EC's energy paper leaves renewables, nuclear groups wanting more

Brussels (Platts)--9Mar2006

Renewables and nuclear groups are disappointed with the European
Commission's green paper on secure, competitive and sustainable energy for
Europe, they said Thursday.
     "The EC missed a huge opportunity to create a new, sustainable and
ambitious strategy tackling the energy challenges in front of us," said
European Parliament member Mechtild Rothe. German socialist Rothe is also
president of renewables group Eufores and was responsible for guiding the EC's
draft law on energy efficiency through the EP. The EC's goals such as securing
low carbon energy supplies and reducing import dependency "can only be
achieved by a combined strategy of energy efficiency and renewable energy
sources," she said.
     Nuclear trade body Foratom was pleased the paper acknowledged that all
energy sources could contribute to ensuring enough generation capacity to meet
demand. But it said the paper "failed to highlight the crucial contribution
that nuclear energy makes--as a source of secure, affordable and
environmentally friendly energy--toward meeting the European Union's energy
goals." Nuclear accounts for about a third of European Union power generation.
     The EC said in its paper that although each member state was free to
decide its energy mix, each should recognize that such decisions can impact on
other members. For example, decisions to phase out nuclear energy could have
"very significant consequences" in terms of the EU's dependence on imported
fossil fuels and CO2 emissions. The annual strategic EU energy review proposed
in the paper "can play a useful role in ensuring that all costs, advantages
and drawbacks of nuclear power are identified for a well-informed, objective
and transparent debate," said the EC.
     On renewables, the EC plans to develop a road map for renewables to
present to the 2007 spring European Council of EU leaders. But although this
is to look at targets beyond 2010, renewables groups are disappointed it does
not mention the long term mandatory targets which they consider essential to
give the long term stability for investors. The EC said simply that any future
targets would have to be accompanied by a "cost-efficient, market-based
regulatory framework" setting up an internal market for renewable energy, with
the necessary economies of scale and efficient allocation of resources.
     The paper also suggests setting a target for the minimum level of secure,
low carbon energy sources--including renewables, nuclear and clean coal--in
Europe's energy mix.
     "I would be in favor of clear targets for secure, low carbon energies,
for example more than 50% within 20 years," EC President Jose Manuel Barroso
said Wednesday.
     
      ---Siobhan Hall, siobhan_hall@platts.com

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