New “clean energy” package has been agreed by three EU’s legislative institutions: the Council, the European Parliament and the European Commission. New rules are aimed at making the EU's electricity market work better with numerous energy union governance proposals including a number of directives: on energy efficiency, on renewable energy and on energy performance in construction.

European citizens spend a significant part of their income on energy, and energy is an important input for European industry. At the same time, the energy sector plays a key role in reducing greenhouse gas emissions in the EU by at least 40% until 2030 with an expected share of 50% of renewables by 2030.





“Clean Energy for All Europeans” package (adopted in Brussels on 18 December 2018) is a major step towards completing the Energy Union and combating climate change – the priorities of the present Commission.





Negotiators among three EU’s legislative institutions provided for a political agreement on the new electricity regulation and directive. This agreement follows previous agreements on the energy union governance proposal, the revised energy efficiency directive (see below), the revised renewable energy directive and a directive on energy performance in construction. Besides, a regulation on risk preparedness was adopted with a creation of a new Agency for the Cooperation of Energy Regulators (ACER).





On governance in energy union: http://europa.eu/rapid/press-release_IP-18-4229_en.htm;

On renewable energy in: http://europa.eu/rapid/press-release_STATEMENT-18-4155_en.htm;

On energy in construction in: https://ec.europa.eu/energy/en/topics/energy-efficiency/buildings;

Commissioner for climate action and energy Miguel Arias Cañete underlined that the “Clean Energy for All Europeans” package puts the EU among the global leaders in making adequate rules to accelerate and facilitate the clean energy transition. The new electricity market will be more flexible and facilitate the integration of a greater share of renewable energy. The new rules, he stressed, would create more competition and allow consumers to participate actively in the market with clean energy transition reconciling security of supply with the climate objectives.

The new electricity market proposals (with directives and a regulation) aim at adapting to the new market realities: they introduce a new limit for power plants eligible to receive subsidies as capacity mechanisms. Subsidies to generation capacity emitting 550gr CO2/kWh or more will be phased out under the new rules.





The new rules enable both the active participation of consumers and strong framework for consumer protection. By allowing electricity to move freely to where it is most needed, society will increasingly benefit from cross-border trade and competition. They will drive the investments necessary to provide security of supply, whilst decarbonising the EU’s energy system. The new market design also contributes to the EU's goal of being the world leader in energy production from renewable energy sources by allowing more flexibility to accommodate an increasing share of renewable energy in the grid.





The shift to renewables and increased electrification is crucial to achieve carbon neutrality by 2050. The new electricity market design will also contribute to the creation of jobs and growth, and attract investments.