Speech by Commissioner Simson on the energy sector in Central Europe at the European Economic Congress

Speech by Simson in Katowice

Dear Minister,

Ladies and Gentlemen,

Good afternoon, everybody,

Let me first thank the City of Katowice, the Metropolis of the region and PGE for inviting me and for organising such a great event.

I'm delighted to be here to talk about the energy transition in Central and Eastern EU.

In this part of the world, the war is not some distant headline in a newspaper.

Here in Katowice – or where I'm from in Estonia – we're just a couple of hundred kilometres from the border with Ukraine.

The Russian aggression is happening right on our doorstep, the EU's doorstep.

It gives us a great sense of urgency.

It's a reminder of how important our support to Ukraine is. And how important the energy transition is for Central and Eastern EU.

Because energy transition means energy freedom.

Spring has now come, and Europe has emerged from its second winter since Russia's illegal invasion of Ukraine.

We did so without energy shortages or supply cuts that many had predicted.

Quite the opposite.

Europe ended winter with a remarkable milestone for its energy sector: EU gas storages were almost 60% full, a record amount.

This might not be grabbing headlines, but it matters.

It shows that Europe has finally loosened Russia's grip over its energy sector.

We have emerged stronger, with greater energy security and solidarity and a cleaner energy mix.

Today I want to talk more about what this energy transition looks like in Central and Eastern EU. I'll address renewables and energy efficiency as well as the phase-out of coal.

First, on renewables.

Faster deployment of renewable energy is not only good for the planet.

It's more affordable and provides greater economic security for our citizens.

Since 2019, Central and Eastern European countries have made significant progress, with total deployment of renewable energy increasing by 75%.

This is due, in great part, to solar PV deployment.

In Poland in particular, it has developed at breakneck speed.

Five years ago, solar PV had just crossed the 1 GW threshold.

Compare that to the end of last year when almost 17 GW had been installed.

What this also means is that more and more of our electricity is being generated by renewable sources.

In Poland, 23% of electricity was generated from renewable sources last year, up from just over 19% the previous year.

This caused the share of coal in electricity generation to drop to an all-time low of 61%.

The bottom line is – all these figures show we're going in the right direction.

The energy transition is happening in Central and Eastern Europe. But there is room to go much further.

I spoke about how well solar PV has performed.

The region should also be looking to other sources.

In particular, there is a need to unlock the full potential of onshore and offshore wind.

Likewise, there needs to be more ambition in long-term planning.

As you know, all EU countries have submitted draft energy and climate plans to outline how they intend to meet 2030 targets.

Across the EU, we need to see more long-term planning for deployment of renewable energy technologies over the next 10 years with an outlook to 2040.

We're also missing targets in a number of key areas – such as innovative renewables, renewables in buildings and biofuels in industry.

And more broadly, we would like to see more policies and measures to promote power purchase agreements, self-consumption and energy communities.

Another area where there is untapped potential is energy efficiency.

Energy efficiency is key to reducing overall energy consumption.

It is sometimes referred to as “the unsung hero” of the energy transition because it's less tangible and harder to visualise.

But its impact on reducing emissions can be huge.

Between August 2022 and February of this year, Member States in Central and Eastern Europe reduced their gas consumption on average by more than 15% compared to the average of the previous five years.

This is positive.

We need to keep it up.

This is why the final energy and climate plans will need to include more ambitious energy efficiency contributions for 2030.

They also need to indicate clear trajectories to reduce energy consumption, as well as a credible policy plan to reach the EU's level of ambition.

This is particularly important for Member States in Central and Eastern Europe, where there is great untapped energy efficiency potential.

This brings me to the second topic I want to cover today: coal phase-out.

Phasing out coal in a fair and rapid manner is an essential step towards achieving EU climate objectives.

In Central and Eastern Europe, coal still covers a quarter of the electricity mix.

This is more than double the EU average.

But the good news is that it is declining.

Since we launched the European Green Deal, we knew how significant such a phase-out would be for these regions.

It entails a big social, economic, and cultural upheaval.

It's necessary but no less difficult.

This is why the EU has put in place more funding than ever to support the transition in these regions, and ensure it is a fair one for all.

Between 2021 and 2027, through the Just Transition Mechanism, the EU has allocated more than 19 billion euros to assist coal and mining regions.

Of this 19 billion, 3.8 billion is going to five Polish regions – the largest allocation received by a Member State.

The Recovery and Resilient Facility is another key instrument for the energy transition in Central and Eastern Europe.

And we provide technical support for regions phasing out coal, with the Coal Regions in Transition Initiative launched in 2017.

As we look to the future, I see momentum for these regions given the renewed focus on the EU's industrial policy.

Coal regions are well placed to remain energy powerhouses of Europe.

They have the tradition, industry, technologies, energy infrastructure and grids, space, and even available technical education.

And this means that they have the potential to attract future-proof industries.

The EU is doing what it takes to help to make that happen.

Ladies and Gentlemen,

It's been almost five years since we launched the Green Deal.

In this short space of time, the ground has shifted.

We've left the fossil fuels era and entered the age of renewables.

The energy transition is happening across Europe, including here in Central and Eastern Europe.

Now we must stay the course. Let's keep our gaze firmly set on our targets.

This is the key to a healthier planet, more affordable prices, and our long-term energy freedom.

Thank you for your attention.