By Andris Piebalgs is European Commissioner for Energy - 7th February 2006
The time has come for an EU energy policy, argues European commissioner Andris Piebalgs.
We are experiencing a watershed moment for energy policy. The vital importance of energy policy in ensuring security of supply and sustainable growth is becoming increasingly clear: the gas dispute between Russia and the Ukraine, rising oil prices or the imperfections of the single energy market call for determined and coordinated European action.
MEPs, member states and citizens, as revealed by a recent Eurobarometer poll, believe that the EU should have an increasing role in securing our supplies, developing a single energy market and honouring our environmental commitments. We now need a real European energy policy.
The motivations underpinning the call for a European energy policy also affect each European personally.We must ensure that energy supply will meet our future demands. Our dual approach therefore involves reducing domestic demand as well as ensuring security of supply.
Recent disputes over our external dependency illustrate Europe’s need to ensure energy supplies for the future. Acting with one voice on this issue is certainly more effective; particularly in relations with countries that contribute hugely to Europe’s energy supply.
The commission will soon release a new green paper on a secure, competitive and sustainable energy policy for Europe, which will address these issues in depth.
An effective energy policy will no doubt play an integral part in our contribution to meeting the Lisbon strategy goals. Energy is a key sector in Europe’s economy, upon which other sectors depend. It is vital to the competitiveness of the internal market and for our relations with other regions of the world.
Future projections do not offer much optimism. Half of our energy needs are currently met by suppliers outside the EU.
And our dependency on fossil fuels, particularly gas, continues to grow to such an extent that, if we do not do something to prevent it, the EU will import 90 per cent of its oil and 80 per cent of its gas by 2030.
We must also consider the increasing global demand for energy, especially from growing economies including China and India, and the precarious political situation in several energy-producing regions as reasons to carefully consider our options for the future.
Dialogues with suppliers, including Russia and OPEC, have proved fruitful over recent years. Nevertheless, our dependence has to be tackled from the demand side as well.
Energy efficiency initiatives are vital and remain a priority of this commission. As outlined in the green paper on energy efficiency, using currently available energy-efficient technologies would see a 20 per cent reduction in EU energy consumption, especially in transport and buildings.
In real terms, 70m tonnes of oil could be saved by 2010, which equates to around €15bn and 140m tonnes of CO2 emissions. Stepping up efforts in every home and business makes economic as well as environmental sense.
Just imagine the potential advantages to the competitiveness of European companies
if they slash their energy bills, simply by using more energy efficient technologies, a sector in which Europe is a world leader.
Renewable energy technologies, however, currently do not permit efficient enough production to replace the nuclear power stations that will reach the end of their foreseen working lives in the near future.
Member states are therefore faced with some tough choices about their future energy mix. Public opinion on the nuclear issue varies widely across the EU.
Renewable energies on the other hand receive widespread public support, but have yet to really take off. This is illustrated by our failure to meet the target of 12 per cent energy consumption provided by renewable sources by 2010. We are currently on track to attain nine or ten per cent.
In December I adopted a report on the support of green electricity by member states, and found that most are still not doing enough to reach our target of 22 per cent green electricity by 2010.
Green electricity markets have not yet reached maturity and still require substantial
investments, which accounts for the perception that wind, solar and hydro energy are still relatively expensive.
It is premature to propose a harmonised European support scheme, as more experience can be gained via competing national schemes that encourage the industry to develop renewable and increase investments.
Nevertheless, member states are recommended to coordinate their schemes at European level to profit from experiences so far. Barriers to developing the use of green energy should be removed at national level to ensure this becomes a real possibility for the future.
Strong possibilities for a more sustainable energy future are presented by biomass and biofuels. Europe is actively supporting the production of electricity from renewable sources and encouraging member states to step up their efforts.
As outlined in the biofuels directive of 2003, the target for the use of biomass energy in the EU is 5.75 per cent by 2010. The current market share is just 0.8 per cent, so we still have a long way to go.
We are currently focussing on the promotion of these more sustainable energy sources. The commission’s biomass action plan is designed to increase the use of energy produced from forestry, agriculture and waste materials.
Along with reducing our dependence on oil and other fossil fuels and cutting emissions, these fuels will help boost rural economies and Europe’s leading position in research and development of these technologies.
Biomass is an area where commission action can and will make a difference that will benefit all Europeans.
In energy dialogues, one voice is always stronger in negotiations for oil and gas. A fully-functioning internal market for electricity and gas will benefit consumers and industry alike, and oil the wheels of the internal market.
Research into and the promotion of a more sustainable energy mix can also be effectively coordinated at European level. In short, facing future energy challenges and taking the appropriate action is, in many instances, best tackled by working together in Europe."
This article originally appeared in the February 6 edition of Parliament Magazine.
Have your say...
Please enter your comments below.