COM(2000)769 - Green Paper - Towards a European strategy for the security of energy supply

official title

 

Legal instrument	Green paper
reference by COM-number147	COM(2000)769
Additional COM-numbers	COM(2000)769
CELEX number150	52000DC0769

This page is also available in a full version containing the latest state of affairs, the summary of the European Parliament Legislative Observatory, the legal context, other dossiers related to the dossier at hand, the stakeholders involved (e.g. European Commission directorates-general, European Parliament committees, Council configurations and even individual EU Commissioners and Members of the European Parliament) and finally documents of the European Parliament, the Council of Ministers and the European Commission.

• 1. 

  The new Article requires unanimity to 'decide upon the measures appropriate to the economic situation, in particular if serious difficulties arise in the supply of certain products'.
  
   
• 2. 

  This Green Paper examines the Union's energy needs in a 20-to-30-year time frame. Over this period it is possible the number of Member States may grow to around 30.
  
   
• 3. 

  The figures used in the Green Paper are taken from the forecasts in Part 3 I.B below
  
   
• 4. 

  Energy intensity measures energy consumption in relation to GDP.
  
   
• 5. 

  264-262 millions tonnes of oil equivalent (toe)
  
   
• 6. 

  From 355 to 384 Mtoe between 1980 and 1998.
  
   
• 7. 

  The most important factor underlying this rise was the increase, especially over the last few years, in intra-Community road transport between the Iberian peninsula and the rest of the Union, as well as with the Central and Eastern European Countries
  
   
• 8. 

  European Energy outlook to 2020: figures based on the seven Central European countries, excluding Bulgaria, Slovakia and Romania.
  
   
• 9. 

  Gwe : Giga watt electric
  
   
• 10. 

  See Part 3, I.B.
  
   
• 11. 

  This figure reflects both the growth of demand and planned closure/modernisation of nuclear plants.
  
   
• 12. 

  Combined production of electricity and heat.
  
   
• 13. 

  In 1999, Norway had 1.77 trillion cubic metres of proven gas reserves which at current production rates will last 23 years, proven oil reserves at around 11 bn barrels are over half Europe's reserves but at current production rates will last 10 years. However, there are substantial reserves of oil and gas to be exploited in the Barents Sea.
  
   
• 14. 

  North Sea oil, revival of nuclear energy programmes and renewable energy development..
  
   
• 15. 

  by comparison, the US imports 24% of its needs and Japan 80%
  
   
• 16. 

  Installed nuclear generating capacity has supported the policy of reducing external dependence. From 45 GWe in 1980, it has grown to 125 GWe today in the EU. This progress is the result of investment decisions made in the wake of the oil crises of 1973 and 1979. The aim was to replace oil-generated electricity with nuclear-generated, so as to reduce the reliance of pro-nuclear countries. The resulting savings can be estimated at 200 million toe for the year 2000, which is equivalent to a saving of EUR30-45 billion for the EU's trade balance.
  
   
• 17. 

  Since domestic prices are in any case related to international prices, the degree of external dependence will not influence prices to the same extent.
  
   
• 18. 

  Some economists argue that OPEC cannot be described as a cartel, since its function is not to fix prices, but to eliminate competition between oil-producing countries - a project it has pursued with varying degrees of success.
  
   
• 19. 

  Saudi Arabia, Iran, Iraq, UAE, Kuwait and Qatar.
  
   
• 20. 

  The Caspian Sea Basin refers to the oil and gas reserves located in Southern Russia, the Caucasus, Central Asia and Iran.
  
   
• 21. 

  A transit agreement was signed by the Applicant Countries and most of the Mediterranean states as part of the Umbrella Agreement under the INOGATE programme.
  
   
• 22. 

  China and India combined consume some 1.115 billion Toe a year (respectively, 844 million toe and 271 million toe).
  
   
• 23. 

  Communication on co-operation as regards energy with Asia (COM/96/308).
  
   
• 24. 

  Communication from the Commission of 11.10.2000, The European Union's oil supply
  
   
• 25. 

  Directive 68/414/EEC, amended by Directive 98/93/EC.
  
   
• 26. 

  It should be noted that presently several Member States have more than 90 days of stocks. This excess can therefore be released without triggering Community consultation.
  
   
• 27. 

  Directive 73/238/EEC.
  
   
• 28. 

  The United States established the Strategic Petroleum Reserve in 1975, after joining the IEA, and two years after the first oil crisis. American law lays down that there should be a strategic reserve equal to 1 billion barrels of oil, for use in case of war or other serious conflict leading to the physical disruption of supply. Presently, there are 571 million barrels in the SPR, representing an investment of USD 20 billion at today's prices. The SPR is located in the Gulf of Mexico (Louisiana and Texas), a region which has more than 500 salt caves, thus providing ideal storage conditions. The reserve was drawn on in 1991 during the Gulf War, and again a second time a few weeks ago, when 30 million barrels were released - barely equivalent to two days' demand.
  
   
• 29. 

  This policy is combined with measures to encourage the exploration of North Sea resources.
  
   
• 30. 

  The JET (Joint European Taurus), a European company in the sense of the Euratom Treaty, has been an essential element in the scientific and technical advances in European fusion. Its results have helped the Union to look forward, with its international partners (USA, Japan, Russia), to the possibility of a research project such as the ITER (International Thermonuclear Experimental Reactor).
  
   
• 31. 

  The system of setting ceilings in the amount set for the civil responsibility of operators in the case of a major accident could amount to a state aid.
  
   
• 32. 

  Sweden-1980, Spain-1984, Netherlands-1994, Germany-1998, Belgium-1999.
  
   
• 33. 

  Lithuania: Ignalina 1 and 2; Bulgaria: Kozloduy 1 to 4; Slovakia: Bohunice VI
  
   
• 34. 

  For example, the Swedish Government's decision to shut down the nuclear facility in Barsebäck on 30/11/99, after 23 years, creates a production shortfall of 4 billion kWh per year, which has to be made up by electricity imports from coal-fired Danish and German power stations. This leads to an indirect increase in Sweden's CO2 emissions of around 4 million tonnes per year, i.e. about 8% of total emissions in Sweden.
  
   
• 35. 

  The term coal refers to solid fuel in general. For reference, a distinction is made between four families of coal by decreasing order of calorific value: anthracite, pit coal, lignite and peat. Coal, anthracite and lignite briquettes come under the ECSC Treaty whereas lignite and peat are regulated by the EEC Treaty.
  
   
• 36. 

  7 All handling from extraction to final use generates dust. Storage in the open air can cause pollution through rainwater run-off. Coal combustion leaves ash and causes the emission of gases that are damaging to the quality of air, water and soil (CO2, NOx and SO2).
  
   
• 37. 

  In terms of the geographical diversification of coal supply in the European Union, the traditional exporters of coal (Europe, United States, Russia and Ukraine) have been joined by Canada, South Africa and Australia. More recently new exporters have emerged, such as Indonesia, Colombia and Venezuela.
  
   
• 38. 

  Index-linking is based on a 'netback' calculation mechanism from the price of oil products competing on the same markets, which gas companies call the 'market volume approach', as passed on to the import price at the frontier.
  
   
• 39. 

  Qatar has three times as many known reserves as Algeria and Norway.
  
   
• 40. 

  See Part I - B.
  
   
• 41. 

  OJ C 241, 25.09.1986.
  
   
• 42. 

  Document COM(97) 599 of 26 November 1997
  
   
• 43. 

  Six greenhouse gases are generated by human activity: carbon dioxide (CO2) which is the biggest contributor (80%), nitrous oxide (N20), methane (CH4), hydrofluorocarbons (HFCs), perfluorocarbons (PFC) and sulphur hexafluoride (SF6).
  
   
• 44. 

  Intergovernment Panel on Climate Change, 1995.
  
   
• 45. 

  A study by the French transport Ministry shows that the energy efficiency of a private car (in km per kilo of oil equivalent) is half that of the underground train. The efficiency of a thermal car motor is in the order of 17% ("Pour la Science", Jan 1998).
  
   
• 46. 

  'Environment at the turn of the century', European Environment Agency, 1999.
  
   
• 47. 

  'Environment at the turn of the century', European Environment Agency, 1999.
  
   
• 48. 

  Technological hopes exist but are difficult and costly to implement, such as underground burial of CO2, the development of new energy-generating technologies producing no carbon dioxide, or production of carbon sinks by means of reforestation or development of marine plankton, etc.
  
   
• 49. 

  The figures available are not very detailed.
  
   
• 50. 

  The figures the Commission has are not very clear.
  
   
• 51. 

  See tax study in Annex 2
  
   
• 52. 

  see tax study in Annex 2
  
   
• 53. 

  COM(97)30 final, OJ C 139, 6.5.1997.
  
   
• 54. 

  Commission communication of 11.10.2000 'Oil supply in the European Union' COM(2000)631 final.
  
   
• 55. 

  Energy certification of buildings; billing of heating and cooling costs according to consumption; third-party financing in the public sector; thermal insulation of new buildings; regular inspection of boilers; and energy audits of energy-intensive industries
  
   
• 56. 

  MURE model.
  
   
• 57. 

  (COM(2000)88 final
  
   
• 58. 

  To date the milestones on the way to opening up the electricity and natural gas markets to competition have been five Directives covering price transparency (1990), the transit of electricity and gas through grids (1990 and 1991), the internal market in electricity (1996) and the internal market in natural gas (1998).
  
   
• 59. 

  Directives 96/92/EC and 98/30/EC.
  
   
• 60. 

  Given the profound changes in the energy markets in the European Union both due to liberalisation of energy markets and due to environmental regulation, the costs of generation of electricity have changed. As can be seen in Table x the cost of electricity generation is the lowest for combined cycle gas turbines followed closely by energy generated from imported coal. Given the current subsidies to wind energy in many Member States, their generation costs are already fairly competitive. The generation costs of nuclear power are, however, about 40% higher than the cheapest alternative, gas. The figures do not include the negative environmental impact of energy generation.
  
   
• 61. 

  Electricity Market Reform, IEA Handbook, 1999.
  
   
• 62. 

  European Union Energy Outlook 2020, Energy in Europe Special Issue, November 1999; European Commission.
  
   
• 63. 

  These measures will shortly be the subject of a White Paper on transport.
  
   
• 64. 

  According to some estimates, the energy-saving potential in the building sector would be much greater when energy prices are rising.
  
   
• 65. 

  Cf. the Commission's Communication entitled "The European Union's oil supply" COM (2000) 631
  
   
• 66. 

  COM(2000) 497 'Reinvigorating the Barcelona Process'
  
   
• 67. 

  Russia has made the first steps towards joining INOGATE and has asked for a EUR 2 million participation.
  
   
• 68. 

  INOGATE: INterstate Oil and Gas. Programme for the development and rehabilitation of oil and gas pipelines in the countries of the former Soviet Union
  
   
• 69. 

  TRACECA: programme for the rehabilitation of transport in the countries of the former Soviet Union. This programme has for the first time enabled the transport of goods from the Caspian Sea by rail.
  
   
• 70. 

  In the case of Germany there is a subsidy on domestic coal prices
  
   
• 71. 

  OJ L 329, 30.12.1993, p 12.
  
   
• 72. 

  tce= tonne coal equivalent.
  
   
• 73. 

  The new Article requires unanimity to 'decide upon the measures appropriate to the economic situation, in particular if serious difficulties arise in the supply of certain products'.
  
   
• 74. 

  The new Article requires unanimity to 'decide upon the measures appropriate to the economic situation, in particular if serious difficulties arise in the supply of certain products'.
  
   
• 75. 

  This Green Paper examines the Union's energy needs in a 20-to-30-year time frame. Over this period it is possible the number of Member States may grow to around 30.
  
   
• 76. 

  The figures used in the Green Paper are taken from the forecasts in Part 3 I.B below
  
   
• 77. 

  Energy intensity measures energy consumption in relation to GDP.
  
   
• 78. 

  264-262 millions tonnes of oil equivalent (toe)
  
   
• 79. 

  From 355 to 384 Mtoe between 1980 and 1998.
  
   
• 80. 

  The most important factor underlying this rise was the increase, especially over the last few years, in intra-Community road transport between the Iberian peninsula and the rest of the Union, as well as with the Central and Eastern European Countries
  
   
• 81. 

  European Energy outlook to 2020: figures based on the seven Central European countries, excluding Bulgaria, Slovakia and Romania.
  
   
• 82. 

  Gwe : Giga watt electric
  
   
• 83. 

  See Part 3, I.B.
  
   
• 84. 

  This figure reflects both the growth of demand and planned closure/modernisation of nuclear plants.
  
   
• 85. 

  Combined production of electricity and heat.
  
   
• 86. 

  In 1999, Norway had 1.77 trillion cubic metres of proven gas reserves which at current production rates will last 23 years, proven oil reserves at around 11 bn barrels are over half Europe's reserves but at current production rates will last 10 years. However, there are substantial reserves of oil and gas to be exploited in the Barents Sea.
  
   
• 87. 

  North Sea oil, revival of nuclear energy programmes and renewable energy development..
  
   
• 88. 

  by comparison, the US imports 24% of its needs and Japan 80%
  
   
• 89. 

  Installed nuclear generating capacity has supported the policy of reducing external dependence. From 45 GWe in 1980, it has grown to 125 GWe today in the EU. This progress is the result of investment decisions made in the wake of the oil crises of 1973 and 1979. The aim was to replace oil-generated electricity with nuclear-generated, so as to reduce the reliance of pro-nuclear countries. The resulting savings can be estimated at 200 million toe for the year 2000, which is equivalent to a saving of EUR30-45 billion for the EU's trade balance.
  
   
• 90. 

  Since domestic prices are in any case related to international prices, the degree of external dependence will not influence prices to the same extent.
  
   
• 91. 

  Some economists argue that OPEC cannot be described as a cartel, since its function is not to fix prices, but to eliminate competition between oil-producing countries - a project it has pursued with varying degrees of success.
  
   
• 92. 

  Saudi Arabia, Iran, Iraq, UAE, Kuwait and Qatar.
  
   
• 93. 

  The Caspian Sea Basin refers to the oil and gas reserves located in Southern Russia, the Caucasus, Central Asia and Iran.
  
   
• 94. 

  A transit agreement was signed by the Applicant Countries and most of the Mediterranean states as part of the Umbrella Agreement under the INOGATE programme.
  
   
• 95. 

  China and India combined consume some 1.115 billion Toe a year (respectively, 844 million toe and 271 million toe).
  
   
• 96. 

  Communication on co-operation as regards energy with Asia (COM/96/308).
  
   
• 97. 

  Communication from the Commission of 11.10.2000, The European Union's oil supply
  
   
• 98. 

  Directive 68/414/EEC, amended by Directive 98/93/EC.
  
   
• 99. 

  It should be noted that presently several Member States have more than 90 days of stocks. This excess can therefore be released without triggering Community consultation.
  
   
• 100. 

  Directive 73/238/EEC.
  
   
• 101. 

  The United States established the Strategic Petroleum Reserve in 1975, after joining the IEA, and two years after the first oil crisis. American law lays down that there should be a strategic reserve equal to 1 billion barrels of oil, for use in case of war or other serious conflict leading to the physical disruption of supply. Presently, there are 571 million barrels in the SPR, representing an investment of USD 20 billion at today's prices. The SPR is located in the Gulf of Mexico (Louisiana and Texas), a region which has more than 500 salt caves, thus providing ideal storage conditions. The reserve was drawn on in 1991 during the Gulf War, and again a second time a few weeks ago, when 30 million barrels were released - barely equivalent to two days' demand.
  
   
• 102. 

  This policy is combined with measures to encourage the exploration of North Sea resources.
  
   
• 103. 

  The JET (Joint European Taurus), a European company in the sense of the Euratom Treaty, has been an essential element in the scientific and technical advances in European fusion. Its results have helped the Union to look forward, with its international partners (USA, Japan, Russia), to the possibility of a research project such as the ITER (International Thermonuclear Experimental Reactor).
  
   
• 104. 

  The system of setting ceilings in the amount set for the civil responsibility of operators in the case of a major accident could amount to a state aid.
  
   
• 105. 

  Sweden-1980, Spain-1984, Netherlands-1994, Germany-1998, Belgium-1999.
  
   
• 106. 

  Lithuania: Ignalina 1 and 2; Bulgaria: Kozloduy 1 to 4; Slovakia: Bohunice VI
  
   
• 107. 

  For example, the Swedish Government's decision to shut down the nuclear facility in Barsebäck on 30/11/99, after 23 years, creates a production shortfall of 4 billion kWh per year, which has to be made up by electricity imports from coal-fired Danish and German power stations. This leads to an indirect increase in Sweden's CO2 emissions of around 4 million tonnes per year, i.e. about 8% of total emissions in Sweden.
  
   
• 108. 

  The term coal refers to solid fuel in general. For reference, a distinction is made between four families of coal by decreasing order of calorific value: anthracite, pit coal, lignite and peat. Coal, anthracite and lignite briquettes come under the ECSC Treaty whereas lignite and peat are regulated by the EEC Treaty.
  
   
• 109. 

  7 All handling from extraction to final use generates dust. Storage in the open air can cause pollution through rainwater run-off. Coal combustion leaves ash and causes the emission of gases that are damaging to the quality of air, water and soil (CO2, NOx and SO2).
  
   
• 110. 

  In terms of the geographical diversification of coal supply in the European Union, the traditional exporters of coal (Europe, United States, Russia and Ukraine) have been joined by Canada, South Africa and Australia. More recently new exporters have emerged, such as Indonesia, Colombia and Venezuela.
  
   
• 111. 

  Index-linking is based on a 'netback' calculation mechanism from the price of oil products competing on the same markets, which gas companies call the 'market volume approach', as passed on to the import price at the frontier.
  
   
• 112. 

  Qatar has three times as many known reserves as Algeria and Norway.
  
   
• 113. 

  See Part I - B.
  
   
• 114. 

  OJ C 241, 25.09.1986.
  
   
• 115. 

  Document COM(97) 599 of 26 November 1997
  
   
• 116. 

  Six greenhouse gases are generated by human activity: carbon dioxide (CO2) which is the biggest contributor (80%), nitrous oxide (N20), methane (CH4), hydrofluorocarbons (HFCs), perfluorocarbons (PFC) and sulphur hexafluoride (SF6).
  
   
• 117. 

  Intergovernment Panel on Climate Change, 1995.
  
   
• 118. 

  A study by the French transport Ministry shows that the energy efficiency of a private car (in km per kilo of oil equivalent) is half that of the underground train. The efficiency of a thermal car motor is in the order of 17% ("Pour la Science", Jan 1998).
  
   
• 119. 

  'Environment at the turn of the century', European Environment Agency, 1999.
  
   
• 120. 

  'Environment at the turn of the century', European Environment Agency, 1999.
  
   
• 121. 

  Technological hopes exist but are difficult and costly to implement, such as underground burial of CO2, the development of new energy-generating technologies producing no carbon dioxide, or production of carbon sinks by means of reforestation or development of marine plankton, etc.
  
   
• 122. 

  The figures available are not very detailed.
  
   
• 123. 

  The figures the Commission has are not very clear.
  
   
• 124. 

  See tax study in Annex 2
  
   
• 125. 

  see tax study in Annex 2
  
   
• 126. 

  COM(97)30 final, OJ C 139, 6.5.1997.
  
   
• 127. 

  Commission communication of 11.10.2000 'Oil supply in the European Union' COM(2000)631 final.
  
   
• 128. 

  Energy certification of buildings; billing of heating and cooling costs according to consumption; third-party financing in the public sector; thermal insulation of new buildings; regular inspection of boilers; and energy audits of energy-intensive industries
  
   
• 129. 

  MURE model.
  
   
• 130. 

  (COM(2000)88 final
  
   
• 131. 

  To date the milestones on the way to opening up the electricity and natural gas markets to competition have been five Directives covering price transparency (1990), the transit of electricity and gas through grids (1990 and 1991), the internal market in electricity (1996) and the internal market in natural gas (1998).
  
   
• 132. 

  Directives 96/92/EC and 98/30/EC.
  
   
• 133. 

  Given the profound changes in the energy markets in the European Union both due to liberalisation of energy markets and due to environmental regulation, the costs of generation of electricity have changed. As can be seen in Table x the cost of electricity generation is the lowest for combined cycle gas turbines followed closely by energy generated from imported coal. Given the current subsidies to wind energy in many Member States, their generation costs are already fairly competitive. The generation costs of nuclear power are, however, about 40% higher than the cheapest alternative, gas. The figures do not include the negative environmental impact of energy generation.
  
   
• 134. 

  Electricity Market Reform, IEA Handbook, 1999.
  
   
• 135. 

  European Union Energy Outlook 2020, Energy in Europe Special Issue, November 1999; European Commission.
  
   
• 136. 

  These measures will shortly be the subject of a White Paper on transport.
  
   
• 137. 

  According to some estimates, the energy-saving potential in the building sector would be much greater when energy prices are rising.
  
   
• 138. 

  Cf. the Commission's Communication entitled "The European Union's oil supply" COM (2000) 631
  
   
• 139. 

  COM(2000) 497 'Reinvigorating the Barcelona Process'
  
   
• 140. 

  Russia has made the first steps towards joining INOGATE and has asked for a EUR 2 million participation.
  
   
• 141. 

  INOGATE: INterstate Oil and Gas. Programme for the development and rehabilitation of oil and gas pipelines in the countries of the former Soviet Union
  
   
• 142. 

  TRACECA: programme for the rehabilitation of transport in the countries of the former Soviet Union. This programme has for the first time enabled the transport of goods from the Caspian Sea by rail.
  
   
• 143. 

  In the case of Germany there is a subsidy on domestic coal prices
  
   
• 144. 

  OJ L 329, 30.12.1993, p 12.
  
   
• 145. 

  tce= tonne coal equivalent.
  
   
• 146. 

  The new Article requires unanimity to 'decide upon the measures appropriate to the economic situation, in particular if serious difficulties arise in the supply of certain products'.
  
   
• 147. 

  De Europese Commissie kent nummers toe aan officiële documenten van de Europese Unie. De Commissie maakt onderscheid in een aantal typen documenten door middel van het toekennen van verschillende nummerseries. Het onderscheid is gebaseerd op het soort document en/of de instelling van de Unie van wie het document afkomstig is.
   
• 148. 

  De Raad van de Europese Unie kent aan wetgevingsdossiers een uniek toe. Dit nummer bestaat uit een vijfcijferig volgnummer gevolgd door een schuine streep met de laatste twee cijfers van het jaartal, bijvoorbeeld 12345/00 - een document met nummer 12345 uit het jaar 2000.
   
• 149. 

  Het interinstitutionele nummer is een nummerreeks die binnen de Europese Unie toegekend wordt aan voorstellen voor regelgeving van de Europese Commissie.
  Binnen de Europese Unie worden nog een aantal andere nummerseries gebruikt. Iedere instelling heeft één of meerdere sets documenten met ieder een eigen nummering. Die reeksen komen niet overeen met elkaar of het interinstitutioneel nummer.
   
• 150. 

  Deze databank van de Europese Unie biedt de mogelijkheid de actuele werkzaamheden (workflow) van de Europese instellingen (Europees Parlement, Raad, ESC, Comité van de Regio's, Europese Centrale Bank, Hof van Justitie enz.) te volgen. EURlex volgt alle voorstellen (zoals wetgevende en begrotingsdossiers) en mededelingen van de Commissie, vanaf het moment dat ze aan de Raad of het Europees Parlement worden voorgelegd.
   
• 151. 

  Als dag van bekendmaking van een Europees besluit geldt de dag waarop het besluit in het Publicatieblad wordt bekendgemaakt, en daardoor in alle officiële talen van de Europese Unie bij het Publicatiebureau beschikbaar is.