BEMIP Regional Conference
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1 Szymon Polak External Energy Policy BEMIP Regional Conference Baltic Energy Market Interconnection Plan: towards Integrated and Sustainable energy region 14th September 2012 Vilnius, Lithuania Session II. BEMIP and external dimension of EU energy policy External dimension of EU energy policy: potential and challenges 1
2 Main documents external energy policy European Council and TTE Council conclusions EC 4th February 2011 EC 9th December 2011 TTE 28th February 2011 TTE 25th November 2011 Communications Legal acts Second Strategic Energy Review COM (2008)781, Energy 2020 COM(2010)2020 Energy infrastructure priorities for 2020 and beyond - A Blueprint for an integrated European energy network COM(2010)677 The EU Energy Policy: Engaging with Partners beyond our Borders (COM(2011)0539) 3rd liberalisation package (i.a. Directive 73/2009 and regulation 715/2009) Regulation on security of gas supply 994/2010 Proposal for a decision setting up information exchange mechanism with regard to IGAs with third countries in energy (COM(2011)540) 2
3 Context Growing dependance on import of fossil fuels 1/3 Source: European Commission 3
4 Context Growing dependance on import of fossil fuels 2/3 Source: European Commission 4
5 Context Growing dependance on import of fossil fuels 3/3 The main challenge that gas infrastructure faces is the high and growing dependence on gas imports (to reach about 73-79% by 2020 and 81-89% of consumption by 2030) mainly due to the depletion of indigenous resources Import dependency calls for sufficient and diversified import infrastructure from various sources. This development should be closely linked with the EU's strategy towards third countries. Source: Energy infrastructure priorities for 2020 and beyond - A Blueprint for an integrated European energy network SEC(2010) 1395/2 5
6 Context main external/internal risks and trends External suppliers adopting anticompetitive practices on the EU market External geopolitical and commercial risks Increasing global demand Developments in climate policy Nuclear phasing-out in some EU countries 6
7 Context gas crises of 2009 From 6-20 January 2009 around 300 mcm/day was missing Source: Gas Coordination Group, DG TREN 7
8 Solution Integrated and balanced energy policy Competitiveness Security of Supply Sustainable development 8
9 Key driving principles during the Polish Presidency EXTERNAL DIMENSION OF ENERGY POLICY Well functioning internal market as a prerequisite for effective external policy Common legal area with third countries based on acquis communautaire Rules-based access to the EU market to avoid market distortions (no exclusions or derogations from acquis communautaire for any market participant) Coherent use of existing and new mechanisms and instruments (Council conclusions based on the communication of the European Commission) 9
10 The EU cooperation with third countries building on the internal energy market 1/2 EXTERNAL DIMENSION OF ENERGY POLICY European Council: The Presidency's report demonstrates that important progress has been made in pursuing the orientations set by the February 2011 European Council on completing the internal market by 2014( ) In particular, the following points require urgent progress: full and speedy implementation of the internal market legislation by Member States in full respect of the agreed deadlines( ) 10
11 The EU cooperation with third countries building on the internal energy market 2/2 European Council: agreements with key supplier and transit countries are fully consistent with EU Internal Market legislation EXTERNAL DIMENSION OF ENERGY POLICY TTE Council: further developing transparent legally-based rules of cooperation with Russia in view of future energy market integration, notably by addressing, in the framework of a strong energy chapter in a new PCA with full consistency with the internal energy market legislation, the following issues: access to energy resources and infrastructure, investment protection, supply crisis prevention and management, security and reliability of energy systems, level playing field, reciprocity and nondiscriminatory pricing of energy resources 11
12 Common legal area with third countries based on acquis communautaire TTE Council: extension of the application of the EU regulatory framework should be pursued through: EXTERNAL DIMENSION OF ENERGY POLICY enhancing and extending the Energy Community notably by encouraging full and timely implementation and enforcement of the acquis, as well as the removal of technical barriers, aiming at the creation of an Energy Community-wide energy market giving a new impulse for the reinforcement of the Energy Charter Treaty, in close cooperation with other ECT Members ( ) so that the Treaty might become a global instrument, recognised as the basis for international energy regulation in its main fields of competence 12
13 Diversification of suppliers, routes and sources Southern Corridor European Council: Europe needs to diversify its routes and sources of supply. The Commission is accordingly invited to continue its efforts to facilitate the development of strategic corridors for the transport of large volumes of gas such as the Southern Corridor EXTERNAL DIMENSION OF ENERGY POLICY Agreements with Azerbaijan and Turkmenistan on gas TCP project Decision on extension of TANAP to Europe (basing on market potencial of the regions future demand and infrastructure developments, perspectives for new suppliers on the market, regional diversification needs, level of single supplier dependency, investment costs, scalability of projects, etc.) 13
14 Diversification of suppliers, routes and sources Southern Corridor Source: European Commission 14
15 No EU Member State should remain isolated from the European gas and electricity networks after 2015 European Council: (The EU) should also develop measures as necessary to ensure a level playing field for EU power producers vis-à-vis producers outside the European Economic Area. EXTERNAL DIMENSION OF ENERGY POLICY Negotiations with Russia and Belorussia in respect to integration of the Baltic States with the EU electricity system 15
16 Internal coordination is vital Coherent use of existing and new mechanisms and instruments (Council conclusions of 25th Nov based on the communication of the European Commission) EXTERNAL DIMENSION OF ENERGY POLICY Key driving principles, actors and directions. Additionally about 40 key follow up actions. 16
17 Next steps continuation of the course Internal market rules: 3rd Energy Package, Competition law, infrastructure development Security of supply: SoS regulation, diversification (southern corridor), stock management, IGA decision Continuity Implementation of conclusions of 25th November 2011 Export of the EU legislation through legally binding tools (Energy Community, ECT) 17
18 Thank you for your attention. Szymon Polak External Energy Policy Permanent Representation of the Republic of Poland to the European Union Tel
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