1.
Energy Policy of the European Union
Energy Business MBA
FABIZ
December 2022
2012

2.
Structure
1. Global energy resources
• Oil
• Gas
• Coal
• Nuclear
• Renewables
• Energy efficiency
2. Energy geopolitics
• Fossil fuels
• Renewables and the materials of the energy transition
3. EU energy and climate policy
4. Romania and the region
• Black Sea Basin
• Southeast Europe

3.
World total primary energy supply by source, 1973-2019 (IEA 2021) (EJ)

4.
World total primary energy supply by source, 1973-2019 (IEA 2021)

5.
World total energy supply by geographical region (IEA 2021)

6.
World total energy supply by geographical region (IEA 2021)

7.
OIL

8.
• 1970s: most Middle Eastern and South American producers
nationalized their petroleum industries.
• Most oil production went from private ownership by IOCs to
state ownership by NOCs.
• At present, over 85% of the world’s proven reserves are in
the hands of NOCs.
• 16 of the top 20 oil companies in the world are NOCs.
• The top seven IOCs (ExxonMobil, BP, Shell, Total, Chevron,
Conoco-Phillips, and ENI) control less than 5% of the globe’s
reserves – excluding the shale reserves

9.
PRODUCERS, NET EXPORTERS AND NET IMPORTERS OF CRUDE (IEA 2021)

10.
OPEC: Organization of Petrol Exporting Countries
• Permanent IGO established in Baghdad in September 1960; HQ in
Vienna.
• Founding members, 1960: Iraq, Kuwait, Iran, Saudi
Arabia and Venezuela
• At present, 12 members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, UAE, and Venezuela.
• https://www.opec.org/opec_web/en/

11.
Macrodata, Brent Crude, 2012-2022 (Dec. 2022)

12.
Natural gas

13.
Natural gas production by region, 1971-2020, bcm (IEA 2021)

14.
Producers, net exporters and net importers of natural gas (IEA 2021)

15.
Gas prices in the main markets, 2004-2021, $/mmBTU (BP 2022)

16.
Natural gas trade, pipeline and LNG 2021, bcm (BP 2022)

17.
COAL

18.
Coal: world production by region, Mt, 1971-2020 (IEA 2021)

19.
Coal: share of global production, Mt, 1971-2020 (IEA 2021)

20.
Coal producers, net exporters and net importers (IEA 2021)

21.
Approaching a peak of global coal consumption, Mt (IEA, Coal report 2021)

22.
NUCLEAR

23.
Nuclear energy production, TWh, 1971-2019 (IEA 2021)

24.
World nuclear energy production, 1971 and 2019, TWh (IEA 2021)

25.
Producers of nuclear power

26.
Renewable Energy
Sources (RES)

27.
IEA Renewables 2022: Renewable capacity growth 2022-2027

28.
Quarterly average utility-scale solar PV and onshore wind auction
contracts and wholesale power prices in the EU (IEA 2022)

29.
Annual net RES capacity additions, 2015-2027, GW (IEA 2022)

30.
IEA, World Energy Outlook 2022

31.
Year-on-year increase in average power generation costs, 2022

32.
ENERGY EFFICIENCY

33.
IEA, Energy Efficiency 2022

34.
ENERGY
GEOPOLITICS

35.
• International resource-driven conflicts
• Geostrategic disengagement (US from the Middle East)
• Strategic chokepoints
• Increasing regional tensions (e.g., Black Sea Basin)
• Challenge to traditional oil producers (OPEC, Russia)
• Geopolitics of new materials and RES
• Consequences of global warming

36.
Military flashpoints

37.
South China Sea

38.
East China Sea

39.
Russian gas pipelines to Europe

40.
Nord Stream

41.
Turkish Stream (OIES 2015)

42.
EU energy and climate policy

43.
Pillars of EU energy policy
• Market liberalization and integration (infrastructure and rules) – internal energy
market
• Ambitious climate targets – European Green Deal & Fit for 55
• EU ETS and ESR (sectoral targets)
• Social dimension: Just Transition
• Energy security and resilience – Recovery and Resilience Facility, REPowerEU

44.
EU Energy Packages for market liberalization
• First Energy Package
– Directive 96/92/EC of the European Parliament and of the Council of 19
December 1996 concerning common rules for the internal market in electricity
– Directive 98/30/EC of the European Parliament and of the Council of 22 June
1998 concerning common rules for the internal market in natural gas
• Second Energy Package
– Directive 2003/54/EC of the European Parliament and of the Council of 26
June 2003 concerning common rules for the internal market in electricity and
repelling Directive 96/92/EC.
– Directive 2003/55/EC of the European Parliament and of the Council
concerning common rules for the internal market in natural gas and repealing
Directive 98/30/EC.

45.
Third Energy Package (TEP)
– 2009/72/EC and 2009/73/EC
– three regulations regarding the access conditions to the gas transmission
networks, the network for cross-border electricity exchanges, and the creation
of ACER.
TEP consists in the following measures:
– Independence of TSOs from the control of producers
– “Third Party” access to electricity and gas distribution networks, and to
storage
– Regulators’ autonomy
– Adequate social protection without distortion of competitiveness

46.
Previous EU 2030 framework for climate and energy
The European Council agreed on 23 Oct 2014 on the following climate protection
targets:
• 40% GHGs reduction by 2030 as compared to 1990.
– Sectors covered by the EU ETS have a 43% reduction target compared to 2005.
– Non-EU ETS emissions will be reduced by 30% compared to 2005.
– Ambition: 80% cut by 2050.
• Increasing the share of RES to 32% of total energy consumption
– Binding at EU level
• Increasing energy efficiency by at least 32.5%

47.
European Green Deal (December 2019) - Timetable

48.
Southeast Europe:
Gas geopolitics

49.
ROMANIA

50.
Romania: Potential new gas sources
• SGC, through Greek-Bulgarian & Bulgarian-Romanian interconnectors
• LNG:
– Revithoussa (Greece), Aegean LNG import – FSRU, 3-5bcma
– LNG Regasification Vessel (Krk, Croatia) (2015-2017)
– Swinoujscie LNG terminal, Poland (due online 2014) + North-South Corridor
• CEGH Baumgarten – Russian gas, West to East

51.
Strategic and geopolitical considerations
• The Black Sea offshore has the potential to turn Romania into a significant
hydrocarbon producer at EU level.
• Geology is the main factor, but regulatory incentives and stability are
paramount.
• The Ukrainian crisis prompted a massive decoupling from Russian gas
Strategic and geopolitical considerations

52.
New connection capacity available to the power transmission grid

53.
radu.dudau@enpg.ro
www.enpg.ro