We need a European approach to ensuring gas security of supply within the EU. Outcries coming from press reports, especially when regional supply shortfalls did occur repeatedly. Europe is not only facing the inadequacy of indigenous energy within the EU. High energy prices and the increasing reliance on imports from third countries is reason for unsettling concern. In fact, it is anticipated that by 2030, up to 70 % of the EU’s natural gas consumption would have to be imported.
Notwithstanding such anticipation, the actually existing EU energy policy addressing gas security of supply is not abundant. Particular provisions concerning external relations were and remained few and far between. The rather weak EU energy policy is this area is in essence comprised of the persisting systematic prioritisation of the internal market goal and, at this stage, a vocal but inconsistent common security of supply policy. Bilateral energy deals with third countries prevail while undermining the ability of the EU to ‘speak with one voice’. The missing provision of detailed security of supply rules leads to the proliferation of national, uncoordinated and counterproductive approaches, as well as the perception of a lack of long-term strategy in order to address vulnerabilities. Key institutional problems of EU policy addressing gas security of supply result from the pervasive effects of 27 diverging predilections for market-based energy procurement, natural resource endowments, national champions interests, foreign policies and geographic neighbourhood specificities, as well as the unwillingness of the Member States to give the rudder to a supranational body.
The Commission reacted with a rather fragmented 2nd Strategic Energy Review setting target for 2020 and beyond 2050. Recently several specific instruments have been introduced addressing primarily short-term security of supply crises, such as the infrastructure package or the new Regulation on security of supply. Moreover, the Commission will present a communication on the external dimension of energy policy in 2011, which will identify ways to reinforce the efficiency of EU policies with regard to the external relations in this area. The EU announced as well to sign energy framework agreements with key suppliers and transit countries, covering for instance market access issues like network development, the draft strategy states.
Formulating the policy is one thing. Starting to work on implementing paths, developing the requisite policy and legal instruments aligned to deliver is much more challenging.
Are we on the right track to meet our stated objective – a true European supply security policy? Is the current architecture on which the EU gas security of supply policy is built able to deliver those responses needed in order to meet the growing risks and changing realities EU gas security faces? How should European institutions and regulation adapt and respond?
The Clingendael International Energy Programme (CIEP), the Loyola de Palacio Chair (LdP) of the European University Institute, the Fondazione ENI Enrico Mattei (FEEM) and Wilton Park Conferences (WPC) will organise a four-tier program for discussing the potential for a new EU gas security of supply architecture. The program will consist of four workshops where academics will discuss with stakeholders from governments, regulators and industry. The objective of the program is to deliver a comprehensive report and a set of conclusions and recommendations.
