On 7 May ENTSO-E and ENTSOG appeared in the European Parliament to explain their work in support of the Energy Union.
Bente Hagem, Vice Chairperson and Chair elect of the Board, explained that ENTSO-E focuses on security of supply and competitiveness. The energy trilemma is a significant challenge and the energy union is designed to resolve this and help bring about the energy transition, she said. Bente Hagem explained that ENTSO-E's covers 34 countries and its member TSOs serve more than 500 million European consumers. They develop the pan-European network plan, network codes and cooperate in regions. This last point is very important for ENTSO-E, insisted Bente Hagem. ENTSO-E is also an advisor to policy makers. 150 billion is being invested in European infrastructure! This huge investment should enable 20 percent CO2 reductions in the power system and price reductions. For every euro invested, the benefit is two euros, said Bente Hagem.
ENTSO-E has developed a thousand pages of regulation in network codes that will be published in 2015. It is not only regulation ENTSO-E is working on as they "also build markets". The benefits are huge as emissions and prices are lowered and system security improved. On May 15 last year, the same price was seen on the Shore of the Barents Sea as on the Iberian Peninsula. She expressed her hope that the Black Sea region will soon join.
TSOs have always cooperated regionally and they are improving coordination on renewable input to the power system. This is a challenge and they are working on regional security coordination centres. The tasks of these centres are security, outage planning and a common grid model amongst others. She argued that the market design is mainly developed and now is time for implementation.
Vittorio Musazzi, General Manager (ENTSOG) said that their members include every member state except Malta and Cyprus which do not have gas systems. Gas represents around 23 percent of the energy mix in Europe. Gas is not a local business. It is an international gas market and this means transit countries are involved. Gas has always been a European business with the cooperation of all the TSOs across Europe. They gather all the TSOs in Europe to finalise the internal energy market. They also work on network codes, gas supply and demand outlooks, common organisation tools to organise distribution and data as well. The development of network codes is their most important task. When preparing network codes, there is wide stakeholder involvement from across the EU. This is very important. There needs to be rules and tools to have a real internal market. The rules are the network codes. Concerning the network codes for gas, his organisation has provided three network codes, two of which will be implemented from November 1st this year. The tariff and incremental capacity code is been worked upon. What is missing is the implementation and this is the most important step. The network codes have been tested as the TSOs gathered together to look at the capacity platform. There is the possibility to get the information on the capacity all over Europe in a single platform. He then noted that diversification is an important issue. To diversify routes and suppliers requires investment. Gas consumption is predicted to decrease in the future, as national production is decreasing. Other forms of gas will thus need to be found and incorporated into the system. Diversification is also a question of competition in the market and security.
He then noted that they also look at the way in which infrastructure should be built. There remain difficulties in putting in place the necessary infrastructure in Europe. Europe still needs gas and thus better infrastructure is required to increase competition and sustainability. He concluded by stressing the need for increased competition.
Watch the video of the hearing here