First Vijverberg Session

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First Vijverberg Session
Netherlands Chapter
Two sides of the same coin? Securing European
energy supplies with internal and external
policies Christian Egenhofer Arno
Behrens Centre for European Policy Studies
(CEPS) Brussels

• The Hague, 20 May 2008

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A European external energy policy to address
energy security and other energy challenges?

• Necessity/possibility?
• Preconditions
• EU policy options
• 10 questions

to provoke discussion
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Content

1. Introduction
2. Current external energy policy
3. Energy chapter in Lisbon treaty
4. Limitations of coordination
5. What concept of security of supply?
6. The role of the internal energy market
7. Russia
8. One voice
9. Preconditions and options for a common external
   energy policy
10. 10 questions

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State of EU external energy policy (II)

• Energy security is now part of EU foreign policy
  as it was not a few years ago
• Does not go beyond the familiar notion of
  Europeanisation (projecting the EUs values
  externally) ? concept of a European security of
  supply policy is missing
• EU stuck in coordination, partnerships ... ?

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Does Lisbon Treaty make the difference? (III)

• New energy chapter is overdue fuel mix subject
  to unanimity (what does this mean?)
• Open questions solidarity mechanism will need to
  be fleshed out, moral hazard, who pays?
• Stronger Commission role in disciplining member
  states ?

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Better coo-ordination (IV)

• European Council sticks to traditional EU role of
  coordination
• But signs of change become visible (Network of
  energy correspondents ...)
• Role of periodic Strategic Energy Review?

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What is security of supply ? (V)

• With market liberalisation (globalisation)
  government role has changed
• Are governments responsible for securing energy
  supply at affordable prices or should they set
  a framework to minimise risks? ? Securisation
  or not?
• Disagreement still ongoing? Poland? Other member
  states?

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The role of the internal market ? (VI)

• Member states disagree on exact features masking
  disagreement on the role of markets
• Economic rents are at stake
• Moral hazard issues
• Does more integration do away with gas security
  issues?

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Russia (VII)

• Russias dominant role and the failure to bind
  Russia into a partnership
• Only Russia to blame?
• Bilateral gas supply deals make a lot of sense

• EU preaches interdependence but reacts in a
  neurotic way
• The role of markets
• Mandils prescription mix of internal and
  external policies

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Speaking with one voice (VIII)

• Speaking with one as the mantra but what can
  Europe say if there is no agreement? Ask Mr
  Solana
• If Europe agrees, it can act trade, climate
  change
• Mr/Ms Energy risks duplication of structures,
  bureaucracy, infighting
• Lisbon Treaty will help but will take time
• Is there a way around EU consensus-building ?

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Preconditions and options (IX)

• EU will need to develop a regulatory framework
  (including market design) that reflects security
  of supply considerations
• Financing issues are on agenda (security of
  supply does not come for free)
• Need for common understanding of security of
  supply ? government intervention (securisation?)
  or framework?

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Preconditions and options (IX)(Contd)

• 4. In transition to true internal market, need
  for a stronger Commission (watchdog) role
• 5. If EU is serious about interdependence ,
  need to develop the concept
• 6. Impacts of EU and global climate change
  policy on Russia will need to be recognised
• No way to get around EU consensus-building if the
  EU is to speak with one voice understood and EU
  will need to develop a regulatory framework

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10 questions (X)

• What is a EU security of supply concept?
• What shape of an emergency strategy?
• What are regulatory conditions for an internal
  energy market that addresses security of supply?
• Will member states accept a stronger Commission
  role?
• What does interdependence mean?
• How to finance EU solidarity measures?
• Does Europe need a European Grid Operator and/or
  a European Regulator?
• To what extent can markets address the Russia
  question?
• How to recognise the impacts of global climate
  change policy on Russias interests?
• Will member states live up to ambitions of the
  climate/energy package?

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CENTRE FOREUROPEANPOLICYSTUDIES

• christian.egenhofer_at_ceps.eu
• arno.behrens_at_ceps.eu
• Place du Congrès 1
• B-1000 Brussels
• T 32 2 229 3911
• F 32 2 219 4151
• www.ceps.eu