The Energy Union represents a coherent energy strategy of the EU. It aims to provide EU citizens with secure, sustainable, competitive and affordable energy. Since its introduction in February 2015, the European Commission has annually analysed its progress in reaching the Energy Union objectives. On 23. November 2017, the European Commission published it’s 3rd Report on the State of the Energy Union.

The Commission sends a clear message: Nearly all the proposals needed to deliver on the energy efficiency first principle, support EU global leadership in climate action and renewable energy and provide a fair deal for energy consumers have been presented, now they must be translated into reality. Thus, Maroš Šefčovič, the Vice-President responsible for the Energy Union, sees the year 2018 - as the year of engagement.

The main trends observed in the recent year indicated that the EU is moving towards a low-carbon economy. The Report underlines that the share of renewable energy sources (RES) in the EU energy mix continues to rise; in 2017, RES accounted for 77% of the new generating capacity in the EU; costs of RES are constantly falling; the decoupling of greenhouse gas emissions and GDP has continued; economic growth and energy consumption have also been successfully decoupled.

According to the Report, the EU’s energy transition has already positive implications for economy and its modernisation. Energy transition contributes to the creation of new jobs and has a great potential for innovations. The Commission has observed that patenting activity in clean technologies in the EU is increasing. In line with the EU’s Accelerating Clean Energy Innovation strategy, European companies and innovators should be at the forefront of the transition and gain first mover advantage for new technologies.

The Commission also reiterates the social-fair dimension of the energy transition. The Energy Union strategy has the positive impact on health of many Europeans and it significantly contributes to tackling energy poverty.

According to Miguel Arias Cañete, Commissioner for Climate Action and Energy, “Europe's energy infrastructure must develop in the same direction and with the same speed to fully support this energy transition.”[1] Therefore, the Commission encourages project promoters applying for financial support to seek to create synergies between energy, transport and telecommunication infrastructure. Energy infrastructure has to be adapted to the needs of the future energy systems. In order to improve electricity interconnection, the European Commission adopted the Communication on 2030 Electricity interconnection targets and presented the 3rd list of the Projects of Common Interest including the key energy projects such as the interconnector between Iberian Peninsula and France, or the gas project bringing security of supply to Central/South-Eastern Europe.

One of the top Energy Union priorities of in 2017 was to unlock private investments. The EU’s European Investment Plan has triggered (through the European Fund for Strategic Investments) a number of investments. Most of the supported projects were investments in renewable energy, energy efficiency and energy infrastructure. The Commission has also launched the Smart Finance for Smart Buildings Initiative to accelerate investment in the energy renovation of building stock. To cope with barriers to the long-term financing for energy efficiency, the Energy Efficiency Financial Institutional Group, together with the European Commission, introduced the De-Risking Energy Efficiency Platform (DEEP) to assess the risks and benefits of energy efficiency projects.

As regards the external dimension of the Energy Union, the EU reaffirmed its commitment to the global fight against climate change. The EU is determined to strengthen its existing global partnerships, especially in light of the U.S. intention to withdraw from the Paris Agreement. In 2016, the EU significantly increased climate finance and provided more than €20 million to developing countries. The Commission highlights strengthening of its cooperation in energy matters with key partners, namely India, China, U.S., Japan and Iran as well as its active contribution to climate action within the International Maritime Organization, International Civil Aviation Organization and the Africa-EU Energy Partnership.

The Commission is committed to continue its efforts to implement the enabling actions that bring changes on the ground and tangible benefits. By the same token, the Commission calls on the Member States to step up their work on their integrated national energy and climate plans to create predictability for investors, and all European stakeholders concerned to engage actively in the energy transition. 2018 is expected to bring important deliverables.

[1] Energy Union - the year of engagement. Available at: < http://europa.eu/rapid/press-release_IP-17-4725_en.htm >.