INTRODUCTION

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INTRODUCTION
This paper examines the
opportunities and challenges facing
the creation of a common energy
market in the European Union (EU).
Paying particular attention to
economic, political and historical, it
will identify the frictions and
missteps that have held back the
internal market since become truly
unified.
The creation of the EU has
sanctioned four basic freedoms
expressed in the free movement of
goods, services, people and capital.
Although not explicitly mentioned,
energy, and infrastructure related
to it, is positioned within the
parameters of these four freedoms.
The failure to include, in explicit
terms, the energy issue in the
fundamental treaties of the EU,
combined with the growing
demand for energy in all its forms,
has created the need to develop an
integrated internal market. This new
European Commission project,
known as the "Energy Union"
package, provides for the
establishment of new institutional
and operational structures that aim
to improve energy interconnections
between Member States. The main
purpose is to "unlock" the European
capacity to find, produce, import,
refine, store and deliver energy to
the United States without
interruptions.
The Union Energy has several
objectives including reducing
carbon emissions, improving
efficiency and energy
interconnections, limit the cost to
consumers and ensure a level of
security adequate overall. While the
European Commission emphasizes
the effectiveness of the project, the
multitude of internal national policy
constitutes a major obstacle to the
creation of an internal energy
market. For example, strategies for
the decarbonization process imply
a reduction of efficiency which, in
turn, reduces the savings to
consumers. A conflict of priorities
like this represents a significant
challenge for a project that would
otherwise be structured and
ambitious, thus underlining the lack
of unification and coordination
within the current European energy
markets.
The general and widespread
mentality of solidarity that
characterizes the European Union,
is the catalyst for the Energy Union.
All Member States would collect the
benefits of owning a pool of shared
resources. Imagine a Europe where
energy infrastructure permits a free
and efficient transfer of renewable
energy and fossil fuels from one
part of the continent. The benefits
are clear: a stable domestic market
system that enhances the energy
benefits of each Member State (for
example, wind in Denmark or coal
in Poland), providing for the
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delivery and other shortcomings, if
not, every single State he would
have to overcome alone. A fully
European market would ensure an
adequate supply through the use of
a widely synchronized network, as
well as the ability to manage fuels
and mixed infrastructures on a
continental scale efficiently.
Cooperation and collaboration in all
sectors, including energy, are
essential to the achievement of the
integration areas levels by
European states. However, this
sense of unity, is occasionally
undermined by minor disputes or
divergent national interests.
The Union energy is an ongoing
project that requires support and
assistance continues for a
guarantee of success. Taking into
account the issues mentioned
above, this document provides
some policy recommendations that
could be implemented to facilitate
the creation of a single energy
market.
HISTORICAL PERSPECTIVE
The EU is an economic union,
geopolitics and government
developed to unify the countries of
Europe. Consistency and
cooperation are essential for the
operation, the purpose and the EU's
progress. The recent objective of
establishing an internal energy
market will strengthen the
interconnected energy
infrastructure and improve the
economic, environmental and
political conditions within the
Union. The proposed new Energy
These recommendations include,
but are not limited to the following:
1. Creating a single
institution dedicated to
the promulgation,
implementation and
supervision of energy
policy, as well as the
integration of
infrastructure;
2. More funding for energy
infrastructure and
connectivity;
3. Application of the terms of
integration;
4. Optimization of
geographical areas to
maximize the production
of renewable energy;
5. Creation of interconnected
regional networks;
6. Recognition and use of
natural gas as a "bridge
fuel" between the era and
that of renewables.
Union presents many advanced
targets. Unfortunately, many
question the EU's ability to achieve
a high level of cooperation
necessary to achieve energy Union.
The uncertainties have increased at
the expiry of several key terms for
the project.
The Union Energy announces a new
level of '' Europeanisation '',
implemented through a top political
and benefiting the entire continent
(FleishmanHillard, 2015). While the
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Energy Union will require, of course,
action by individual Member States,
the EU government bodies must act
in no uncertain terms to set sounds
and criteria.
Europe must face two general
issues within the energy sphere: the
lack of diversification in energy
supply and its dependence on
Russian production (European
Commission, 2015). Dependence on
Russian natural gas has led, over
the last decade, the increase in
prices for consumers in much of
eastern and central Europe (EIA,
2014). In addition, the lack of
adequate infrastructure, has
prevented Member States sharing
or exchange of excess electricity
and natural gas (European
Commission, 2015). These are the
factors that originally led to the
former Polish Prime Minister,
Donald Tusk, to propose the Energy
Union (FleishmanHillard, 2015). As a
result, the EU Member States,
together with tips and committees,
have asked since 2002, achieving at
least a 10% interconnection
between the European energy
infrastructure. Over the past
thirteen years, the interconnection
requirements of 10% were
reiterated but little progress has
been made. Given the maturity of
the original proposal, the most
recent plan, released in February
2015, once again sets a target of
10% to be implemented by 2020
(FleishmanHillard, 2015). To achieve
this, each country has to show that
its infrastructure is built up to 10%
within the global network. These
interconnections are only part of
the wider package of energy Union
that seeks to bring Europe towards
a more efficient and effective future
and less based on coal.
Initiatives such as the Trans-
European Energy (TEN-E)
networks, in combination with the
Priority Interconnection Plan (PIP)
and other projects such as the plan
for the Baltic Energy Market
Interconnection (BEMIP), have
demonstrated desire to bring the
European energy network to new
level. However, actual progress has
not kept pace with the rhetoric
since twelve countries are still
below the established level of
interconnection (European
Commission, 2015). First of TEN-E,
which have set a ceiling of three
and a half years for permission
controls, it took an average of ten
to thirteen years to obtain a permit
for the grant of new infrastructure
projects.
The new guidelines have proven to
be an effective policy for the
development of energy
infrastructure (European
Commission, 2015). Nevertheless,
these initiatives lack of compliance
mechanisms to ensure the
completion of projects in a timely
manner. There has been significant
progress with some countries that
have passed the energy
interconnection level base (10%)
but, according to EU estimates, the
three countries will remain below
the 10% to reach the target date for
2020. This projection is a lack of
unity in the proposal for the energy
Union.
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This ambitious project will remain a
dream if the institutions involved
are able to demonstrate its
intention to exercise strong
leadership and an ability to quickly
meet the needs of individual
Member States, which are
struggling to meet the objectives of
the Energy Union, in particular
when the non-fulfillment of their
commitments is highly predictable.
According to the European
Commission "A European approach
is aimed at reducing costs and
increasing the security of energy
supplies, compared to the
individual national programs"
(European Commission, 2015). Just
as happened with the financial
standards imposed on individual
members, it has been difficult to
maintain a clear and coherent
energy policy. Energy policy
outlined in a higher and wider
European level must be able to be
reconciled with twenty-eight
separate legal frameworks within
which the application of the
regulations can be inconsistent and
unpredictable.
Recognizing the opacity of the
energy status, the European
Commission, in its report Energy
Union, said: "We must overcome
the current fragmented system,
characterized by a lack of
coordination of national policies, by
market barriers and by
geographical areas isolated from
the energy point of view
"(European Commission, 2015).
With geographically isolated areas,
lack of cooperation, and different
regulatory standards, the EU is not
currently structured to ensure
synchrony within its Member States.
The integration of the concerns of
individual countries' policies with a
regional plan, will be the key to
success for the Energy Union.
OBJECTIVES MISALIGNED: ENVIRONMENT VS.
EFFICIENCY
Renewable energy investment is a
central theme of energy Union that
was announced both as a tool and
as a final objective of the project.
As the European Commission states
in its report Energy Union, "a Union
resilient energy, articulated around
an ambitious climate policy, would
provide EU consumers - households
and businesses - safe energy,
sustainable and competitive
affordable "(European Commission,
2015). However, this ambitious
climate policy, creates a dichotomy
between efficiency and
environmental protection which is
manifested in the implementation
of policies. The shift from coal and
oil to natural gas increases the
efficiency and reduces the
environmental impact (EIA, 2015,
Downey, 2012). Natural gas
produces about half of the carbon
pollution than coal (EIA, 2015). The
improvement in natural gas
production and distribution would
further promote the efficiency while
reducing, emissions of carbon
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dioxide emissions in Europe. Energy
Union in the plan, however, interest
in solar energy, wind power and
other renewable energy sources,
takes precedence. In the long run,
Europe could maintain constant, if
not increase, their carbon emissions
by switching to less efficient
renewable sources and ignoring the
benefits of natural gas (Jorge &
Hertwich, 2014).
While it is debatable whether or not
the US has adopted a similar energy
strategy, there is no denying that
the country is focused on the
efficiency of production,
transportation and costs. The result
of this policy is clear: the prices at
lower power consumption, higher
output and reducing carbon
emissions. This last point is
particularly relevant given that the
USA have focused on fossil fuels
(EIA, 2014).
European leaders refuse to
recognize the natural gas, or
improvement of infrastructure, such
as a short or medium-term solution
simultaneously to the development
of alternative energy sources. By
choosing to use renewable sources
of energy to protect the
environment than the most
affordable and efficient fuels,
Europe is trying to implement longterm
solutions but with short-term
maturities. This confusion of
priorities has resulted in more than
a decade late. The efficiency of
energy production from renewable
sources become economically
viable only after decades of
investment in infrastructure, such as
the harnessing of wind in Denmark
(Nelsen, 2015). The Danish wind
farms, in fact, have the lowest
marginal cost in Europe but this is
the result of forty years of
investment (Lund et al, 2010).
It is simply unthinkable for the rest
of Europe to duplicate these results
in the short term. In addition, the
lack of interconnection prevents
excess energy, coming from the
Danish wind farms, reaches
Germany and other nations.
Solar energy is the focus of
attention for some European states.
For example, in Germany, the solar
panels are particularly supported
and subsidized. In 2012, the
photovoltaic industry has received
more than 50% of the total German
energy subsidies while producing
only about 20% of the energy
generated (Figure [I]) (Neubacher
and Schroder, 2012).
While solar energy is effective,
resulting in low-carbon, solar panels
currently meet less than 30%
efficiency (Honsberg and Bowden,
2011).
The solar energy concentration to
the exclusion of other energy
sources, is costing Germany; the
failure to integrate the
infrastructure systems across the
continent is costing to other EU
countries. In the race towards
renewable energy, many countries
have ignored the proposal, in terms
of efficiency, fossil fuels. These
could substantially reduce carbon
emissions in comparable amounts.
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Moreover, a large part of the
European climate is not suitable for
the full exploitation of solar energy.
The region has low-altitude clouds,
fog and large amounts of snow
reflect sunlight (NASA, 2015).
Figure [II] provides information on
the levels of global solar radiation
and solar energy in Europe.
Figure [I]
56.2%, share of funding allocated for solar energy
21% share of electricity generated is produced by solar energy.
Figure [II]
- Electric photovoltaic potential in European countries
Although Germany has contributed
to the diffusion of solar technology
in Europe, statistics show that the
country has a low potential for
photovoltaic energy production
with high efficiency. In northern
Europe, then, solar energy is not
efficient energy production source
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than the potential impact in other
areas, especially in southern
Europe. This is reflected in the
figure [II], which provides a lower
level of production in the north of
the continent when compared with
the south.
While the photovoltaic potential in
Germany is about 900 kWh / kW,
other countries such as France,
Spain, Portugal and Italy have rates
ranging between 1,650 and 1,350
kWh / kW creating a more suitable
environment to embark on solar
street (European Union 2012).
This is not to say that solar
investments are ineffective, but that
solar energy may not be an optimal
energy source for those European
countries which, paradoxically, are
increasingly investing in it.
Understand and optimize the
characteristics of the European
regions in order to maximize
energy production, it is an essential
part for the success of energy
Union.
This focus on the production of
renewable energy in the EU is a
necessary component that could
potentially be disastrous if the
schedule is not prudent. The root of
this ideology can be found in the
same documents that make up the
European Union. Article 194 of the
Lisbon Treaty, in 2009 indicated
that, while the principles and
general objectives of European
environmental policy remain largely
unchanged, the treaty strengthens
the EU's commitment to sustainable
development, the fight against
climate change and development
renewable.
Think that renewable energy is a
type of stable and affordable
energy, it contributes to the
misalignment of the Internal Market
objectives. The achievement of
objectives relating to sustainability
is legitimate, but use green energy
for consumer savings is
inconsistent.
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"The European electricity
consumption expected to grow
through 2030 at an average annual
rate of 1.4% along with the doubling
of the share of renewable energies,
from 13% to 26% by 2030" -
International Energy Agency (AIE)
AN ECONOMIC PERSPECTIVE: COSTS, TIMES AND
EFFICIENCY
A European Commission report
dating back more than a decade
ago, has estimated that the
development of the basic
interconnection plan by 10% by
2013, would cost about 30 billion
Euros. Later, the Union energy
package approved in 2015,
established the completion of 10%
of electricity interconnection by
2020 with an estimate of about 40
billion euro. The logic would lead to
think that the interconnection plan
is now less expensive. Innovation
and technological progress over the
last decade, as well as a
significantly greater amount of new
infrastructure, should reduce
production costs and capital.
Because then the estimate of the
project is increased? The most
likely answer is that it becomes
more expensive to replace or repair
the infrastructure with the passage
of time (Mirza, 2007). In fact, the
relationship between time and cost
is not linear but exponential. The
problems and weaknesses increase
with time and accelerates the
process of deterioration (Figure
[III]).
The exposed to chemical energy
hardware elements deteriorate and
require regular maintenance. If
aging infrastructure is presented as
a problem for the achievement of
the Union's energy plan, then the
EU is losing large sums of money
with the extension of the project.
A recent International Energy
Agency report estimated that
investments in the energy sector
made after 2020, would cost 4.3
times more than those made before
2020. In short, as soon as the
European states will decide to
complete this project, the better
the investment. This is because the
investments made Twenty-five
years now, will have to compensate
for the aging of infrastructure and
lack of savings on consumption
with low emissions.
However, infrastructure investment
should not be thought of as sunk
costs. In fact, the returns on these
projects outsource the cost with a
legitimate savings, since they use
energy and a more sustainable
energy transmission for the
international network.
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THE STRENGTH OF A COUNTRY ECONOMIC
The countries within the EU vary in
terms of financial and economic
capacity performance. Those with
lower national income, tend to have
weaker infrastructure and they
need more attention and
investment in the energy sector to
participate in the integration plan.
In some cases, these countries lack
the necessary resources to
modernize their electrical
transmission lines.
Some major economic
infrastructure projects are included
in the "projects of common
interest" (PIC); This program
provides funding and accelerated
procedures for issuing licenses for
new construction. The financial
assistance provided by PIC will be
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crucial for countries that do not
have their own means to develop
the infrastructure.
The EC Regulation no. 714/09,
within the "Third Energy Package,"
gives authority to the European
Network of Managers of the
network of electricity transmission
systems, (ENTSO-E). This
association consists of 41 electricity
transmission operators working
together to facilitate the
CONSUMER APPEAL
The idea of an integrated power
grid system has as a goal of
reducing costs for consumers. In
recent times, European consumers
were at the mercy of both weak
integration standards, both of the
aggressive policies from Russia
(Larsson, 2006). If more energy
production facilities across the
continent had been linked together,
the trend of the demand curve and
supply would be more linear it
possible to reduce electricity costs.
The electricity moving through the
boundaries reduces the higher
costs of inefficient power plants
and allows to use the excess
energy.
The market equilibrium encourages
the import of energy at a price
cheaper then, the choice between
more energy options will decrease
prices. As for natural gas, many
consumers currently pay the price
of bad decisions of their
governments. It cannot be
neglected the strong Russian
influence in the natural gas market,
implementation of EU energy
policies and market development
(ENTSO-E, 2015). The internal
energy market can only emerge
with the will or the imposition. The
countries less endowed will need
regulatory and financial reforms in
addition to support in building.
Therefore, in addition to the
support of companies and
governments, will require funding
and cross-border assistance.
as well as its policy to use its
authority to stop the supply in the
former Soviet states (Shaffer, 2012).
It is also stressed that these
activities by Russian entities are
unprecedented even for the
standards of conduct during the
Cold War.
The inclusion of natural gas in the
Union's energy plan will help
decrease the dependence and costs
for individual nations through the
diversification of the market and
the increase in supply, thanks to the
opening of the market to new
suppliers such as the United US.
The European Commission in its
report Energy Union says that a
similar interconnection for gas
would not make sense. In practice,
interconnection of natural gas
would be as effective as the
integration of the electricity grid.
When a country has an inadequate
supply of natural gas, a neighboring
country could intervene by
providing its own supplies.
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Improving pipeline represents an
advantage for consumers and
European industry by reducing
costs and dependence on Russian
imports.
Figure [IV] shows the increase in
the cost of electricity consumption
per household over a period of five
years. The average increase is 4%,
which is far beyond the effect of
inflation. This increase in costs can
be interpreted as the result of the
inability to implement the European
interconnection plan more than a
decade ago. An integrated
European network would allow a
greater resistance to adverse
weather conditions, economic
instability and manipulation by
foreign partners. On the contrary,
all EU countries have witnessed an
increase in price caused by multiple
factors.
As mentioned earlier, the more time
will employ European states to
make significant investments, the
more expensive will be the plane
both in terms of implementation of
that economy. The cost
opportunities by waiting is
expressed in rising prices and
volatility in energy supplies. Also,
since the EU has imposed stricter
standards for carbon emissions, to
achieve those goals without
investing in a sustainable network
will become much less practical.
Finally, even if the EU decides to
cut emissions by 95%, it would not
have the proper infrastructure to
allow renewable energy to reach
the consumer.
Figure [IV] Eurostat, Energy statistics
DYNAMIC EUROPEAN ENERGY
The current European Union was
founded on the model of the
Benelux Union (political and
economic union of Belgium,
Netherlands and Luxembourg) but
includes several states of northern
Europe, central, south and east.
Although the European continent
possesses a core of common
values, the EU today includes a
greater variety of economic,
cultural and political. This growing
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diversity of interests among the
Member States has started to put
some challenges in terms of
cooperation. Among these
challenges is the project Energy
Union.
For example, many states in Central
Europe such as Poland, still depend
on inefficient coal-fired power
plants. About 90% of Polish
electricity (and 70% of national
carbon emissions) comes from coal
fired power plants (IEA, 2011,
Ottery, 2013). These plants produce
a higher carbon footprint and lower
power marginal product than
natural gas plants, nuclear or hydro
power in other countries. On the
contrary, Germany, as already
mentioned, has an economy and a
far superior electrical network with
a strict attention to renewable
energy.
Although an interconnection plan,
would reduce the need of coal and
allow the transmission of energy
from more efficient central ester,
such integration presents several
problems.
In cases like this, the countries with
backward technology such as
Poland, may be more interested in
economic terms, to remain
disconnected from the plane of
Energy Union.
The plan would see Poland reduce
its production of coal and rely on
electrical power plants of its
neighbors. To the Polish people this
could be a benefit with lower
energy costs and greater efficiency
but at the expense of jobs in plants
currently in use. Poland has 56 coalfired
power plants that contribute
collectively annual carbon emission
of 152 megatons, making it difficult
to adapt to the EU for emissions
abatement plan (Ottery, 2013). In
2012, the coal industry has
contributed to the creation of over
113,000 jobs, while the brown coal
to more than 15,000 (EURACOAL,
2013). The stringent carbon
standards threaten the energy
sector and the Polish economic
vitality.
Despite being geographically close
to Poland, Germany has focused on
renewable energy and the ability to
share its energy production with
Poland. Given the different
ideologies of the countries on the
concept of clean energy, Germany
and Poland may not be able to
easily reach a compromise on
energy supply. It is possible that
Germany insists on respect by
Poland of strict environmental
standards that could potentially
harm its economy. At the same
time, Poland could decide not to
sacrifice his coal industry as it
provides many jobs and income.
In addition to these conflicting
domestic policy objectives, the
region is plagued by problems of
trust between European states.
Western countries still tend to have
a questionable perception of the
Eastern countries and their citizens.
Sharing a critical resource like
energy raises issues of trust
between States at the time the
business. While Germany might fear
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an abuse of its energy by Poland,
Polish citizens may blame Germany
for the loss of jobs at a time when
Poland decided to open its energy
market. It has already been
discussed as certain European
countries could not reach the
standards of energy networks that
have been established for the
success of Energy Union. This
document also stressed that the EU
institutions appear to have no
concrete answer in this regard. This
factor can also be explained in
terms of political culture, where
citizens of the most advanced
Western nations perceive their
neighbors of the former Soviet bloc
as a load for the west. Poland and
Germany are examples and
represent a small cross section of
the divergence of priorities
between Eastern and Western
THE PATH TO THE FUTURE
The attainment of 10% of
interconnection by 2020 is possible
only if Member States are willing to
take the concrete steps necessary
to start and integration. While 10%
is certainly not a significant number
in terms of global integration, the
first steps will be the most difficult
since cooperation and alignment of
resources required at this stage, will
be the framework for future
progress.
The previous programs have simply
failed because they were too
ambitious, and because they have
not addressed the problem in a
practical way. Union in the energy
package of 2015, the EU has set the
Europe. In general, Western Europe
is more interested in climate policy,
while the southern and eastern
Europe is more concerned about
the energy security and economic
growth.
EU environment policy seeks to rid
the economy and the energy from
coal. This would deprive,
permanently, Poland of its main
industry, and it is something that
Polish citizens would like to delay.
These different priorities among the
many EU countries are in stark
contrast with the aim of unifying
the internal energy market. Every
country wants to reap the long
term benefits from a fully
developed internal market, but, at
the same time, also wants to
safeguard its national interests
while avoiding the short-term costs.
ambitious goal of achieving 15%
interconnection by 2030, even
before reaching the standard of
10% in 2020. If these targets are
achieved, Europe It will position
itself on the path of its climate
targets by 2050.
The EU can be viewed as an entity
with a tendency to be far-sighted
policies and with long-term
ambitious goals, but failed to take
the steps necessary to achieve
them. Therefore, the future of the
European energy market, although
carefully planned, is dependent on
the actions of the present.
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In the near future, Europe will most
likely be inclined to move away
from transport and production of
high-carbon energy. The
automotive industry will evolve
towards electric solutions at a time
when the European emission
standards will come into effect. The
extensive use of solar and wind
energy is well established and
integrated into the energy system
of different countries. It is expected
that the interconnect plane will
function as energy osmosis,
allowing to areas with high energy
concentration to spread electrical
energy to the low-concentration
areas. This type of energy exchange
without restrictions, will agree to a
more efficient market and will help
to reduce costs for consumers. As
stated by the European
Commission, with a common
energy market, the energy can be
produced where it is cheaper and
delivered where it is needed
(European Commission, 2015).
Technological innovations are
enabling new opportunities for the
production, transmission and
consumption of energy. Research
and development are critical
elements in the plan and indicating
the intention of Europe to be the
first technological power in the field
of renewable energy. The
computerization of the electricity
network will improve the
transmission efficiency (FTE, 2013).
The so-called "smart grids" are the
future of the electricity grid and will
help Europe by increasing the
efficiency and effectiveness of the
new interconnected network. The
information will then be sent
directly to the consumer and
received back by the computer
processor of the smart grid. This
will enable the adjustment and
demand management as well as
any discrepancies. The network will
be able to identify malfunctions and
this will reduce the need for
personnel and the potential for
accidents caused by human error.
REGULATORY PANELS ALTERNATIVE
The rest of the world does not
necessarily reflect the choices and
EU values. Commercial agreements
and power grids give you an idea
on different priorities. In North
America the energy issue has
priority over climate policy.
The United States, Canada and
Mexico have established that allow
the circulation of energy across the
continent would benefit all
countries. This is confirmed by the
North American Free Trade
Agreement (NAFTA). Chapter 6
art.601 states that the parties agree
that it is desirable to strengthen the
important role that trade in energy
and petrochemical deals in the free
trade zone; Furthermore, the
parties aim to improve this role
through sustained and gradual
liberalization. This contrasts with
the EU treaties in which it is never
directly mentioned the exchange of
energy.
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The electricity network showcases
the cooperative nature of the
American continent.
The entire network includes two
major and three minor electrical
networks in alternating current
(AC).
Eastern and Western
interconnections are major systems,
each of which extends from the
southern border of the United
States to Canada. Minor
interconnections are Texas, Alaska
and Quebec but operate on the
same frequency synchronized with
respect to the primary systems. In
rare cases of a network failure, the
energy can be diverted from one
interconnected through direct
current systems (DC). The energy
trade, including petroleum products
and electricity, is allowed by free
trade parameters. The regulatory
framework allows energy policies of
the US and Canada to work in
unison.
The documents on which the EU is
based on the other hand, are
counterproductive in this regard
and act to curb this type of unit.
The EU's governing body does not
have the power to force the
integration of network
interconnections without a
modification of the treaties. In this
regard, the European Union may
simply support the programs that
will then be accepted and then
implemented by individual states.
The EU tends to be very focused on
the objectives and strategy rather
than on concrete actions. David
Buchan of the Oxford Institute for
Energy Studies, said it is
embarrassing for Europe that the
United States, although they have
no climate policy are decreasing
their carbon intensity while in
Europe, despite the political
climate, the intensity carbon is
increasing (Buchan, 2014).
The European theoretical thinking is
opposed to political action over the
Atlantic. Not only the action and
initiative have a soft spot for the
European Union, but we must also
think about the coordination
between the 28 states. The action
sometimes manifests itself in the
individual states, but it is not always
in the direction prescribed by EU
policy.
In many cases the European states
refuse to work together and prefer
to pursue the same goal, but with
independent paths. As exemplified
in the previous sections, the EU as a
whole is geographically, politically
and economically fractured and this
penalizes the development of a true
internal energy market. This is the
image of the emergence of a
disunion energy.
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POLICY RECOMMENDATIONS
1. Creating a single institution
dedicated to the promulgation,
implementation and supervision
of energy policy, as well as the
integration of infrastructure.
Currently a multitude of the EU
institutions manage the project
Energy Union therefore it lacks
clear communication, efficiency
and leadership causing the
interference of many states and
non-state actors, as well as stalls
and delays.
The creation of a single entity
which is dedicated to the
supervision of the project will
bring accountability and a
structured process to implement
the integration in a timely and
effective, taking into account the
opinions of the main actors. This
institution should also run the
application, financing and
production planning which will
be further analyzed below.
2. More funding for energy
infrastructure and connectivity.
To fully establish the Energy
Union, the Member States must
work together and allocate
resources to areas with the
greatest need. This article has
attempted to analyze how
differences in national income
levels and difficulties in financing
of infrastructure projects,
prevented the formation Energy
Union. To work around this
problem, Member States should
have more opportunities to
cross-border financing. Programs
such as the projects of common
interest (PCIs), the European
Network of Managers of the
network of electricity
transmission systems, (ENTSO-
E), must be promoted and
encouraged by the EU to ensure
that States reach the level of
infrastructure needed to join the
EU energy. The supervision of
such programs would be
responsible entity mentioned in
point #1.
3. Application of the integration
terms.
When analyzing the chronology
of events relating to the Energy
Union, it is apparent that the
delays are commonplace.
Deadlines are constantly
extended or modified due to
various reasons, especially in the
interest of individual states.
Therefore, for enforcing
compliance mechanisms are
required for compliance with
binding deadlines to allow States
to reach the levels necessary to
grid integration. This
recommendation would be more
effective with the creation of a
specialized institution in the
supervision Energy Union.
4. Optimization of geographical
areas to maximize the
production of renewable energy.
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Europe covers a large
geographic area with different
characteristics. Every European
region has different resources
and levels of capacity for the
production of renewable energy.
For example, states in southern
Europe are more suited to the
production of solar energy than
those in the north and coastal
areas are more suitable for the
harnessing of wind. The
identification of these areas, the
rehabilitation and re-allocation of
the necessary resources for
energy production, and its
transportation in the rest of
Europe, would be a great
contribution to European energy
network. All this would maximize
the usefulness of the sources of
renewable energy, reduce
consumer costs and balance
supply and demand.
5. Creation of interconnected
regional networks.
In addition to the previous
recommendation, the regional
networks could create an
efficient system of energy
connectivity in every part of the
CONCLUSIONS
The EU Energy Union faces many
challenges. They include a tradition
of collective inaction or hesitation
due to economic interests or
domestic issues that differentiate
the objectives related to renewable
energy and pose historical barriers,
social and cultural cooperation. The
presence of a bankruptcy tradition
continent. Each regional network
would then be connected to the
contiguous regional network.
These regional networks would
be the first step towards the
creation of a single energy
market with advanced
technology for a convenient and
reliable transmission of
electricity, natural gas, etc.
6. Recognition and use of natural
gas as a "bridge fuel."
Despite its potential, the natural
gas has been largely ignored
within the framework Energy
Union. It is, however, an ideal
transition source to integrate
renewable energy sources, as
long as the necessary
infrastructure for the sharing of
renewable is completed. Natural
gas is widely available from
alternative suppliers to Russia,
including the US. With the lifting
of the export ban of energy in
the US, in the coming months,
Europe could benefit greatly by
including liquefied natural gas
(LNG) in the package of energy
Union.
is harmful because the EU wants to
adopt continental level policies
without first putting in place the
necessary mechanisms for the
implementation at the state level.
EU Member States need to clearly
define their goals, synchronize
priorities and take the initiative to
develop an internal energy market.
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There are currently too many
conflicting objectives that are not
consistent in addition to bilateral
relations are strained in some
places and more relaxed in others.
Each EU member must recognize
that it is responsible for achieving
the ultimate goal and should
therefore make it a matter of
national importance.
The problems currently engulfing
the Energy Union, echo the issues
raised during the formation of the
EU itself. Therefore, it can be
expected that over time the Energy
Union will be successful, but only if
Member States are willing to
espouse the cause and to work
together to achieve it.
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