Brussels, 28/10/2008 (Agence Europe) - By drawing on the EU's energy prospects up to 2020, with or without a common energy policy, combined with fairly high oil prices ($61-110), the second strategic energy review, the European Commission is expected to publish around 12 November, appears, at first glance, to be a pale imitation of the energy security report adopted by the European Council last March (EUROPE 9762). The Commission has had its thunder stolen by a hyperactive French presidency working on climate policy and energy security but it has, nonetheless, had the merit of highlighting the chapter that remains the Achilles' heel of the common energy strategy launched by the European Council in March with its triennial plan (2007-09) and implemented in March 2007 (EUROPE 9157 and 9383): energy solidarity between member states and their ability to speak with a single voice on the international stage. EUROPE has obtained a provisional version of this much awaited document and puts forward the main elements in this analysis, which will form the basis of the 2nd triennial plan (2010-12) the European Council is due to adopt in March 2010.
In the first chapter on energy efficiency, the Commission indicates the action it will take in the short term to support implementation of the action plan adopted at the end of 2006 for reducing EU energy consumption by 20% by 2020. Initiatives will be taken as part of the eco-design directives framework and revision of the energy labelling directive will be proposed to extend it to windows and insulating materials. The Commission will also propose extending the field of application for the directive to energy performance in buildings to new buildings.
The second chapter focuses on the diversification of supply and lists future initiatives and recommendations by the Commission on energy sources: renewables. Highlighting the trade in renewables, particularly biofuels, the Commission is planning a communication on extending sustainability criteria; offshore wind turbines. The Commission supports the setting up of a working group to prepare a project for a North Sea offshore network and the same approach for a solar project is identified in the Union for the Mediterranean/Barcelona Process; fossil fuels. The Commission underlines the importance of focusing energy dialogue with producer countries on the EU/OPEC energy dialogue model; nuclear. The Commission is ready to propose a directive on safety, which will be followed by a directive on non-proliferation. It is also proposing to negotiate an agreement on peaceful use of civil nuclear power with Russia.
To speed up the implementation of the strategic energy technologies plan (SET-plan), the Commission indicates in a third chapter that it will soon publish a communication on funding low carbon intensity technologies.
On security and solidarity, the Commission stresses the need for the effective functioning of an internal market that is interconnected efficiently, as well as robust EU external relations in energy. The Commission underlined the importance of connecting up isolated markets in the internal market and confirms that it will oversee a priority interconnection plan for Baltic countries. It also calls for a similar plan for South East Europe connecting Turkey to the EU. The Commission promises new orientations for updating and enhancing Trans-European Networks in energy (TEN-E). Internally, it highlights the need for clear provisions including the possibility of using common resources during crises. To this end, it is proposing, in addition to its analysis, a legislative proposal on transparency and use of emergency oil stocks, in coherence with the IEA. In 2009, the Commission will make a proposal to set up a solidarity mechanism based on the capacity of each member state to create margins of security for gas. Externally, the Commission is insisting on the development of stronger relations with Norway (joint North Sea off-shore wind projects), energy dialogue with Russia and speeding up negotiations for Ukraine, Moldova and Turkey joining the Energy Community. Most spectacularly, the Commission is focusing a large chapter on the conclusion of new generation agreements with third countries to encourage upstream investment by offering clear accession conditions (non-preferential) to the Community market, early information on markets and policies, for promoting European firms in producer countries, including arrangements on transit. The Commission is also focusing on the South EU Central Asia gas corridor.
An analysis of primary energy consumption perspectives for domestic production and imports into the EU up to 2020, with or without common energy policy with fairly high oil prices ($61-100) concludes that primary energy consumption will decline substantially in a scenario of a common policy and $110 a barrel and will change in structure by depending more on renewables and less on fossil fuels. On the other hand it shows that the volume of imports will be at best the same and at worst, higher. (E.H./trans/rh)