1. IIEA Series on Security of Energy Supplies
Addressing security of supply: Is the EU heading in the right direction?
Christian Egenhofer
Senior Fellow, Centre for European Policy Studies, Brussels & CEMPLP, University of Dundee
Visiting Professor, College of Europe (Bruges & Warsaw) & LUISS University, Rome
Institute of International and European Affairs
Dublin, 4 December 2009

2. completion of internal market and EU integration
After 50 years of ignoring, the need for EU energy policy is increasingly accepted …
completion of internal market and EU integration
depletion of indigenous resources
increasing EU external identity (?)
changing geopolitics
emerging economies
climate change policy 2 2

3. Evaluating driving forces
Completion of internal energy market
- Convergence of energy markets
- Strengthening of EU’s regulatory capacity
- Broadening of regulatory considerations
Climate change (more convergence)
Growing dependency ?
Growing external identity?

4. Most recent developments
Increases competition, regulatory capacity, interconnectors
3rd liberalisation package
EU energy/climate package
Minimises national discretion on fuel mix <-- reinforced by market
Lisbon Treaty
Establishes EU competence
SSER (plus TSER…)
Gives strategic handle ?
Indicates MS readiness to accept EU action (on infrastructure)
E Economic Recovery Plan
Gas Regulation
Sectoral security of supply policy 4 4

5. Addressing what security of supply risks ? Identifying EU added-value
After Lisbon Treaty – member states remain responsible for energy mix … but EU solidarity clauses
Addressing what security of supply risks ?
Identifying EU added-value
Avoiding moral hazard

6. Issues
Formulating a “European Concept of Security of Supply” (‘E concept of energy policy’): where is EU added-value? Sector by sector
Member states disagree on exact features masking disagreement on the role of markets (economic rents; solidarity and moral hazard, an integrated market would do away with national gas security policy
With market liberalisation (and ”globalisation) government role has changed; are governments responsible for securing energy supply at affordable prices – or should they set a framework to minimise risks?

7. Issues (2) The EU role of infrastructure finance
Developing a “European System of Energy Regulators”: scope, statute, role of European Commission

8. Issues (3) External
External energy policy in search of the added-value or “speaking with one voice” is mantra … but not the issue : speaking with one voice requires agreement/consensus  Energy security is now part of EU foreign policy but does not go beyond the familiar notion of ”Europeanisation” (projecting the EU’s values externally)
Security of supply: security or economic issue? (‘securisation’ – Poland has different view?) What strategy towards Russia ?
What does interdependence mean?
More honesty on role of EU climate change policy on Russia

9. Conclusions (EU and security of supply)
(General) willingness to act but EU added value required (and not clear)
Examples: i) Gas Regulation; ii) (smart) grid, iii) import pipelines (Nabucco) ???
Energy efficiency, renewables & nuclear: added value is given but member states’ interest undermine EU-wide solution  market solution may in the need be the best!
Not much EU added value in oil
EU security of supply policy will gradually emerge (through organic, possibly regional integration
EU external role is exaggerated and success depends on consensus

10. CENTRE FOR EUROPEAN POLICY STUDIES
Place du Congrès 1
B Brussels T: F: