Energy, towards a single market?

The 28 countries of the European Union together represent largest importer of energy (gas, oil) in the world, importing 53% of its energy, at an annual cost of around €400 billion. Significantly, European wholesale prices for electricity and gas are respectively 30 and 100% higher compared to the United States. Not to mention that energy policies have obvious implications in terms of economic competitiveness, foreign policy and security (relations with supplying countries such as Russia, Eastern Europe, the Arab world, North Africa …), environmental protection and quality of life. For all these reasons, the EU Commission has drawn up a “strategy” aimed at creating, in time, an “Energy Union”. Advantages for the economy and the environment. “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”. Maros Sefcovic, the Vice-President of the Commission responsible for the Energy Union thus explained the proposal drawn up by the Executive whose legislative aspects will be defined by Parliament and Council. Energy, the Commission states in a note, “is used to heat and to cool buildings and homes, transport goods, and power the economy. But with ageing infrastructure, poorly integrated markets, and uncoordinated policies, our consumers, households and businesses do not benefit from increased choice or from lower energy prices”. That’s why it is necessary to complete the single market in this sector. The strategy, which includes various documents and operative proposals, entails first of all a “solidarity clause” that will reduce the dependence on single suppliers and “fully relying on their neighbours, especially when confronted with energy supply disruptions”. Citizens’ interests. The strategy put forward by the Commission compares energy flows to a “fifth freedom” in the framework of EU integration, along with freedom of movement, of goods, capitals and services. It’s the “free flow of energy across borders” by applying common regulations. “Redesigning the electricity market, to be more interconnected, more renewable, and more responsive”, the Commission points out. “Seriously overhauling state interventions in the internal market”. Moreover, energy efficiency will be treated “as an energy source in its own right so that it can compete on equal terms with generation capacity”; the focus is also on “transition towards society with low Co2 emissions that is built to last”; EU “technological leadership” will be promoted “through developing the next generation of renewables technology and becoming a leader in electromobility”. Last but not least, a fundamental principle: “In an Energy Union, citizens are at the core. The prices they pay should be affordable and competitive”. Among the folds of the Commission’s documents remains the burden of the investments needed in this field, amounting to approximately one thousand billion by 2020. Diversification and renewable sources. In a snapshot, these are the proposals of the Juncker College. In reality the EU has been addressing the energy question for years (and it should be said that many projects are ongoing, notably the major interconnected networks, such as the pipelines), but until now national interests have thwarted the most innovative initiatives in this field also because certain Countries are practically self-sufficient, some intend to invest in nuclear energy or oil derivatives, while some countries have bravely adopted the alternative energies option. Jean-Claude Juncker, President of the EU Commission, declared: “For too long, energy has been exempt from the fundamental freedoms of our Union. Current events show the stakes – as many Europeans fear they may not have the energy needed to heat their homes”. With this initiative, Europe will be “acting together, for the long term”. Miguel Arias Cañete, Commissioner for Climate Action, added: “Our path to real energy security and climate protection begins here at home. That’s why I will focus on building our common energy market, saving more energy, expanding renewables, and diversifying our energy supply”. “After decades of delay, we will not miss another opportunity to build an energy union. The Juncker Commission gets the big things right”.