European project bonds for financing major infrastructure and a clear list of necessary criteria a project would have to meet to obtain a EU status were the key proposals of the Energy Committee. The non-legislative report, drafted by Francisco Sosa Wagner (NI, ES), was adopted with 38 votes in favour, 1 against and no abstentions. MEPs stressed the need to focus on the management of energy demand and energy efficiency, while they highlighted the importance of smart grids and smart meters.
Projects of European interest - Members of the committee advocated that planning and development of infrastructure projects lies mainly with the market, but they acknowledged that EU has a role to play in the process, especially with projects in European interest. They put forward a list of criteria for the selection of priority projects that "meet pressing European needs" and among those is connecting "energy islands" with the rest of the grid, the reduction of network losses, diversification of supply and the integration of renewables to the network.
Financing projects - On the financing issue, committee reiterated that a well functioning market should provide a large part of infrastructure investments, on the basis of proper cost-allocation and the 'user-pays' principle. However, "when no regulatory alternative is available and the market alone cannot cover the investments ", EU funding may be required for some "limited projects of European interest" that are not commercially viable but are very important for achieving EU energy policy objectives.
Based on these conclusions, MEPs propose the development of "innovative financing instruments" and support the idea of issuing "common European project bonds" to finance major infrastructure needs. The Committee also suggests that "EU project bonds would secure the investment"and create the conditions to attract private sector investments.
Next steps - The report is a response to Commission's communication on energy infrastructure priorities. Plenary vote on draft resolution will take place in the July plenary session.
Links -Committee on Industry, Research and Energy http://www.europarl.europa.eu/activities/committees/homeCom.do?language=EN&body=ITRE& Media advice EU Parliament
