The European Energy Union is a great idea. What is there not to like about connecting up Europe’s fragmented electricity and gas networks? Interconnection brings security and it brings competition. Prices converge, portfolios of spare plant can be reduced and external suppliers, like Russia, can have much less monopoly power over individual European countries. If there was ever a sensible Europe-wide economic policy, the European Energy Union is it.
Ambitious plans are, however, only a necessary condition. At least the opportunity has been recognised, and further encouraged by the experience of the exposure to Russia in late 2021 and into 2022. But it is altogether another matter to implement, especially when energy plays such a key feature in national politics and in the corporate sector. Energy is plagued with lobbyists and interests which have held the promise of the internal energy market back for over a quarter of a century.
These national constraints can be seen in two big power plays.
These are not the only challenges, but both need to be overcome if Europe is to realise the great economic advantages of a truly single internal energy market.
June 1, 2014
Europe Publication
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