EU Member States Urge Action on Energy Interconnections to Stabilize Prices
Twelve EU member states have urged the European Commission to support the development of energy interconnections, particularly in electricity, to address market instability and reduce energy prices. In a joint position paper presented at an EU energy ministers meeting, these nations emphasized the importance of cross-border cooperation to facilitate market functioning and accelerate decarbonization. They called for increased funding for renewable energies and private investment in infrastructure, particularly in the Iberian Peninsula, where interconnections are limited.
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In a significant move to address the ongoing volatility in energy prices, twelve EU member states have called upon the European Commission to prioritize the development of energy interconnections, particularly in electricity. This request arose during an EU energy ministers meeting in Luxembourg, where representatives from Portugal, Spain, Austria, Cyprus, Denmark, Germany, Greece, Ireland, Italy, Luxembourg, Malta, and the Netherlands presented a joint position paper advocating for enhanced cross-border cooperation.
The leaders underscored that interconnection is pivotal not only for reducing energy costs but also for facilitating the transition towards sustainable energy sources, alleviating network congestion, and accelerating decarbonization efforts. They highlighted the urgent need for all member states to engage fully in the internal energy market, especially as electricity prices experience unprecedented fluctuations. To achieve this, they emphasized the necessity of realizing the EU’s 2030 electricity interconnection targets.
The backdrop of this appeal is the precarious mix of high dependency on fossil fuels and geopolitical tensions exacerbated by Russia's aggression in Ukraine. The leaders warned that this situation has created a dangerous dependency on energy supplies that can be weaponized. They are advocating for a united EU response, reminiscent of the collaborative efforts during the energy crisis two years prior, which was aggravated by the invasion.
In addition to urging for adequate EU funding for renewable energy projects, the coalition emphasized the critical role of private investment in expanding electricity grids and interconnectors. They pointed out that the Iberian Peninsula, in particular, suffers from insufficient energy interconnections with the rest of Europe, which has prompted Portugal and Spain to advocate for increased infrastructure development.
The RepowerEU energy package, initiated in May 2022, aligns with these goals by promoting projects that enhance interconnections in the Iberian Peninsula. Notably, an agreement reached in October 2022 between Portugal, France, and Spain aims to expedite the development of interconnections, transitioning from a gas-only project to a more comprehensive plan that includes both fossil fuels and future green hydrogen transport. This initiative reflects a broader commitment to ensuring energy security and sustainability in an increasingly uncertain market landscape.
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