Brussels, 09/10/2008 (Agence Europe) - Meeting in Paris on Wednesday 8 October in the EU-Russia Permanent Partnership Council, Energy Commissioner Andris Piebalgs, French Energy Minister Jean-Louis Borloo, who is currently President of the Energy Council, his successor, Czech Minister Martin Riman and Russian Energy Minister Sergei Shmatko adopted the 9th Progress Report of the EU-Russia Energy Dialogue. Two months after the Russo-Georgian conflict, which stoked European fears of less secure Russian supply, the meeting confirmed the joint will to maintain an open energy dialogue.
The report assessed the progress made by each of the EU-Russia Energy Dialogue's three thematic groups. Strategies and scenarios: During discussions on supply and demand forecasts, the European side called for detailed information on production capacity in the Russian gas fields and the investment plan for the future. Russia has been acknowledged to be a reliable supplier for decade, but the EU has concerns about whether Russia will be able to produce enough gas to satisfy growing internal, as well as foreign, demand. Both sides agreed to work together to supply and demand scenarios from now until 2030. Market developments: While welcoming the steps taken by Russia to liberalise its electricity market, the EU side has asked the Russian authorities to take account, in future, of differences in the rules regulating market access for foreign companies in order to ensure fair competition and equal treatment for foreign firms. Both sides agreed to exchange information and to discuss two important legislative measures - the Russian “Strategic Sectors Law” and the EU's 3rd package on the Internal Energy Market - which seek to reform the respective internal markets. Energy efficiency: the work of this group has highlighted the importance both sides attach to energy efficiency, energy savings and the promotion of renewable energy sources. They have agreed to work more closely on joint energy efficiency initiatives in 2008-2009. This enhanced cooperation could be, for example, in the three Russian projects to update the urban heating systems in Kaliningrad, Murmansk and Novgorod.
At an exchange of views before assessing the progress of the three thematic groups, the two sides spoke of the need to assess the impact of the current financial crisis on the energy sector which required intensive capital investment.
The forthcoming Czech Presidency has identified the development of the Early Warning Mechanism as the top EU-Russian Energy Dialogue priority of its term of office in the first half of 2009. Setting up an Early Warning Mechanism (see EUROPE 9417) was agreed at the Samara summit in May 2007. In May of this year, points of contact were identified: on the Russian side, Deputy Energy Minister Anatoly Yanovski and, for the Europeans, Coordinator for the EU-Russia Energy Dialogue in DG TREN at the European Commission Christian Cleutinx.
Both sides welcomed the conclusion of the feasibility study on the interconnection of the European electricity networks UCTE and the Russian IPS/UPS system. The study has come out with two technically feasible options; synchronous coupling and high voltage direct current (HVDC). Future discussions will determine which one will be chosen.
The two sides also had an exchange of views, the first of its kind within the energy dialogue, on climate policy and the post-Kyoto international emissions reduction scheme. (E.H./transl.rt)