Regional Dimension of Energy Policy

Speakers: Petras Cesna Minister of Economy of the Republic of Lithuania and Milko Kovachev, Minister of Energy and Energy Resources of the Republic of Bulgaria.

There has never been a time when the energy sector has been so global in character. With world oil and gas prices impacting on every industry and every citizen, where economies of scale demand ever larger plant installations (power plants and refineries) and with the UN’s struggling Kyoto Protocol attempting to restrict global warming.

As the EU single market is becoming a reality, investors in the EU must define business plans that respect it. It goes without saying that they must obey the rules imposed by security of supply criteria, which are essential to our energy supply policy. Naturally, they must also take into account regional constraints. When a country faces blackouts, it is the neighbours whose generating and transmission capacities feel the pressure.

In practice, a number of questions arise when implementing those basic principles :
• Is it possible to improve Europe’s security of supply and energy reliability when prioritizing regional projects? 
• Would harmonized regulatory regime and procedures in EU favour investment in regional energy projects? 
• What do investors and developers promoting regional energy projects expect from EU policy makers and legislators? 
• What should we look for in financial instruments, incentives and penalties?

For our debate, we had the honour to welcome two current Government Ministers who presented the situation in their region, which, although situated at almost opposite ends of the EU of 27 (expected in 2007) show similarities. The countries of the Baltics and the Balkans share concerns of energy supply and of actual and potential external dependency.