Working on energy-related issues at the European Commission requires much energy in itself. Barely a month goes past without some weighty report being issued. At times it can seem like it is difficult to keep track, but what is clear is that there are some that carry more weight than others. This was the case with the recent publication of the second “Strategic Energy Review” package. It is big, broad and bold and offers up sweeping plans to achieve Europe's core energy pledges. Though it is clear there are many big question marks still hanging over whether the proposals will actually become reality.
The Commission talks of “substantial change in Europe's energy system over the next years”, with public authorities, energy regulators, infrastructure operators, the energy industry and citizens all actively involved. And it covers a whole host of issues, from cutting dependency on energy imports and its external energy relations, to boosting energy efficiency of buildings and exploiting offshore wind energy potential.

Presenting the package, President José Manuel Barroso said: “Energy prices have risen by an average of 15 per cent in the European Union (EU) in the last year. Fifty four per cent of Europe's energy is imported at a cost of €700 for every EU citizen. We have to address this urgently, by taking measures to increase our energy efficiency and reduce our dependence on imports. We have to invest and diversify.”

He added that the proposals adopted represent an unequivocal statement of the Commission's desire to guarantee secure and sustainable energy supplies, and should help deliver on the so-called “treble 20” target—a 20 percent cut in overall energy use, a 20 percent share of all energy needs from renewable sources, and a 20 percent cut in greenhouse gas emissions, all by the year 2020.

It is clear this is the first priority of the review. A clear vision on this is critical, because, as highlighted in the recent EU IssueAlert article, The 2020 Goals: Closer, Yet Further Away?] it is apparent that there are divisions over how best to achieve these goals, particularly taking into account the actual and potential impact of the current financial crisis. The Commission is certainly making it plain that it wants the adoption and rapid implementation of the measures, but the 2020 package needs to be agreed by the decision-making Council of Ministers and the European Parliament in the coming weeks. It will be interesting to see whether member states can work to find a final agreement before the end of the year that is not too watered down, but yet satisfies all.

The second priority focuses on what the Commission calls an Energy Security and Solidarity Action Plan to secure sustainable EU energy supplies and to look at the challenges the region will face between 2020 and 2050. The focus is evidently on energy import dependence, which given current trends is expected to grow. In this regard, on top of making sure the EU meets its renewable energy goals, the Commission underlines infrastructure needs, the diversification of energy supplies and making the best use of the EU's indigenous energy resources, the importance of advancing current policies to achieve energy efficiency objectives, and strengthening the ability of the EU to respond cohesively in a crisis.

Investing in infrastructure is obviously essential and the Commission specifically focuses on the importance of replacing Europe's aging network infrastructure, both nationally and cross-border. A Green Paper on energy networks identifies six strategic initiatives as essential for the EU's energy security: a Baltic Interconnection Plan; a Mediterranean Energy Ring; adequate North-South gas and electricity interconnections with Central and South-East Europe; a North Sea Offshore Grid; a Southern Gas Corridor; and effective liquefied natural gas (LNG) supplies for Europe.

These plans appear to specifically point to the need for a pan-European "super grid," stretching to all corners of the region. There is no doubt it will be beneficial, and perhaps essential, to making the stable and secure supply of energy more regional than national, and to better leverage indigenous resources, whether that be renewable or fossil fuel. For example, when talk turns to offshore wind, on which much onus has been placed with the 2020 goals in mind, there is a critical need for this type of inter-connected infrastructure to help push large quantities of this energy resource into the European electricity market.

On the energy efficiency front, a package of energy efficiency proposals from the Commission aims to make energy savings in a number of areas, such as reinforcing the key energy efficiency legislation on buildings and energy-using products, enhancing the role of energy performance certificates, and inspection reports for heating and air-conditioning systems. Guidelines to promote the use of “highly efficient” cogeneration plants are also on the agenda. And in 2009, the Commission plans a thorough evaluation of the 2006 European Action Plan for Energy Efficiency.

There is significant potential for reducing consumption, with the Commission considering that the biggest savings are in residential and commercial buildings and the manufacturing industry. The key will be strong and focused leadership that works to mobilize public opinion, decision makers and market operators. It will be interesting to see how energy efficiency developments progress in the current financial climate. There has been talk of some being placed on the back burner, but there is also no doubt that there is much value in measures that eventually pay off in reduced costs. Getting it right will require the right support, in the right areas.

Looking beyond its borders, the report also underscores the importance of evaluating the EU's international relations, with more attention paid to solidarity. The report underscores the value of establishing relationships with supplier, transit and consumer countries based on interdependence. This has been much mused over in recent years, particularly with member states often lacking a common policy and consensus on dealing with external parties. The key for the EU is “closer coordination” to bring about unity among member states, rather than division.

The report is what it says it is: “strategic.” It brings together all the various facets of sustainability, competitiveness and security of supply connected to the EU's energy future, and offers an agenda for 2020, to help develop a policy agenda for 2030 and a vision for 2050. It can perhaps be best described as a “wish list” for a high-efficiency, low-carbon energy system, but whether it all comes to pass remains open to much debate.

That debate obviously involves the Commission, but in reality its role is pushing policy and bringing about some sort of coordination and coherence, which is what it is doing. The future actualities and realities of the EU's energy future lie with the member states.