EUROPE STRIVES TO DECREASE ITS RUSSIAN GAS DEPENDENCY

On the 25th of February the European Commission presented its Energy Union Package designed to continue the development of the European energy market and energy security. The Energy Union is high on the European political agenda constituting one of the key priorities of the Junker Commission aiming at eroding Russia’s ability to dictate prices in European markets.

The Energy Union Package focuses on three main priorities. First, it aims to continue the diversification of Europe’s natural gas market. Second, it views to modernise the electricity market, and, third, it wishes to develop energy efficiency via the use of renewables and other alternative forms of energy.

The first aim of the package about natural gas market involves internal development, namely energy infrastructure projects that are expected to create new high quality jobs and develop new export markets through further investment in research, development and innovation. Moreover, the European Commission will provide for emergency measures in the event of a supply cut-off or shortage. This plan includes finding other external suppliers with a view to diminish Russia’s ability to use natural gas for political gains. In addition, the natural gas market plan aims at liberalising natural gas prices and increasing transparency in supply contracts.

The second objective of the Energy Union Package is to work towards the development of a more integrated electricity network. This could dramatically increase the resilience and efficiency of the EU power sector and, although it would not affect Russia, it is expected that it will have an impact on the energy prices.

The third aim is that of improving energy efficiency and encouraging wider use of renewable energy. This aim is in line with the climate change advocacy and the EU’s greenhouse gas emissions targets which involve curbing fossil fuel demand and decreasing Europe’s vulnerability.

However, for the time being, the Energy Union Package is simply a framework of policy objectives. It needs to be explored and specific pieces of legislation to be drafted before presenting them to the European Parliament. It will, therefore, take time before any substantial progress on these initiatives is made.

Di Eva Sali