EU starts work on plans for an Energy Union

The European Commission got down to work on energy union this last week - the first time that the Commissioners as a body had had an in-depth discussion on a key political priority of the new Juncker Commission. In the same week, Europe's energy ministers also met with stakeholders in Riga to discuss the subject.

The issue is timely. Energy security is high on the political agenda, and the European Union imports 55% of its energy. 90% of Europe's housing stock in Europe is energy inefficient, and its energy infrastructure is ageing, while the internal energy market remains far from complete.

The flurry of activity has been given renewed urgency by the crisis in Ukraine. Russian President Putin’s decision to cancel the South Stream pipeline in particular is likely to have far-reaching impacts on the development of EU energy policy, and it brings home forcefully the need for Europe to have a much more coordinated policy.

The goal of this activity is the formal launch later this month of a Commission paper on Energy Union, which will contain a list of legislative and non proposals for action. Also on the 25th February, the EC will publish the Union's proposals for the UN climate talks in December.

At their meeting, the Commissioners were broadly agreed on the main features of a future Energy Union.

A single energy market forms a key pillar of the Energy Union package. This is now formally a shared priority of the presidents of both Commission and Council. An Energy Union would provide a comprehensive approach for dealing with a number of related challenges ranging from energy security to sustainability and competitiveness.

At the February ministerial meeting, Energy and Climate Action Commissioner Miguel Arias Cañete outlined key elements of the Energy Union. These included: - a 10-point plan to deliver a new European Energy Security Strategy - a plan to implement the internal energy market - a new Renewable Energy Package to reach 27% renewables by 2030 (an area in which Jean-Claude Juncker believes we can become a world leader). - energy efficiency - with an upgraded Strategic Energy Technology Plan, a focus on energy storage, and improved access to risk capital - and Investment in research and innovation.

A raft or proposals for reform, and much work will be needed to bring about such a comprehensive plan.

But a boost in this area is not only welcome, it is necessary to confront the new realities which face EU energy policy.

Europe needs to reduce dependence on unreliable energy, in other words energy from Russia, and it is not acceptable that Gazprom should be the only supplier which holds such a dominant position on EU markets.

So we now look forward to the concrete plans - plans which translate into, as one Commissioner put it, an Energy Union that puts citizens at its core.

This means ensuring businesses are able to buy their energy at competitive prices, that Europe is at the leading edge of research in renewable energy, and that the EU builds a sustainable future for the next generation.

A successful plan should be a big boost for Europe's economy, creating jobs and helping to ensure Europe meets it climate change goals. Most importantly, it should ensure that we have control of our own energy supply.