Greater interconnection of Europe’s electricity system

An interconnected European energy grid will help ensure affordable, secure and sustainable energy, and bring growth and jobs across the European Union (EU).

ACT

Communication from the Commission to the European Parliament and the Council - Achieving the 10 % electricity interconnection target: making Europe’s electricity grid fit for 2020 (COM(2015) 82 final of 25.2.2015).

Annexes to the Communication from the Commission to the European Parliament and the Council - Achieving the 10 % electricity interconnection target: making Europe’s electricity grid fit for 2020 (COM(2015) 82 final/2 of 25.2.2015).

SUMMARY

WHAT DOES THE COMMUNICATION DO?

It sets out the measures needed to achieve the target of 10 % electricity interconnection by 2020 which was announced by the European Council in 2014. It was adopted alongside a broader document setting out the EU’s framework strategy for a resilient energy union with forward thinking climate change policy.

KEY POINTS

What does the 10 % target mean?

Each EU country would have put in place power cables that allow at least 10 % of the electricity produced to be transported to neighbouring EU countries.

Benefits

Benefits from interconnection for the EU and its individual countries include:

• security of supply - improving reliability, increasing the quality of service and reducing power interruptions and productivity losses;
• lower prices in the internal market - through more competition and greater efficiency, as well as better and more cost-effective use of resources;
• sustainable development and decarbonising the energy mix* - allowing the energy grid* to accommodate the use of more renewable energy sources in a more secure and cost-efficient way.

12 EU countries are not well connected with others (i.e. they have an interconnection level of under 10 %):

• Ireland - 9 %;
• Italy - 7 %;
• Romania - 7 %;
• Portugal - 7 %;
• the UK (1) - 6 %;
• Estonia - 4 %;
• Latvia - 4 %;
• Lithuania - 4 %;
• Spain - 3 %;
• Poland - 2 %;
• Cyprus - 0 %;
• Malta - 0 %.

How will the target be reached?

The main tool is the list of infrastructure ‘projects of common interest’ (PCIs). 37 of these projects are electricity interconnection projects in EU countries. If these projects are completed by 2020, only Spain and Cyprus are not expected to have reached the 10 % target.

Financial and regulatory framework

It is estimated that EU 35 billion will be needed to reach the 10 % target by 2020. Some projects can benefit from a grant from Connecting Europe Facility (CEF). EU countries may also use European Structural and Investment Funds under certain conditions. PCIs could also benefit from the European Fund for Strategic Investment.

Regulation (EU) No 1315/2013 on trans-European energy networks (TEN-E) establishes the possibility to share costs across EU borders based on the benefits generated for the EU country concerned.

Annual reports

The Commission will report annually to the European Council on the implementation of PCIs and on the progress towards the 10 % target.

KEY TERMS

* Energy mix: the range of energy sources available.

* Energy grid: the energy distribution system (comprising cables, substations, etc.).

For more information, see:

• energy union on the European Commission’s website;
• a fully integrated internal energy market on the European Commission’s website.

RELATED ACTS

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank - A framework strategy for a resilient energy union with a forward-looking climate change policy (COM(2015) 80 final of 25.2.2015).

Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European investment advisory hub and the European investment project portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 - the European Fund for Strategic Investments (OJ L 169, 1.7.2015, pp. 1-38).

last update 24.07.2015

(1) The United Kingdom withdraws from the European Union and becomes a third country (non-EU country) as of 1 February 2020.