Where is Europe heading after the “Green Deal“ did not turn out to be the best environmental behavior. EU leaders published a declaration that practically changes many parameters of the 2019 deal. Where is the EU looking when we talk about energy and development… Tsvetelina Penkova, MEP from the Party of European Socialists and Vice-Chair of the Committee on Industry, Research and Energy in the European Parliament, speaks to FACTI.
- Ms. Penkova, is the end of the “Green Deal“ coming? Did we have to go the hard way to understand that the EU countries are different and develop economically in different ways in order to talk about competitiveness at a global level?
- What we see today is not the end of the “Green Deal“, but the transition to the second stage of the economic model, namely the “Clean Industrial Deal“. This transformation is a clear indicator that the socialists in Europe successfully laid the foundations for long-term development through the “Green Deal“ in the previous mandate, which today allows us to build a functioning economy. It created the infrastructure that makes it possible today to focus on building new production, opening factories and creating new jobs. Investments and the development of renewable energy sources guarantee our access to more energy sources. Now is the time to connect this network of energy sources and create a functioning Energy Union, with low and predictable electricity prices for consumers and industry.
The Clean Industrial Deal is aimed at reindustrialization, creating new jobs, raising wages and reducing energy costs. The goal is to assert European autonomy, bring production back to our continent and reduce our dependence on external suppliers.
Investments in basic energy sources such as nuclear energy are also a key element in this transition.
Currently, electricity prices in individual Member States are very different. Prices are many times higher in Eastern and Southern Europe compared to Northern Europe. Until we solve this problem, there is no way to talk about European competitiveness, we are currently competing with each other. Precisely to find a solution, my main priority is the construction of an interconnected electricity transmission network in the EU, because only in this way will we equalize prices and be able to work for European competitiveness. Bulgaria has a key role in this process, because we are the beginning of this connectivity of the two transmission corridors in the EU - South-North and East-West. Ensuring predictable and stable energy prices will strengthen Europe's competitiveness on the global market.
- The new US President Donald Trump announced that he is withdrawing from the Paris Agreement. Where then are the carbon emission quotas that make our electricity more expensive?
- The US withdrawal from the Paris Agreement makes Europe's commitments even more important for preserving the global ecological balance. In this context, the EU's leadership in climate diplomacy is not only a matter of environmental purpose, but also of social responsibility. Europe must focus its efforts on policies that put people at the center of this transition. These were the main policies that were also recommended at the UN Global Climate Change Conference in Azerbaijan - COP29, which I attended at the end of last year.
It is particularly important to protect vulnerable groups in our society, affected by both climate change and rising energy costs.
Only in this way can we ensure economic opportunities and the protection of natural resources for future generations. To support our citizens, the EU must strengthen social measures that mitigate the socio-economic consequences of these policies. This could include direct financial support for affected households, energy efficiency subsidies and investments in affordable green energy. For Bulgaria, which is heavily dependent on coal energy, the challenges of this transition are significant.
Quotas increase the financial burden on the country's energy system and households, which are already struggling due to low incomes and high energy costs.
Therefore, the country needs targeted policies to cushion the blow to socially vulnerable groups. This includes developing national programs to support low-income households, investing in modernizing energy infrastructure and promoting renewable energy projects. A clear and long-term strategy for the development of the Bulgarian energy sector is also needed, to be implemented by several successive regular governments. Bulgaria has the opportunity to use European funds, such as the Just Transition Mechanism, to accelerate the transformation to a cleaner economy that at the same time protects its citizens. We must rely on a socially oriented process that creates new jobs in key and strategic sectors, reduces energy poverty and guarantees a better future for all.
- The price of electricity is rising in the winter, but what is the energy connectivity of the EU? Why can't cheap electricity from Sweden, for example, reach us?
- Energy connectivity in the European Union is key to reducing electricity costs and ensuring predictability. Unfortunately, the lack of a fully integrated energy market and infrastructure constraints between regions hinder the efficient transfer of energy.
The main problem in our country and throughout Europe is the outdated infrastructure and insufficient interconnections.
To overcome these challenges, it is necessary to accelerate the construction of modern interconnectors and renew the electricity transmission network. This will allow energy to reach the places where it is most needed, and will also provide access to cheaper energy sources.
To this end, we must work as quickly as possible at the European level to create programs for new investments in high-voltage electricity transmission networks that will connect southern and northern Europe. Bulgaria has a great opportunity to consolidate its place as a redistribution center in the Balkans, because - as I have already said - it is at the heart of the South-North and East-West corridors.
- The EP talks about the overall competitiveness of the EU, and within the Union, electricity prices are so different. How can we have equal competition then?
- The differences in electricity prices reflect many factors - from the local energy mix to the degree of development of the infrastructure and connectivity between the countries in the region. Although we are in a common market, it will take a lot of effort to reduce the bills of all European citizens across the board.
Building a fair energy system requires a combined approach. On the one hand, we must invest in modern infrastructure. On the other hand, we must also invest in basic energy sources, such as nuclear energy. Only in this way will we reduce our bills in the long term and ensure the balance of the energy system.
In this context, my efforts in the previous mandate as a member of the European Parliament were aimed at recognizing nuclear energy as green and sustainable - a significant decision that has become a fact and provides this technology with strategic status.
This opens up new opportunities for financing and integrating nuclear energy into the energy mix of countries, while at the same time contributing to reducing differences in electricity prices. Nuclear energy, with its low and predictable price, is not only a tool for energy independence, but also a key factor in the competitiveness of economies in the EU.
- Without energy, there are no operating industries, no high-paying jobs, nothing can happen. What programs is the EU developing?
- The European Union is actively working on initiatives aimed at strengthening the continent's energy security and industrial base. The European Commission proposes the so-called “Clean Industrial Deal”, which includes measures to support energy-intensive industries and promote long-term energy supply contracts. This package aims to ensure predictable and affordable energy prices for businesses, especially small and medium-sized enterprises, which are the backbone of the European economy. It also includes investments in the modernization of electricity transmission networks, which will improve the efficiency and reliability of the energy system.
We can say that the “Green Deal“ is being transformed into a “Clean Industrial Deal“.
In other words - the fight is for a more competitive Europe. This will be the key theme during this mandate of the European institutions. We need to produce more of what is already available and recycle more so that we are not so dependent on third countries. Let's create the conditions for producing these things in Europe. We should not clash and deny one at the expense of the other.
An extremely important emphasis in the new industrial strategy is the possibility of using and directing the unspent funds under the Recovery and Resilience Plans to certain sectors and areas that will be priorities for the EU. Our country, for example, missed the opportunity to invest the pledged funds.
However, these funds under the Recovery and Resilience Plan are not irretrievably lost to Bulgaria, because of the efforts I made at the European level.
Other EU countries have also not fully used these resources. The average absorption rate for the entire EU is around 51%. This is precisely why I worked actively and managed to convince my colleagues in the European institutions to include in the EU Reindustrialization Regulation the possibility for each country to use these unspent funds to attract investments in new production. This laid a good foundation and now the “Clean Industrial Deal“ must further develop this approach. I have repeatedly emphasized that there is a need to redirect unspent funds to reindustrialization processes. Strategic investments in the industrial sector are important, which can stimulate economic growth and increase competitiveness. Without strong European support and an improved budget, we will not be able to achieve our goals.
The lack of timely action may lead to the loss of more funds. That is why it is essential for Bulgaria to take concrete steps for reforms and effective use of available resources in order to make the most of the opportunities provided by the EU. It is expected that the topic of public-private partnerships will also be opened much more seriously.
To be continued…