EU plan to reduce energy imports

EU LEADERS pledged to boost investment in Europe’s energy networks on projects which could cost as much as €1 trillion by 2020. In an effort to reduce dependence on imports, they will also intensify efforts to stimulate business innovation.

The European summit was originally called to discuss a strengthening of their energy systems and to promote investment in renewable energy. Although the meeting was overshadowed by a protracted debate on new measures to tackle the sovereign debt crisis, the leaders resolved to put in place measures to increase competition in the energy sector and to protect the security of supplies.

According to European Commission chief José Manuel Barroso, the 27 European Union countries pay an aggregate 2.5 per cent of their annual gross domestic product to import energy, €270 billion for oil and €40 billion for gas.

“No EU member state should remain isolated from the European gas and electricity networks after 2015 or see its energy security jeopardised by lack of the appropriate connections,” the leaders said in a communique.

Mr Barroso said, the “investment challenge” in the next eight years was in the order of €1 trillion. “The bulk of the important financing costs for infrastructure investments will have to be delivered by the market, with costs recovered through tariffs,” the leaders said.

They said some projects would require “some limited public finance” to attract private funding. The leaders also discussed a plan from science and innovation commissioner Máire Geoghegan-Quinn to give fresh impetus to Europe’s fragmented innovation and research networks.

They called for efforts to improve the mobility and career prospects of researchers and said information about publicly-financed research should be better disseminated.

They asked the commission to make proposals to accelerate and simplify standardisation procedures and lift legal and administrative obstacles to cross-border venture capital investments.