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This week, the Vice President of the Commission Maroš Šefčovič and his colleague Miguel Arias Cañete presented the plans for the Energy Union. As a “5th fundamental freedom”, the uninterrupted continental trade of energy was one of the main projects of the Juncker Commission. Over the coming years, Europe would diversify its energy imports, improve networks, safe more electricity and work towards preventing climate change.

The presentation of the project began with a bold statement: since the ECSC (European Coal and Steel Community), said the Vice President, there had been no other project, which had been as ambitious as the Energy Union. The plan focusses on achieving progress in the electricity, gas and LNG (liquefied natural gas) sectors. It pursues the following four important targets:

  1. Amalgamation of the electricity grids: from 2020, all EU Member States shall be linked in such a way that 10 % of electricity generated domestically can be transmitted to other European countries. This would reduce risks of failure and provide consumers with more choices.
  2.  Making gas imports more transparent: in future, the European Commission wants to participate in negotiations on gas imports by Member States with third countries (such as Russia). The fragmentation of gas imports at national level would have the effect that the European wholesale price for natural gas would be twice as much as that in the USA. Apart from that, one should no longer depend on the supply of just one country. However, there was resistance against the joint procurement of gas by Member States and seller countries.
  3.  “Energy efficiency is the best power station” emphasised the Commissioners. Europe had to do more to save energy. Partial projects would include new laws for SMEs, property renovations as well as heating and cooling. The aim is for the EU to reduce its energy consumption by 27 % by 2030.
  4. CO2 poor society and climate protection: at the Climate Summit in December of this year, the EU would support a binding and effective agreement to keep global warming below 2°C. At a reduction of 40 % of greenhouse gases by 2030 (compared to 1990), Europe would make an important contribution. The transport sector too, which depended to 94 % on fossil energy sources, was an important starting point.

The Energy Union was also very important for private consumers, came the assurance by the members of the Commission: increased interconnectivity and more favourable procurement terms would create more competition, which in turn would lead to lower prices and improved security of supply. To achieve this, the Commission would also take a tougher stance against state subsidies and price regulations, whereby according to Arias Cañete the “losers” of this endeavour also had to be compensated. In addition, the technological change would provide great economic opportunities in respect of more growth and jobs.

However, Maroš Šefčovič and Arias Cañete remained vague with regard to practical implementations: a strong governance system would guarantee the fulfilment of the ambitious targets. Initially, above all existing law, such as the Third Energy Package shall be implemented effectively. The European Agency for the Cooperation of Energy Regulators ACER would also be involved. However, it was not mentioned when concrete legislative proposals will be presented. There would be no need for contractual amendments.