The Energy Community : A PanEuropean Energy Market from the Altlantic to the Black Sea

24Nov
2006

Speakers: Geert Joosten, GIE President and Pierre Bornard, Chairman of the ETSO Steering Committee

The Energy Community, based on the Energy Community Treaty which was concluded in October 2005 and came into force on 1 July 2006 after recommendation by the European Parliament, is the basis of an enlarged sphere around the European Union where the acquis communautaire in the field of energy is applicable. It can be the basis for a wider energy market including the Member States, the countries of South East Europe and maybe other neighboring countries.

Two thirds of natural gas are imported. Huge distances have to be bridged through large infrastructure projects requiring enormous investments. This provides for a further opportunity to discuss the Balkans as a transit region for energy flows to European Union originating from Iran, Central Asia, Russia and North Africa – thereby contributing to Security of Supply through diversification of transport routes.

As regards Electricity, the EU internal market has already gone beyond its borders and reached South East Europe. Developments achieved so far in the creation of a real integrated regional electricity market may lead to a full integration in the EU market already in 2007. A coordinated congestion management mechanism in SEE using the same criteria as for the different regions in the EU may also be implemented in 2007.

Similarities and differences between natural gas and electricity markets and infrastructures were underlined during our dinner-debate.