The REEF welcomes the adoption of the Clean Energy Package. We are committed to the efficient use of resources and believe that market-based instruments as well as more closely integrated power markets and sectors are some of the key drivers of the transition to climate neutrality. Well-designed market mechanisms will not only strengthen grid operations, but also ensure a continuous supply of high-quality electricity everywhere in Europe.

Carbon pricing is the most cost-efficient instrument to achieve emissions reductions and the EU should continue to protect and strengthen the EU Emission Trading Scheme (ETS). In order to achieve an effective carbon price, possible EU policies that overlap with the EU ETS should be minimised and mitigated. In addition, efforts should be made to link international CO2 pricing schemes to evolve towards a global CO2 price.

The transition to a decarbonised electricity system means a significant reduction in flexibility resources coming from coal and gas. This “flexibility gap” must be covered by all – existing and new – options such as flexible low carbon generation, demand response, storage and digital tools. The EU should quickly implement the provisions of electricity network codes and the Clean Energy Package to ensure that all flexibility sources are offered to all market actors under commercial conditions.

Strong, interconnected power grids will secure a more balanced and stable power system across Europe. Interconnectors contribute to decarbonising Europe and enhance solidarity between Member States regarding security of supply, while larger markets will strengthen competition (by opening regional markets) with the result of lowering the average consumer prices. For this, the REEF urges the legislators to establish the right regulatory incentives and an enabling framework that delivers the next generation grid investments.

To gain public acceptance for grid infrastructure, decisionmakers and industry should jointly demonstrate the benefits of strengthening electricity grids through a Europe-wide approach of educational communication, as well as developing new innovative ways and tools to foster local acceptance. The REEF companies are committed to actively contributing to this task.

In order to enable a balanced development of grids, generation plants and markets, permitting procedures need to be accelerated, taking into account public acceptance considerations.

The REEF acknowledges that the role of the consumer is a central part of a successful energy transition. The EU should thus apply the principle of “fair and sustainable transition”, as already proposed in the Energy Union Social Pact. The social dimension underpins the sustainability of the Energy Union. It ensures equal ownership by all stakeholders as well as solidarity with future generations.

In addition, the transition to a circular economy through appropriate efficiency and recycling regulation is essential. This helps to minimise greenhouse gas emissions and waste. Digital tracking of carbon intensity throughout the life cycle should also be put in place to present the consumer with an appropriate choice. The REEF members believe that balancing a consumer-centric energy system enabling active market participation with large scale generation and transmission grids is important to offer a win-win for all actors.

As consumer demand for green products continues, a European labelling system must be established. This will ensure a fair energy transition and push carbon out of the energy system.

The electrification of many sectors is the key to decarbonising our economy, in particular heating and cooling, transport and industry. This requires holistic strategies at the national level and beyond, setting emission reduction targets for sectors outside of the ETS, using carbon price signals where applicable, developing grids and other infrastructures and, above all, smooth planning and approval procedures.

To achieve the 2050 climate neutrality objective, all technical innovation options need to be considered. Efforts in research and demonstration should be accelerated so that energy can be used in the most efficient way in all sectors, keeping in mind a technology neutral approach. New solutions that enable bi-directional energy flows between sectors (electricity and gas, industrial, heat and transport networks) should be considered to enhance the flexibility of the system, for example:

“Power-to-X” technologies to investigate how power, gas and heat networks could be further integrated and optimised, while ensuring resource efficiency and welfare benefits.

“Smart charging and vehicle-to-grid” technologies to make all the flexibility benefits provided by e-mobility available for the energy system. Standardisation must be a priority to allow for seamless communication between cars, charging stations and power networks.

Smart thermal grids, which optimise heating and cooling supply and demand and link into the electricity system, to be incentivised by promoting flexible heating and cooling tariffs, as well as smart labelling and automation standards for buildings.