EU Common energy policy: a trojan horse for member states?

Energy dialogue between the European Union and Russia

Energy dependency on Russia is one of the most discussed topics among EU member states. We can even call it the Trojan horse of EU Common policies. The European Union founding treaties do not include provisions directly regulating the energy sector, as the member states have not entrusted supranational institutions with managing the energy sector.

The European Commission estimates that the dependency of the Union on energy imports will increase, from the present 50 percent, to nearly 70 percent during the next 25 years. It is possible that reductions can be achieved by creating additional energy connections between member states of the European Union, especially in the Baltic sea area in cooperation with Poland and Finland. There is the expediency of building a branch connection to the Baltic sea gas pipeline, planned from Russia to Germany, connecting to additional member states.

However if there is no dialogue, there will be no decisions. As the largest exporter of energy carriers in the Baltic sea region, Russia should be included in observing the rules of energy carriers' shipment and environmental safety.

In developing relations with Russia we should take into consideration that energy constitutes an integral part of Russia's security--it is used to justify Moscow's recourse to power in protecting its interests and resolving problems in relations with neighboring states. At the same time we need to consider that the EU needs Russian energy resources.

Possible solutions

In the production of electricity we should implement modern energy technologies that would enable us to make oil shale energy more environmentally friendly, and by establishing power stations that produce both electricity and heat on the basis of bio-fuels and peat. Thus, we would disperse the production of electricity without excessively increasing the use of natural gas.

If the gas supply is discontinued, the Baltic states would have to start regulating consumption to limit use by the chemical industry and industrial consumers, and to guarantee supply to users who cannot use reserve fuels or are in conditions where interruptions are not acceptable.

State policy of promoting energy saving should be made more effective, proceeding from the guidelines of the EU Directive on buildings' energy efficiency, and their observance should be guaranteed. Since transport is the most important consumer of imported fuels, saving fuel in this sector would directly contribute towards reducing foreign dependency. The agreements signed between Eesti Energia and the United Energy Systems of the Russian Federation should be concluded at the state level to guarantee Estonia's energy security.

Before construction of gas turbine power stations, the risks of natural gas supply security and the impact of price increases of imported natural gas on the production of electricity should be analyzed.

Important considerations

It is in the interests of Estonia to participate actively, competently and consistently in working with EU energy policy, linking it to foreign and security policy. The foreign relations of the Community require an energy policy which represents the common interests of member states in relations with Russia or other countries and enterprises exporting energy.

It is in Estonia's best interests to prevent the possibility of energy exporting states, including Russia, using the energy sector to exert pressure in relations between states. It is in Estonia's best interests to stress the principle of solidarity in the common energy policy shaped by the EU and support energy projects that are not based solely on business considerations.

It is in Estonia's best interests to be an equal partner with Russia in negotiations. This can only happen through the cooperation of European countries. It is in Estonia's best interests to draw attention to the energy security of the Baltic states that are far removed from the energy market of the EU, and to the need to connect Baltic energy networks with the networks of the EU. It is in Estonia's best interests to support the completion of the Polish-Lithuanian energy connection as an important link in creating the so-called Baltic Energy Circle.

It is in Estonia's best interests to limit its electricity purchases from Russia, to compensate only for the deficits covering peak loads. It is in Estonia's interests to keep 1990 as the base year for calculating greenhouse gas emissions, because we need additional investments for developing a sustainable energy sector and one source could be revenue from the sale of the emission quotas.

Lack of common energy policy in the EU

Lack of a common and coherent energy policy in the EU clearly reflects the differences between the energy strategies of the member states. This creates a vicious circle, because without a common policy the member states must look for possibilities to protect their interests individually. At the same time, the member states have not entrusted to the EC the competence to represent their common interests. The inclusion of the interests of the Baltic states would strengthen the energy security of the rest of Europe.

The foreign relations of the Community need to include an energy component, because any other situation would not enable it to represent the common interests of member states in relations with Russia or other countries and enterprises exporting energy.

Anna-Maria Galojan is a political scientist and foreign policy analyst at Tartu University.