The energy crisis, EU policy and EU citizens

THE HUGE hike in oil prices has pushed the energy agenda high up in the priority list of governments' and people's agendas.

And the energy-sapping consequences of the recent extremely low temperatures that have hit Europe must have contributed to a greater awareness that relying on oil resources is not the best solution, not even in the short term. Even countries with reservations on nuclear energy are having second thoughts.

A Green Paper on the security of energy supply published in 2000 by the EU Commission said very bluntly that the EU hardly had any room for manoeuvre to influence the supply side. Its main options were stated to be increased use of renewable sources of energy, nuclear energy and strengthening dialogue with producer countries.

With renewable sources unable to grow fast, the European Union's dependence on foreign supply is not expected to decrease in the near future. In fact, it is growing and will reach 90% in the case of oil by 2030 and 80% in the case of gas.

And the only real option for the EU in the immediate future is to act on the demand side in a concerted action plan involving the Union as a whole.

A Eurobarometer survey held between October 11 and November 15 in the 25 EU states and acceding candidate countries revealed that 47% of EU citizens preferred European-level decisions on the new energy challenges, such as energy supply security, growing energy consumption and climate change, 37% prefer decisions to be taken on a national level, and 8% want them taken on a local level.

Those interviewed chose renewable energy and research and technology as the means to tackle the energy crisis and showed willingness to learn how to use energy more efficiently.

"The message from the citizens is a clear one - energy is a concern for all Europeans and people expect clear and concrete actions on all political levels. Europe needs a real energy policy focused on security of supply, competitiveness and sustainability," said EU Energy Commissioner Andris Piebalgs.

Forty-eight per cent of all EU citizens believe that their national government should develop the use of solar power: 41% went for promoting advanced research for new energy technologies, while 31% opted for developing the use of wind power. Regulation for the reduction of dependence on oil (23%) and developing the use of nuclear power (12%) were less appreciated among the respondents.

The Eurobarometer poll also revealed that European citizens were interested in learning more about energy efficiency, especially because of the impact that certain energy-saving measures could have on their bills; 43% would like to receive more information on efficient use of energy; 40% opined that governments and authorities should focus on incentives such as tax reductions to encourage energy efficiency.

As many as 80% of all citizens take energy consumption into account when purchasing energy consuming devices. The attention is higher when buying cars or refrigerators than for light bulbs.

Eurobarometer commented that "despite significant variations between countries, it can be said that citizens seem to be more concerned about energy consumption in the new member states than in the EU-15 group. Behaviour concerning light bulbs is revealing: among the six countries where the result for "a lot of attention" exceeds 50%, five are new member states. In Malta, Poland, the Czech Republic, Hungary and Italy almost six out of 10 respondents stated that they paid a lot of attention to the energy consumption of light bulbs, while in Spain, Greece or Ireland this proportion decreases to three out of 10."

A significant percentage of Europeans, 40%, most likely those who are more sensitive to environmental issues, would be prepared to pay more for energy from renewable sources. A price "ceiling" of a 5% price increase seemed to be acceptable.

On this score, significant differences came to the fore between opinions of citizens in EU-15 and the new member states. The latter group is more reluctant to pay higher prices for "green energy".

The survey showed that car use is something few people would renounce to, whatever the price. The rise in fuel prices seems to have an impact only if a ceiling around €2 per litre were to be reached. Only some 10-15% would use their car "a lot less often" or "a bit less often". Almost a third of citizens in the Czech Republic, Slovakia, Poland and Austria would be prepared to significantly reduce the use of vehicles. On the other hand, Irish, Cypriots, Maltese, Dutch, and particularly Slovenians (36% to 47%), would use their cars as often as before any rise.

That hits the nail on the head. The majority will keep using fuel energy only if they are really hard hit. And, human nature being what it is, many of those who will react to higher costs by initially saving on consumption, quite often return to previous levels of use after some time.

Commissioner Piebalgs was back on the subject on January 24 when opening a joint meeting with representatives from the parliaments of the member states, Romania and Bulgaria and the European Parliament. "I will start off with a simple message, of which the whole of the energy consuming industry is acutely aware at present: our energy options are many, all options are open for discussion, but energy efficiency is not one of these options, it is a must. The only question remaining is how to make it happen."

He referred to the "ambitious goal" set by the Green Paper as being achievable and necessary. The EU could save some 20% of its energy consumption by 2020, a potential that can be achieved by increasing energy efficiency in a cost effective way. The EU, said Piebalgs, has gone a long way already down the path of increasing energy efficiency in most of the pertinent sectors.

Half of the 20% potential can be realised if adopted legislation on energy efficiency, and especially the Directive on the Energy Performance of Buildings, is implemented by member states on time and completely.

"This directive had to be implemented by all member states by January 4. This is far from being the case, and causes concern. Other pieces of legislation which are relevant in this respect are the Eco-design Directive for which studies are underway and the very recently adopted directive on energy services. This last directive sets a target for member states to save 9% of their energy consumption over a period of nine years. It will have to be implemented at national level; your role will be vital in bringing about the maximum benefit of this important piece of legislation," Piebalgs told MEPs.

Action on energy efficiency will reduce waste of scarce resources and strengthen the EU's security of supply position. It will strengthen its competitive position in a sector in which Europe is one of the best placed and will give a new push to the innovation and research efforts in the Union.

It will also create jobs. Estimates indicate that if the EU were to use the options to improve energy efficiency necessary to reduce energy consumption by 20%, a very large number of often highly skilled jobs can be created.

Referring again to the Green Paper, Piebalgs said that it was the point of departure for a broad debate involving all stakeholders. "At the end of the consultation process, the Com-mission will come forward with a comprehensive action plan which will identify measures which should be put forward."