DG Energy and Transport, European CommissionFabrizio Barbaso

16/04/2008

EU ENERGY SECURITY STRATEGIES

ARF Energy Security Seminar

EUROPEANCOMMISSION

| 2EU Energy Security Strategies

EU energy mix: business as usual is not sustainable

20020055

Solid fuels17,7%

Natural gas

24,6%

Nuclear14,2%

Renewables

6,7%

Others0,2%

Crude oil and

petroleum products36,7%

0%

20%

40%

60%

80%

100%

total oil natural gas solids

2000 2010 2020 2030

Import dependency

0

250

500

750

1000

1250

1500

1750

2000

1990 2000 2010 2020 2030

0

25

50

75

100

Energy demand and carbon intensity

~ 80% fossil fuel

SOURCE: Eurostat.

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Nigeria 2%

Qatar 1%

Muscat Oman 0%

Libya 1%

Norway 13%Russia

24%

OPEC14%

CIS (except Russia) 2%

Other3% Algeria

11%

EU-2743%

SOURCE: European Commission, Eurostat 2005.

- EU27 production decreasing

- Import by 2010 – 62%

- Import by 2020 – 75-80%

EU-27 origin of gas

| 4EU Energy Security Strategies

Integrated climate and energy policy

• International Dialogue• European stock management (oil/gas)• Refining capacity and energy storage • Diversification

FULLY FULLY

BALANCED BALANCED

INTEGRATEDINTEGRATED

AND AND

MUTUALLY REINFORCEDMUTUALLY REINFORCEDSustainable

Development

• Renewable energy• Energy efficiency• Nuclear• Research and innovation• Emission trading

Competitiveness • Internal Market• Interconnections (Trans-European networks)

• European electricity and gas network• Research and innovation

Clean coalCarbon sequestrationAlternative fuelsEnergy efficiencyNuclear

Security of supply

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Key drivers by 2020

By 2020 +20% EFFICIENCY

BIO-FUELS

Min 10%binding

ELECTRICITY

MS binding choice

HEATING & COOLING

MS bindingchoice

By 2020 binding 20% RENEWABLES in final energy consumption at EU level

NATIONAL TARGETS & ACTION PLANS

By 2020 -20% EU GHG

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Elements for security of supply

. Internal market.Solidarity. Infrastructure development.Diversification of sources and supply routes.Strong measures to improve energy efficiency.A common international energy policy

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Open and transparent internal energy market

. 3rd Internal Energy Market in electricity and gas package, September 2007

.Main shortcomings:» Lack of TSO cooperation» Regulatory gas» Lack of interconnections

.Proposed solutions:» Effective unbundling» TSO cooperation» European Agency for Regulatory Cooperation» Solidarity arrangements

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Solidarity in security of supply

.Gas Coordination Group

.Oil Supply Group

.Network of Energy Security Correspondents

.Strategic stocks (oil and gas): revision of oil stocks directive to be tabled end 2008; study on gas storage to start soon

.Effective mechanisms for energy crisis management: new proposals

.Electricity Interconnections

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Infrastructure development

.Continuous identification of missing infrastructure

.European coordinators for 4 priority projects:» Power-Link Germany, Poland, Lithuania» Connections to off-shore wind power, Northern Europe» Electricity interconnections France-Spain» Nabucco pipeline

. TEN-E projects of “European interest”

.Way forward on strategic energy networks to be addressed in the 2nd Strategic Energy Review, end 2008

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Electricity projects of European interest

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Priority projects for natural gas

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Diversifying energy sources

.Diversifying supply sources, routes and producers (LNG in gas)

.Renewable energy proposals – 20% target by 2020

.Biofuels use in transport - 10% 2020

.Strategic Energy Technology Plan: November 2007 » 6 priority Industrial Initiatives: second generation bio-fuels, large scale offshore wind,

smart electricity grid, photovoltaic electricity, fourth generation fission nuclear reactors, sustainable coal and gas technologies, particularly carbon capture and storage

| 13EU Energy Security Strategies

Realising the potential of energy efficiency

.Energy Efficiency Action Plan - adopted on 19 October 2006, saving 20% energy by 2020

.Actions in transport, appliances, buildings, heat and electricity generation, transmission and distribution

.On international level – International Partnership for Energy Efficiency Cooperation

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International energy policy

.Cooperation with key energy producers, transit countries, EU neighbours: Russia, Central Asia, Ukraine, Mediterranean, OPEC, etc.

.Relations with consumer countries in international, regional and bilateral context: IEA, USA, China, India, Japan, Africa-Europe Partnership, and others

. International negotiations, agreements, partnerships on energy, climate, trade and technology: post-2012, Major Emitters, ECT, IPEEC, M2M, CSLF,...

| 15EU Energy Security Strategies

International energy policy

.A new EU-ASEAN Senior Officials Dialogue on Energy Cooperation - a unique region-to-region format

.Asia-Europe Meeting (ASEM) format – energy security, climate change as new topics for discussion

. 1st ASEM Ministerial Conference on Energy Security – 10 October 2008 in Brussels

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Thank you for your attention!

For more information on EU energy policy:

http://ec.europa.eu/energy/index_en.html