Keynote speech by Commissioner Simson at the European Energy Forum dinner debate: 'Looking back at the last 5 years' achievements and shaping tomorrow's energy policy'

Keynote speech by Simson at European Energy Forum

Dear Tsvetelina Penkova,

Honourable Members of the European Parliament,

Ladies and gentlemen,

Good evening everyone.

Let me first thank President Buzek for the invitation today, and for the wonderful work you have done and the cooperation we have had over the years.

As always, I'm delighted to be here among friends.

It's been a pleasure working so closely with you.

I would like to thank all outgoing Members of the European Parliament – and especially you, Jerzy – for everything you have done on EU energy policy.

Together, and in just a couple of years, we have made impressive progress in putting our economy on a pathway to decarbonisation.

We changed all our climate and energy legislation.

We raised targets for renewables and energy efficiency.

We created an enabling framework to boost building renovation.

We set up new funding instruments at EU level.

We redefined how our electricity and gas markets work.

We did a complete 180 when we shifted from natural gas to decarbonised gases.

We rewrote our infrastructure policy priorities.

Simply put, we have re-designed almost every part of EU energy legislation, in line with Europe's most ambitious programme of reform and modernisation, the Green Deal.

But one thing that we had not planned for at the start of this mandate was Russia's illegal and unjustified war of aggression on Ukraine.

This was the most pivotal moment for EU energy policy over the past few years.

Even before the invasion, the Kremlin began weaponising gas supplies, and blackmailing some Member States.

We became confronted with the worst energy crisis Europe had ever faced. Or at least the worst since the 70's.

In such difficult circumstances, Europe's unity could have dissolved.

This was Putin's goal and thinking.

But we rallied and kept our political unity. We even accelerated our green push.

We first responded with a series of short-term, emergency measures.

These helped to make the market less volatile, address energy supply disruptions, and redirect excessive energy sector revenues to citizens and businesses.

The next step was to put an end to our dangerous overreliance on Russian gas under REPowerEU.

Over two years on, the results are clear.

Russia's share in EU gas imports has dropped significantly: from 45% in 2021 to 15% last year.

We emerged from last winter with a record level of gas storage, around 60%.

And more importantly, as mentioned, we also accelerated the clean transition.

New installed solar and wind capacity has reached over 100 GW in two years, saving 24 bcm of gas.

The share of renewables in the electricity generation mix jumped to almost 45% last year.

The bottom line is:

REPowerEU has boosted the clean energy transition, and enhanced Europe's energy security and its sustainability.

And we can all be proud of these results.

Because it is thanks to our collective efforts that we are where we are now.

On the flipside however, the news coming from Ukraine is not what we want to see.

The latest set of Russian attacks on Ukraine's energy infrastructure is deeply concerning.

Around half of Ukraine's winter demand has been significantly damaged.

And we could be in a situation this upcoming heating season, where Ukrainians may be struggling to access heat, water and basic services.

The Commission is determined to do what ever it takes to help Ukraine restore its energy infrastructure before this winter.

We're now working on an Action Plan to ensure all services work as fast as possible. The focus is on:

• Restoring generation capacity;
• Significantly increasing funding in the Energy Support Fund;
• And changing the way we calculate transmission capacities between Europe and Ukraine to enable Ukraine to buy more electricity from the EU if it needs it.

This is urgent, immediate work in the short-term.

And in the long-term, efforts continue to build Ukraine's European future.

Accession negotiations were opened just recently.

We've been working on integrating Ukraine into the EU's energy system and market as part of a joint effort with the Energy Community.

This will now intensify under the accession process.

Despite the huge hardship of war, Ukraine has continued to pursue reforms.

The progress made in aligning with EU energy acquis – given the circumstances – is nothing short of remarkable.

Ukraine is also rebuilding its economy and its infrastructure in line with the Green Deal goals, committing to a number of market reforms. The fact that they are doing so in the midst of war is remarkable.

And the EU and Ukraine have also started cooperating on goals such as home-grown renewable production.

All this to say that yes, there are challenges in the short-term. But the EU will stand by Ukraine now, this winter and until Russian troops withdraw and Ukraine wins the war. There can be no other outcome.

Ladies and Gentlemen,

Back to EU energy policy, and I do believe that there is still much more to come and much more to do.

The next Commission mandate will be decisive for capitalising on Green Deal achievements and advancing further on the energy transition.

The first next milestone will be the finalisation of solid and ambitious updated National Energy and Climate Plans.

Member States had until the end of June to submit them.

Unfortunately, so far, only a few have been received and we're strongly urging all other Member States to submit their Plans quickly.

These Plans are key.

They set the EU on a clear path for delivering our targets.

They guide private investors and will help to trigger the necessary investments to meet our 2030 targets.

And they are the precondition and foundation on our road to 2040 and to climate-neutrality in 2050.

So watch this space closely – this will be the first immediate key priority.

Second, we need to continue moving the needle on infrastructure.

This is critical for the EU's competitiveness agenda.

Without modern, upgraded, and digital grids, we won't be able to deliver on our renewables targets.

Over the past year, I have made a concerted effort to put the issue of electricity grids at the top of our political agenda.

And I hope it stays that way because in the next 10 to 15 years, we will have to redraw the map of infrastructure across the continent.

We will need electricity super grids to fit for a True Energy Union and our climate neutral objective.

The gas network will have to be repurposed to transport hydrogen or CO2.

And all of this requires investment – so there will be a great need to mobilise the necessary high-level public and private investment in the next institutional cycle.

Finally, I'm convinced that the clean energy transition also needs a network of partnership.

Over the past few years, we have been working hard on reviving the EU's energy diplomacy, deepening energy relations with many partners around the world.

This is a way to engage with partners and support them in their economic, green, and digital transitions.

It also allows us to establish long-term relationships that are mutually beneficial, good for the economy, people and our planet.

Hydrogen is a good example, given it's poised to be an internationally traded commodity.

In a short space of time, we have concluded Memorandum of Understanding on hydrogen with a whole host of countries – Japan, Kazakhstan, Egypt, Namibia, Ukraine, and Uruguay, and soon also Saudi Arabia.

Ladies and Gentlemen,

This is just a snapshot of what I believe will be some of the hot topics in energy policy over the coming years.

In less than five years, the European Green Deal brought a major overhaul to EU energy policy.

Then the Russian war of aggression on Ukraine accelerated our efforts to have a more integrated and decarbonised energy system.

Now it's about making everything we have achieved a reality on the ground and attracting significant investments especially for infrastructure needs.

I count on all of you here today, to continue working for an independent and competitive Energy Union.

Thank you for your attention.