The State of the European Union 2017

THE STATE OF THE EUROPEAN UNION

does not really tackle the challenge of replacing

energy policy in the wider context of the

European Union’s policy objectives. While it is of

course understandable that not all topics can be

dealt through legislative texts at the same time

– the Clean Energy Package is already impres-

sively dense – it is more worrying not to see any

global strategy framework, which would outline

the articulation of the Package with crucial is-

sues such as carbon pricing (both in and outside

the EU ETS), energy and transport infrastruc-

tures and energy competitiveness for the

European industry as well as agriculture. Such

absence of a general strategy clearly shows that

the “holistic” approach promoted by the

Commission, not only has not been yet trans-

lated into acts, but, more worryingly, might not

even have been thought through yet.

However, it is crucial to coordinate the gov-

ernance of the Energy Union with broader poli-

cy goals. If we are to meet our goals for 2050,

one has to be aware that neither a linear ex-

trapolation of the past is possible, nor can a

step-by-step policy account for the need to

completely change our mode of energy genera-

tion and consumption. The underlying goals of

the Winter Package, namely putting energy ef-

ficiency first, striving for international leadership

in renewables and focusing on consumers, de-

fine the priorities regarding the direction of the

new energy policy. However, these priorities

need to be further spelled out. The energy land-

scape has become more diverse over the last

decades. New actors with innovative business

models and technologies enter the market. The

regulatory framework should facilitate market

entry and reduce privileges of the old (fossil)

players.

Moreover, the Commission approach is to a

great extent energy sector biased; meaning that

there is a lack of an all-sector encompassing

strategy. Current debates in member states with

high levels of volatile renewable energy centre

on how to successfully couple sectors or more

so how to integrate energy sectors. The

Commission proposal to install e-vehicle infra-

structure with new buildings falls short in push-

ing this approach. What is needed is the devel-

opment of concrete concepts and derived from

that a regulatory framework that promotes sec-

tor coupling, using synergies. Mirroring the

trans-European transportation networks, the

establishment of cross-border “Green Corridors”

for instance could be established to promote

long-range e-mobility technologies while at the

same upholding the free movement of citizens

and goods in decarbonised times. Likewise, the

funding of research and the build-up of industri-

al-scale power to gas installations and local as

well as industrial power to heat facilities could

help solve the issue of storage of fluctuant re-

newable electricity. Furthermore, power to gas

plants could, if large enough, contribute to in-

creased energy security by supplying gas.

The transformation of our energy system

also means structural change, affecting jobs,

livelihoods and the economic and social well-

being of regions. This is especially the case of

-intensive regions defined by high emitting

and energy intensive industries. Hence, policies

have to be devised to guide regions that are

considered energy-intensive on their path of

transition. Looming unemployment and struc-

tural upheavals in CO

-intensive regions need

guidance and financial support, in order to fore-

stall the development of lost regions. The fur-

ther development of the EEU should therefore

expand its strict technical and economic stance

to encompass the social dimensions of energy

transformation by addressing regional develop-

ment issues. The Commission must acknowl-

edge that a transformation of the European