Council of the EU Transport, Telecommunications and Energy Council (Energy), 4 March 2024 Main results

 Council of the EU

Transport, Telecommunications and Energy Council (Energy), 4 March 2024

Main results

Security of supply and winter preparedness

Ministers held an exchange of views on the state of play of security of supply and preparations for winter 2024-2025. Among other things, they addressed ways to avoid, both individually and collectively, new price shocks and to strengthen energy security, while achieving the established targets on decarbonisation and on phasing out Russian fossil fuels.

Different member states insisted that interconnections and well interconnected energy networks were an essential building block to ensure security of supply during the crisis and will be even more so in the years to come. In that respect, many insisted on the need to allocate sufficient resources to ensure the development of cross-border energy networks.

Many ministers called for phasing out the import of Russian gas, the diversification of supply routes, increasing energy efficiency, continuing sobriety efforts and speeding up electrification as important ways of increasing resilience and ensuring security of supply.

The energy leap: How EU countries weathered a Russia-induced crisis and are reshaping energy supply (feature story)

Energy prices and security of supply (background information)

Infographic - Gas demand reduction in the EU

The infographic shows data about the consumption of natural gas in the EU between 2017 and 2023. There was a drop by 19% during August 2022-January 2023.See full infographic

In that context, they reached a political agreement on Council recommendation on continuing coordinated demand-reduction measures for gas. This non-binding instrument encourages member states to continue their efforts of reducing their gas demand by 15% (compared to the reference period of 1 April 2017 to 31 March 2022), while acknowledging specific circumstances.

Security of gas supply: member states agree on recommendation to continue voluntary demand reduction measures (press release, 4 March 2024)

Council formally adopts 15% gas demand reduction target (press release, 30 March 2023)

Council adopts regulation on reducing gas demand by 15% this winter (press release, 5 August 2022)

We have come a long way since 2022 through adopting coordinated measures in the EU and responding swiftly to the energy crisis caused by Russia’s war of aggression against Ukraine. The political agreement reached today shows our commitment to remain prepared against any supply disruptions and to guarantee a safe winter for our citizens and industries.

Tinne Van der Straeten, Belgian Minister for Energy

Flexibility as a tool for energy transition

Ministers also had an exchange of views on flexibility as an essential tool for energy transition and to allow the decoupling of Russian fossil fuels.

They identified the most important bottlenecks in terms of leveraging flexibility, as well as possible incentives through support schemes. They discussed technical, regulatory and economic barriers to unlocking flexibility at the level of individual household consumers.

Furthermore, they identified electrification of industries and cross-border interconnection as large-scale means of flexibility. To conclude, they also exchanged views on any possible changes to national tariff systems for transmission and distribution grid operators, following the recent electricity market reform, as a way to incentivise flexibility.

Electricity market reform (background information)

Solar power sector in Europe

Over lunch, ministers discussed the state of the solar power sector in Europe. They discussed the important contribution that solar photovoltaics can bring to the decoupling of Russian fossil fuels by 2027 (under the REPowerEU plan, it is expected that it could replace 9bcm of gas).

Ministers took well note of the explanations by the invited guests from Solar Power Europe and the European Solar Manufacturing Council. They commented the impressive acceleration that took place in the deployment of solar photovoltaics all over Europe, while also taking note that the Commission considers that more needs to be done.

Ministers also broadly supported the development and implementation of actions to support and scale up the European solar manufacturing, inter alia through a focus on innovation and targeted auctions, while many warned against restrictive measures on solar imports.

Other business

Under any other business, the Commission informed ministers about the progress made by member states with a view to achieving the 2030 objectives for energy and climate.

Fit for 55 (background information)

Climate change: what the EU is doing (background information)

Ministers were also informed about the energy situation in Ukraine by Ukrainian Energy Minister German Galushchenko (via VTC).

The Lithuanian delegation called on the European Commission to explore any urgent action and put forward the necessary legislative proposals to enforce the deadline of 1 January 2027 at the latest for phasing out gas imports, including LNG from Russia, while insisting that such legislation should empower member states to take the necessary measures at national level to meet such a deadline.

The Austrian, Czech, Hungarian and Slovakian energy ministers provided information about the impacts of the gas storage neutrality charge and the need for better coordination at European level.

The Council also adopted without discussion the items on the lists of legislative and non-legislative A items.