Athens, 16/04/2014 (Agence Europe) - The crisis in Ukraine is forcing the EU28 to come up with a proper security of energy supply strategy, be it in terms of common infrastructure or relations with energy supplying nations. This was the message that emerged from the EU28 energy minister talks in Athens on 15 and 16 May.
Comments to the ministers from Energy Commissioner Günther Oettinger that were relayed to the press after the meeting by Greek Energy Minister Ioannis Maniatis perfectly illustrate the feeling of urgency. The commissioner said that, when it comes to transport and telecoms networks, the EU is in the twenty-first century, but unfortunately is still in the nineteenth century when it comes to energy grids. This is a major challenge and very fast action is required to unify grids and achieve a trans-European energy grid, he added.
The question of security of EU energy supplies and the development of infrastructure against the backdrop of the Ukrainian crisis and tension with Russia took pride of place in the ministers' discussions, which also covered the question of financing energy efficiency measures and governance of the energy and climate strategy for 2030. The energy security debates had the aim of preparing for the European summit in June, where the European Commission is be unveiling new energy security of supply proposals.
Based on a document and questions prepared by the Greek Presidency to guide the talks, the ministers discussed measures for establishing enough interconnections, reducing demand for energy and making use of alternative sources of energy, paying particular attention to the development of hydrocarbons in the eastern Mediterranean, diversifying natural gas supply routes and suppliers in order to complete the single market and speaking with a single voice on energy issues with the rest of the world. Maniatis said they had talked about reviewing all the inter-member state solidarity mechanisms to make them more effective, and there were clearly short-term measures to be taken, such as emergency plans, using reverse flows and storage, along with long-term measures, such as European grids. Dialogue with non-EU suppliers is crucial, added Maniatis. Security of energy supply will be discussed again by the Energy Council in Luxembourg on 13 June.
On Friday, a workshop on finance for energy infrastructure projects of general interest was the logical outcome of the discussions about energy security on Thursday. The EU28 energy ministers said it was important to set up a one-stop shop to speed up the authorisation process for infrastructure construction projects, explained Maniatis.
Oettinger said that the proposals to be unveiled by the European Commission at the summit next month include one to increase the compulsory gas stocks in the member states from 50 days to 60 days in the winter from the current 30 days. The idea is not to set up physical stocks as such, but rather to ensure “guaranteed” supplies through gas contracts, explained Oettinger's spokesman on Thursday. A document being prepared by the Commission will stress the need for the EU to establish a common policy for energy.
In this connection, the idea mooted in April by the Polish prime minister, Donald Tusk, of a European pool for common purchases of gas, is gaining ground among the Council, but the ministers are divided over the idea of common negotiations. “On the single negotiating price: there some member states which fully support the single negotiating price vis-a-vis all suppliers. But there are other member states which feel that this type of approach is going to create problems of competition, and therefore, according to their view, it wouldn't be to the benefit of the UE and the EU economies”, said Maniatis, adding that the Greek Presidency would attempt to strike a compromise deal.
Commissioner Oettinger said that in Berlin on 19 May, he would be meeting Russian Energy Minister Alexander Novak to prepare for a second round of EU-Russia-Ukraine talks on security of energy supply in connection with Ukraine's debt to Russian gas company Gazprom. At the first meeting in Warsaw on 2 May, the three sides said that they would find a solution by 1 June. Oettinger described as “unsuitable” the idea of sanctions against the Russian energy sector in connection with the Ukrainian crisis, but he pointed out that Russia and Gazprom had contractual obligations to both the EU and Ukraine, Moldova and the Balkan States.
The EU imports 25% of its gas from Russia, virtually half of which is transported through Ukraine, and does not want to run the risk of a disturbance in supply, as occurred in the past during earlier Russian-Ukrainian gas disputes in 2006 and 2009. (EH)