EU launches new energy plan

Following the gas-crisis between Russia and Ukraine which left many EU states short of supplies, the European Commission yesterday took the first steps towards a more integrated energy policy among the 25 member states.

The Commission proposed the establishment of a European Energy Supply Observatory and a revision of the existing Community legislation on oil and gas stocks to ensure the EU member states can deal with potential supply disruptions.

The ideas submitted by the Commission in the form of a Green Paper will now have to be discussed and approved by EU leaders, meeting later on this month in Brussels.

Among the main suggestions, the Commission is proposing that member states diversify their supplies of oil and gas more and do not remain dependent on a handful of countries, as is the current situation. Member States should also and to stock more reserves to be used in "crises" situations.

The Green Paper also proposes the establishment of an EU energy regulator and an action plan on energy efficiency. This plan, which the Commission plans to launch later this year, will identify the measures necessary for the EU to save 20 per cent of the energy that it would otherwise consume by 2020.

In addition, the Commission proposed that the EU prepares a new road map for renewable energy sources in the EU, with possible targets to 2020 and beyond in order to provide a stable investment climate to generate more competitive renewable energy in Europe.

According to statistics, in a no-policy-change scenario, the EU's dependency on imported energy is forecast to rise to 70 per cent in the next 20 to 30 years from the current 50 per cent. Malta is 100 per cent dependent on imported energy in the form of oil and gas.

In its Green Paper, the Commission is also proposing action so that it can speak on energy matters with one voice and thus maximise its strength. To this end, the Commission proposed that in the planned review of its energy policy it should identify infrastructure priorities for the EU's security of supply, including new pipelines and LNG (Liquid Natural Gas) terminals, and agree about concrete action to ensure that such priorities are realised.

The Commission is also suggesting identifying a renewed approach with regard to Europe's partners, including Russia, reflecting their inter-dependence. A new Community mechanism is also proposed in order to enable rapid and coordinated reactions to emergency external energy supply situations.

Commission President José Manuel Barroso said the energy challenges of the 21st century require a common EU response. "The EU is an essential element in delivering sustainable, competitive and secure energy for European citizens. A common approach, articulated with a common voice, will enable Europe to lead the search for energy solutions," he said.