Agenda
Energy Strategy
In the area of energy the EU aims to achieve a cohesive and well functioning internal energy market which must secure supply, maintain affordability for European citizens as well as contribute towards the EU’s broader environmental goals through greater efficiency and enhanced utilisation of renewable resources.
Institutional Structure
European Commission
The European Commission has the sole legislative right of initiative in the area of energy. Regarding some areas of the EU's energy market (EU competition rules) the European Commission also plays an important role in controlling mergers and state aids. The Directorate-General for Energy and Transport is responsible for the Commission's work in the area of energy.
European Parliament
In the area of liberalisation of energy markets (Internal market policy portfolio) the European parliament plays an important role in adopting legislation on an equal footing with the Council under the ordinary legislative procedure.
The Committee on Industry, Research and Energy (ITRE) is the Parliamentary Committee responsible for monitoring the policy area.
Council of the European Union
Energy policy issues are dealt with by the Transport, Telecommunications and Energy Council (TTE). The Council plays an important role in adopting legislation on an equal footing with the European Parliament under the ordinary legislative procedure.
The Council of European Energy Regulators (CEER)
The CEER was established to achieve cooperation between the independent national energy regulators of Europe. It pursues the overall aim of facilitating the creation of a single, competitive, efficient and sustainable internal market for gas and electricity in Europe.
Budget
Budget for Energy and Transport
The total budget available for Energy and Transport in 2010 is approximately €2 billion. This represents a 10.9% increase from 2009.
Key Policies
Liberalisation and Competition
During the 1990s, when most of the national electricity and natural gas markets were still monopolised the EU and the Member States decided to open these markets to competition gradually.
The European Union decided to:
a. Distinguish clearly between competitive parts of the industry (e.g. supply to customers) and non-competitive parts (e.g. operation of the networks)
b. Oblige the operators of the non-competitive parts of the industry (e.g. the networks and other infrastructure) to allow third parties to have access to the infrastructure
c. Free up the supply side of the market (e.g. remove barriers preventing alternative suppliers from importing or producing energy)
d. Remove gradually any restrictions on customers from changing their supplier.
Diversification of Energy Suppliers
There are currently three new projected gas route plans involving the EU: North Stream, South Stream and Nabucco.
Both North Stream and South Stream involve the transportation of gas from Russia to the EU, North Stream via the Baltic Sea and South Stream via the Black Sea. It is estimated that they will have a transport capacity of 55 billion cubic meters and 63 billion cubic meters per year respectively. North Stream is planned to be fully operational from 2012 whereas South Stream will become operational from 2015.
The Nabucco pipeline will be connected to the Caspian region and the Middle East. It will have an estimated projected transport capacity of 31 billion cubic meters per year. It is hoped it will be operational from 2015.
Renewable Energy
Currently renewable energy accounts for 8.5% of the market in the EU. Member states have set the goal of increasing this to 20% by 2020. As part of this it has been stipulated that 10% of transport fuels must come from renewable sources, with biofuels seemingly the most likely alternative.
Transition to Globalisation
EU Climate Package Explained
As part of the EU's goal of deriving 20% of its energy from renewable sources by 2020 it has been agreed that 10% of transport fuels must come from renewable sources, with biofuels the most likely alternative.
However, this has proven to be a more complicated process than orignally envisioned with the Commission having to work to ensure that only biofuels that make a significant contribution towards cuts in CO2 emissions are utilised by member states. As such, it has suggested that only biofuels that achieve a 35% cut in CO2 emissions should be allowed.
Globalisation » Economy » Energy » Sources » Renewable » Biomass
Transition to Political Tools
EU Says Diversifying Energy Suppliers Is Not Anti-Russian
The vulnerability of the EU’s energy situation can be connected with broader geopolitical issues. In July 2008 Russia cut oil export to the Czech Republic by 50% in what many believed was a response to Czech Republic plans to install an US radar for the US missile shield defense system.
Similar fears can rise over gas supplies that can easily be cut in a political response to disputes in sensitive matters. As an example Russia has sought the recognition of the EU of Georgia’s breakaway regions.
The EU has responded by trying to establish a direct line to Moscow to negotiate in advance any cuts in supply. Given that the EU already relies on Russia for 25% of its gas supplies, with eight member states 100% reliant on Russia, the EU’s vulnerability to Russian policy is clear.
Tools » Institutions » National » Russia » Dom. Policies » Economy » Energy
EU-OPEC Energy Dialogue
EU – OPEC Energy dialogue: The EU currently imports around 40% of its oil from the Organisation of Petroleum Exporting Countries (OPEC). The EU held its first bilateral meeting with OPEC on 9 June 2005. Three meetings have been held since then.
Tools » Institutions » Regional » Transregional » OPEC
Transition to Political Actors
Electricity for Europe
The Union of the Electricity Industry-EURELECTRIC is the professional association which represents the common interests of the electricity industry at pan-European level, plus its affiliates and associates on several other continents. The association was formed as a result of a merger in December 1999 of the sister sector bodies UNIPEDE and EURELECTRIC.
Actors » Sector » Civil Society » Trade Unions » Regional » Europe
We Are the European TSOs. We are ENTSO-E.
The European Network of Transmission System Operators for Electricity (ENTSO-E) coordinates the interests of transmission system operators in 24 European countries. Their common objective is to guarantee the security of operation of the interconnected power system.
Operators for Electricity
Actors » Sector » Civil Society » Trade Unions » Regional » Europe
