Brussels, 13/11/2008 (Agence Europe) - On Thursday 13 November, the European Commission adopted an ambitious package of measures, compatible with the “20-20-20” proposals (20% reduction in CO2 emissions, 20% renewables in EU's primary energy cluster and 20% every savings by 2020) to ensure the EU's energy security and create solidarity mechanisms between its member states. This genuine action plan is headed by the 2nd Energy Strategic Review (for insight into main elements: EUROPE 9771), which draws on the EU's prospects up to 2020, with or without a common energy policy and with quite high energy prices ($60-100 the barrel) highlighting the Achilles heel of the EU common energy strategy launched by the European Council in March 2006: EU energy security and its external relations , EU capacity to speak with a single voice and EU27 solidarity.
The Commission president, José Manuel Barroso, who had come to present his strategy to the press, together with Energy Commissioner, Andris Piebalgs asserted, “energy prices have risen by an average of 15% in the European Union in the last year alone. But what goes up should also come down. This is not always happening. So I call on energy companies to pass on the recent cut in oil prices to consumers. We will monitor prices to ensure that competition rules are being respected”. He also promised that, “Longer term - and that's at the heart of the strategic energy review, we must break the vicious energy cycle of increased energy consumption and increased imports”. Mr Barroso pointed out that 54% of Europe's energy is now imported at a cost of 700 Euros each year for every EU citizen and affirmed that, “We have to address this urgently by increasing our energy efficiency and reducing our dependence on imports. We have to save to invest to diversify”.
His strategy for increasing the EU's energy security and solidarity between its members is based on five pillars: active diplomacy for ensuring the diversification of suppliers, major energy infrastructure projects, crisis response mechanisms based on pooling of oil and gas stocks, better use of local resources and enhanced energy efficiency policy for buildings and products.
Active diplomacy for reducing dependency on certain third country suppliers
As well as price increases and increases in demand, the EU have also been marked by recent power cuts in transit countries, decided by Russia, which is the main supplier and second biggest oil provider for the EU. The EU27 have observed that with the recent conflict between Russia and Georgia, their diversification in the Caucasus, Caspian region and Central Asia, remained fragile. The Commission also wants to boost and obtain firm commitments from certain supplier countries, such as Azerbaijan and Turkmenistan in the Nabucco gas pipeline project (EUROPE 9778). Mr Barroso explained that, “We need a collective approach to key infrastructure to diversify our energy supply - pipelines in particular. Today eight Member States are reliant on just one supplier for 100% of their gas needs - this is a problem we must address. We must shield European citizens from the risk that external supplies cannot honour their commitments… Stronger solidarity is also essential in boosting interconnections inside the EU, so that Member States can help each other in tackling shortfalls. And we need a more common approach with third countries... If we can't have a single voice as Europeans we must at least have a single message”. The Commission will therefore carryout out a reflection in 2009 to define concrete mechanisms to ensure transparency between member states and the EU, including possibilities for amending Community rules through the revision of Regulation 736/96/EC and obliging member states to inform the EU of investment projects of Community interest involving oil, as and electricity. In other words, the Baltic Nordstream gas pipeline project would never have seen the light of day without having been subject to a preliminary debate between the EU27.
Mr Barroso said that, “Our commitment to external suppliers is a simple one. If the supply is guaranteed, the market can be guaranteed”. He added that in order to provide assurances on the eve of the EU/Russia summit in Nice that the EU strategy to diversity its sources is not orientated against Russia, he declared that his “message tomorrow to President Medvedev is absolutely not a negative one. We are becoming increasingly inter-dependent. At present 61% of EU gas consumption is coming from imports and 42% of these imports come from Russia. By 2020 gas imports are expected to grow to 73% of consumption. So just as we seek security of supply, external suppliers are looking for security of demand with the European Union being by far the largest client for Russian gas exports. That is why we believe it is both our interests to have a clear legal framework in place. “
Six priority initiatives for TEN-E and action plan for offshore wind farms
In a Green Paper, in addition to its proposals for active diplomacy, the Commission proposes a strategy for ensuring the sustainability of the trans-European energy network (TEN-E) and for developing essential key projects. On the basis of estimated investment in the run up to the year 2030 (€1 000 billion for networks and electricity generation, €150 billion for internal gas networks), the strategy is based on three essential needs: - the flexibility of TEN-E must be an incentive not an obstacle to the transition to renewable and low carbon energies; - total interconnection linking regional and crossborder networks and integrating decentralised production; - and optimal use of Community financing available. The Commission therefore recommends adoption of a new framework provision for TEN-E and the promotion of six major initiatives requiring the grouping of individual network projects concerning several countries: - a Baltic interconnection plan; - an offshore wind farm network in the North Sea; - a Mediterranean energy link connecting the EU with North Africa; - a southern corridor carrying gas from the Caspian Sea region; - the integration of gas and electricity systems from Central and South Eastern Europe; - and a strategy for liquefied natural gas (LNG). Furthermore, in a separate communication, the Commission draws up an inventory of challenges to be raised for exploiting the potential of offshore wind farms in Europe. The following themes are covered: crossborder cooperation, exchange of best practice, the electricity grid and planning of the maritime area, regulatory practice on investment in interconnection; and assessment of the impact that wind farms have on the environment.
Solidarity mechanisms for oil and gas
Greater attention should be paid to solidarity mechanisms that include EU crisis management mechanisms, oil stocks and mechanisms to tackle possible disruptions to gas supplies. The Commission is proposing: a review of the 2006/67/EC directive obliging member states to maintain minimum stocks of crude oil and/or oil products; a communication to open the debate with member states and stakeholders on review of the directive 2004/67/EC on gas supply security.
New measures to improve energy efficiency
At the same time, the Commission is proposing new action plan support measures for energy efficiency to help the EU save on 20% of its consumption by 2020. This involves: recasting of directive 2002/91/EC on the energy performance of buildings by extending the scope of buildings to those less than 1000 square metres and by reinforcing the role of performance certificates and heating and air conditioning inspection reports; extending the field of application of directive 92/75/EC on labelling energy consuming products to those used in the industrial and commercial sectors as well as those linked to energy having an impact on energy consumption during the utilisation phase, such as insulated windows; guidelines on co-generation to promote electricity production from high energy yielding cogeneration instalments and a draft directive on labelling tyres.
Update of 2007 nuclear indicative programme
While noting that the decision on whether to use nuclear power was that of member states, the Commission contends that nuclear energy has an important role to play in the transition to a low carbon economy and in reducing the EU's dependence on imported fossil fuels. It proposes in a revised nuclear indicative programme to adopt the most modern technology for the construction of new plants, to ensure the application of the strictest nuclear safety standards and to harmonise and simplify authorisation requirements and procedures, that currently vary form one member state to another. This document raises key issues debated in the Community debate launched since the European Council of March 2007: - the relationship between nuclear power and security of supply, more particularly investment needs (replacement/extending the life of existing plants) and security of supply of nuclear fuel; - the role of public authorities, in particular, in relation to nuclear safety and the management of radioactive waste in the EU, and also security and non-proliferation outside the EU; - the importance of nuclear power being accepted by the wider public and the factors which determine this acceptance. (E.H./transl/jl.rh.rt)