EU outlines trillion-euro energy plan

PARIS, FRANCE - Europe will spend 1 trillion euros US $1.38 trillion over the next 10 years to create a single energy network.

The European Union EU outlined how a single energy network will be the only way to secure its future energy supply in the face of rising oil and gas prices. A recent forecast by the International Energy Agency Paris, France predicted that global oil supplies will peak around 2035 and will cost approximately $200 per barrel, which is more than double today's price.

A target date for completing the internal European energy market has been set. According to the European Commission, by 2015 "no member state should be isolated." One of the key changes will be the speeding up of essential EU strategic projects by introducing a simpler "one-stop shop" process for obtaining permission for power projects.

"There is no single energy market," commented Energy Commissioner Guenther Oettinger. "Looking at our networks for gas, oil and electricity, we are still stuck within the borders of 19th century principalities. We don't have the quality or the capacity compared to goods and services."

Oettinger added: "The energy challenge is one of the greatest tests for us all. Putting our energy system onto a new, more sustainable and secure path may take time, but ambitious decisions need to be taken now. To have an efficient, competitive and low-carbon economy, we have to 'Europeanize' our energy policy and focus on a few, but pressing, priorities."

In the electricity sector, four EU priority corridors have been identified:

• an offshore grid in the Northern Seas with connections to Northern Europe and Central Europe to transport power produced by offshore windfarms to consumers in big cities and to store power in the hydroelectric power plants in the Alps and the Nordic countries

• interconnections in Southwest Europe to transport power generated from wind, solar, hydro to the rest of the continent

• connections in Central-Eastern und Southeast Europe, strengthening regional networks

• integration of the Baltic Energy Market into the European market.

Oettinger said: "Energy infrastructure is key to all our energy goals: from security of supply, the integration of renewable energy sources and energy efficiency to the proper functioning of the internal market. It is therefore essential that we pull together our resources and accelerate the realization of EU priority projects."