November 17th:
Plenary Session:
Common EU Energy Policy: Is it really a must? Is common EU energy policy necessary?
Panel discussions:
Challenges for the Development of the Nuclear Energy
Financing of the Energy Sector in CEE: Are there Financial Resources Avaiable?
Regional Strategic Energy Projects
Common EU Energy Policy: Is it really a must?
Is common EU energy policy necessary?
November 17th, 9:00 – 10:30
The moderator: Janos Martonyi, former Minister of Foreign Affairs of Hungary
Emphasized the importance of regulatory legislation in the area of competition and the necessity to have a more thorough monitoring within this scope. He also stressed that large corporations should cooperate with the government.
Claude Mandil, former Executive Director of the International Energy Agency (IEA) France
Started his speech by asking a question whether the EU needs a common energy policy, and he immediately answered this question affirmatively. In the further part of his speech he touched on the issue of internal liberalization of electric energy markets emphasizing that it has been a remarkable achievement, despite being partial. Mandil emphasized also that the EU does not have a common security policy. This area, according to Mandil, requires a stable legal, legislative framework with a pan-European character. He also pointed that Turkmen gas is a good solution for faster developing markets than the European market. The EU, according to Mandil, needs such sources of energy as liquefied gas. Mandil underscored also that the principle of solidarity should underpin the European energy policy, which would ensure that the mechanism of gas supply from other parts of Europe could be triggered promptly in the case of a halt in gas supply.
According to Laszlo Varro, Senior Vice-President for Strategic Development, MOL Group, Hungary
We do not have any energy crisis, although we can often hear that such crisis does exist. We have many suppliers. We should be concerned with CO2 emissions because, as opposed to inexistent energy crisis, there is a climatic crisis. China and India are expected to increase their CO2 emissions in the nearest perspective. If we could succeed in convincing China and India to sign a document on reduction of CO2 emissions even by 2025 – it would be a notable success. It is worth emphasizing that we should have a more integrated energy policy.
Keith Smith, Centre for Strategic and International studies -CSIS, USA
Remarked that solidarity is absent in mutual relations between Western and Eastern European countries. In the west of Europe it will be necessary to introduce a new solidarity-based policy.
Challenges for the Development of the Nuclear Energy
November 17th, 12:30-14:00
Joachim Pfeiffer, Member of Parliament, Energy Spokesman for CDU Parliamentary Group, Bundestag, Germany.JPG)
- Nuclear energy is a part of the solution in the area of energy security
- It is the most effective source used to supply energy
- The biggest concern is to obtain acceptance from the public opinion, because lack of sufficient information fuels fears, which leads to reluctance towards nuclear energy
- One needs to ensure high security standards in nuclear power plants, train specialists and observe high standards within the scope of radioactive waste disposal.
.JPG)
Gerard Cognet, Delegate for Central Europe, Atomic Energy Commission (CEA), France
Nuclear energy has 2 fundamental advantages: it does not pose any risk of climatic changes and it cannot become an object of geopolitical games. The key issue is to ensure a safe method of storing radioactive wastes and secure uranium supplies. The use of nuclear energy as such is safe thanks to new technologies applied at construction of reactors – so-called fourth generation reactors.
Thomas Epron, Central Europe & Near East Area Director, AREVA, France
.JPG)
Nuclear energy meets the demand for energy in France in 80 percent. Nevertheless, construction of nuclear power plants requires huge financial outlays, which must be frozen for years before they begin making profits.
There are currently 50 nuclear reactors being constructed in the world. Europe does not have a comprehensive concept for the future of nuclear power engineering. The EU does not have any special support project allocated for this purpose.
Gilbert J. Brown, Coordinator of the Nuclear Engineering Program, University of Massachusetts Lowell, USA
The United States has the longest experience in the world within the scope of nuclear power engineering. In the USA it covers 20 percent of demand, which is a high rate considering the size of this country. Nuclear energy is the only solution, which in the large scale can replace fossil fuels.
Financing of the Energy Sector in CEE: Are there Financial Resources Avaiable?
November 17th, 10:45 – 12:15
The question is if the financial resources are avaible for the energy sector, in other words where the money will come from?
Pierluigi Orati, Corporate Social Responsibility Manager, ENEL, Italy.jpg)
Enel is present in 23 countries, it is producting multinational energy.
To provide energy to this countries is an important goal for our company. WE have to deal with a lot of challenges, f.e. the demographic challenge, the growth is the determinant factor of energy and electricity globally. We have also to growth the infrastructure. Sustainability- it is convenient. Companies exist to have profit. But also the social aspect is very important, if we forgett about this than it could be a cost for the company. Sustainability is aglobal language already. Integration is our pathway towards succes. Our view is to encourage the stateholders. The stateholders engagement allows to allign the social and environmental performances with the strategies of the corporation. The frame of reference should be : society, economy and industry and environment territory. Philantrophy should not be consider as a sustainable practice.
Adalbi Shkhagoshev, Member of Parliament, State Duma, Russia
The global crises has impacted the CEE countries but also particullary the economic situation in Russia. Talking about the EU members the majority of the russian experts are talking about diversification and restructuring. The global financial system is not perfect. We are happy to have in Russia a number of social projects.
Unfortunattly our industry receives very little money. WE should make diversification of industry into SME,s , because in this field we hardly can talk about money. WE have adopted in Russia the budget and we have a deficite of 30%. The countries of the CEE were heat a lot of the crises, but they also have received a lot of financial sources from the integration in the European Union, from EBERD and EIB ( European Investment Bank). Poland is today ready to buy gas at market rates and market price. During the economic crises the oil prices have increased and the main cause of the economic crises are the bad debts. We cannot say that it won t be a second wave of the crises. In order to get the money we should be prepared for diversification.
Justin Dargin, Research Fellow, Harvard University, Quatar
I will present the point of view over the Middle East. This region is a potential partenr for the CEE countries which want to diversify the suppliers from the gas field. Quatar has enormous gas reserves, after Russia and
, the third in the world. Quatar is engaged in very many projects regarding energy production and export. What does this means for Eastern Europe countries? CEE countries should not depend only on one supplier, they are quite vulnerable because of the past ukrainian-russian crises, which did should us this very clear. Poland and other CEE countries will need to invest in gas infrastructure if they want to make the diversification.
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Grzegorz Onichimowski, President of the Board, Polish Power Exchange, Poland
Where can we find the necessay money, when the needs are enourmos? I will focus in my presentation on energy and present you some lessons learned recently in Poland:
1. very succesfull IPO of PGE
2. failure of the ENEA privatization with industry invetors involved.
It seems that today financial investors are stronger than in industry. Money is in the hands of the people, it is on the streets. WE need to give the confidence to the people that our business is OK, so they can make the decision to invest. How can we build this confidence? By transparency and transparent shares market. The energy market is a market environment. The risks are enormous, f.e. the regulatory risk, the political risk (climate policy), the prcies of the fuels. Why we cannot enjoy the liquid spot market so far? One of the major factors of the market low liquidity id the lack of privatization. A market with all the players being the same ownership is difficult to imagine. Other reasons of the lack of liquid spot market are:
1. the market revenues are to small. Regional initiatives to create a common spot market are not strong enough.In order to gain more liquidity we should have market coupling: f.e. french german initiative EPEX Spot, Czech-Slovak (in CEE).
Regional Strategic Energy Projects
November 17th, 10:45 – 12:15
Miklos Poos, Deputy Director General, Ministry of Transport, Telecomunication and Energy, Republic of Hungary
Said that Hungary is interested in diversifying gas supplies. That is why it supports both Nabucco and South Stream. In further part of his speech … paid attention to the necessity of diversifying transport routes, in order to ensure safe supplies. … mentioned also regional cooperation among the countries from the Visegrad Group. On 6 November the representatives of Visegrad countries decided to establish a coordinating committee responsible for formulation of their joint energy policy. A priority, in the opinion of Miklos Poos , is to prepare a joint approach to energy policy in Central Europe and harmonize cooperation in this respect. In the end of his speech Miklos Poos emphasized the necessity to cooperate more closely on the corporate level.
Igor Prokofyev, Deputy Director, Russian Institute of Strategic Studies, Russia
Remarked that the national energy policy is pursued precisely by means of strategic projects. One of the features of strategic projects, according to Prokofyev, is that they are oriented towards the future, but decisions are taken on the basis of information, which is available today. Renewable energy – is a European strategic project. Another strategic project for Europe (but also for the whole world) – is liquefied gas, which is attractive due to its dynamism. Yet, if liquefied gas is not the object of contracts, there is a risk that it might create opportunity for speculations (because it can be easily redirected from one recipient to another). Prokofyev thinks that cooperation between the EU and Russia in the field of energy is too politicized.
Vladimir Socor, Expert, Jamestown Foundation, USA
Pointed out that the North Stream project is unlikely to prepare a realistic evaluation of Sztokmansk deposits before 2020. None of official persons, present during negotiations, has ever determined the resources expected to fill in the South Stream project’s pipeline. According to Socor, South Stream seems to be a political bluff, while the project of Southern Corridor seems to be promising. Azerbaijan searches for alternative options today. Pipelines have already been installed there and therefore it seems fairly easy to take a decision.
Michael Mertl, Managing Director, Adria LNG, Croatia
Said that the gas crisis in 2009 forced a repeated review of oil prices. The following issues were mentioned among challenges encountered by the security of energy supply to the EU: more stable use and cleaner energy resources. Liquid gas plays also a substantial role in ensuring security of supply to the EU. The government of Croatia expects that the LNG Adria terminal will be opened in 2014.
Gorgij Vashakmadze, Director, Corporate Development, White Stream Consortium, Georgia
Asked a question if Europe needs more gas and if new gas sources are needed. According to Vashakmadze, liquefied gas – creates a link with the world’s markets. Vashakmadze thinks that a direct connection should be established between Europe and the Caspian Sea region. It is needed by Europe, but also by the Caspian Sea region because the EU is a stable market.
Maxim Bobrov, Journalist, 1 Television Channel, Russia
Remarked that the Russian Yamal Peninsula is a regional strategic project. However, the peninsula does not have appropriate infrastructure.