De Palacio under fire over energy reforms

By Karen Carstens

Date: 04/12/03

LOYOLA de Palacio is due to unveil emergency proposals next week in response to the power blackouts that have hit several EU countries this year.

The measures are designed to ensure that the Union can achieve security of supply at all times.

But the transport and energy commissioner has been criticized for failing to mention that the new policies, which are intended to increase Europe's electricity generation capacity, may also result in an increase in greenhouse gas emissions.

The package of measures includes a directive on electricity supply and infrastructure, a directive on energy efficiency, a decision on trans-European energy networks (TENs) and a regulation on access to gas-transmission networks.

These follow other measures introduced since a green paper on the security of energy supply was published three years ago. Critics have, however, claimed the proposals ignore climate policy implications, with de Palacio's plans sparking dissent from other Commission directorates, as well as within the energy department itself.

But the Spanish commissioner's spokesman, Gilles Gantelet, dismissed such criticisms. The proposals present a forward-looking strategy to increase the interconnectivity of the EU's electricity grid in order to prevent future calamities such as the blackout which struck Italy in September, he said.

He conceded, however, that this approach would be viewed as the antithesis of an alternative scenario to meet the EU's energy needs advocated by many green groups and championed by Green Luxembourg MEP Claude Turmes. He essentially advocates a more decentralized approach, with energy coming not only via large firms and grids, but also through smaller, regional energy providers who draw upon a wide range of sources, including renewables.

But Gantelet said the Commission's view is that the EU must stick to a more realistic course if it does not want to risk seeing its electricity grid deteriorate to the level seen in the US. The dire state of the North American power network was exemplified by the rolling blackout that hit New York, Toronto, Detroit and all points inbetween in August.

At present, the EU's network "is better", said Gantelet, in terms of responding to supply crises. "But if we do not do something to improve it now, we will fall back to the US level," he cautioned.

Taking into account International Energy Agency (EIA) forecasts of growth in EU electricity demand, the Commission estimates in the proposals that an additional 300 gigawatts of capacity will be needed by 2020.

According to reports, however, both Commission officials and industry sources have suggested that, even allowing for any mix of fossil fuel, nuclear and renewable energy, meeting this target would lead to an increase in greenhouse gas emissions stemming from electricity production.

The World Wide Fund for Nature, in a policy paper last month, criticized de Palacio's proposals for failing to draw links to other EU initiatives to promote energy efficiency.

"The package ignores the EU's commitments on climate change policy, sustainable development and technology leadership. It will seriously undermine urgent policies to promote renewable energy and to increase energy efficiency that the Commission itself is working on."

But Gantelet said that the energy- efficiency measure would address these concerns, and that comments made last week by DG Environment on the issue had been taken into consideration.

Loyola de Palacio, European Commissioner for Transport and Energy, is due to unveil emergency proposals in December 2003 which will ensure the European Union can achieve security of energy supply at all times. However, the new policies may also mean an increase in greenhouse gas emissions.

ESO: In Focus: The Security of Europe's Energy Supply, June 2002 http://www.europeansources.info/record/the-security-of-europes-energy-supply-june-2002/

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