Will the lights go out in Europe

The European Member of Parliament, Giles Chichester, the Parliament rapporteur on the issue of security of energy supply was the author of this event which centred on two presentations : one given by Alan Grant, the Executive Director of the OGP, and the other by Thomas Kuhn, Chairman of the Edison Electricity Institute.

Alan Grant based his presentation on the document drawn up jointly by the OGP and Europia in response to the Commission Green Paper (Towards a European strategy for the Security of Energy Supply). He said, in particular that : For more than 25 years, the oil and gas industry has provided Europe with an uninterrupted supply of energy to meet growing demand.

According to the Green Paper, the EU will continue to rely on oil and gas for much of its energy needs for at least the next 25 years.

Given the right investment climate and sufficient lead times, we will be able to meet projected global demands for oil and gas up to 2020 – and well beyond.

The EU can promote security of energy supply by:
• using diplomacy to encourage appropriate investment conditions and secure new routes into Europe for diverse, additional sources of oil and gas. 
• Ensuring fiscal and regulatory stability to encourage maximum development of indigenous supplies.

The case for EU intervention stocks to influence prices is not made.
Why are they needed?
What will they cost?
Who will pay?
Who will own and operate them?
How would this fit in with liberalisation?

Thomas Kuhn first referred to the two Eurelectric documents : the first drawn up in response to the Commission Green Paper and the other concerning the electricity supply crisis in California. With respect to this crisis, Mr. Kuhn insisted on exonerating deregulation from blame. He attributed it to a lack of investment in production capacity and capacity for transporting electricity and to inappropriate contractual regulations. He moreover emphasised the following points : 
• Energy efficiency : a major effort should be made as regards education. In addition, more should be made of new technologies.
• Supply : diversity of fuels and types of sources are essential.
• Transporting of electricity : a good transport network not only makes it possible to avoid crises such as that in California, but also to optimise the use of power plants which is beneficial to the environment.
• Environment : the Kyoto targets cannot be met by the USA and Europe is not in a much better position.The dialogue between the States should be pursued.