Five Views on the Energy Union: Assessment, Hurdles
Natural Gas Europe asked the same question about the Energy Union to five experts.
“What's your take on the Energy Union package? From your perspective, what are the hurdles and possible difficulties ahead?”
The most common definition was “ambitious plan/blueprint,” while “member states/countries” was the most common word to describe the hurdles.
Cillian O Donoghue, Account Manager at Fleishman Hillard Energy Practice
Similarly to what we have seen in Financial Services and the Banking Union, the Energy Union Package is an excellent communications tool to drum up interest in EU Climate and Energy Policy beyond the limited few in Brussels policymaking circles. However, in regulatory and legislative terms there is little new in the Package, it represents more a rebranding of pre-existing planned initiatives.
The biggest challenge for the Energy Union is clearly to win the support of key Member States for a greater role for the EU in policy making. At present, the current direction is for a greater role for the EU as Energy and Climate Policy along with the digital agenda, are the only two areas where we are seeing an increasing role of Brussels via-a-vis Member States. The new Governance scheme which will guide the Energy Union and the 2030 Climate and Energy Package has been left deliberately vague. Looking ahead, the Commission will need to convince Member States, who are traditionally very protective of their right to decide their own energy mix as laid out in the Treaties, that a greater role for Brussels in this realm is in their interests.
Walter Peeraer, CEO of Fluxys
The Energy Union initiative provides an ambitious blueprint to achieve coherence and effectiveness in the overall approach to meet the European climate, energy security and competition policies. We welcome that the Commission clearly recognizes the central role of TSOs in the process and pushes ahead for more market integration. Fluxys firmly shoulders this objective and is committed to develop cross-border market integration solutions with other TSOs. We are also convinced that today as well as tomorrow gas and gas infrastructure are key components in delivering a secure, sustainable, competitive and affordable energy system throughout Europe: they can realise a huge potential in road and maritime transport, in energy storage and as partners in the integration of renewable energy sources.
The Commission proposal however fails to endorse this key role of gas and gas infrastructure in the envisaged long-term decarbonised future. This leads to a stifling paradox with respect to the massive infrastructure investments needed to realize the ambitions set forward. The short-term market environment presents a similar challenge. With amortisation periods of 50 years or more, large gas infrastructure investments require underlying long-term commitments from the market or other incentives to be viable
Dirk Buschle, Deputy Director at Energy Community
The Energy Union was born out of crisis and the strong sentiment of Europe's vulnerability as a continent depending on energy imports. To reconnect to the spirit of the 1950s by developing the vision of a Union is a bold but appropriate move in view of the magnitude of the current crisis in the East. On the other hand, the strife for energy security in a globalized energy world has the potential to become a new narrative for a continent in a perpetual legitimacy crisis. To make the utmost of our shared interests and values in this respect, an Energy Union should not only deepen but also broaden current European energy policy and solidarity, by extending them to our neighbouring countries. The Energy Community is the instrument to achieve this, and I am happy to see that the Commission's Energy Union Package commits to strengthen it, to ensure effective implementation and to improve integration with the EU energy markets. This commitment coincides with the ongoing reform of the Energy Community Treaty. The parallelism of both developments, Energy Union conceptualization and Energy Community reform, offers a unique chance now to walk the walk after having talked the talk.
Baptiste Desbois, Energy Procurement Consultant at E&C bvba
I believe that the communication released by the European Commission sets up an ambitious plan to move ahead. It has the merit of bringing fresh air into the previous long-lasting debates and "resets the EU's energy policy in the right direction". A lot of details have still to be further defined or fine-tuned as it's still a rough proposal, but it's an interesting basis to start with. However, implementing these measures won't be a quick and easy task. Some obstacles could jeopardize the project. For example, significant efforts will have to be deployed by Brussels on a stronger and coherent governance to be able to deal with different national voices and aspirations which could alter the process. Nothing is certain yet.
Thierry Deschuyteneer, Executive Secretary at Gas Infrastructure Europe (GIE)
Creating an Energy Union should be instrumental to achieving the energy and climate policy objectives of Europe. We have already has an “Energy Highway” which can also be used for gas from renewable sources. Gas infrastructure will be the backbone of the new innovative energy system, allowing European citizens to benefit from a secure, efficient and sustainable energy supply.
Sergio Matalucci
Sergio Matalucci is an Associate Partner at Natural Gas Europe. Follow him on Twitter: @SergioMatalucci