EU and ND: Building Blocks for a North European Energy Policy

EU and ND: Building Blocks for a North European Energy PolicyPami AaltoJean Monnet professor (Acting), University of Tampere

Pami AaltoJean Monnet professor (Acting), University of Tampere

The setting: diversity of actors, policies and resources

The setting: diversity of actors, policies and resources

EU energy policy Member states’ own energy policies and the mix of practical self-

sufficiency and large-scale import dependence; plus company interests which may not co-incide with state policies

EEA member states’ own energy policies and resources (mainly Norway, but Iceland also having significant renewable energy sources projects)

Russian energy policy and resources; plus company interests

US interest in Shtokman

EU energy policy Member states’ own energy policies and the mix of practical self-

sufficiency and large-scale import dependence; plus company interests which may not co-incide with state policies

EEA member states’ own energy policies and resources (mainly Norway, but Iceland also having significant renewable energy sources projects)

Russian energy policy and resources; plus company interests

US interest in Shtokman

The fundamental problem of diversity: asymmetry

The fundamental problem of diversity: asymmetry

Asymmetry – derives from the unequal distribution of resources but is in practice better understood as unequally distributed capacity to influence global and regional energy trade flows

This means that for example the term energy great power may refer to large energy producers, and to large buyers due to the energy market’s interdependence (Palonkorpi 2007); transit states’ power is shifting and/or fading

Obstacles like asymmetry are ill and at best very slowly changed in international politics in general and in energy policy in particular

Actors that are unhappy with the asymmetry commonly strive to introduce joint principles to regulate it and make it manageable planning and finance-wise

Therefore better to focus on principles that can be changed and that in practice do change in international and regional practice

Asymmetry – derives from the unequal distribution of resources but is in practice better understood as unequally distributed capacity to influence global and regional energy trade flows

This means that for example the term energy great power may refer to large energy producers, and to large buyers due to the energy market’s interdependence (Palonkorpi 2007); transit states’ power is shifting and/or fading

Obstacles like asymmetry are ill and at best very slowly changed in international politics in general and in energy policy in particular

Actors that are unhappy with the asymmetry commonly strive to introduce joint principles to regulate it and make it manageable planning and finance-wise

Therefore better to focus on principles that can be changed and that in practice do change in international and regional practice

If asymmetry cannot be changed, what about

principles?

If asymmetry cannot be changed, what about

principles?Sovereignty

Bilateralism

Multilateralism

Markets and competition

Security of supplies

Security of demand

Sustainability

EU X XX XX XX XXX XXX

EEA XX XX XX XX XXX XXX

RF XXX XXX X X XXX X

Building blocks for a joint energy policy: some bravery

needed

Building blocks for a joint energy policy: some bravery

needed Build policy on the wider set of principles actually prevailing in the

ND area; especially useful strategy for actors like the EU that lack the full set of competencies in the sphere of energy policy, instead of somewhat ideological commitment to only three principles (markets and competition, security of supplies, sustainability)

Understand the duality of energy security (security of markets vs. security of demand)

Work on sustainability in order to incorporate energy efficiency and energy savings more integrally into the whole energy chain

Relax markets and competition principle in order to acknowledge the oligopolism and consolidation within the EU and EEa energy sector that makes it more like with its Russian counterpart, and thus make room for the differences in the degree of how sovereignty principle is applied

Ultimately, build an interdependent energy chain where all parties take responsibility for exploration, to extraction and production, and to transport and final distribution to consumers

Build policy on the wider set of principles actually prevailing in the ND area; especially useful strategy for actors like the EU that lack the full set of competencies in the sphere of energy policy, instead of somewhat ideological commitment to only three principles (markets and competition, security of supplies, sustainability)

Understand the duality of energy security (security of markets vs. security of demand)

Work on sustainability in order to incorporate energy efficiency and energy savings more integrally into the whole energy chain

Relax markets and competition principle in order to acknowledge the oligopolism and consolidation within the EU and EEa energy sector that makes it more like with its Russian counterpart, and thus make room for the differences in the degree of how sovereignty principle is applied

Ultimately, build an interdependent energy chain where all parties take responsibility for exploration, to extraction and production, and to transport and final distribution to consumers