Green Blog

The European Commission has recently published a communication on EU energy policy that makes interesting reading.  The document discusses where the EU fits in the global energy market, the security of energy supply and related issues such as climate change and energy safety.

The overall objective of the EU’s energy policy is to ensure safe, secure, affordable and sustainable energy supplies.  The global demand for energy is, however, changing rapidly with demand from China and India making a significant impact.  Globally it is estimated that demand will increase by one third between 2008 and 2035, while the EU demand will remain static, and the demand in both China and India is expected to double.  Energy demand in the Middle East is expected to increase by 70% in the same period.

Growth of this magnitude is bound to put pressure on the security of energy supplies to the EU.  At the moment the EU imports about half of all its energy needs from third countries and is the world’s largest energy importer when compared to other regions as the table below shows.  At present trends the EU will import 70% of its entire energy needs by 2030.

Top energy importing countries and regions, 2008 

Source: International Energy Agency

Europe is lucky in so far as it is close to major energy sources for some fuels.  Approximately 85% of natural gas and 50% of crude oil imports into the EU come from nearby Russia, Norway and Algeria.  About 60% of all coal used is produced in the EU and 27% comes from Russia.  The remainder, however, comes from as far away as South Africa, Australia, Colombia and America.  Practically all of the natural uranium used in the EU is imported.

The EU’s heavy reliance on imported energy, combined with the overall growth in global energy demand, is bound to lead to price fluctuations and disruptions to energy supply.  To minimize the risks, the communication discusses the need to invest in energy production and in the infrastructure required to move energy around – both within the EU and between the EU and the sources of supply.  This includes the development of a Southern energy corridor between the EU and the Caspian/Middle East Basin as well as upgrading the Eastern corridor which links the EU to Russia through Belarus and Ukraine.  Developing, and linking to, solar power in North Africa is also discussed.

According to the International Energy Agency, last year has seen the highest level of carbon dioxide emissions worldwide and the predicted increase in carbon intensive energy in future years will lead to accelerated climate change.  Some countries are improving energy efficiency but globally there is little change.  The communication states that there is an urgent need for global action on resource efficiency and low carbon energy solutions with demand for renewable energy predicted to triple in the next decade. 

Ireland is well positioned to capitalize on this growing threat to the EU’s energy needs.  We have the potential to satisfy all of our own energy needs from renewable sources and to export renewable energy to the EU.  Our wind potential, combined with pumped storage, can guarantee this form of renewable energy regardless of wind conditions.  We can reduce or eliminate the six billion euro bill that we pay each year for imported fuel and can gain additional revenue from the sale of our energy to other countries.   

The Communication from the EU can be accessed at http://ec.europa.eu/energy/international/security_of_supply/doc/sec_2011_1022.pdf