Parliament participating as an observer.

MEPs push for broader scope, more transparency

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MEPs want to see more transparency when disruptions happen, requiring critical entities to inform the general public about incidents or serious risks. They also want to make sure that member states can provide financial support to critical entities, where this is in the public interest, without prejudice to state aid rules.

The Civil Liberties Committee proposes to widen the definition of essential services, so that protecting the environment, public health and safety, and the rule of law are also mentioned.

To make cross-border co-operation frictionless, MEPs finally want service providers to be considered “of European significance” if they offer similar services in at least three member states.

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After the vote, rapporteur Michal Šimečka (Renew, SK) said: "Critical entities provide essential services across the EU, while facing a growing number of both man-made and natural threats. Our ambition is to strengthen their ability to cope with risks to their operations while improving the functioning of the internal market in essential services. We are expected to deliver on a Europe that protects and that means also bolstering the collective resilience of the critical systems underpinning our way of life."

Background

The European Critical Infrastructure (ECI) directive currently covers only two sectors (transport and energy), whereas the reformed directive would expand this to ten (energy, transport, banking, financial market infrastructures, health, drinking water, waste water, digital infrastructure, public administration and space). At the same time, the new directive introduces an all-hazard risk approach, where the ECI was largely focused on terrorism.

Next steps

Before negotiations with the Council can start, the draft negotiating position will need to be endorsed by the whole house in a future session.

Further information 

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