Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

EU Prepares to Approve €1 Trillion Master Energy Plan

Politics / Energy Resources Jan 11, 2011 - 01:45 AM GMT

By: Global_Intel_Report

Politics INCIDENT: Towards the end of last year, the European Commission presented its new energy strategy for the next decade, calling for investment of €1 trillion in the EU's energy network, among a series of other measures. Leading Eurocrats hope that an EU energy summit scheduled for next month in Budapest will endorse the proposals and give them some political traction.


SIGNIFICANCE: The new energy strategy is a set of normative proposals that depend upon the member-states, the private sector, and other EU organs such as the European Parliament (EP) for clarification and implementation.

BACKGROUND: The first EU energy "action plan" was formulated in 2006 and was then endorsed in May 2007 by a summit at the level of heads of state and government. That summit called upon the European Commission (EC) to elaborate a new action plan for the decade now beginning. The action plan now expiring has given birth to a number of initiatives, including a series of proposals for liberalization of the energy sector and unbundling electricity production from the provision to consumers, a "climate and energy" package targeting conservation and renewable energy as well as emissions trading, and a "strategic energy technology plan" intended to improve cooperation between the EU and its member-states in research and development of low-carbon technologies.

Last November, the EC presented its proposed "Europe 2020" strategy, based upon feedback from the EU ministers in May to the EC's first suggestions made in March. The EU ministers agreed in May that the new action plan should be ready for summit-level endorsement in a year's time from the presentation of the original draft, i.e., by March 2011. This is the meeting that Hungary, the current president-in-office, intends to be a flagship and showcase for its presidency, which lasts for six months during the first half of the new calendar year. The new action plan's major priority is energy efficiency, although it does not yet establish how to measure improvement. Another priority is to better integrate the all-European energy market, especially the electricity and natural gas markets.

BOTTOM LINE: The EC wishes to make its energy efficiency goals binding upon the member-states while encouraging industry to participate in energy audits. It does not say where the €1 trillion investment that it is calling for will come from. It stresses the role of innovation, but China and the US are already overtaking the EU in wind power and solar markets. The EP's insistence on complete unbundling of electricity production from electricity transmission was not satisfied.

The focus on energy efficiency in particular lacks concrete measures. There is a palpable sentiment in some European political circles in favor of reducing total energy consumption, but these do not directly connect it with the question of how to sustain economic growth, besides suggesting that small and medium enterprises concerned with energy efficiency technologies might flourish. Increasing competition through unbundling is one way the EC sought to address the issue. It had wished to force companies owning both electricity generation and transmission facilities to sell one or the other. A compromise option was then included whereby energy producers could retain their assets but give up management control. Even that was not satisfactory for France and Germany, which successfully insisted that former state monopolies could retain ownership of their energy grids under external supervision. Companies would be able still to govern commercial and investment decisions, but the transmission networks themselves would operate independently.

The priority for improving integration of the energy market builds upon the autumn 2008 EC decision to encourage construction of a "supergrid." This supergrid is intended to allow member-states to share electricity from different sources, from North Sea wind farms to Spanish solar energy to the planned Nabucco gas pipeline from Central Asia through Turkey to Central Europe. The problem is that the supergrid initiative was but the attempt to integrate a collection of national proposals that are not necessarily mutually related. The inability of Brussels to coordinate the inchoate motives of its member-states has for decades been a chronic problem in EU policy implementation. The recent official abandonment of the Trans-European Networks in Energy (TEN-Es) as insufficient to their task is only the latest evidence of that Achilles' heel. (The fate of TENs in transport and in communications appears to be undecided.)

The main lines of the new "Europe 2020" plan are very much like those of the so-called Lisbon Strategy adopted in 2000 to cover the decade just ended. While this suggests a certain degree of continuity, it also indicates a certain failure to realize the earlier-adopted goals. Moreover, the EC seems not to have learned from the fact that the Lisbon Strategy had to be revised because it relied too much on the Brussels center and the member-states, ignoring the European regions, 270 of which are represented in an independent network called the Assembly of European Regions. Indeed, it is difficult to see how energy supply can be decentralized and electricity production multi-sourced without taking into account what the regions have to offer, particularly in terms of innovation. The regions are not only ethnic regions historically existing within current state frontiers but also transborder regions, whose representatives have continually made special contributions to "European construction" over the decades.

Source: http://oilprice.com/Energy/Energy-General/EU-Prepares-to-Approve-€1-Trillion-Master-Energy-Plan.html

By. GIR Analysts for OilPrice.com who provide news and analysis on oil prices, alternative energy, commodities and finance. To find out more visit www.oilprice.com

© 2011 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in