Energy policy of the European Union

European Common policies
2013/2014. Academic Year, Spring Semester
Prepared by Dr. Endre Domonkos (PhD)
I. Development of energy policy I.
 The Treaty of Rome: Member States didn’t want to ‚communitise’
energy policy.
 Energy policy: Member States’ competence.
 The outbreak of the 1973 crisis:
 Dependence on imported crude oil
 In 1974, the European Commission presented a common energy
strategy, which was approved by the Council.
I. Development of energy policy II.
 The consequences of the two oil crisis in the 1970’s:
 The need to strengthen the energy policy at Community level.
 The Venice Summit (1980): the rate of growth of internal energy
consumption couldn’t exceed 60% of Community economic
growth.
 The Commission’s White Paper (1986): comprehensive energy
policy objectives.
 Energy policy: integral part of the single market.
 Energy policy guidelines of the Commission (1995).
II. The Energy Charter
 56 signatories – mainly former Communist countries -.
 Energy Charter: important complementary role to EU energy
policy activities.
 Main aim: to provide the necessary conditions for Western
investments in Central and Eastern Europe and in Central Asia.
 In 1995, the signatories of the Charter adopted a legally binding
agreement.
 Problem: Russia didn’t ratify the Energy Charter.
III. Energy policy at the turn of the millennium I.
 In the second half of the nineties: primary objective of energy
policy was to liberalise the energy sector.
 Investments introduced in the framework of the trans-European
networks.
 Liberalisation of the energy market: important element for the
completion of the single market.
 Lisbon Strategy: emphasis on liberalisation of gas and electricity
markets.
III. Energy policy at the turn of the millenium II.
 The Barcelona Summit of 15-16 March 2002:
 In 2003, the Council and Parliament adopted Directives
2003/54/EC and 2003/55/EC, which laid down the exact schedule
for liberalization in the electricity and gas sectors.
 The development of trans-European energy networks.
 Guidelines + 74 different projects.
 Energy policy: multi-annual framework action programmes.
III. Energy policy at the turn of the millenium III.
 In December 1998, the Council adopted a multi-annual (1998-
2002) framework programme for the development of the energy
sector.
 For the 2003-2006 period, the EU adopted a new multi-annual
action programme, with the name of Intelligent Energy – Europe
Programme (IEE).
 The Intelligent Energy – Europe Programme 2003-2006 was
divided into the following four specific sub-programmes:
- SAVE;
- ALTENER;
- STEER;
- COPENER;
IV. Energy Community
 The EU’s main aim is to create a pan-European energy market.
 The creation of an Energy Community.
 Extension of the European Union’s energy market to South-East
Europe.
 The Treaty entered into force on 1 July 2006.
 Investments in energy infrastructure + ensuring non-interrupted
energy supply.
 Secretariat is located in Vienna.
V. The beginning of a new European energy policy I.
 After the turn of the millennium: important steps were taken in
the field of energy policy.
 Reasons: growing dependency on imported energy + the role of
fossil fuels in the energy consumption.
 To fight against global warming as another key factor
 The Commission’s Green Paper on „A European strategy for
sustainable, competitive and secure energy”, published on March
2006.
V. The beginning of a new European energy policy II.
 Six priority areas of the Green Paper:
1. Completing the internal energy market:
2. Security of supply and solidarity between the Member States
3. Towards a more sustainable, efficient and diverse energy mix
4. To tackle climate change.
5. Set up a strategic energy technology plan.
6. Coherent action in external energy policy.
V. The beginning of a new European energy policy III.
 The European Council of 8-9 March 2007 brought a new turn in
energy policy.
 Energy Policy Action Plan for the period 2007-2009:
 Five priority areas:
1. The internal market for gas and electricity
2. Security of supply
3. External energy policy
4. Energy efficiency
5. Energy technologies
V. The beginning of a new European energy policy IV.
 20-20-20 targets: binding commitments by a package of six
legislative acts adopted by the Council and the EP in December
2008.
 The Europe 2020 Strategy: resource-efficient Europe
 The main element of this package was the Directive 28/2009/EC.
 In November 2010, the Energy Strategy was published by the
Commission
V. The beginning of a new European energy policy V.
 The five objectives of the Energy Strategy:
1. Achieving an energy – efficient Europe;
2. Building a truly pan-European integrated energy market;
3. Empowering consumers so as to achieve the highest level of
safety and security;
4. Extending Europe’s leadership in energy technology and
innovation;
5. Strengthening the external dimension of the EU energy
market.
V. The beginning of a new European energy policy VI.
 Development guidelines to improve the interconnection of gas
and pipelines and electricity grids.
 Energy summit: it was held in February 2011.
 Fully working, interconnected and integrated energy market.
 Directives adopted in summer 2009 on energy liberalisation.
 Main aim: the completion of an integrated European energy
market.
 Unbundling and market surveillance
VI. Energy policy in the Treaty of Lisbon
 Energy policy: shared competence between the EU and its
Member States.
 The legal basis for the Union’s energy policy is now laid down in a
separate title.
 Key novelty of the TFEU: solidarity in the area of energy supplies
+ mutual assistance by the Member States in the case of severe
difficulties in the energy supplies of one or more Member States.
 DECISION-MAKING: ordinary legislative procedure.
VII. Literature
- Zoltán Horváth (2011): Handbook on the European Union,
Hungarian National Assembly, Third Edition, Chapter 16., Energy
policy, Hvgorac, pp. 443-457.
- Zoltán Horváth – Bálint Ódor (2010): The Union after Lisbon. The
Treaty Reform of the EU. Chapter 8: The Union’s policies,
Hvgorac, pp. 262.