ENERGY POLICY IN EUROPE AND ITS IMPACT ON ELECTRICITY SUPPLY

Abstract

The paper reiterates the three cornerstones of energy policy in the Western World, namely, security of supply, impact on the environment and affordability. In recent years, the EU has published vast documentation and directives on energy supply with particular emphasis on two main aspects: the identification and addressing of the malfunctioning of the EU Energy Market; and the impact of energy production and transportation on the environment. The second of these has centred on the promotion of renewable sources of energy. Having described briefly these developments to date, the paper proceeds to describe the latest attempts early in 2007 to set out an energy policy for Europe. This is designed to remove the persistent market malfunctions, improve energy efficiency and further support the development of renewable sources of energy. The paper also goes on to describe the obstacles to implementation of the energy policy at least in the short and medium terms.