European energy sector representatives criticize new EU energy legislation

European energy sector representatives have objected to new European Commission regulations on electrical transformers. They are also criticizing the EU’s general regulatory approach to energy.

One of the main pillars of the current European Commission’s programme is decarbonizing the EU economy, including by regulating the greening of the materials used. One of the latest proposals in this area is now facing criticism from energy industry representatives, as reported by Euractiv.

Specifically, the proposal aims to reduce transformer power losses, with the value set at 0.5%. The industry, however, criticizes the significant investment that would be needed to achieve these savings, since comparable savings are possible only with substantially larger transformers.

In an open letter, sector organizations Eurelectric and E.DSO criticize the Commission for the content of the new proposal, which they say suffers from “inadequate planning and communication”. The Commission allegedly failed to involve experts sufficiently and made no effort to organize an expert exchange of views on the issue. The proposal also reportedly did not undergo a thorough economic assessment.

More materials, higher costs

Larger transformers require around 30% more material, primarily copper, whose price has risen by 60% over the past three years. The sector argues that a marginal 0.5% increase in efficiency does not justify the additional cost of more expensive copper, resulting in a negative return on investment. This is not the first time the energy industry has opposed the Commission’s proposals to regulate electrical equipment. The F-gas regulation, for example, posed a significant problem because it could potentially prevent the use of electrical switchgear.

Other organizations have also criticized the proposal. The German Confederation of Skilled Crafts (ZDH), for example, noted that increasingly detailed EU regulations often fail to take account of the realities businesses face. The regulations also risk making companies dependent on imports from China, as European companies are likely to struggle to supply the required components and equipment.

Another contentious regulation concerns a ban on PFAS chemicals, which are important for manufacturing long-lasting equipment for the energy sector. The European energy industry alliance has warned that this blanket ban risks undermining decarbonization targets, and emphasized the essential role these chemicals play in the sector’s infrastructure.