Western Balkan states to feel EU Energy Union impact

Subject The implications of the EU's planned Energy Union for the Western Balkans. Significance The cancellation of the South Stream gas pipeline underlined the exposure of the non-EU countries in the Western Balkans to EU energy policy. The EU's planned Energy Union will have implications for these states, which are grouped in the EU-backed Energy Community. Impacts The Energy Union's over-focus on gas could hold back development of the Western Balkans's greater potential in renewables. The Energy Union's potential may not be fully realised if the EU and Western Balkan do not deepen and widen regional ties. Small markets will exacerbate lack of funding from both state and private sources for major infrastructure projects.

Significance The proposals are the latest in a long line of attempts to establish a more integrated approach to energy policy within the EU and greater coordination of energy diplomacy with the rest of the world. The latest scheme, conceived against the background of deteriorating relations with Russia and amid fears for the bloc's energy security, originated in calls from former Polish Prime Minister (now President of the European Council) Donald Tusk for the EU to act collectively to boost its indigenous energy resources and negotiate collectively with energy exporters. Impacts The Energy Union could help to enhance EU energy policy and diplomacy but stops well short of centralising energy policy decisions. It is unclear how far member states will be willing to delegate responsibilities in areas such as market regulation and energy diplomacy. It is uncertain how far the Commission will be prepared to use enforcement powers where member states fail to meet existing commitments.


Significance In the weeks after the energy earthquake generated by Russian President Vladimir Putin's announcement that Russia was cancelling plans to construct the South Stream gas pipeline across the Black Sea, tremors and aftershocks are still reverberating around South-Eastern Europe. Hopes that the announcement was a bluff intended to increase Russia's bargaining power with Brussels, or that South Stream can be revived, seem misconceived. Impacts Passing the blame for the cancellation onto the EU is unlikely to work, in part thanks to the way in which Putin broke the news. Russia will lose significant leverage over the participant countries, particularly those in Eastern and South-Eastern Europe. The biggest winner could be the EU, assuming it steps into the energy vacuum and helps countries secure alternative supply routes.


Author(s):  
Y. V. Borovskiy ◽  
K. V. Trachuk

Ideological and institutional framework of the European energy policy, which is still work in progress, is crucial to the EU as it faces new political and economic challenges related to the recent Ukrainian crisis. Even if key energy policy issues are still decided by member states as the EU only seeks to speak with one voice in energy matters externally, much progress has been made over the last two decades in terms of the EU's energy policy formulation and institutional development. The Lisbon Treaty made the energy policy a sphere of "shared competence" of EU institutions and member states. The European Commission's numerous policy documents ("White" and "Green books" 1995, 2000 and 2006) provided a basis for the development of an integrated energy market. Substantial progress has been achieved in the area of energy policy harmonization between the EU and neighboring countries (Energy Charter Treaty, European Energy Community). The Union's key energy policy areas also included supply diversification (trans-European energy networks), development of unconventional energy production, climate change and energy efficiency. Over the last decade climate changes has become a cornerstone of EU energy policy and is regarded by the EU as key to moderating energy demand and reducing import dependency.


Subject The Ionian-Adriatic gas pipeline. Significance The Ionian-Adriatic Pipeline (IAP) could bring Caspian natural gas to Western Balkan markets, encourage a regional switch to gas consumption, improve energy security and bolster the EU-sponsored Energy Community. The EU, Azerbaijan and the Trans-Adriatic Pipeline (TAP) consortium are potential investors. Impacts Despite political support, raising the projected costs, estimated at 618 million euros (689 million dollars), could be difficult. Although it is anchored in supply from TAP, the pipeline is designed to allow reverse flow from north to south. A Baltic-Adriatic gas corridor would challenge Gazprom's market dominance although Russia is keeping a low profile on the various plans.


2021 ◽  
Vol 65 (5) ◽  
pp. 39-48
Author(s):  
O. Yudina

Received 08.05.2020. Energy has always been of particular importance to the European Union. Meanwhile, up to the beginning of the 21st century, this area had been in exclusive competence of member states, with timid attempts of the European Commission (EC) to receive part of the powers in the energy sphere. The article is devoted to the issues of the EU common external energy policy development that was accompanied by a dichotomy of interests between the member-states, which hardly like the idea of the energy sector communitarisation, and the European Commission, which has been the main driver of supranationalisation of the energy sphere for a long period of time. The author characterizes the main achievements towards the EU common external energy policy, including the law regarding the export of energy to neighboring non-member countries through various organizations, such as the Energy Community, the Eastern Partnership, MEDREG, and launching of the European Energy Union (EEU) in 2015. Special attention is paid to external factors that facilitated the enhancement of the European Commission’s role in the energy sphere. The new era for the EU common external energy policy started in 2015 with the EEU and energy security as one of its priority, partly due to the gas crises and political tension between the European Union and Russia. It is noted that the EEU has facilitated the adoption of some EC’s legal proposals that could not be adopted for a long time, such as the mechanism of consultations on new intergovernmental contracts. In general, the creation of the Energy Union should certainly be seen as strengthening the supranational energy competences of the European Commission. It is concluded that the European Commission has made a significant progress towards a common external energy policy, strongly supported by the public opinion that the European Union should speak one voice with third countries. Despite the lack of legally supported competencies in energy for the EC, it gained authority in different directions of the EU energy policy development. Under these circumstances, the common energy market that has led to energy interdependent of the member states, forces them to cooperate at a supranational level. The author argues that third countries should clearly understand the dynamic and processes of communitarisation of the energy sphere and adopt their cooperation with the European Union based on this knowledge.


2005 ◽  
Vol 40 (2) ◽  
pp. 256-277 ◽  
Author(s):  
Debra Johnson

AbstractThis article explores issues of energy supply security from the perspective of the EU–Russian energy relationship and of competing foreign energy policy paradigms. Using approaches developed by Peter Rutland within the context of Russia's energy policy towards the CIS and the three pillars of EU energy policy as a starting point, the article concludes that the overall EU–Russian energy relationship can be best explained through a framework of mutual interest and dependency: that is, the EU is becoming increasingly, but not totally, dependent on Russian energy, particularly gas; and Russia is becoming increasingly, but not totally, dependent on European markets. Nevertheless, other paradigms continue to yield useful insights in relation to individual components of the EU–Russian energy relationship.


2019 ◽  
Vol 7 (1) ◽  
pp. 81-91 ◽  
Author(s):  
Oscar W Fitch-Roy ◽  
David Benson ◽  
Bridget Woodman

The selection and design of renewable electricity support instruments is an important part of European Union (EU) energy policy and central to the governance of the Energy Union. In 2014, the European Commission published updated guidelines for state aid that effectively mandate the EU-wide implementation of auctions for allocating revenue support to commercial scale renewable electricity generation. This article argues that the RES auction’s rapid ascent towards dominance is explained by a coincidence of an activist interpretation of EU state aid law creating demand for knowledge about the instrument and the emergence of a ready source of supply from a burgeoning community of a RES auction specialists and experts. Knowledge gained through EU-wide implementation of auctions further adds to supply of auctions expertise among the community. The implications of positive feedback between instrument demand and the growing supply of knowledge about an instrument reinforces the importance of critical engagement between policymakers and policy experts.


2016 ◽  
Vol 10 (3) ◽  
pp. 427-447 ◽  
Author(s):  
Marijke Welisch ◽  
Gustav Resch ◽  
André Ortner

Purpose The purpose of the paper is to provide estimation results for feasibility of renewable energy source (RES) deployment in Turkey, the Western Balkans and North Africa. From these results, the potential for cooperation in renewables production between the countries and the European Union (EU) is assessed and evaluated, in a mid- (2030) and long-term (up to 2040) perspective. Design/methodology/approach The authors focus on the quantitative assessments undertaken on the extent to which RES cooperation can create mutual benefits, identifying costs and benefits for both sides, but in particular with respect to RES target achievement (2020 and 2030) at EU level. The potentials for RES generation in Turkey, North Africa and the Western Balkans are calculated under different policy pathways, taking into account different levels of economic and non-economic barriers that could occur. Findings Overall, the authors found that increasing RES deployment in the three analysed regions and initiating or intensifying cooperation with EU28 Member States leads to mutual benefits. Concretely, these benefits become apparent in terms of the EU Member States importing renewable energy sources for electricity with a good resource quality and adding on to their targets for RES deployment. At the same time, substantial savings occur for the EU, in turn leading to income and investments in the cooperating regions. Originality/value The assessment underlying this paper is the first of its kind to the authors’ knowledge that opens up the geographical spread in comparison to merely assessing cooperation between Europe and the Middle East and North Africa. Furthermore, the multitude of policy parameters analysed provides detailed and robust insights concerning a broad variety of different possible scenarios.


2011 ◽  
pp. 147-165 ◽  
Author(s):  
Johann-Christian Pielow ◽  
Britta Janina Lewendel

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