Role and Benefits of Electricity to Society

CLOSING SPEECHES

Delivering the closing speech, Heinz Hilbrecht, Director for Conventional Energies at the European Commission, underlined a number of points arising during the various debates at the EURELECTRIC Oslo conference and linked them to the Commission’s aims and intentions on the energy policy front in the coming year.

Stressing that the development of competitive electricity and gas markets is a “high priority” for the Commission, Mr Hilbrecht acknowledged that “electricity should not always be cheap” and underlined that it would be wrong to claim that liberalisation had led to higher prices. Nevertheless, the “picture is variable” - especially as regards transparency and market integration - and that “while some variability can be tolerated”, the Commission will “examine whether modifications to the legislative framework” should be put forward in 2007.

Mr Hilbrecht reiterated the Commission’s hope that that the competitive market will engender a “high degree of innovation” in energy services and pointed to the “exciting area” and “huge potential” of new energy- and electro-technologies “Low carbon energy production is a key requirement for our future and the right incentives are needed” to encourage research across the board in energy for industry, households and transport, he stressed.

Turning to the Commission’s recent Green Paper on Energy Policy, Mr Hilbrecht reiterated its four basic issues – EU reliance on external energy sources; the EU commitment to curbing climate change; investments in the energy sector; and the rising global energy consumption – and indicated that as a follow-up to the current consultation exercise the Commission would issue a package of eight separate papers by end-2006. These will be: a strategic energy review focusing on the key issues of external energy policy and solidarity between Member States on security of supply; an (annual) report on the state of the internal energy market including individual country-reviews; an action plan on energy efficiency; a roadmap on renewable energy; a strategic energy technology plan; a communication on physical infrastructure security; a priority interconnector plan; an illustrative programme for nuclear power generation (PINC).

Mr Hilbrecht underlined that solutions to the three issues of sustainability, supply security and competitiveness require a “very diverse approach”. “We cannot decide the precise mix of strategies which will deliver a successful energy sector. The important thing is for Community policy to make space for different approaches to make a contribution to our common goal”, hence the need for “non-discriminatory energy markets”.

The Commission Director expressed appreciation for the “support” and “valuable contribution” of the electricity industry in this work and thanked EURELECTRIC for the valuable opportunity for the Commission to “share its ideas and listen to stakeholders” of the industry.

 

We are now at a pivotal moment for European energy policy and Europe must decide on its outlook, must have a clear vision of how it intends to go forward”, EURELECTRIC President Rafael Miranda underlined at the close of the Oslo Conference. Giving the farewell address to the delegates, Mr Miranda posed the question whether the Member States of the European Union “want to retreat into national structures, seek purely national solutions, or continue on the path of European integration through market-integration”, giving the clear answer that “EURELECTRIC believes we should pursue market-based solutions to energy challenges. And for this we need to pursue market-integration”.

Referring to the Oslo Declaration issued during the conference, the President said that the debates over the two days in Oslo had “strengthened my belief that we must all join together to drive the regional market initiative forward, with an action- and implementation-oriented approach, and ensure that it becomes a success story on the way to the final goal of a pan-European Energy Market”. “I hereby call upon electricity stakeholders, policy-makers, governments, regulators and market-players to join forces and show leadership in furthering regional markets. For our part, we of EURELECTRIC stand ready to foster practical commitments and implement agreements”, he assured the stakeholders.

Mr Miranda said that the frank exchange of views heard during these two days “have also underlined the need for further dialogue and partnership with our customers in order to find market-based solutions to their needs”.

Turning to the sessions focussing on the Role of Electricity, Mr Miranda underlined once again that electricity can provide many important solutions - both on the supply and demand side - in order to “meet the challenges of energy security and sustainable development in a rapidly-changing world. Indeed, I would stress that Europe will only be able to meet the enormous energy challenge by according a greater role to electricity. Electricity is really something to be proud of”, he stressed.

Mr Miranda thanked the hosts, Norwegian national energy association EBL, official conference sponsor Accenture, and the supporting organisations who had made a valuable contribution to the event.

Closing, Rafael Miranda looked forward to the next EURELECTRIC Annual Conference, inviting all participants to gather in Antwerp on 11-12 June 2007, where the main theme will be a reflection on ten years of energy liberalisation in Europe and a look forward to the next ten years in the energy sector.