1 European energy security
| Committee's assessment
| Politically important
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| Committee's decision
| For debate in European Committee A
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| Document details
| European Energy Security Strategy
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| Legal base
| — |
| Department
| Energy and Climate Change
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Summary and Committee's conclusions
1.1 Although the need for a sustainable,
competitive and secure supply has long been a critical element
of EU energy policy, the Commission believes that the temporary
disruptions of gas supplies which hit some of the eastern Member
States in 2006 and 2009 has reinforced the need for a common European
energy policy, and in particular for Member States to reduce dependence
on a single supplier. However, it says that, despite the steps
which have been taken, the EU remains vulnerable to external energy
shocks, and it has therefore put forward this Communication setting
out a strategy for energy security, aimed at reducing dependency
on particular fuels, energy suppliers and routes.
1.2 The Commission says that the strategy
builds on a number of lessons learned from current policies, and
in particular the need for a more collective approach through
a functioning internal market and greater cooperation at regional
and European levels, and it is based on the eight key pillars
containing actions to be taken in the short, medium and longer
term to promote cooperation between Member States, whilst respecting
national energy choices. These are immediate actions aimed at
increasing the EU's capacity to overcome a major disruption during
the winter 2014/15; strengthening emergency/solidarity mechanisms;
moderating energy demand; building a well-functioning and fully
integrated internal market; increasing energy production in the
EU; further developing energy technologies; diversifying external
supplies and related infrastructure; and improving coordination
in relation to national energy policies and external energy policy.
1.3 Although this is the latest in
a series of Commission Communications on energy security, and
thus covers familiar ground, it raises a number of important —
and topical — economic and environmental issues. We are
therefore recommending it for debate in European Committee A.
Full details of the document: Commission Communication:
European Energy Security Strategy: (36062) 10409/14
+ ADDs 1-5, COM(14) 330.
Background
1.4 The need for a sustainable, competitive
and secure supply has long been a critical element of EU energy
policy, as evidenced by the Green Paper[1]
it produced in 2006, its 2007 strategic energy review,[2]
and the second such review[3]
it carried out in 2008. However, the Commission has pointed out
that temporary disruptions of gas supplies hit some of the eastern
Member States in 2006 and 2009, suggesting that this reinforced
the need for a common European energy policy, and in particular
for Member States to reduce dependence on a single supplier. However,
it says that, despite the steps which have been taken, the EU
— which still imports 53% of the energy it consumes —
remains vulnerable to external energy shocks, and therefore needs
a "hard-headed" strategy for energy security, which
reduces dependency on particular fuels, energy suppliers and routes.
The current document
1.5 It has therefore put forward this
Communication, which it says builds on a number of lessons learned
from current policies, and in particular the need for a more collective
approach through a functioning internal market and greater cooperation
at regional and European levels. The strategy set out in the Communication
is based on the following eight key pillars containing actions
to be taken in the short, medium and longer term to promote cooperation
between Member States, whilst respecting national energy choices:
Increasing capacity to overcome major disruption
during the winter 2014/15
The Commission argues that, in view
of current events in Ukraine and the potential for disruption
to energy supplies, short-term action should focus on those countries
which are dependent on one single gas supplier. It says that it
will work with Member States, regulators and Transmission System
Operators to improve the EU's immediate preparedness, including
enhancing storage capacity, developing reverse flows, undertaking
national "stress tests" and updating security of supply
and emergency plans at regional level. In addition, the potential
of Liquefied Natural Gas (LNG) will be exploited.
Strengthening solidarity mechanisms and protecting
strategic infrastructure
The Commission outlines proposals for
action to build up and maintain minimum reserves of crude oil
and petroleum products, notably through promoting international
cooperation and transparency concerning stocks and markets; to
reinforce the steps taken since 2009 to prevent and mitigate gas
supply disruption risks by further cooperation across borders
to protect critical infrastructure by reviewing IT security and
controls by non-EU countries, and to enhance solidarity mechanisms
among Member States, with a particular focus on those on the eastern
border of the EU.
Moderating energy demand
The Commission notes that moderating
energy demand is one of the most effective ways of reducing the
EU's external energy dependency and exposure to price increases,
and recommends that Member States should speed up work to meet
the 20% energy efficiency target for 2020. It proposes an early
review the Energy Efficiency Directive to assess progress so far,
and how energy efficiency can contribute to the 2030 energy and
climate policy framework; the identification of priority sectors
in housing, transport and industry for energy efficiency gains
and of the remaining barriers to the take up of energy efficiency;
and a review of the Energy Labelling and Ecodesign Directives.
Building a well-functioning and fully integrated
internal market
The Commission says that the internal
energy market is a key factor in achieving security (and doing
so in a cost-effective way). It outlines a number of actions,
including ensuring that the aim of completing the internal market
by 2014 is met; strengthening regional cooperation, particularly
in relation to gas and electricity; accelerating the construction
of key interconnectors between Member States (including implementing
key Union projects of common interest, with funding being provided
through the Connecting Europe Facility); and diversifying crude
oil supplies to EU refineries to reduce dependency on Russia.
Increasing energy production in the European Union
The Commission observes that the EU
can reduce its dependency on particular suppliers and fuels by
maximising its use of indigenous sources of energy, whilst noting
that supplies of such energy have steadily declined in the past
two decades. It suggests that this trend can be slowed down by
further increasing the use of renewable and nuclear energy, as
well as the sustainable production of competitive fossil fuels.
Further developing energy technologies
The Commission argues that, in order
to reduce EU energy dependency successfully, changes to the energy
system are needed in the medium to longer term, requiring the
development of new energy technologies. However, it points out
that this will require significant investments from the EU and
Member States in relevant research and innovation, encompassing
the whole supply chain, and with more coordination between Member
States, and the use of financial instruments — for example,
through the European Investment Bank — to leverage greater
investment from industry
Diversifying external supplies and related infrastructure
The Commission identifies as a priority
the securing of access to more diversified natural gas resources
whilst maintaining significant import volumes from reliable suppliers,
and says that this should include increasing the size and liquidity
of global LNG markets, focussing on opening the way for new sources
(for example, through the establishment of the Southern Corridor
to bring gas to the EU from the Caspian and beyond), and engaging
in dialogue with Northern African and Eastern Mediterranean partners
with a view to creating a Mediterranean gas hub. It also argues
that the EU should ensure that its new nuclear power plants using
non-EU technology are not dependent only on Russia for the supply
of nuclear fuel, and that fuel supply diversification should be
a condition for any new investment in nuclear power plants. It
also stresses that nuclear safety remains an absolute priority.
Improved coordination of national energy policies
and external policy
The Commission suggests that many of
the measures proposed in the Strategy rely on better coordination
of energy policy decisions by Member States, and it welcomes the
call made by some Member States for an Energy Union. It also argues
that the EU should develop consistent and coordinated messages
in international organisations and fora, and should work to enable
the close integration of its neighbours into the EU energy market
— for example through the Energy Community — with
a systematic use of foreign policy instruments to promote energy
issues. It stresses that Member States' agreements with third
countries in the field of energy should be fully compliant with
EU legislation and security of supply policy: and it suggests
that it will examine with Member States options for voluntary
demand aggregation mechanisms which could increase the bargaining
power of European buyers of gas.
1.6 The Communication is accompanied
by five Working Documents which set out the Commission's assessment
of the current position of European energy security, expected
European energy security in 2030 and an assessment of energy capacity,
transport and storage. Detailed fiches on the position of each
Member State are also included.
The Government's view
1.7 In his Explanatory Memorandum of
24 June 2014, the Minister of State at the Department of Energy
and Climate Change (Michael Fallon) says that the UK welcomes
the Strategy and agrees with its broad approach, including the
focus on developing indigenous resources, accelerating infrastructure
development including the pace of development and cost reduction
of alternative low carbon energy technology options, moderating
energy demand, completing the internal market and the clear links
between energy security and the 2030 climate and energy framework.
1.8 He particularly welcomes the recognition
in the Communication that energy security and the 2030 framework
are fundamentally linked, adding that this makes sense as many
policies support both objectives, and in terms of the timescale,
as tackling energy security will require a comprehensive approach,
sustained over the next 15 years. He adds that the 2030 policy
framework — which is capable of delivering a great deal
in terms of reduced fossil fuel import dependency — is the
obvious vehicle to deliver this.
1.9 At the same time, the Minister says
that it will be important in implementing the strategy to ensure
that the existing balance of competence between the Member States
and the Commission is not altered. The Government will therefore
want to focus on helping the Commission to use its existing power
effectively — for example, in ensuring the Third Energy
Package is enforced, and in supporting Member States which request
help in their commercial and intergovernmental negotiations. That
said, he registers some concerns over the idea for collective
gas purchasing, adding that the Government will consider carefully
any specific proposals to ensure that these are consistent with
competition law and the functioning of the internal energy market,
concerns which he notes the Commission appears to share.
Previous Committee Reports
None.
1 (27343) 7070/06: see Twenty-sixth Report HC 34-xxvi
(2005-06), chapter 2 (26 April 2006). Back
2
(28276) 5282/07: see Tenth Report HC 41-x (2006-07), chapter 2
(21 February 2007). Back
3
(30198) 15944/08: see Third Report HC 19-iii (2008-09), chapter 2
(14 January 2009). Back
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