Resolution on external aspects of energy security

The Council adopted the following conclusions on the Second Strategy Energy Review. It welcomes the energy security and energy efficiency package presented by the Commission on November 13 2008, in particular the Communication entitled "An EU Energy Security and Solidarity Action Plan”. The conclusions outline short and long term priorities concerning this issue.

1) Short term Priorities: efforts for interconnection and diversification of energy suppliers, sources and supply routes must intensify, notably in the gas sector, as was proved during the recent unprecedented interruption of gas supplies from Russia via Ukraine to the EU. In order to provide for the infrastructure needs and diversification of energy supplies of a well integrated EU energy market and to be able to prevent possible future major supply disruptions in gas or other energy sectors or cope with their consequences, the Council agrees to:

·         carry out further work on the six priority infrastructure actions: (i) the Southern gas corridor, (ii) a diverse and adequate LNG supply for Europe, (iii) effective interconnection of the Baltic region, (iv) the Mediterranean Energy Ring, (v) adequate North-South gas and electricity interconnections within Central and South-East Europe, and (vi) the North Sea and North West Offshore Grid. These actions are without prejudice to ongoing TEN-E projects and to the discussion on concrete projects in the context of both the TEN-E policy revision, the European Recovery Plan and decisions on financing that will be taken in accordance with applicable budgetary and financial rules or to the financing of other infrastructure that may contribute to diversify suppliers, sources and routes in a geographically balanced way and to enhance connectivity for central as well as peripheral European energy markets;

·         improve transparency and promoting investments, be they public or private, in gas storage as sufficient gas stocks proved to be of significant importance for mitigating supply disruptions;

·         explore the feasibility of a mechanism, in line with EU competition rules, which would facilitate access to Caspian gas with a view to enabling competitive new gas sources to come onto the European market and the necessary infrastructure to be constructed;

·         regularly assess energy supply and demand including information on physical gas flows, storage capacities and stock changes and infrastructure and production capacities that would facilitate identification of investments that could contribute to reducing risks to security of supply. In this context, while noting that infrastructure investments are primarily but not exclusively driven by market factors, the Council supports the intensification of the activities of the European Networks of Transmission System Operators on supply and generation adequacy outlooks and network development plans, as foreseen in the Third Package, as well as of the Market Observatory for Energy;

·         in the context of the TEN-E policy revision, the need to refine the criteria for the selection of infrastructure including interconnections, which should be based on the EU energy policy goals, contributing to the creation of a fully interconnected EU energy market, competitive energy supplies, the energy security of Member States and the EU and the diversification of energy suppliers, sources and supply routes, while striking the right balance between the economic viability and maturity of the projects and their contribution to energy security;

·         identify and remove barriers to investment, including by means of streamlining of planning and consultation procedures or by appointing European coordinators, in particular for projects which improve interconnection;

·         promote a co-ordinated approach between Commission and Member States, where appropriate, in order to support in a cost effective way large scale deployment of offshore wind power in the European seas while preserving the reliability of the grid.

Due to increasing energy demand worldwide and in order to ensure a more diversified and secure supply, energy policy represents a key part of external relations of the EU and its Member States. The Council stresses that it is important to:

·         ensure that the EU and its Member States deliver consistent messages, drawing from the experience of the January gas supply crisis, on external energy issues in their dialogues with supplier, transit and consumer countries;

·         messages to third countries should be consistent with the EU policy objectives, focusing on the reduction of GHG, energy efficiency, renewables and low-emission technologies;

·         step up energy relationships with third countries and regions, that should be based on the acquis and on the principles of the Energy Charter Treaty;

·         further develop a common approach to external energy policy to support EU, Member States and companies to develop energy cooperation, by defining a common agenda towards energy partner countries and developing new broad-based partnerships;

·         increase transparency and reliability through meaningful exchange of information between the Commission and Member States level on energy relations, including long term supply arrangements, with third countries while preserving commercially-sensitive information.

With a view to addressing supply disruptions, such as the recent ones, the Council reaffirms the need to develop further flexible, efficient and transparent crisis response mechanisms for oil and gas supplies and therefore recognizes the need to:

• revise the Oil Stocks Directive 2006/67 in order to increase transparency and effectiveness;
• improve, as an urgent priority, both national and EU level instruments for ensuring the security of supply for gas, through the revision of the Gas Security of Supply Directive 2004/67 to be tabled by the Commission in 2009, following its preparation in close cooperation with the Gas Coordination Group;
• provide efficient transformation, transmission and consumption of energy sources contribute to energy security in third countries as well as in the EU. Energy efficiency measures should therefore be further developed and strengthened, national energy efficiency plans thoroughly implemented and the Commission Action Plan on Energy Efficiency revised. In this respect, the Council welcomes, in line with the 20% energy efficiency target by 2020 and as a key element to reaching the climate and renewable targets, the Energy Efficiency Package presented by the Commission in November 2008 and it endeavours to reach agreement on the proposals comprised in the Energy Efficiency Package by the end of 2009.

In order to decrease its dependency on external energy sources, the EU needs to make the best use of its own energy resources, including renewables, fossil fuels and, in countries which choose to do so, nuclear energy and create a climate where Member States according to their fuel choice may effectively facilitate investments in these resources.

The Council therefore confirms that it is necessary to:

• promote renewables and tackle barriers to energy from renewable sources

• promote environmentally compatible development of the EU's indigenous fossil fuel resources and their efficient and sustainable use through application of advanced technologies;

• considers the development of a Community regulatory framework for nuclear safety and the need to make progress on waste management, with full involvement of the European Nuclear Safety Regulators Group (ENSREG).

2) Long term priorities: the Council recognizes that due to increasingly tight energy supply-demand balance and the continuous need to address climate changes and contribute to the moderation of global energy demand, it is important to act today to develop a policy agenda for 2030 and a vision for 2050. This should be an important element in the Energy Policy for Europe Action Plan from 2010 onwards. It should involve:

• developing low-carbon and efficient energy systems , including inter alia through greater decentralisation;
• speeding up the implementation of the SET Plan and ensuring consistency with these priorities in the future Framework Research Programmes;
• securing the timely deployment of the CCS technologies and projects;
• speeding up the development of electric vehicles and of hydrogen and alternative fuels in order to decrease oil dependency.

In order to reach the above mentioned priorities, the Council invites the Commission to:

• identify the necessary legislative and non-legislative actions and appropriate financial resources, taking due account inter alia of what is already foreseen under the European Economic Recovery Plan as agreed by the European Council conclusions of December 2008;
• present, on the basis of a thorough impact assessment, a new EU Energy Security and Infrastructure Instrument, building on the result of public consultation on the Green Paper "Towards a secure, sustainable and competitive European energy network";
• prepare a Sustainable Energy Financing Initiative as a joint Commission and European Investment Bank project to mobilise large-scale funding from capital markets for investments and in this respect take into consideration relevant expertise of the EBRD and other international financial institutions.

The Council also held a policy debate on a proposal for a Council directive on oil stocks and on the Commission communication on the security of gas supply (see COM(2008)0769). The debate provided guidance for the further work of the Council and its preparatory bodies on the draft directive in order to reach an early agreement.