Sefcovic: “Europe is Serious about a Fundamental Energy Transition"

The European Commission adopted Energy Union Package on February 25, 2015 in the form of Commission communication. As a policy document that does not have legal authority, the communication presents a framework strategy for a resilient Energy Union with a forward-looking climate change policy.

Same day with the adoption of Energy Union Package, Vice President of the European Commission Maros Sefcovic who is in charge of this Project, gave a speech at the European Parliament plenary. In his speech, he said about the Package: “We take a big step towards an energy market that is economically sustainable; socially inclusive; and environmental friendly. An energy market is integrated, interconnected, resilient and secure.” He also emphasized the importance of commitments of all actors; the European Parliament as co-legislator, regional and local authorities, private investors, EU citizens, and the Member States for successful implementation of the Package.

According to the Package, the goal of Energy Union is providing a fundamental transformation of European energy system in order to ensure a secure, sustainable, competitive and affordable energy to all European customers.

In the Package, five main characteristics of the Energy Union are indicated such as energy security based on solidarity and trust, a fully integrated European energy market, energy efficiency contributing to moderation of demand, decarbonizing the economy and research, innovation and competitiveness.

It needs to develop new measures and a concrete plan for acquiring five main characteristics of the Energy Union. For each characteristic, some measures are indicated in the Package. About €200 billion has to be allocated for requiring investments in generation, networks and energy efficiency that is necessary for transition towards a more secure and sustainable energy system.

First, energy security can be achieved by diversification of energy sources, suppliers, and routes. At this point, finishing Southern Gas Corridor construction, the establishment of liquid gas hubs in Northern, Central and Eastern Europe and also in the Mediterranean area, and placing necessary infrastructure for reversing gas flows between member states are important. Additionally, compliance of intergovernmental gas contracts to EU law and more transparency in commercial contracts will be provided.

Second, free flow of energy across Europe should be provided as if it were a fifth freedom. For this purpose, the 28 European energy markets will be integrated into one by reverse gas flows system and interconnection for electricity flows between member states.

Thirdly, Energy Union will make European energy system fit for the future, fit for a low-carbon and sustainable economy. It provides a new legislation on the electricity market design for ensuring that energy efficiency can compete on equal terms with generation capacity. Additionally, better access to financing instruments for energy efficiency in the transport and building sectors, notably at the local level will be promoted.

Fourth, the energy system will be transformed to driven by renewable energy sources instead of fossil fuels. Also, citizens, cooperatives or local communities can play a much more active role in the energy system.

Energy Union project’s timing is meaningful regarding to Ukraine crisis between Russia and the EU. The European Commission is aware of necessity of implementing some measures for diversifying energy sources and suppliers. But there are some barriers before realizing the Energy Union. The article 194 of Lisbon Treaty gives the right to determine the conditions for exploiting its energy resources, its choice between different energy sources and the general structure of energy supply to Member States. And the energy security is considered as a national issue among these states. In this context, the Member States may avoid from making Energy Union Package legally binding because of Package’s restrictive nature.

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