On the road to an Energy Union ? Prospects, Goals and Challenges of a Potential Game-Changer. Rome, 25th of March - 6.00 pm Seminar, Edison,

1. “Energy Union”: a packaging? Yes…
with a content…
Rome– Seminar Edison
(25 March 2015)
Jean-Michel Glachant
Director “Florence School of Regulation”
@ European University Institute – Florence (Italy)

5. I/ 2005-2009 EU gets “full” energy policy
What was it about?
Previsibility (foreseeability) very low: “EU energy policy” was not
at all foreseen in 2004; and…. already “packaged” in 2009!
• Game Changer 1 2005 Hampton Court Council Tony Blair:
long life EU internal Security of Supply
• Game Changer 2 2007 (Lisbon treaty) Berlin Council Angela
Merkel: long life EU energy sustainability 20-20-20 in 2020
• Game Changer 3 2006&2009 Russia-Ukraine: external
security plans + SoS Reg. 2010 & Infrastr. Package 2011-13
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6. II/ 2013-14: Countries ask for “RES
cease-fire”; Commission agrees
#November 2013: RES major policy shift without debate or vote = guide lines
(+ corridor gossips: Berlin policy dead)
November 2013 - Guide lines for RES support till 2020 / Only small units &
less mature RES (as off-shore & bio-mass) keep FiT / big units and deployed
RES only FiP & Tgy neutral auction (ex: On-Shore or PV 1MW
#Confirmed January 2014: Berlin 20-20-20 “game over”.
Competitiveness & energy cost control back to top
January 2014 - Framework post 2020 / *“EU binding GHGtargets +**MS only
RES target & “appropriate “ EU governance for MS action plans
# Is EU energy policy dead then? Or still alive? Who knows?
>> Summer 2014: Juncker’s team ‘Towards An Energy Union” + VP What?
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7. 1- 25 February 2015: Commission COM. ‘’Towards an Energy Union’’ NB:
‘Energy Union’ has NO predefined content; is only ‘catch word’.
It is NOT a new institution (like an EU Treaty or pro-Treaty (Schengen-like
Agreement)
Or even an EU body (say ‘ACER’ or ‘ENTSO’).
SO many alternative ‘Energy Union(s)’ are conceivable even an ‘Empty Box’
III. 2015-2020: An empty EnergyUnion?
~1 / Internal Market BAU?

8. 2- Energy Union <mini> to boost Internal Market >> Eurelectric, Eurogas
(EU) put new tag on (existing institutions + BAU)
= let’s call it Ener.Un:
BUT it targets ’Only’ ‘Internal Market’ extended to RES & Capacity
Mechanism being fully ‘market based’; and ‘technology neutral’.
However such EnergyUnion-BAU ends a bit undefined:
¤ MS have strong power to take ‘outside the market’ initiatives
#Germany: Off-shore + Energy Efficiency push
#UK: SoS being Capacity mechanism + LT contrat with UK Nuclear or tidal +
off-shore + ISO Grid +?
#France: own Capacity mechanism + Off-shore too? + Will put EDF as
shareholder of Areva + to strangle ‘EPR’ (or send its IPR to China)? But
creating new ‘small’ nuke reactors 600MW again with China; etc
¤ >> Then: at what speeed Commission could follow or catch-up MS?
III. 2015-2020: An empty EnergyUnion?
~1 / Internal Market BAU?

9. www.florence-school.eu
III. (1) Commission’s 25 Feb.
/Not BAU for #Market Design and #Governance?
1- EU 4th Big Package Internal Market & Governance
#Market
*Legislation 2016; retail & wholesale; integrating RES; phasing out non
market based support; coordinating Capacity Mechanisms .
**Legislation 2018 Electricity security of supply (= ‘recall’ of national SoS)
#Governance
***Review framework from 3d Package notably for ACER (to ++power of
Europeanizing regulation) & ENTSOs (to ++ as regional operational entities
to create)
****Propose guidance for ‘regional cooperation for market integration’
and to act at regional level wih regu. Bodies, MS and stakeholders
*****Create ‘Energy Infrastructure Forum’ with MS, Regional coop. Groups,
and EU institutions (ACER? Banks?) by late 2015
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10. www.florence-school.eu
IV. (2) Commission’s 25 Feb.
/Not BAU for #Supply Security and #Ext.Governance
2- EU actions for Security of Supply
#SoS *Legislation: Revision Gas Regulation by 2015-2016
** Implementation of existing PCIs with adequate financing
** *Strategy for LNG an its storage
** **Council 19-20 March : explore feasibility of gas joint-buying
mechanism
#ExtGov ** ***Legislation: Revision Decision International Agreement for
Commission to intervene ex ante before signature of agreements with 1/3
countries
** ** **Coordination Commission / HR-VP / MS to create international
diplomacy for energy & climate issues; for international treaties (as TTIP) or
within WTO, and launch new initiatives (as agreement with India, with
China ;etc) in field RES, Ener.eff, etc.
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11. www.florence-school.eu
IV. (3) Commission’s 25 Feb.
/Not BAU #for Sustainability beyond Market
3- Fields of EU actions for sustainability:
*Legislation to revise EnerEff directive &make proposals to meet 2030target
**RES package by 2016-17 incl.sustainable &cost-effective biomass, biofuels
*** Legislation to achieve Oct2014GHG target in ETS & non-ETS sectors
** **Legislation ‘Full Road Transport Package’ covering efficient pricing of
infrastructures; rool-out of intelligent transport; enhancing ener.eff
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** ***Strategy to facilitate Investment in efficient ‘Heating & Cooling’
** ** **Create Smart financing for smart buildings fund
** ** ***To push MS & regions to use more the funds to renovate housings
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**** **** Strategy for transport research & innovation agenda
**** **** *Revision ‘Strategic Energy Technology Plan’
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12. www.florence-school.eu
How to conclude? Yes a content (a full catalog of!)
#Many Energy Union(s) drafted on 25th Feb. #Which
(s) to get? #I don’t know! # To be seen in 2015-17…

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Thank you for your attention
Email contact: jean-michel.glachant@eui.eu
Follow me on Twitter: @JMGlachant already 6 617 tweets
My web site: http://www.florence-school.eu