
New Dividing Line in Europe?
Energy Sustainability and Security in the European Union
Background:
In terms of energy sustainability and security, Western Europe and Central Eastern Europe are a world apart.
While out of the ten new EU-member countries of CEE, five countries rely on net imports for more than 50% of their energy consumption, old member states import 57% of their consumed energy. Five of the new members are almost 100% dependent on imported oil while the dependence of the old EU on foreign oil is 81%. The greatest energy security challenge for CEE, however, is natural gas. While old EU countries import only 55% of their natural gas consumption, eight CEE countries import more than 80% of their consumption with the exception of Poland and Romania which import 70% and 30% of their gas respectively. In four of the eight countries the import dependence is 100%. Even more, CEE countries are primarily dependent on their oil and natural gas import from a single source that is Russia.
The division between the two parts of Europe is present in energy efficiency, as well. Energy productivity in CEE is substantially lower than that of the old EU. In 2003, CEE produced 70 billion dollars of GDP for each quadrillion BTU of energy consumption as compared to $138 billion GDP/QBTU in the old EU, and this difference is expected to persist beyond 2020. In 2020, the old EU is projected to reach $165bn GDP/QBTU, while CEE will produce only $87bn GDP/QBTU.
The common European as well as global concerns over limited domestic conventional energy resources highlighted the importance of renewable and unconventional energy sources. While the renewable energy's share in the energy consumption is very similar in the two parts of Europe, the available financial resources for renewable energy investments show a huge gap. Due to the credit crisis, there are in effect no investment loans available in Central Eastern Europe undermining the credibility of these countries' pledge to reach the target 20%.
Constellation Energy Institute (CEI) co-organizes the 4th Energy Forum with its Polish partner in Budapest on November 15-17, 2009. The 4th Energy Forum aims to create some certainty amid the uncertain economic environment by sketching possible future developments in energy globally, in the European Union and in the Central Eastern European region and identifying options for Central Eastern European political and business decision makers to influence energy developments through positive impact of cooperation.
Learn more at Energy Forum webpage.
CEI organizes a major simulation on the energy security of Europe. This simulation will provide a vivid illustration of the dangers of energy security to the region and will provide a future reference point for media, politicians and business people when they consider energy security.
Date of the simulation: November 2009
Constellation Energy Institute (CEI) co-organized the 3rd Energy Forum with its Polish partner in Budapest on October 27-29, 2008. The Forum is one of the most important venues of discussion on issues related to energy among politicians, businessmen and representatives of civil society in Central Eastern Europe with the involvement of stakeholders from other regions.
Read the speech of H.E. Laszlo Solyom, President of the Republic of Hungary at the opening of the 3rd Energy Forum.
Learn more at Energy Forum webpage.
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