EU Energy Policy

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here are many factors that influence and form the actual energy policy scene. First of all, galloping human population growth together with sustainable economic development have given rise to an increase in energy demand, which in turn causes an increase in energy prices (by 2035 electricity costs in the EU will be 50% higher than in the US and 3 times higher than in China). Furthermore, the pressing energy demands of the EU lead to each increasing dependence on imported fossil fuels. This dependence (50% today, 65% by 2030) endangers the EU's security of supply, while the ensuing overconsumption of fossil fuels increases greenhouse gas emissions, thus contributing to the phenomenon of climate change. From a wider view point, it is unarguable that the recent US shale gas boom and the nuclear energy skepticism that proliferated in the aftermath of the Fukushima accident in 2011 play an important role in the decision making process of the EU in energy-related matters. Finally, it is worth noting that the need to boost the economy and find an exit path from the current economic crisis is also taken into consideration byEU institutions.

Thus, high energy prices, Europe’s dependence on fossil fuels, high energy demand and the need to curb greenhouse gas emissions have led the EU to take innovative policy measures towards sustainable development, through the adoption of energy efficiency measures and the promotion of new clean energy technologies in the context of a liberalized energy market, where effective and workable competition between the new entrants is to be implemented. In the near future, the energy markets of the EU Member States will be integrated, creating the Internal Energy Market. In this framework, careful analysis is required as regards rational ways to deal with the increased penetration of renewable energy in national markets and, by extension, the Internal Energy Market.

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