Andris Piebalgs negotiated Latvia’s accession to the European Union when he was deputy secretary of state at the Ministry of Foreign Affairs, responsible for Riga’s relations with the EU. Today, as the European Union’s commissioner responsible for energy, he underlines the importance of the Burgas-Alexandroupolis oil pipeline as an alternative supply route for Black Sea oil and as a project which will not only have a positive environmental effect, but which will also ‘foster cooperation and integration’ in the broader region of Southeast Europe.

Andris Piebalgs interviewed by Vassiliki Nicoloulia

Andris Piebalgs negotiated Latvia’s accession to the European Union when he was deputy secretary of state at the Ministry of Foreign Affairs, responsible for Riga’s relations with the EU. Today, as the European Union’s commissioner responsible for energy, he underlines the importance of the Burgas-Alexandroupolis oil pipeline as an alternative supply route for Black Sea oil and as a project which will not only have a positive environmental effect, but which will also ‘foster cooperation and integration’ in the broader region of Southeast Europe.

Toward that goal, the Athens treaty for the creation of an Energy Community in the area, signed last year by all the countries of the region, will play the role of catalyst.

Furthermore, as regards the balance of power in the energy sector, Commissioner Piebalgs stresses the fact that Russia has remained for the EU ‘a reliable supplier of gas for more than 20 years, to the mutual benefit of both’ and ‘will continue to be an important energy partner.’

On the other hand, as he points out, ‘Europe must use its economic and political weight on the world stage in a much better way than in the past’ and therefore ‘should speak with one voice to promote its interests.’ Toward that end, the European Commission’s Green Paper on a common energy policy prepares the way for the definition of the energy goals and aspirations of the Union, one of the main targets being to reduce the energy dependence of the EU.

Finally, in accordance with the Tokyo Protocol, actions are already being taken to increase the share of renewable energy and energy efficiency, a fact that will also contribute to decreasing greenhouse gas emissions, while at the same time enhancing security of energy supply. With that in mind, one of the main objectives of the Union’s Energy Efficiency Action Plan is also to reduce by 20 percent the projected energy consumption of the continent by 2020.

From a geostrategic point of view, what are your comments on the recent agreement between Greece, Russia and Bulgaria for the construction of the Burgas-Alexandroupolis oil pipeline?

It is a very impressive project: 270 kilometers and an investment of 1 billion euros. I think this project is going to play a very positive role in the region and will create an alternative route of supply for oil that comes from the Black Sea. It will also have a positive environmental effect, since it will substantially reduce the very congested Bosporus strait. It is very positive that the parties involved have removed the political problems of the project and I expect that by the end of the year also the practical modalities of the project will be agreed and the works could start as soon as possible.

Greece is becoming an energy hub in SE Europe. How and in what ways could the European Union, Greece and the countries of the region work together in order to promote the energy security principles and policies?

The growing role of Greece in the security of energy supply for the Western Mediterranean region is self-evident. Personally, I think that the strongest tool that the EU has in order to create real energy cooperation in the region is the Energy Community. The foundation treaty of this community that was signed in Athens created the structure for close cooperation in the Balkan region. The legal commitment of the countries in the region towards market-oriented reforms, regional integration and sustainable development is essential for the economic development and the stability of the region. But besides this it will create the investment conditions for the development of new structures, will foster cooperation and integration in the region, and will bring Greece towards the rest of continental Europe by creating an area that shares the same rules in this strategic sector.

In your opinion, does the energy security framework in SE Europe enhance and strengthen stability and peace, security and diplomatic solutions, plus economic and social prosperity in the countries of the region?

I think the Energy Community is an extremely powerful tool to bring stability and security to the region. The Athens treaty was consciously modeled on the European Coal and Steel Community, which is the basis of the European Union. The treaty seeks to allow partners of postwar Southeast Europe to agree on one area of policy, and then develop together a shared outlook. New states like Ukraine or Norway want to join the Community and I consider extremely positive the involvement of Turkey in all the processes of creation of the Community, and its role as observer. I hope that, when the conditions are met, both parts will seek further forms of cooperation.

Russia and the EU

What will the political and economic implications and in general the influence of Russia in terms of power politics be not only for the states of the Balkan Peninsula, but also for the Union as a whole as regards its energy diversification and balance in the long term?

Russia will continue to be an important energy partner for the European Union in terms of oil, coal and gas supplies. It has been a reliable supplier of gas to the EU for more than 20 years, to the mutual benefit of both the EU and Russia. We have also led a close energy dialogue with the relevant authorities in Russia over the past five years, which has provided a very useful framework for developing a common understanding of each other’s needs and concerns. Certainly, the Commission is pursuing a policy of diversification of energy supplies. But the idea of this diversification is to bring more liquidity to the energy markets and increase our security of supply, not a policy against Russia or any other of our main suppliers. 

The priorities

There are great concerns about high and volatile energy prices, energy supply and growing dependence on fuel imports in Europe. How will the EU meet those challenges? 

I am acutely aware of the challenges facing Europe in energy. The most visible symptom for most people is higher prices, but we need also to tackle the broader picture. The best way for Europe to rise to these challenges is for all member states to work together, in solidarity, with a common purpose and shared policies, and from an internationally strong position. This is what the European Commission has proposed in its recent Green Paper on a common energy policy for Europe. The European Council has endorsed this approach and asked the Commission to come up with concrete proposals quickly. 

The Green Paper responds to precisely those challenges which your question identifies and sets out clear priorities for action. Let me briefly outline what these priorities are and the new proposals which the Commission is preparing. 

First, we need to complete a fully integrated internal energy market for Europe. We need to make the European energy market a reality for everyone ― energy providers and energy users, whether large or small.

Second, we need to establish effective ways Europe’s member states can work together in solidarity. I am looking at ways of increasing network security and establishing mechanisms to respond to potential energy crises. We are also keeping the rules governing oil and gas stocks under review.

Third, we need to make sure that we use a variety of different fuels, and increase the share of cleaner, more sustainable energy in our energy mix. Member states are, and will remain, free to decide their own energy mix, but their decisions inevitably have an impact on the wider energy situation in Europe.

To give a European perspective, the Commission has begun work on a comprehensive Strategic EU Energy Review ― an analysis of all the energy sources used in the EU, and the knock-on effect of investment in them for the EU as a whole. The Review could lead to new targets, such as to limit the rise in import dependence, which could otherwise rise to almost 70 percent by 2030, or even 90 percent if you look at the oil sector alone. The European Council will discuss the review at their Spring Summit next year. I hope that this will become a regular exercise, giving energy policy the prime strategic attention it merits.

Our next priority is to tackle climate change, which, of course, is closely related to energy. There are two principal ways in which we can achieve this: energy efficiency and the wider use of renewable energy. The Commission has recently proposed an Action Plan on Energy Efficiency with measures to reduce by 20 percent the EU’s projected 2020 energy use. We are also accelerating our efforts to increase the use of renewable energies in power generation, transport and buildings. Early next year I will present a road map for renewable energy, together with further proposals to promote biomass and a new proposal to promote renewable energy in heating and cooling.

Last, but certainly not least, is international relations. Europe must use its economic and political weight on the world stage in a much better way than in the past. Once we have clearly defined energy goals and aspirations, then we should speak with one voice to promote those interests. 

The Kyoto Protocol

As 94 percent of man-made CO2 emissions are attributable to the energy sector, how do you envisage Europe decreasing its emissions at a time when the EU must take measures needed to implement the Kyoto Protocol?

As I underlined before, the Green Paper has identified, as one of its six priority areas, the need for an integrated approach to tackling climate change. Three main lines of action in the area of energy were identified: increasing energy efficiency, increasing the use of renewable energy sources, and developing the potential of carbon capture and geological storage. Actions on renewable energy and energy efficiency will contribute to decreasing greenhouse gas emissions whilst at the same time enhancing security of energy supply. A lot of policies have already been adopted but need time to implement. The results of our policies in the areas of renewable energy and energy efficiency will become more visible in the coming years. I have just presented the Energy Efficiency Action Plan with the objective of saving 20 percent of our energy consumption by 2020. The EU Emissions Trading Scheme is another instrument which will help achieve cost-effective emission reductions in the energy sector and in energy-intensive industries.

What role do you believe Europe can play globally in creating a renewable energy market that is competitive and has the support of consumers and producers?

Europe is the leading region for the high-tech application of renewable energy. The development of wind energy and biomass technology in the EU will make us less dependent on external supply and helps to reduce the greenhouse effect but it sets also an example for the rest of the world by proving that the technology is mature and can be applied. Beside our dialogues with our main producer and consumer countries, we always insist on the benefits of renewable sources of energy, which may have a positive impact both on the environment and on their economies.

In what way can increased energy efficiency and greater use of renewable energy create business opportunities in the European market?

Costs of increased energy efficiency are lower than the benefits so extra money will be generated that can be used for more competitiveness. Both energy efficiency and renewable energy development will create new high-tech jobs in Europe and the knowledge and products of these technologies will be exported to other parts of the world.

Andris Piebalgs’s webpage: ec.europa.eu/commission_barroso/piebalgs/profile/cv_en.htm