How a European Energy Union Should Look
French President François Hollande received an energy report on February 23th from Michel Derdevet, the CEO of ERDF including 12 proposals to meet the energy challenges Europe faces today as tensions between Russia and Eastern Europe countries re-emerge.
The European Commission announced its own plans on February 25th.
Secure the supply
1- Strengthen national policies to maintain security of supply. It’s a critical issue as Europe is dealing with the crisis between Russia and Ukraine. According to the report, EU members should adopt common rules and the same way to assess the risks to prevent a blackout from happening. European countries could share their own forecasts in terms of energy balance so they can elaborate a strategy with common goals and a list of priority projects.
2- Transmission operators should develop a close cooperation to ensure the supplies and reduce energy costs. As of today, adjudications and prices are very different from country to country. Michel Derdevet thinks European countries should adjust their standards and enhance the interconnections.
3- Developing cooperations between distribution networks from neighboring states like France and Germany or France and Spain.
4- Create a European Forum for Territories to share local initiatives in terms of energy transition showing how they implement European and national policies at a local level. The forum would also address concerns expressed by local residents. Beyond the forum, the report supports twinnings between regional or local authorities across Europe.
Invest
5- The European Union will have to spend hundreds of billions euros by 2030. National regulators must launch joint efforts to make the investments they need and share the costs. They also should receive government guarantees to back their loans.
6- Create an investment fund for areas crossed by energy infrastructures. It could offset the extra cost of power lines burials and boost local projects but any appeal will be banned, the conciliation procedure limited and the overall project will have to be approved by a referendum vote.
7- Planning large scale investments beyond the proposals of the European Commission by taking advantage of low interest rates and growing the economy. A good strategy in the long run. Critical infrastructure projects should be a priority. The report proposes to write-off energy investments for the calculation of budget deficits. A European savings account to encourage investments, a Franco-German Fund
to finance infrastructures and Research and Development projects.
Innovate
8- Coordinate efforts in Research and Development for smart grids, storage and mobility. Michel Dervevet suggests to develop an energy storage program aimed to reduce the costs. A network of European laboratories and institutes should be created.
9- Accelerate the standardization of energy rules would be essential to speed up the energy revolution and make economies of scale. Bilateral relationship between France and Germany could be a first step. The Joint Research Center should study the possibility to lead a network of laboratories. Partnerships as well as common projects are also interesting ideas.
10- Big Data is a huge opportunity for Europe and leading members such as France and Germany should create an Energy data platform. Big Data could stimulates economic growth across Europe, develops data protection and the region could become more competitive thanks to a better anticipation of energy use and production.
11- Clean cars should be widespread on European roads. The goal is to create up to 1,750 recharging stations on European highways which means one station every 80 km. A project estimated to cost 450 million euros.
12- Create an Energy European College to advance European innovation within a research center, multiple training and professional courses working with laboratories.
The European Commission unveiled on February 25th its own plan for an Energy Union. The plan, which was a promise of Jean-Claude Juncker as a candidate to lead the commission during the EU general election in 2014 could save up to 40 billion euros each year.
Kevin Bonnaud