The EU’s Energy Supply

European Economic IntegrationMetropolitan University PragueMartin Kolmhofer2011/2012

Video: Energy Security in Europe

The EU represents 7,2 % of the world’s population, but it accounts for 14 % of worldwide energy demand.

Compared to other world regions the EU has a high energy demand

Energy demand by sectors: 1. Transport2. Households3. Industry4. Services5. Agriculture

5 member countries (Germany, France, GB, Italy, Spain) account for 64 % of the EU’s energy demand.

The ton of oil equivalent (toe) is a unit of energy: the amount of energy released by burning one ton of crude oil.

Local differences: Climate? Density of Transport Networks? (Modern) Industry?

50 % of the energy produced in the EU is generated from coal, oil and gas (fossil fuels)

Nuclear energy: 27,2 % Renewable energy: 19,7 %

EU on average has to import 56,6 % of its energy demand. Some countries are less dependent: Poland (uses most of its coal itself)Sweden (renewable energy, mostly water)France (nuclear power)

Above average: • Germany is dependent on gas and oil from Russia• Italy imports a big part of its energy from Libya

Trend: Energy consumption in the EU increases, energy production decreases

What type of energy does the EU need? Fossil fuels (oil, gas, coal) account for almost 80% of the EU’s energy needs

Important suppliers: Russia, Norway, Algeria, Qatar, Libya (These countries together supply about 70 % of oil and gas imports)

How to reduce the risk caused by dependence on energy imports?• Saving energy• Increasing production/generation of energy• Diversifying supplier base

Potential for energy saving especially in the area of transportation

Increasing production/generation of energy? Not much potential for more fossille fuelsShale gas (hydrauylic fracturing)? Renewable energy?

The EU’s 20-20-20 goals (“Copenhagen Accord” 2009): • 20% increase in energy efficiency• 20% reduction of CO2 emissions• and 20% renewables by 2020 ( + to increaese the share of biofuels by 10 %)

Alternative nuclear energy?…is only used by some member states

143 nuclear power plants in EU Increasing public concern after Fukushima (March 2011)Italy: Voters rejected a referendum proposal to restart the country's nuclear energy program in June 2011.Germany: phasing-out nuclear power until 2022 – to be replaced by gas power plants

Diversifying supplier base:

The EU has signed contracts with countries such as: Turkmenistan, United Arab Emirates, Oman, Nigeria, Trinidad & Tobago, Australia

Russia still plays the central role

Planned “southern corridor” to limit dependence from Russia. Pipeline should bypass Ukraine and Belarus and connect EU directly with the countries of the Caspian Sea region.

Nabucco Pipeline: should transport gas from Turkmenistan and Azerbaidjan via Turkey to Austria. Delays - start of construction scheduled for 2013.

Russian “South Stream” project: Gas pipeline via Black Sea to Bulgaria, then split to • Greece• Romania, Serbia, Hungary, Slovenia and AustriaThe project is seen as a political project / rival to the planned Nabucco pipeline (and to expand Russian presence in the region). Completion is due by 2015.

Inaugurated on 8 November 2011

Nord Stream: offshore natural gas pipeline from  Vyborg in Russia to Greifswald in Germany