The European Energy Policy: Building New Perspectives

Summary:

Europe’s policy is surely progressing, and common measures, instruments and rules have been adopted. But at the same time it is possible to observe, paradoxically, a multitude of symptoms reflecting the profound malfunctioning of the system. A European gas market is indeed being constructed, but it remains highly exposed to geopolitical risks, as borne out by the 2014 Ukrainian crisis. Similar problems exist in electricity. There are more and more interconnections between countries. But the backdrop is of dysfunctional price signals and physical deterioration of the networks. Meanwhile the market for CO2 emissions is not fulfilling its role. Another paradox concerns investments, which need to be substantial for networks and for the management of demand. But, it is precisely at this moment that some major power companies and investors have adopted strategies to avoid Europe, stung by policies which no longer provide any mid- or long-term price signals. More profoundly still, an autarkic model is emerging with a return, if not an apology, of individual production by individual consumers and industries that are completely ignoring solidarity.

Does it mean that the construction of a European common energy policy is stuttering? Should our collective and chronic incapacity to build a common European policy be accepted fatalistically?

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