CLOSING SPEECH - ANDRIS PIEBALGS

“Europe needs an integrated and coherent energy policy, really bringing together the three underlying objectives of energy policy – competitiveness, security of supply and sustainable development. And given that the global energy market has changed fundamentally over the last half decade, with high and volatile oil prices, ever increasing EU import dependence on fossil fuels and exploding demand in the developing world, the need for a rational and integrated Energy Policy for Europe has never been more urgent”, EU Energy Commissioner Andris Piebalgs told delegates at the closing session of the EURELECTRIC Annual Conference on 14 June.

Addressing the question posed by the Conference title - Power for Europe: can we shape the future? – Mr Piebalgs said that the “we” implies a partnership between various actors: Europe’s energy industry, Member States at national, regional and local level, and the European Commission. The Commission “will not only to use its role as legislator, but probably more importantly, as catalyst for co-ordinated action at the Member State level, to develop an energy policy that will meet the needs of its citizens and industry over the coming decades”, he promised.

Top of his list was energy efficiency, on which he vowed to come forward with a Green Paper by the end of June. He called for “the active collaboration of Europe’s electricity industry in improving the energy efficiency of its generating base, and, importantly, in developing a new approach on energy services” which he described as “a major new line of business for the electricity industry”.

The Commissioner also told the audience of his intention to table a Green Paper on Security of Supply by year-end, updating the year-2000 document, to reflect the “profound changes that have affected the energy markets since then”. The Commission also intends to set up a “technology platform” on CO2 capture-and-storage, and “I think that we need to make this one of the key energy research priorities for the 7th R&D Framework Programme, and also for Member States”, he argued.

Next, Mr Piebalgs insisted that Member States must “keep existing promises on renewable energies”, referring to this year’s expected Communication on national renewables support schemes. The Commissioner disappointed those in the audience who “favour a single European-wide support scheme” when he revealed that the Communication does not “envisage such a scheme at this stage, but will identify options for an evolution towards one”. He supported the need to improve the competitiveness of renewables, without however, “putting into jeopardy the targets that we have set”.

A third priority for Mr Piebalgs is “improving dialogue with our energy suppliers, to ensure reliability, and to promote diversity and new infrastructure bringing energy into Europe”.

Fourthly he listed “nuclear power” which contributes about a third of EU power generating capacity. While pointing out that “the decision whether or not to rely on nuclear is quite rightly a question of subsidiarity” he stressed that “the Commission will maintain pressure on Member States to make progress on a proper European framework that guarantees a high level of security and safety for nuclear energy”.

Turning to the internal energy market, Mr Piebalgs reaffirmed his determination to ensure full implementation of the Directives. He envisages “significant progress in terms of market integration and the intensity of competition, once the new Directives are fully effective in all Member States”, especially regarding “the introduction of regulatory authorities with a full set of competences and the reinforcement of unbundling of the transmission and distribution system operators”. Mr Piebalgs reminded delegates that the Commission will, at the end of 2005, issue a report examining progress to date in constructing the internal market for electricity and gas. No legislative proposals are expected to come out of this report, but it will provide for discussion as to whether any such measures are necessary. “If a third package is truly necessary I will not hesitate to table it. But any such package must be really essential. Industry needs a stable regulatory environment to invest, and this must be taken into account”, stressed Mr Piebalgs.

Looking once more to the future, the Energy Commissioner concluded by saying that “shaping the future of Europe’s energy policy" will require us to “unpick existing preconceptions about energy policy”.