Energy Law and Policy in Europe in
a Time of Financial Stress
Global Change in Environmental, Resources
and Energy Law
Centre for Environmental, Resources
and Energy Law
University of Waikato
Iñigo del Guayo
(University of Almería)
13th May 2013
The widening of the
European Union
From 6 Member States (1957) to 27 Member
States (2007)
Widening irrespective of the economic cycles?
(1973-1979) (2007-2013)
1951/1957
Founding
Countries
France
Germany
Italy
Belgium
Luxemburg
The Netherlands
1973
Denmark
Ireland
United kingdom
1981
Greece
1986
Portugal
Spain
November
1989
The fall of the
Berlin Wall. A
new era for the
unification of
Europe
1995
Austria
Finland
Sweden
2004
Cyprus
Check Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
2007
Bulgaria
Rumania
Candidate Countries
Croatia
Macedonia
Turkey
Potential Candidates
Albania
Bosnia - Herzegovina
Montenegro
Serbia
European Economic Area
• Iceland
• Switzerland
• Norway
Crisis of the EU Member States
• Countries of the Euro-zone which have been
rescued:
– Cyprus
– Greece
– Ireland
– Portugal
• Country of the Euro-zone which is about to be
rescued: Slovenia
ENERGY and CRISIS
(lower demand)
– Lower income to the energy system and lower
energy prices
– Puts at risk access to capital and investment in
new infrastructure
– Infrastructure which becomes redundant
– Less Funds for renewable energies
– Slow down the development of trade and markets
– Foster anti-competitive behaviours
– Lower price of Carbon Dioxide (CCS)
SOME RESPONSES
• It is not a problem of scarcity (efficiency and
saving, promotion of indigenous sources…)
• Not a common response: Germany and France
• It is a problem:
– Of promoting economy activity which, in turns,
pushes energy demand up and of
– State deficit
• Infrastructure Planning
• Reduction of aids to renewable energies
A Successful Story: Renewable Energies in
Spain 1998-2012
• The Electricity Act 1997: liberalization
• A Generation Pool
• Renewable Energies:
– Right of access to the grid
– Feed-in-tariff
– A subsidy on top of the electricity price of the pool
SPANISH WIND INDUSTRY (I)
• Second of the EU and fourth in the world
– China: 75.564 MW
– USA: 60.007 MW
– Germany: 31.332 MW
– Spain: 22.785 MW
– Italy: 8.194
• Wind has saved the emission of 132,3 million
tonnes of carbon dioxide between 2005 and
2011
SPANISH WIND INDUSTRY (II)
• Wind has allowed Spain to save 1.919 million
Euros by means of reduction of oil imports
• Model for President Obama
• Strong presence abroad (Scotland and Brazil,
the latter by means of Green Power of
ENDESA)
• Solar, hydro, bio-mass…
THE END OF AN EXPANSIVE PERIOD
(2012-2013)
• Spain
– The Spanish Economic System suffers a deficit, in
that tariffs paid by customers do not cover the
actual cost of electricity supply (production,
transport and distribution)
– Around one third of the deficit is attributable to
aids to renewable energies
• Germany
CARBON DIOXIDE
• The need to reduce CO2 emissions
• Emissions Trading System (ETS)
• Carbon Capture and Storage (CCS)
• The lowest possible prices of a CO2 ton
RESPONSES
• April 2013: the European Parliament did not
help the Emissions Trading System («back
loading») to push the price of CO2 up
• France, the UK and Germany seem now to be
ready to help