Energy Infrastructure
One can observe today the characteristics of the past, in particular in the EU´s power sector. A centralised, nationally organised energy system with ageing technologies and underdeveloped power markets. Still, more than 20 years after the Single European Act was signed, the EU is lacking a well-functioning internal market for electricity. Generation and production still drive infrastructure development within integrated utilities. National approaches have led to missing interconnectors and insufficient market integration.
The development of a modern and integrated European energy grid is crucial to achieve the EU’s objectives of competitiveness, sustainability and security of energy supply. Furthermore, in order to meet its 2020 climate and energy targets, the EU has to accelerate its ambition to create a single European power market, based on renewable energy, an EU Super Grid as well as a Smart Grid, in order to facilitate an intelligently and efficiently interconnected electricity system of both centralised and decentralised renewable energy installations.
Especially in the period leading up to 2020, Europe has to invest in new energy production capacity to replace ageing plants while meeting future demand.
Approximately 360 GW of new power capacity needs to be built by 2020, which represents 50% of the current EU capacity. The EU must use such an opportunity created by this up-coming large turnover in capacity to construct a new, modern renewable energy power supply and grid system capable of meeting the energy and climate challenges of the 21st century, while enhancing Europe’s competitiveness and creating hundreds of thousands of jobs. The new power system must be supported by a well functioning internal market in electricity in which investors, rather than consumers, are exposed to carbon and fuel price risk.
Figure 1: Combination of Centralised and Decentralised RES Power Production
- Source : European Commission
For more information, see the European Commission webpage on Energy Infrastructure.