EU Energy Revolution
January 5, 2007
In an effort to increase competition in the energy market, reduce reliance on energy imports, and improve climate control, the European Commission has drafted a two-sided plan to reform the energy sector.
The commission wants to transform "Europe into a highly efficient and low CO2 energy economy by catalyzing a new industrial revolution, accelerating change to low carbon growth and, over the period of years, dramatically increasing the amount of local, low emission energy," it said in a draft released Thursday, as reported by Reuters.
Two versions of the so-called "industrial revolution" have been outline and will be presented on Wednesday, Jan. 10. The more radical alternative, which has been rejected by German and French EU officials, involves dividing up energy corporations into producers and distributors. This plan aims to break up powerful conglomerates like E.ON, RWE in Germany and EDF in France.
According to the milder version, an integrated model would be established, where the company would maintain ownership "of the network assets and receive a regulated return on them," said the draft.
Differences of opinion among the member states have hindered a final decision on the EU's energy reform path. Either way, modernizing the sector won't be cheap. Some 900 billion euros ($1.2 trillion) over the course of the next 25 years are necessary to update the infrastructure and meet increasing demand, said the commission.
Renewable energy gaining speed
Increased production and consumption of renewable energy is a significant part of modernizing the energy sector, an area in which Germany seems to be showing an upward trend.
Production of renewable energy increased by 15.2 percent in 2006, while consumption rose from 6.8 to 7.7 percent last year -- the equivalent of 10 million households -- according to a report by Germany's Federation of Renewable Energy (BEE) released Thursday.
"In 2006 we had the most growth we've ever had," BEE director Milan Nitzschke told reporters Thursday in Berlin. "We expect it to continue in 2007."
Solar energy remains the least common of renewable energy sources, yet at 30 percent saw the largest increase in 2006. Use of bio-energy and wind power jumped 20 and 10 percent respectively.
Germany aims to increase renewable energy consumption to 85 percent by 2050.
"The goal is still to become independent of fossil fuels, like oil and petrol, and to introduce natural gas," said BEE President Johannes Lackmann.