EU Policy Developments


New EU energy policy based on the 2016 “Clean Energy for All Europeans” package

The new EU energy policy based on the European Commission’s “Clean Energy for all Europeans” package has been completed in May 2019. A set of new and revised EU directives and regulations have been adopted with a view to aligning the EU energy sector and its governance with current needs and goals such as the decarbonization imperative and digitalization agenda. Notably, the new electricity market design should increase system flexibility and ensure security of supply through measures including enhanced dispatch rules, demand response and better coordination of electricity system operations by Transmission System Operators (TSOs) on a regional level. New targets and provisions include:

  • A more ambitious energy efficiency target of 32.5% by 2030 from a 1990 baseline, and provisions to tap the energy saving potential of buildings;  
  • A revamped renewables target of 32% by 2030 from a 1990 baseline, with specific provisions promoting public and private investment;
  • A new interconnection target of 15% by 2030 from a 1990 baseline, to support integration of renewables into the grid and reap the benefits of cross-border electricity trade;
  • A better governance of the Energy Union, where each Member State prepares National Energy and Climate Plans (NECPs) for 2021-2030 on achieving Energy Union goals and the new 2030 energy efficiency and renewable energy targets. The NECPs are being reviewed by the European Commission.
  • More rights and putting consumers (prosumers) at the heart of the energy transition;
  • A smarter and more efficient electricity market by introducing rules to increase security of supply by integrating RES, managing risks, and improving cross-border cooperation.