EU Power Expansion Plan Hit With Climate Challenge

BRUSSELS, Belgium, November 24, 2003 (ENS) - Emergency proposals put forward by EU Transport and Energy Commissioner Loyola de Palacio to increase Europe's electricity generation capacity are encountering significant opposition within the European Commission. One key criticism is de Palacio's failure to mention possible implications for European Union efforts to curtail greenhouse gas emissions.

A draft communication on energy infrastructure and security of supply currently undergoing inter-service consultation within the Commission was prepared by the energy department in the aftermath of recent power blackouts in Europe.

Four blackouts from August 28 to September 28 in the UK, Denmark, Sweden, and Italy affected millions of people. Coming shortly after the August 14 blackout in the United States and Canada left more than 50 million without power for more than 24 hours, the blackouts have given rise to demand for greater generating capacity and stability in Europe.

Although an analysis of the European blackouts by Janusz Bialek of the University of Edinburgh, Scotland states that they all were transmission based, there was no problem with generation adequacy, and systems were not stressed prior to the blackouts, European consumers are still demanding greater generating capacity.

The demand is intensified as the European electricity and gas market is in the process of opening to competition. From mid-2004 all business customers throughout the European Union will be free to choose their electricity and gas suppliers. From 2007 all EU households will have their free choice of suppliers.

Loyola de Palacio of Spain is vice president of the European Commission and the commissioner responsible for energy and transport. (Photo courtesy European Commission)

In addition, over the next 20 years, the EU will need to build new power stations or renovate existing power stations to provide 600 gigawatts of power, and "that means 750 large power stations," de Palacio said.

The EU also faces heavy investments in pipelines, liquid natural gas terminals and storage facilities, and new electric transmission lines, de Palacio explained.

"Maintaining security of supply will continue to be a key challenge for the internal market," she said.

To meet this challenge, de Palacio is about to publish a communication that details three legislative proposals - a directive on electricity supply and infrastructure, a decision on trans-European energy networks, and a regulation on access to gas transmission networks.

The absence of any discussion of climate policy implications in the communication has sparked dissent not only from other commission departments but also within the Energy Department.

A source close to the legislation who requests anonymity says that the draft communication will have to do more to address climate concerns before it can secure support within the European Commission, the EU executive branch.

Under the proposed electricity supply directive, member states would have to define policies to provide "adequate generation capacity." Transmission operators would have to regularly issue energy infrastructure "investment strategies" and subject them to the scrutiny of regulators.

Adopting International Energy Agency forecasts of growth in EU electricity demand, the communication estimates that an additional 300 gigawatts of capacity will be needed by 2020.

EU Commission, industry and NGO sources contacted all suggested that - allowing for any likely mix of fossil fuel, nuclear and renewable energy - meeting the target would inevitably mean an increase in greenhouse gas emissions.

Critics are also questioning the communication's failure to link measures to encourage capacity expansion to long promised initiatives to manage demand and promote energy efficiency. The Commission risks being "inconsistent in its own actions," a source said.

Green Member of the European Parliament Claude Turmes attacked de Palacio's plans when she initially outlined them last month.

Environmental group WWF has slammed the draft communication for endorsing business-as-usual energy demand growth scenarios, and for implicitly favoring fossil fuel technologies by not offering specific support for renewable sources and decentralized generating plants.

{Published in cooperation with ENDS Environment Daily, Europe's choice for environmental news. Environmental Data Services Ltd, London. Email: envdaily@ends.co.uk}