EurActiv Logo
EU news & policy debates
- across languages -
Click here for EU news »
EurActiv.com Network

BROWSE ALL SECTIONS

Businesses tell Barroso to reshape EU energy policy

Printer-friendly version
Send by email
Published 03 May 2013, updated 06 May 2013

The powerful employers’ group BusinessEurope has called on European Commission President José Manuel Barroso to radically shift the EU's energy policy away from climate change mitigation towards cost-competitiveness and security of supply.

Speaking after a regular meeting with the ‘Social partners’ chaired by Barroso yesterday (2 May), BusinessEurope Director General Markus J. Beyrer argued that the EU should re-industrialise and that for this purpose a change of energy policy was needed.

BusinessEurope is the the organisation representing 41 industrial and employers’ federations in 35 European countries, which is seen by its critics as the most powerful lobbyist with many friends in the European Commission’s leadership.

Beyrer argued for the need to re-industrialise Europe. “The crisis has shown that Europe cannot be successful with an industry quota way below 20%. We think [20%] is the right target,” he said.

In order to make the continent competitive, energy policy should be “totally re-shaped,” he continued.

Beyrer said that the EU’s Green Paper for 2030 climate targets (see background) was “going into the right direction”, adding: “But it has been too much driven by climate in the past and will have to re-shape it and re-balance it to cost-competitiveness and security of supplies”.

BusinessEurope’s comments on climate change should not be seen as a surprise, especially in the light of the organisation’s recent statement following the European Parliament vote two weeks ago, which rejected EU plans to ‘backload’ – or withhold – 900 million carbon allowances from auction to boost their price.

BusinessEurope called the EU proposal “unhelpful” and labelled it as “political interference”.

The rejection of the ‘backloading’ could be seen as a collective defeat of the Commission. However, individual Commission members, including Energy Commissioner Günther Oettinger, have voiced scepticism regarding the plan to salvage EU’s ailing carbon market.

Barroso: 'Still possible to defend the climate'

Asked by EurActiv to comment on Beyrer’s statement, Barroso sought a middle ground between BusinessEurope and the environmentalists.

“I think it is possible to continue with a position which is in defence of the climate. I think climate change is an existential threat,” Barroso started by saying.

But he added that the response to the climate change challenge should be made “together with the community of entrepreneurs”.

“It is true that in the last period some companies face energy competitiveness problems which didn’t exist a few years ago”, he added.

Barroso also insisted that the Commission would “lead a line in defence of climate”, by obtaining from global partners to do more on climate change and avoid that European industry is put in a position where its industries are placed at a competitive disadvantage.

“We have engaged a dialogue with our partners. A few days ago [US Secretary of State] John Kerry paid us a visit and you probably heard him saying that the US administration is committing to do more during the second mandate of President Obama. We are also working with the Chinese, with others as well,” Barroso said.

He added that the Commission was preparing a Communication for the EU summit on energy on 22 May, to which he said he was “personally contributing”.

“We are convinced that we should keep a leadership position in climate protection. But at the same time we are very concerned about the energy intensive industry sectors, which should not be put in a situation of lack of competitiveness with respect to their competitors,” Barroso said.

Positions: 

The European Wind Energy Association's new CEO, Thomas Becker, sent EurActiv the following statement: “It sounds a little old fashioned when BusinessEurope claims that fighting climate change is not compatible with cost-competitiveness and security of supply. What have they been doing for the last 15 years? What planet were they on? The main problem of the energy situation today in Europe is the massive subsidies - still in 2013 - going to fossil fuels and nuclear. If that was corrected and with a properly functioning electricity market there would be no discussion of what choice policy makers would make for the energy mix. But even without such a correction, wind energy is already cheaper than nuclear, and in an increasing number of locations already cost competitive with new gas and coal."

He continued: "Wind energy does not have to be bought and transported into Europe from sometimes unreliable suppliers. Paying higher and higher bills for importing fossil fuels is not my idea of security of supply.  A 2030 target for renewable energy is the best way to make all renewables more cost-competitive, would create jobs and huge investment in Europe – rather than in some fossil-fuel producing country. It would ensure that the world-leading  European wind industry grows and flourishes even more. It is time for BusinessEurope to stop representing the interests of fossil fuel exporting regimes and start representing the interests of European businesses.”

Next steps: 
  • 22 May: Extraordinary EU summit to discuss energy policies and broader taxation matters.
Georgi Gotev

COMMENTS

  • Funding high capital cost energy projects like wind and solar and nuclear, rather than low capital cost projects like gas turbines, must take scarce capital away from other high capital projects like building schools and hospitals. Saying that encouraging low capital cost projects is “stealing money from the pockets of the poor, who would get money otherwise for schools and hospitals" is an absolute travesty of the facts.
    I favour wind but it is no good telling lies to support it.

    By :
    PROF DONALD SWIFT-HOOK
    - Posted on :
    03/05/2013
  • On the other hand, it is dangerous in a competitive world, to undertake costly carbon controls that put the EU at an economic disadvantage compared with America, China, India and 80% of all the other countries around the world, particularly when we know that such actions are useless unless everyone undertakes them. The EU has set an example, hoping it will be followed. It is becoming clear that it will not be, despite warm-hearted sentiments being expressed and the call "to radically shift the EU's energy policy away from climate change mitigation towards cost-competitiveness and security of supply" should be listened to.
    Installing wind power is a very effective way to do this. Wind is already cost-competitive in many locations and by saving fuel it addresses security of supply. The fact that it automatically reduces emissions is a side-benefit but that is not the main reason for pursuing it, as is made clear by the fact that America, China and India are at the top of the league table for installing wind power while happily going ahead with coal and gas projects and refusing to agree to limit their emissions.

    By :
    PROF DONALD SWIFT-HOOK
    - Posted on :
    03/05/2013
  • Thomas Becker is being far far too polite, you cannot have a dialogue with either deaf people, stupid people or those suffering from clinical cognitive dissonance - which pretty much describes the position of SOME elements in (non)BusinessEurope. I say some, my contacts tell me that some BE members are getting a bit tired of hearing the same old bollocks from the likes of Beyrer. Indeed, so tired that he may find that some high profile members are thinking of leaving and forming their own, more respesentative org to talk to the EC & EP. Of course as the mouth piece of the orf Beyrer has the option of closing his trap, or perhaps trying to talk sense - neither of which, given past BE form is likely.

    By :
    Mike Parr
    - Posted on :
    03/05/2013
  • The whole concept of the Carbon tax is based on the misguided ideation that humans can have a massive effect on the climate. the short term blip was caused by a natural occurrence, Mt. St Helens erupted and the amount of temperature change it caused for a small amount of time has now receded, and yet we still have people claiming that it was man made. The move from the heralded global warming to climate change, is because the earth is not warming, in fact the increase in cold air moving southwards from the arctic has moved the gulf stream southwards meaning the northern europe is now colder and having to use more fuel to maintain a level of temperature to be able to live in.

    By :
    Barry Davies
    - Posted on :
    04/05/2013
  • Nobody - at any rate nobody knowledgeable about it - claims there is any direct correlation between CO2 levels and global temperature.
    For instance, although CO2 levels have continued to rise steadily and monotonically [with small regular annual fluctuations] since the Industrial Revolution and continues to do so at an accelerating rate today, there has been no global warming over the last 14 years. The global temperature peaked in 1998 and has been lower ever since. On the other hand, 2001-2010 was the warmest decade on record. It needs complex global models, involving many different geo-physical, geo-chemical and geo-biological interactions, to show that there is a slow rise in global temperatures in the long term, as virtually all Governments agree.
    There is wide-spread disagreement on what to do about it. The majority [80%] of countries, including America, China and India, refuse to limit their emissions. The rest, mainly the EU and some other OECD countries, aim to limit their emissions in the hope that, by setting a good example, they will persuade others to follow their lead. They accept that, unless everybody follows suit, such actions will have little effect, apart from damaging their own economies.
    Becker has a point. There are many sympathetic expressions of support from all sides, but actions speak louder than words and it is clear that the majority have no intention of limiting their emissions as they continue to subsidise and extend their gas, coal, and oil consumption, safe in the knowledge that reserves [of gas and coal, at least] will last for hundreds of years, according to the International Energy Agency.
    On the other hand, everyone, especially America, China and India are installing wind power to save the fuels they are relying on, which automatically reduces their emissions as a side-benefit.

    By :
    PROF DONALD SWIFT-HOOK
    - Posted on :
    05/05/2013
  • Prof Donald stated in his second post:
    "Wind is already cost-competitive in many locations and by saving fuel it addresses security of supply. The fact that it automatically reduces emissions is a side-benefit"

    Wind (power), what is it good for? Absolutely nothing!
    No, it's not cost-competitive.
    http://cfact.eu/2010/12/01/a-new-dark-age-for-germany/

    No, it does not reduce emissions, it raises emissions.
    http://www.clepair.net/windSchiphol.html

    By :
    Mats Jangdal
    - Posted on :
    07/05/2013
  • Interesting post Mr Jangdal.

    Your first link was to a US site. It mentioned Alpha Ventus – the first German wind farm – shocking over cost (budget @ Euro190m, cost Euro250m) but there we are. Oh but what is this we see, a utilisation factor (2011 and 2012) of more than 50%.

    This gives a cost for off-shore wind of around 6 eurocents per kwhr (I assume that Mr Jandal you are capable of doing the maths – the wind farm will last 20 years and add 20% for maintenance). Wholesale prices in Germany wobble around 5 to 6 euro cents suggesting Alpha Ventus produces at wholesale rates (which raises the interesting question – why the subsidy?).

    Second article is interesting but omits to consider the efforts in Germany with respect to hydrogen. Admittedly more (effort) is needed but they seem to be heading in the right direction. I agree that batteries cannot provide a solution over 12 hours or so but even there costs are declining and we are probably as near as dammit to a solution.

    The second article was also interesting in a different way since it referenced people I know personally and with whom I largely agree and the article you used referenced their work out of context. I have brought this to their attention. The tech with respect to things such as storage and cross border connections is moving on. The stuff you "reference" is old – and in that sense I detect a maginot mentality.

    We will integrate wind (and PV) into power networks – that's what I do for a living – I wonder what you do Mr Jangdal – apart from sniping from the sidelines.

    By :
    Mike Parr
    - Posted on :
    07/05/2013
  • @ Mike Parr
    Oh, I can do the math allright. But you don't disclose the origins of your numbers, so I can't be sure they are correct.
    Generally there is very little experience with wind mills 20 years old or older. Most experiences from Spain, California, Denmark and Sweden suggests they last 10-15 years on average. A utilization factor of 50% is very rare.
    Your claim of the dutch report being wrong is the first I've heard, and I have been communicating it to a lot of people. Do you have anything with substance to back that statement?
    Wind mills require extremely expensive grids to make it possible to feed the generated power in and out in a smooth and uninterupting way. Experts, among them chief engineers for the Swedish national grid say the expenditures will never be met by profits from such a grid, ever.
    Economists and engineers alike say wind just isn't dense enough with energy to make it profitable to extract that energy for practical use. It is only the green scary climate threat mongers that claim no cost is to great when it comes to save the planet.

    Interesting that your livelihood is depending on wind mills being erected. Why should that make me trust your arguments when you claim those investments are sound and necessary?

    What I do for a living is not important in this debate. However, I can assure you that I have no vested interest either way in the energy business. My concern comes from being a citizen and a taxpayer. I don't want my freedom and liberties taken away from me in the name of a green agenda. Especially not one built on false assumptions. I certainly don't want my tax money to be spent on reducing my civic rights.

    By :
    Mats Jangdal
    - Posted on :
    08/05/2013
  • Jangdal - mills mill things - wind turbines don't mill things - your terminology betrays your bias.

    Source of numbers: data from the wind farm itself. Actually utilisation in 2012 was 55% - amazing or not - that's what it gave.

    Your assertion that WTs need very expensive grids (I assume you mean power networks?) is just that - an assertion - where are the numbers? I am a power engineer I used to build networks thus your assertion that "Wind mills require extremely expensive grids to make it possible to feed the generated power in and out in a smooth and uninterupting way" are frankly wierd and make little to no (power engineering) sense - they are quite simply garbage.

    Likewise the barmy statement: "Economists and engineers alike say wind just isn't dense enough with energy to make it profitable to extract that energy for practical use" which economists? which engineers?

    LCOE of on-shore wind 5 euro cents/kwhr (source BNEF April 2012) - cheap enough for you? certainly competes with the cheapest from of electrical power - that from CCGTs.

    I see posts like yours all the time - full of half arsed assertions backed up by ... nothing and silly things such "I don't want my freedom and liberties taken away from me in the name of a green agendaas" eh? I assume this was a joke?

    By :
    Mike Parr
    - Posted on :
    08/05/2013
  • Mike,
    Wind turbines, fair enough!
    If you are interested in waiting, I can dig up names of some leading Swedish engineers who gave statements supporting my description of things. This was widely debated (and published in news papers and magazines) in Sweden last summer.

    Your produktion cost of 5 € cent is double from what we have here from approximately 95% water and nuclear power. So no thanks.

    Any and every little step away from voluntary market agreements towards politically and bureaucratically enforced energy production and pricing will undoubtably infringe on my civic liberties. The green agendas do just that. It is very serious and very discomforting to learn about. Definitely no joke and no joking matter!

    By :
    Mats Jangdal
    - Posted on :
    08/05/2013
  • The experts you quote so happily clearly don't have facts to support their assertions. le Pair uses The Dutch and Irish power systems to show how much it takes supposedly to follow wind variations.
    Load variations totally dominate power system control and will not even be noticeable to system operators until wind penetration reaches around 30%. [It is actually until the standard deviation of wind contributes say 10% of the standard deviation of demand and, bearing in mind that standard deviations add like their squares, that means the square root of 10% which is around 30%.]
    Unfortunately, there is no “substantial wind power contribution” in either Eire or The Netherlands. Both have less than 10% wind power penetration, so their extra deviations due to wind will be less than 1% [the square of 10%]. That will certainly not be noticeable to any power system operator, so any extra energy so carefully identified by le Pair must simply be coping with existing load variations. Sorry Jangdal. You really need to get into mainstream engineering.
    The rest of us don't have any of that 2.5 € cent generation and you can't produce any more of it at that price so we'll all have to manage with what we've got and wind is making massive contributions, more than any other type of generation apart from solar.

    By :
    DONALD SWIFT-HOOK
    - Posted on :
    08/05/2013
Background: 

The EU’s Green Paper for 2030 climate targets mentions a potential greenhouse gas emission-reduction target of 40%, and does not close the door on a 30% target for the proportion of energy that renewable energy may make up by 2030.

But the consultation document suggests that progress on a new energy savings goal be delayed until after a review next year of progress towards reaching the bloc’s 2020 target, despite recognising that this is non-binding, and unlikely to be met. 

A communication is expected by the year’s end on the subject, and proposed 2030 climate targets may change. No formal proposal is expected until after 2014 though.

The EU currently has three 2020 climate goals – for 20% improvements on the continent’s CO2 emissions, renewables and energy consumption performances. This latter is to be met by a variety of means.

More on this topic

More in this section

Advertising

Communication Partners

Sponsors

Videos

EU Priorities 2020 News

Euractiv Sidebar Video Player for use in section aware blocks.

EU Priorities 2020 Promoted videos

Euractiv Sidebar Video Player for use in section aware blocks.

Advertising

Advertising