A new framework for EU energy security: putting sustainability first

ABSTRACT

The EU energy strategy is hard-poised to ensure energy security for the Union, mainly due to its fixation on fossil energy imports. This paper argues that energy security can holistically be addressed only in case sustainability becomes a priority goal. Such a re-conceptualisation does not only pave the way for a radical restructuring of the energy systems in Europe that can cater for the EU’s energy needs in a sustainable way, but also theorises energy as a scarce resource that hence should be highly priced. On the basis of a thorough ecological tax reform, energy prices can convey accurate signals to households and enterprises and allow for a smooth function of the economy that is today frequently upset by energy price hikes and slumps. The paper aims to make a timely contribution to the current debate on the shape and priorities of the Energy Union by making a strong case for a re-ordering of priorities in EU energy strategy.

KEYWORDS:

• Energy Union
• demand-side policies
• de-carbonisation
• low carbon security
• renewables
• ecological tax reform

Notes

1. It is indicative that the price of crystalline-silicon photovoltaic cells has fallen from 80$ per watt in 1977 to around 1$ today (The Economist, 2015a). It is thus no wonder that in many cases, solar panels can produce 1 kWh of electricity for less than a dollar (0.08$), while the rate for wind energy is even more competitive at 0.05$ for the same amount of energy. The corresponding price for fossil fuels ranges from 0.045$ to 0.14$ for 1 kWh (IRENA, 2015).