The EU’s Affordable Energy Action Plan – watt is it all about? 

On February 26th, the European Commission announced a much-anticipated package, including the Action Plan for Affordable Energy, along with additional measures to align competitiveness with industrial decarbonization: the Clean Industrial Deal and the Omnibus Package on Simplification. 

The Action Plan lays out eight measures to lower energy costs in Europe, boost Europe’s industrial competitiveness and promote decarbonization efforts.  
 
Unlocking Affordable Energy: positive measures from the Plan 

Bellona Europa welcomes the Plan’s acknowledgment that decarbonization of the energy system is a key influence in reducing energy costs.  

The Plan also supports measures like streamlining permitting procedures, improving the design of long-term energy contracts to disconnect electricity prices from gas, incentivizing the development of grid infrastructure, flexibility, energy storage and urging Member States to reduce electricity taxes. 

«Most of the measures proposed in the Plan have the potential to rein in prices. The challenge will be in the fine print: right implementation will be key to deliver affordable energy for just transition to a decarbonized energy system.»

Guillermo Ramo Fernandez

Senior Policy Manager, Energy Systems

«We must implement existing solutions immediately for clear action on cross-border and national electricity grid investment – to avoid severe setbacks in the energy transition.»

Ganni Vassallo

Policy Advisor, Electricity Grids

Key considerations:  

While these measures are a step in the right direction, Bellona stresses the need to ensure they effectively contribute to both energy affordability and decarbonization.  

This can be done by prioritizing the electricity grid expansion and modernization, ensuring that public funds are directed towards electricity networks rather than inefficient alternatives, such as hydrogen.  

Another needed safeguard is to ensure that the right infrastructure choices are made. Investing in infrastructure that is not aligned with demand, or that strengthens existing dependencies on fossil fuels is likely to drive prices up. Instead, renewable energy, storage and flexibility, combined with electricity grid expansion, would ensure energy security, price stability and decarbonization.  

Finally, a system-level approach to energy efficiency is essential to promote solutions that enhance overall performance. System efficiency refers to the optimization of energy generation, transmission, distribution, and consumption across Europe’s grid infrastructure, ensuring that energy is utilized in the most efficient manner possible. 

Implications of the EU’s Affordable Energy Action Plan for Norway

The consequences of the Affordable Energy Action Plan for Norway can be summarized in two key points: less gas and more interconnectors. As gas imports are a key culprit in Europe’s high energy prices, reducing gas imports,while investing in grids and renewables) will help bring down costs. This sends a clear message to Norway’s fossil fuel industry: the clock is ticking. 

«Bellona has long pointed out that the business case for Norwegian oil and gas investments is dwindling as the EU continues to advance towards climate neutrality. Fossil fuel infrastructure lock-in, including for LNG, is a dead-end for both Norway and the EU.»

Marika Andersen

Senior Manager EU Liaison & High North

The fact that the EU considers more interconnectors as key to a functioning, affordable and sustainable European energy system is another clear signal to Norway that domestic political debates about isolating oneself from the European energy market are at clear odds with the plans of the rest of Europe.  

The North Sea is even highlighted as a key area for the EU’s enhanced interconnection capacity. Once again, the EU is lighting the path for Norway. We must stay the course towards lasting systemic measures for both cheap and clean electricity. 

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