Analysis  |  9 October 2014

Putting a price on EU’s energy security

As the energy landscape goes through significant changes both in the European Union and outside its borders, the EU finds itself in the middle of energy transformations. On-going liberalisation of European energy markets, completion of the Single European Energy Market initially scheduled for the year 2014, as well as the ambitious decarbonisation strategies that the EU has committed to - these are some of the key issues on the European energy agenda. While taking stock of the achievements that are made after the implementation of the 2020 targets, EU has nearly completed setting itself a new ambitious goal – the 2030 climate and energy policy framework. At the same time, such multidimensional strategies of the EU that aim at the simultaneous achievement of three parallel targets - reducing GHG emissions, increasing energy efficiency and increasing the share of the renewables in the energy mix – expose the European energy markets and industries to unprecedented challenges. The latter do not only impact the energy bills of consumers, but also create critical uncertainties for the investors in the sector, when policy risk becomes an independent variable. The multidimensional character of the European energy concerns, particularly in electricity and gas supplies, is reflected in the multiplicity of accounts of European energy security.
However, if the political rationale behind EU’s energy security strategy has been at the spotlight of debates, since the gas crises of 2006 and 2009, the economic challenge that energy security brings about for Europe has often been out of focus.

Viewpoint  |  25 September 2014

The Role of 'European formulas' in the Russia-Ukraine Gas Debate. Part Three

How modernization of Ukrainian GTS changes the economics of bringing Russian gas to the EU

By Andrey Konoplyanik

As was shown in the first of the two previous articles, Ukrainian factual Euro-integration in gas since 2004 has led to severe economic conflict for the country: import gas pricing based on 'European formulas' has resulted in high import prices for Russian gas which Ukraine considers to be purely politically motivated (EER, June 19, 2014). In the second article, I showed that Ukraine’s accession in 2011 to the Energy Community Treaty has created, inter alia, yet to be settled legal problems related to the conflict between contractual and public law within Ukraine: its public law obligation as a result of implementing provisions of the Third EU Energy package to possess reverse flow capacities at its Western borders, conflicts with its earlier contractual law obligation to offtake specific amounts of import gas deliveries from the East according to the Russia-Ukraine 2009-2019 gas supply contract (EER, August 4, 2014). In this article I will address the issue of Ukraine’s Euro-integration impact on Russian gas transit to the EU. Ongoing reforms of the management structure of the Ukrainian gas transportation system (UGTS), also resulted from the legal obligation of the Energy Community member states to adapt their energy systems to provisions of the EU energy 'acquis communautaire' (Third EU Energy Package), as well as from the current Ukrainian leadership's implementation of its own “sanctions” against Russia, which can cover energy transit, have been changing comparative economics of Russian gas transit to the EU.

Interview  |  11 September 2014

Challenging Croatian business environment and haemorrhaging European refinery industry

Interview with Marcus Lippold, Vice President for Business Strategy and Regulatory & Public Affairs, MOL Group

By Jozef Badida

MOL, the Hungarian oil & gas company, has been facing a tough time in Croatia since taking effective control over the national energy champion – INA, in 2009. According to Marcus Lippold if there isn't an amicable solution reached with the Croatian government, MOL would be willing to sell its stake in INA. In light of the current Russian-Ukrainian gas crisis he expressed concerns about missing reverse gas flows between some Central European countries. Furthermore, with regard to the EU 2030 climate goals he calls for “a clever way of financing but without giving excessive subsidies”.

Report  |  28 August 2014

The hunt for precious metals is on

By Lydia Heida

Whilst the European energy sector depends for many products and processes on precious and rare metals, their supply is unstable or insufficient. Although global competition for these metals is increasing, new recycling facilities in Europe are coming on stream.

Analysis  |  14 August 2014

European smart grid roll-out on target

By Jeremy Bowden

Currently across much of the European Union programs are being implemented to install smart meters in every home and business. This, combined with power and control networks, will provide the infrastructure upon which our widely anticipated smart grids can operate, enabling a much better control of the continent’s energy demand and supply.

Recent posts
  • The Bigger Oil Story Behind the Headlines: Interview with Michael Levi - 14 August 2014
    While we fixate on sexy headlines about Chinese military threats in the South China Sea, for instance, or Washington 'lifting the ban' on crude oil exports, we miss the bigger stories—and we miss the reality...
  • Elimination of the Baltic "Energy Island" and its Importance for Further EU Market Integration in Sector of the Electric Energy - 4 August 2014
    The Baltic States - Estonia, Latvia and Lithuania, in terms of energy infrastructure are frequently referred to as an 'energy island'- the region having very few interconnection routes with the rest of the European Union (EU). As for natural gas, the three states are fully dependent on one third country supply source - the Russian Federation, and a single supply route - a pipeline natural gas transmission network linking Latvia and Estonia directly with Russia, and Lithuania with Russia via Belarus...
  • The Role of 'European formulas' in the Russia-Ukraine Gas Debate (part 2) - 4 August 2014
    According to ITAR-TASS, as cited by The Moscow Times on 04 July, EU Energy Commissioner Günther Oettinger on 03 July asserted EU companies' right to sell Russian gas, which they buy from Gazprom at the delivery points within the EU, back to Ukraine. Energy companies in the EU have an “absolute right to dispose of gas bought from Gazprom at their discretion, including delivering in the reverse to the Ukraine,” Oettinger said via his spokeswoman Sabina Berger...
  • "Responsibly energising a growing world" - while dashing for coal? - 11 July 2014
    Whether it is despite the latest complications in the international politics or thanks to them, Moscow was in the centre of world of energy for the past couple of months – with the grand opening of the 21st World Petroleum Congress at the Kremlin Palace taking place on June 15 being one of the highlights. What followed was a four-day event, undoubtedly the largest oil and gas industry conference of the year...
  • EU's energy transition: the triple challenge of sustainability, competitiveness and affordability - 3 July 2014
    On the road to the EU 2050 decarbonisation objective, regulatory unpredictability is considered to be the most important investment challenge by a number of energy professionals in the power sector, while too low prices in the power and ETS markets are perceived as the second biggest challenge. The question posed by some leading experts, is ‘do we want to live in 2035 when the politicians of 2015 dictated the terms of the CO2 regime?’
  • What Future for Russia’s Nuclear Exports Post-Ukraine? - 19 June 2014
    Recent events in Ukraine are a watershed moment for Europeans to fundamentally re-think their energy policies and reduce their dependence on one, major supplier: Russia. Re-thinking, however, is not equal to rejecting or renouncing, but perhaps more on par with revising or re-assessing, how to prevent the preventable and mitigate the probable...
  • The Role of 'European formulas' in the Russia-Ukraine Gas Debate - 19 June 2014
    The current Russia-Ukraine gas debate has been making the international media headlines though it has been discussed there mostly from political angle. Being interviewed recently in “Quest means Business” at CNN, I was asked by Richard Quest whether I “think that energy is being used as a diplomatic and political tool by Russia in this case”?
  • "... because CCS is not as sexy as renewables" - 5 June 2014
    Scientists, engineers, experts from the Intergovernmental Panel on Climate Change (IPCC) and politicians seem to agree: to limit the global increase in temperature to a maximum of 2°C without the introduction of a comprehensive Carbon Capture and Storage (CCS) system is almost impossible...
  • Germany Embarks on Major Energy Reforms - 22 May 2014
    Germany is currently pushing through long-awaited reform of its seminal renewable energy laws, introducing measures intended to better control the so-called Energiewende without stopping it...
  • Pressure mounts to develop UK shale, as drillers jostle for acreage - 15 May 2014
    In the UK politicians are becoming excited over the prospects for shale development, anticipating lower energy prices, improved energy security, higher growth and jobs, lower emissions and increased tax revenue, with many of the early fears apparently proving unfounded. However concerns remain over lengthy and complex planning rules and public protest...

All articles published by European Energy Review are filed in our files section.

 

Recent blog posts
New Energy Publications
Files
Search Files
File:
Theme:
Country:
Author:
From:
To:
Text:
Calendar
Most read last eight weeks
Social media
Linked in banner
Follow us on Twitter
Follow us on Facebook
Published By
Elektor
European Energy Review receives Award for Excellence in Written Journalism
Log in | Register | Contact
Register now
Latest news: