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Stronger European energy network needs more LNG connections

The European Parliament has adopted the first revision of the Trans-European Networks for Energy policy (TEN-E) and the guidelines for Projects of Common Interest (PCIs) since its creation in 2013 that set criteria for which cross-border energy infrastructure projects are eligible for European funds.

Speaking in the plenary, ECR Rapporteur Prof Zdzisław Krasnodębski said: “We have made a number of substantive changes in the regulation. [...] New categories of possible PCIs include hydrogen infrastructures, certain types of electrolysers, as well as smart gas grids to integrate low-carbon gases into the existing gas network.”

The new regulation pays particular attention to those regions that are isolated from European energy markets. Here, it will strengthen existing cross-border interconnections and promote cooperation with partner countries. The new regulation also intends to contribute to a faster provision of cross-border infrastructures by proposing ways to simplify and accelerate approval procedures.

“We have introduced a new sub-category of projects to apply for PCI status and financing in regions with low levels of offshore renewable electricity. The projects will consist of direct connections of offshore wind farms to the national power systems in a radial form. This is an important addition for Member States and sea basins where offshore wind farms are in the planning stage”, Krasnodębski said.

However, when presenting his report, Krasnodebski regretted the missed opportunity to further strengthen gas infrastructures as well: The final text of the revised regulation is a result of bargaining based on the Commission’s proposal from 2021, which excluded from the start any further support for gas infrastructure in the framework of PCIs. Krasnodębski had warned that the Commission’s estimations of the level of connectivity and supply resilience may be overly optimistic, as there are not yet enough interconnections in many of the smaller gas markets, for example in South East Europe, and connectivity still poses a problem between some Members States and the rest of Europe.

For Krasnodębski, therefore, a crucial element is missing in the European energy architecture:

“Today’s tragic reality of war in Europe and the dramatically low level of the Union’s energy security proves that, since years, the EU has made serious mistakes in assessing its needs, including in terms of trans-European energy infrastructure. And I think the Commission now seems to recognise it. It’s probably too late to reopen the regulation, but we understand that the Commission is preparing an instrument to foster gas network interconnections and LNG terminals in a desperate attempt to reduce the EU’s dependence on Russian imports.”

Closing the debate, he replied to his German colleagues from the Green group not approving the report, as – in their view – it still permits investments in fossil fuels: “As you are now part of the government in your country, you can decide to ban imports of gas and oil from Russia, but in that regard you are less decided and attached to the principles.”

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