EC Publishes Green Paper on European Energy Networks
November 14, 2008 // Published as a news service by IHS
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This green paper sets out the case for a coherent strategy to help enhance the framework for the investments needed in energy networks to bring the benefits of European integration to all energy users - more secure supplies, more sustainable energy choices, such as renewable energy, and more competitive and efficient energy markets.
The EC is concerned that Europe's energy networks are no longer up to the task of providing a secure energy supply in the foreseeable future. Also, meeting the energy and climate change targets that the EU committed itself to in 2007 will require new and modernized energy networks.
Between now and 2030, it is estimated that up to €1 trillion will have to be spent on the EU's electricity grid and generation capacity, and €150 billion on its gas networks (excluding import pipelines from third countries).
Energy networks bring electricity, gas and oil to EU homes and businesses. Some cover a short distance, some cross the whole continent, but all parts are interlinked. Although often invisible, they are expensive to build and create serious risks of accident and disruption if they are not properly maintained.
Today's networks are based on conventional fossil fuel supply systems. The EC feels these need to become more flexible, with a variety of renewable sources, more decentralized power generation, incorporating new energy demand technologies such as "smart" metering, and able to meet new demand patterns, such as overnight battery recharging for plug-in electric vehicles.
A major benefit of a European network is that everyone can help each other build up efficient networks, as well as help each other in a crisis. The more Europe's energy networks are interconnected, the quicker energy suppliers can deal with disruptions by finding alternative supplies.
However, several parts of the EU, such as the Baltic States or the Iberian Peninsula, are poorly interconnected with other parts of the EU.
The EC's new green paper strategy is based on three pillars:
- To make sure that energy networks help, rather than hinder, the switch to more renewable, efficient and low-carbon energy.
- To promote a fully interconnected network, including cross-border and regional links and integrating decentralized generation into the wider picture.
- To make the best possible use of the EU funding that is available.
The EU has supported projects to improve European energy networks for over 13 years though the Trans-European Energy Networks (TEN-E) program, and the EC wants to review and update this program.
However, TEN-E is only part of several EU actions that have an impact on networks, and one suggestion is to bring these actions together to make them more effective and efficient. Another idea is for a new umbrella scheme, an EU Energy Security and Infrastructure Instrument.
To give some examples of the type of projects that should be promoted by the EU, the EC's green paper includes the following major initiatives that would involve clustering many individual network projects involving several countries:
- A Baltic interconnection plan to fully interlink EU countries around the Baltic and North Seas.
- A North Sea offshore grid for wind energy.
- A Mediterranean energy network or "ring" to develop and share the renewable energy resources and gas reserves in North Africa.
- A southern corridor to bring natural gas from the Caspian area into the EU.
- The integration of gas and electricity systems in Central and South-Eastern Europe.
- A strategy for liquefied natural gas.
In practice, these projects would bring together and give a new push to initiatives and projects that could help reform and modernize Europe's energy network.
The EC's green paper is open to consultation for four months from its adoption.
For more information, see the EC's web sites on Second Strategic Energy Review - Securing our Energy Future and on Energy Policy for a Competitive Europe.
Source: European Commission.