The European Union (EU) has a very big energy market. The energy market of EU comprises of 500 million people and 20 million companies. This energy market is 20% of the total world energy market. The main components of the energy market are heating, cooling, transportation and electricity. The rising demand in energy from both individuals and businesses will require energy imports which can hamper other areas of development. To help the energy demand crisis, a new Energy Intiaitive has been proposed. One of the key features of this policy is to develop alternative energies that are both renewable and energy efficient. The policy also aims to reduce its contribution to the global warming and find alternative methods to supply for the increasing energy demand.
What is the purpose of EU energy policy?
The EU energy policy has been propesed to make
The energy production and consumption energy efficient and find alternative enrgies that can run the European market.
Build an integrated pan-European Energy market
Strengthen its external energy market
To achieve the highest level of safety and security
Develop the European market as a leader in Innovating new Energy technology
What is the domestic energy production distribution of EU?
The nuclear energy takes the lion’s share in EU contributing almost 30%. The solid fossil fuel contributes a percentage of 22% of the whole share of energy, natural gas contributes a percentage of 20%, oil accounts for 14% while renewable energy contributes 16%. The import of EU keeps increasing and the last recorded percentage was 54%. If everything in the energy sector continues the way it is now then EU may feel the need of importing 70% of oil and gas by the end of 2030.
What European Initiatives are proposed in the SET(European Strategic Energy Technology plan) plan?
The main goal of this SET plan is to acheive low carbon energy which involves developing and promoting use of Alternate renwable energy sources such as,
Solar Energy : 15 5 of electricity to be generated to help by the year 2020 which will also create additional jobs. Cost estimated at 16 billion EUR
Wind Energy : could contribute to 30% of its energy requirement by 2030, cost estimated at 6 billion EUR
Bioenergy that is Sustainable : Setting up numerous technologies that can help upto 14% of its energy needs. Will create about 200,000 additional jobs and cost is estimated at 9 billion EUR
Capturing Carbodioxide : The main goal here is to reduce carbon emissions which will ocst an estimated 13 billion EUR
Nuclear energy that is sustainable : Goal is to setup the new generation-IV type of reactor by the year 2040, which will reduce radioctive waste and proliferation and will cost 7billion EUR
Fuel Cells : This will cost about 470 million and is already in the JIT (Joint Initiative Technology)sector
Energy Efficiency : Comes under the Smart Cities Initiative which will develop new buildings and low carbon transport
International Cooperation : Have energy cooperation with other countries to reduce emissions
What are the directives of the EU energy policy program?
The above mentioned aims can be achieved by a set of rules and directives.
The first directive is to ensure a regulative and highly competitive market for fossil fuels like coal, oil and natural gas. It also aims at improving the interconnection among the states that are members of the European Union.
The second directive talks about the promotion of renewable energybecause this is the directive that will help reach EU the target of acieving 20% energy savings by the year 2020. A compulsory target of 10% renewable energy use in the transport sector. Apart from that every year the national renewable energy action plans will be established.
The third directive aims at 1% energy saving every year by implementing the national renewable energy action plan in the energy service sector.
The fourth directive is on the energy performance of buildings and household appliance labeling. The regulation also encompasses the factor of fuel efficiency of tires.
The fifth directive stresses on the eco energy product design. The energy performance of the products can be improved with this kind of a design.
The 6th directive stated that there has to be minimum stocks of oil and petroleum products so that there are always stocks during crisis periods.
The strategic energy technology plan or SET has maps for the energy industry’s growth from 2010 to 2020.
There is a regulation on the security of natural gas supply to solve any gas supply disruption problems.
The energy efficiency directive can help in bringing a reduction in energy consumption by 20%. This will significantly reduce the global greenhouse gas emissions in the atmosphere from its side and help fight global warming indirectly.