The single energy market forms a key pillar of the energy union package launched by the European Commission in February 2015. To coincide with the launch of its research on this topic, Refuelling Europe: A Roadmap for Completing the Single Energy Market, the Martens Centre hosted an international panel of experts to discuss the new realities facing EU energy policy.
The panelists tried to address the issues namely: the further development of the single energy market as the best mechanism to reach the EU’s three goals of an energy supply that is cost competitive, secure and environmentally sustainable, the impact of cancelling of South Stream upon member states in south east Europe, and the case of the ‘southern gas corridor ’as a viable opportunity for the EU to diversify its energy supply.
Mr. Christian Egenhofer (Head of the Energy and Climate programme) kicked-off the conference by stating that the completion of the Energy Union managed to reach a new European consensus which can unlock remaining issues in this policy area in the future, and constitutes a major breakthrough in the EU energy policy since 1950s. He underlined the need of investment incentives in order to ensure security and flexibility of supply.
Mr. David Buchan (Oxford Institute for Energy Studies) gave the main points of his RefuelEurope paper on the completion of the single energy market, the integration of the internal energy marker and its benefits and the Ukraine crisis impact on the EU’s energy policy. Consequently, this crisis calls for the EU to implement all elements of its energy policy such as long-term reduction in dependence on fossil fuels, a medium-term effort to increase renewables and energy efficiency and more immediate measures to reduce EU states’ vulnerability to any cut-off of energy imports from Russia. He also mentioned that renewals subsidies are like diamonds which keep forever, and asked the European Commission to go further with the single renewables market.
MEP Vladimir Urutchev began his contribution by highlighting the importance of a more regional approach and coordination within EU, bearing in mind that before the Energy Union each country tried to solve the energy efficiency and sustainability problem on its own. On the corridors aspect, he pointed out that the Turkish stream will be a political project much like South stream. Additionally, concerning the politics and the clash of interests, he wondered whether EU would like to give Turkey the power over European gas supply and whether Turkey would be reliable for European customers, considering always the likelihood of an imminent Russian influence on the diversification of sources.
Mr. Brendan Devlin (DG Energy, European Commission) expressed his opinion that Southeastern Europe has made little or no practical progress on the Internal Energy Market, which constitutes a failure of political will, and pointed out that future does not look rosy for energy demand in Europe. According to Mr. Devlin, Turkish streamline is about opening up Turkish market for Russian natural gas, although, EU has benefited from its strong relations with Turkey and Azerbaijan. He concluded that Turkey will remain a strong partner for EU energy policy and added that the more pipelines EU has, the more corridors.