Preparing the EU Energy Strategy 2011-2020: the Commissioner's Views

The EU Commissioner for Energy, Günther Oettinger, exposed the first results of a public consultation on the future EU energy strategy 2011-2020, at the occasion of a stakeholder strategy conference held on 30 September in Brussels.

Background for the new EU energy strategy 2011-2020

After the adoption of the first EU Energy Action Plan by the European Council in March 2007 (COM(2007)1), the Commission was asked to prepare a new Action Plan for the period ahead. The Commission answered this demand by opening a public consultation from May to July 2010. The Stock taking document details the background for the new document. The next step will be the adoption of the EU Energy Action Plan 2011-2020 in early 2011, and the drafting of an Energy Roadmap for 2050 (consultation to start in November).

Four guiding principles

The Commissioner has identified four guiding principles for the elaboration of the EU energy strategy 2011-2020:

• Continuation - The new strategy will not be a change but a continuation of newly adopted packages.
• Reaffirmation of the long-term objectives of a decarbonised economy by 2020.
• Stability for investments confidence - "We do not intend to spring surprises" said the Commissioner, underlying the critical role of political signal for investments in the mid- and long-term.
• Tackle the failures of the past, in particular to some poor or slow results in the energy efficiency and transport sectors, but also internationally. As noted by the Commissioner, "the 2010 Renewable Energy Attractiveness Index now cites the US and China as the best investment opportunities for renewable energy."

Five priorities

To achieve the EU energy objectives, five priorities are defines:

1. Put demand first, with the adoption of a new Energy Efficiency Action Plan. "The question is not simply whether it would help to make the 20% target compulsory. It is rather what we mean with 20% savings, where can it best be achieved, which tools are needed at EU level (including financial) and to what extent can we achieve more." (Ibid.)
2. Better investment environment for low-carbon energy technologies, in particular in new generation of green tech. such as offshore wind, second generation biomass, smart grids, and CCS. Infrastructures are crucial means to realise a competitive and sustainable internal energy market. "Beyond the full use of the current regulatory framework, a new infrastructure instrument should allow us to define 'networks of Europen interest', building on the stregnth of regional projects. Such strategic links would enjoy swift authorisation procedures and attractive financing." (Ibid.)
3. Strengthen the European technology lead. "Beyond the implementation of the Strategic Energy Technology Plan, we should launch a few large scale European projects such as on storage, second generation biofuels and smart grids."
4. Increase consumer protection and safety. Here things are a bit mixed together, from the defense of consumers' rights, safe energy systems, safe oil and gas production and transport, to nuclear energy.
5. Strenghen EU external energy policy. "The energy security of every Member State will be stronger and cheaper when the EU learns to speak with a single voice and leverage its real power." (Ibid.)

Comments

The Comissioner's speech ends as follows: "Continuity, but innovation. Stability, but stronger, bolder, better priotisation. Action, not words."

Indeed, the new EU energy strategy 2011-2020 will not be a revolution. The revolution was already announced a long time ago and should be happening if the energy and climate change packages are fully and correctly implemented and applied. Similarly, the priorities defined by the Commissioner are already well known, and just confirm previous statements and market signals: energy efficiency, infrastructure, deeper cooperation, consumer protection, external competitiveness. One can conclude that the core message behind the draft EU energy strategy 2011-2020 is that it is now time to implement. Much enthusiasm has surrounded the adoption of ambitious goals that must now become reality. Legal tools are in place. Action time starts now. It also seems like the European Commission wants to take the lead and control of this implementation strategy. To that regards, it will be interesting to see how the Commission and EU institutions in general use the new legal basis for energy policy as enshrined in the new Treaty (TFEU). This EU-coordination is certainly needed, because of the divergent investment environments at national level, the long-lasting consequences of the financial and economic crisis, and because of the interdependency of national energy sectors. More ambitious national policies should also be encouraged.

References:

• Energy challenges of the next ten years - the need for a European common policy, Speech, 30 September 2010, SPEECH/10/504.
• Website of the public consultation on the Strategy.

Picture: (c) European Commission 2010.