Released March 05, 2015 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Europe has set out the final framework for creating an 'Energy Union' across its 28 Member States.
The European Commission (E.C.) strategy will see Europe build a single energy market by upgrading and integrating its electricity grids while introducing new legislation to allow for the free flow of electricity between Member States. It has been described as the most ambitious energy project since the formation of the region's coal and steel community.
The project will be backed by massive investment of up to 200 billion ($227 billion) per year over the next decade and will aim to secure Europe's energy for the future and lead to lower electricity costs for European businesses and homeowners. The Commission announced the Energy Union plan last month. For additional information, see February 10, 2015, article - Europe Proposes 'Energy Union'.
"For too long, energy has been exempt from the fundamental freedoms of our Union," stated Jean-Claude Juncker, European Commission (E.C.) President. "Current events show the stakes -- as many Europeans fear they may not have the energy needed to heat their homes. This is about Europe acting together, for the long term. I want the energy that underpins our economy to be resilient, reliable, secure and growingly renewable and sustainable."
Russia's military backing of pro-Russian rebels in Ukraine has resulted in global condemnation and sanctions but has also raised the possibility that Europe's gas supplies will be affected. The stand-off has already led to the cancellation of the $40 billion South Stream Transport gas pipeline. For additional information, see December 3, 2014, article - Russia Scraps South Stream Natural Gas Pipeline, Chooses New Route to Turkey.
The E.C. said that the key elements of the Energy Union will offer: Solidarity clause: reducing the dependence on single suppliers and fully relying on their neighbours, especially when confronted with energy supply disruptions. With more transparency when E.U. countries make deals to buy energy or gas from countries outside the EU.
Energy flows, as if it were a Fifth freedom: that of free flow of energy across borders - strictly enforcing the current rules in areas such as energy unbundling and the independence of regulators -- taking legal action if needed. Redesigning the electricity market, to be more interconnected, more renewable, and more responsive. Seriously overhauling state interventions in the internal market, and phasing out environmentally harmful subsidies.
Energy efficiency first: fundamentally rethinking energy efficiency and treating it as an energy source in its own right so that it can compete on equal terms with generation capacity.
Transition to a low-carbon society that is built to last: ensuring that locally produced energy -- including from renewables -- can be absorbed easily and efficiently into the grid; promoting E.U. technological leadership, through developing the next generation of renewables technology and becoming a leader in electro-mobility, while European companies expand exports and compete globally.
Maro efčovič, the Vice-President responsible for the Energy Union said: "Today, we launch the most ambitious European energy project since the Coal and Steel Community. A project that will integrate our 28 European energy markets into one Energy Union, make Europe less energy dependent and give the predictability that investors so badly need to create jobs and growth. Today, we set in motion a fundamental transition towards a low-carbon and climate-friendly economy, towards an Energy Union that puts citizens first, by offering them more affordable, secure, and sustainable energy. Together with all other Commissioners who have worked closely on the project team, and with the support of the entire Commission, I am determined to now turn this Energy Union into reality."
The plan has been welcomed by the energy sector. Yves Brachet, Westinghouse President, Europe, Middle East and Africa said that while the task will be difficult Europe has numerous reasons to be optimistic of success.
"With 790 Mtoe (million tons of oil equivalent), the European Union today produces nearly half of its own consumption in the EU," Brachet said. "What is more, 53% of this energy comes from low carbon renewable and nuclear sources, providing the basis of Europe's energy security. Across the 28 member states, hydro, wind and solar energy capacity, along with 131 nuclear reactors, produce 24% and 29% respectively of the E.U.'s domestic energy - with no CO2 emissions. This is a solid basis for Europe's transition to a low-carbon society. Also, Europe has an extensive existing network to transport energy. Our electricity grid may be in dire need of upgrading, but the fact is we are not starting from zero. A lot of what is required to meet our future needs already exists."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The European Commission (E.C.) strategy will see Europe build a single energy market by upgrading and integrating its electricity grids while introducing new legislation to allow for the free flow of electricity between Member States. It has been described as the most ambitious energy project since the formation of the region's coal and steel community.
The project will be backed by massive investment of up to 200 billion ($227 billion) per year over the next decade and will aim to secure Europe's energy for the future and lead to lower electricity costs for European businesses and homeowners. The Commission announced the Energy Union plan last month. For additional information, see February 10, 2015, article - Europe Proposes 'Energy Union'.
"For too long, energy has been exempt from the fundamental freedoms of our Union," stated Jean-Claude Juncker, European Commission (E.C.) President. "Current events show the stakes -- as many Europeans fear they may not have the energy needed to heat their homes. This is about Europe acting together, for the long term. I want the energy that underpins our economy to be resilient, reliable, secure and growingly renewable and sustainable."
Russia's military backing of pro-Russian rebels in Ukraine has resulted in global condemnation and sanctions but has also raised the possibility that Europe's gas supplies will be affected. The stand-off has already led to the cancellation of the $40 billion South Stream Transport gas pipeline. For additional information, see December 3, 2014, article - Russia Scraps South Stream Natural Gas Pipeline, Chooses New Route to Turkey.
The E.C. said that the key elements of the Energy Union will offer: Solidarity clause: reducing the dependence on single suppliers and fully relying on their neighbours, especially when confronted with energy supply disruptions. With more transparency when E.U. countries make deals to buy energy or gas from countries outside the EU.
Energy flows, as if it were a Fifth freedom: that of free flow of energy across borders - strictly enforcing the current rules in areas such as energy unbundling and the independence of regulators -- taking legal action if needed. Redesigning the electricity market, to be more interconnected, more renewable, and more responsive. Seriously overhauling state interventions in the internal market, and phasing out environmentally harmful subsidies.
Energy efficiency first: fundamentally rethinking energy efficiency and treating it as an energy source in its own right so that it can compete on equal terms with generation capacity.
Transition to a low-carbon society that is built to last: ensuring that locally produced energy -- including from renewables -- can be absorbed easily and efficiently into the grid; promoting E.U. technological leadership, through developing the next generation of renewables technology and becoming a leader in electro-mobility, while European companies expand exports and compete globally.
Maro efčovič, the Vice-President responsible for the Energy Union said: "Today, we launch the most ambitious European energy project since the Coal and Steel Community. A project that will integrate our 28 European energy markets into one Energy Union, make Europe less energy dependent and give the predictability that investors so badly need to create jobs and growth. Today, we set in motion a fundamental transition towards a low-carbon and climate-friendly economy, towards an Energy Union that puts citizens first, by offering them more affordable, secure, and sustainable energy. Together with all other Commissioners who have worked closely on the project team, and with the support of the entire Commission, I am determined to now turn this Energy Union into reality."
The plan has been welcomed by the energy sector. Yves Brachet, Westinghouse President, Europe, Middle East and Africa said that while the task will be difficult Europe has numerous reasons to be optimistic of success.
"With 790 Mtoe (million tons of oil equivalent), the European Union today produces nearly half of its own consumption in the EU," Brachet said. "What is more, 53% of this energy comes from low carbon renewable and nuclear sources, providing the basis of Europe's energy security. Across the 28 member states, hydro, wind and solar energy capacity, along with 131 nuclear reactors, produce 24% and 29% respectively of the E.U.'s domestic energy - with no CO2 emissions. This is a solid basis for Europe's transition to a low-carbon society. Also, Europe has an extensive existing network to transport energy. Our electricity grid may be in dire need of upgrading, but the fact is we are not starting from zero. A lot of what is required to meet our future needs already exists."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
