With this lesson, we will explore the energy landscape of Europe, including policies and programs, energy sources and consumption, and the challenge to create an infrastructure supporting an internal EU energy market.
By the end of this lesson, you should be able to...
The table below provides an overview of the requirements for Lesson 10. For details, please see individual assignments.
Please refer to the Calendar in Canvas for specific time frames and due dates.
REQUIREMENT | SUBMITTING YOUR WORK |
---|---|
Read Lesson 10 content and any additional assigned material | Not submitted. |
Weekly Activity 10 | Yes—Complete Activity located in the Modules Tab in Canvas. |
Europe is the 2nd smallest continent after Australia. The mainland of Europe is a peninsula of the western part of the Eurasian supercontinent, with no clear geological boundary to the east. By convention, it is separated from Asia by the Ural Mountains, the Ural River, the Caucasus Mountains, and in the southeast by the Caspian Sea and the Black Sea.
In the south, Europe is separated from Africa by the Mediterranean Sea. In the west, Europe's borders are defined by the Atlantic Ocean and, to the north, by the Polar Sea.
The United Nations recognizes four subregions in Europe [2]: Eastern Europe, Northern Europe, Southern Europe, and Western Europe.
Two political economy-related terms that are often bandied about and sometimes conflated are European Union (EU) and Euro area (though you will still sometimes see it referred to as the Eurozone). It is important to differentiate between the two, as they are not synonymous. According to the EU, the European Union "is a unique economic and political partnership between 27 European countries that together cover much of the continent" (European Union: The EU in brief [3]). As you will see, the EU is defined by a series of agreements (mostly treaties) that were for a long time focused on establishing economic relationships, but have more recently become more political in nature. See the countries in the EU in the map above, and feel free to visit the EU's website [4] for brief details on each country.
The Eurozone/Euro area is defined by Investopedia [5]as "a geographic and economic region that consists of all the European Union countries that have fully incorporated the euro as their national currency." The euro began as a "virtual currency" in 1999 (used for "cash-less payments and accounting purposes"). The first banknotes were distributed on January 1, 2002. There are currently 19 countries in the Euro area (out of 27 EU member states), with close to 340 million people using the euro on a daily basis (European Union: The euro [6]). For a full list of Eurozone countries, visit the European Union website [7].
Visit One-World [8].
Read/view the list of countries in Europe. Then take a little trip! Look at the map or visit the EUN member countries in brief page [9] to explore. Notice cities, languages, currency, and natural resources.
For a brief history lesson on the EU:
From the Delegation of the European Union to the United States, read How the EU Works [12]. (Sorry for the archived link - the link went dead not long after President Trump took office, but the information is still valid and is a good summary). Note the different roles and memberships of the European Council, the European Commission, the Council of the European Union, and the European Parliament. (OPTIONAL: If you are interested in digging deeper into legislation and legal powers of the various bodies, see these Fact Sheets [13] from the European Parliament.)
Visit Europa and read
As you are probably aware, Great Britain voted to exit the EU in 2016. This is the first time that a country has voted to leave the EU. Please read the following summary of the so-called "Brexit."
Since 2004, the number of EU member countries has grown from 15 to 27 through two waves of "enlargement," as the process is called. To address needed reforms for the larger group and current times, The Lisbon Treaty was signed by all EU Member States on 13 December 2007.
This important treaty "modernizes" some of the ground rules for EU countries working together, because "The European Union (EU) of 27 members [had] been operating with rules designed for an EU of 15 Member States." At the time the treaty was signed, "there [was] increasing support for the EU to work together on issues that [affected all countries], such as climate change, energy security, and international terrorism." The Lisbon treaty is designed to "lead to greater efficiency in the decision-making process" when tackling problems that impact multiple EU countries. (All quotes are from "Explaining the Treaty of Lisbon [21]," which I might add provides an excellent overview of the treaty if you are interested in learning more). The Treaty went into effect on 1 December 2009.
The Treaty opened the door for many new opportunities for the EU to work together, including areas related to the environment and energy.
The Treaty of Lisbon states that one of the Union’s objectives is to work for the sustainable development of Europe based, in particular, on a high level of protection and improvement of the quality of the environment. Although the idea of sustainable development was included in the existing treaties, the Treaty of Lisbon reinforces and better defines this objective. Sustainable development is also affirmed as one of the fundamental objectives of the Union in its relations with the wider world.
The environment is one of the spheres of competence shared between the Union and the Member States...When the Union intervenes in this area, it must contribute to the pursuit of clear objectives: preserving, protecting, and improving the quality of the environment; protecting human health; promoting prudent and rational utilization of natural resources; promoting measures at the international level to deal with regional or worldwide environmental problems.
A reference to the need to combat climate change in measures at the international level has also been added. This is the first time that climate change is explicitly referred to in the treaties.
Energy is not an EU policy area in the treaties in its own right. The new energy policy aims to ensure the functioning of the energy market, security of supply, the promotion of energy efficiency and energy saving, the promotion of the development of new and renewable forms of energy, and the promotion of the interconnection of energy networks.
The Treaty also contains "a specific chapter on energy which defines the key competencies and the overall objectives of energy policy: the functioning of energy markets, security of supply, energy efficiency and savings, the development of new and renewable forms of energy and the interconnection of energy networks. For the first time there is a principle of solidarity, ensuring that if one country faces severe difficulties in the supply of energy, other Member States will help keep the country supplied." (Europa, Policies for a better life [22], retrieved October 2011)
Visit the European Union's Publications Office [31]:
It will help to know that an Mtoe is a megatonne of oil equivalent. It represents the amount of energy released from burning one million tonnes of crude oil. In OECD/IEA tabulations, 1 Mtoe is equal to 4.1868 x 1016 J and is used as the general unit to describe the energy content of all fuels. (APS Physics [32])
The International Energy Agency [33] (IEA)
was initially designed to help countries co-ordinate a collective response to major disruptions in the supply of oil, such as the crisis of 1973/4. While this remains a key aspect of its work, the IEA has evolved and expanded significantly.
The IEA examines the full spectrum of energy issues including oil, gas and coal supply and demand, renewable energy technologies, electricity markets, energy efficiency, access to energy, demand side management and much more. Through its work, the IEA advocates policies that will enhance the reliability, affordability and sustainability of energy in its 29 member countries and beyond.
Today, the IEA is at the heart of global dialogue on energy, providing authoritative analysis through a wide range of publications, including the flagship World Energy Outlook and the IEA Market Reports; data and statistics, such as Key World Energy Statistics and the Monthly Oil Data Service; and a series of training and capacity building workshops, presentations, and resources.
The four main areas of IEA focus are:
- Energy Security: Promoting diversity, efficiency, flexibility and reliability for all fuels and energy sources;
- Economic Development: Supporting free markets to foster economic growth and eliminate energy poverty;
- Environmental Awareness: Analysing policy options to offset the impact of energy production and use on the environment, especially for tackling climate change and air pollution; and
- Engagement Worldwide: Working closely with partner countries, especially major emerging economies, to find solutions to shared energy and environmental concerns. (IEA: Organisation and structure [34])
As noted in a prior lesson, the IEA is a subsidiary of the Organization for Economic Cooperation and Development (OECD). The IEA is careful to note [35] that they are "an autonomous intergovernmental organization within the OECD framework."
Launched in June 2006, Energy Technology Perspectives is the IEA's leading biennial publication. The series is a response to a request from the G8 in 2005 for guidance on how to achieve a clean, clever, and competitive energy future and how to achieve an 80% reduction in global CO2 emissions by 2050.
The 2020 Energy Technology Perspectives provides an analysis of how to achieve international "climate and sustainable energy goals," with a focus specifically on technology, including "electrification, hydrogen, bioenergy and carbon capture, utilization and storage" (IEA [38]Energy Technology Perspectives 2020 [38]). Scenario building lies at the core of their analysis, and they focus on two different emissions scenarios, as follows:
Stated Policy Scenario: This scenario serves as a benchmark for the projections of the Sustainable Development Scenario. It assesses the evolution of the global energy system on the assumption that government policies and commitments that have already been adopted or announced with respect to energy and the environment are implemented, including commitments made in the nationally determined contributions under the Paris Agreement. Where commitments are aspirational, such as the goal of reaching net-zero emissions, a judgement is made as to the likelihood of those commitments being fully met based on an assessment of the impact of measures that have been agreed to date. This scenario does not assume any future changes to existing and announced policies and measures, although it does consider their impact on long-term technology evolution as a means to guide scenario expectations beyond the time horizon of current policy plans .
Sustainable Development Scenario: This is the scenario which lies at the heart of ETP-2020 and that is used to illustrate the technology needs for reaching net-zero emissions from the energy sector. It describes the broad evolution of the energy sector that would be required to reach the United Nations Sustainable Development Goals (SDGs) most closely related to energy: achieving universal access to energy (SDG 7), reducing the impacts of air pollution (SDG 3.9) and tackling climate change (SDG 13). It is designed to assess what is needed to meet these goals, including the Paris Agreement, in a realistic and cost-effective way. The trajectory for energy- and industry-related CO2 emissions in the Sustainable Development Scenario is consistent with reaching global net-zero CO2 emissions from the energy sector in 2070
Source: IEA [38]Energy Technology Perspectives 2020 [39], pp. 68-70
In the International Energy Agency's Energy Technology Perspectives 2020, read the following:
The IEA provides a number of publications [43], many of which are freely available. Among them are the "Market Report Series [44]" each year for a variety of fuels. They provide a lot of detail on various energy technology uses and projections.
The EU’s goals for a competitive, sustainable, and secure supply of energy for all member countries is best achieved when energy is available from a wide range of sources. And often, these energy sources are located far from the areas of highest demand, the major markets.
The requirements for infrastructure are addressed in the EU communication, Energy infrastructure priorities for 2020 and beyond - A Blueprint for an integrated European energy network [45].
The excerpt below sets the stage for understanding the map above. More details are provided in the assigned reading. The excerpt is from the opening section of Energy infrastructure priorities for 2020 and beyond - A Blueprint for an integrated European energy network [46].
Europe's energy infrastructure is the central nervous system of our economy. EU energy policy goals, as well as the Europe 2020 economic aims, will not be achievable without a major shift in the way European infrastructure is developed. Rebuilding our energy system for a low-carbon future is not just a task for the energy industry. Technological improvements, greater efficiencies, resilience to a changing climate, and new flexibility will be necessary.
This is not a task which a single Member State can achieve on its own. A European strategy, and funding, will be necessary.
The Energy Policy for Europe, agreed by the European Council in March 2007, establishes the Union’s core energy policy objectives of competitiveness, sustainability, and security of supply. The internal energy market has to be completed in the coming years and by 2020 renewable sources have to contribute 20% to our final energy consumption, greenhouse gas emissions have to fall by 20%, and energy efficiency gains have to deliver 20% savings in energy consumption. The EU has to assure security of supply to its 500 million citizens at competitive prices against a background of increasing international competition for the world's resources. The relative importance of energy sources will change. For fossil fuels, notably gas and oil, the EU will become even more dependent on imports. For electricity, demand is set to increase significantly.
The Energy 2020 Communication, adopted on 10 November 2010, called for a step change in the way we plan, construct, and operate our energy infrastructures and networks. Energy infrastructures are at the forefront of the flagship initiative "Resource efficient Europe."
Adequate, integrated, and reliable energy networks are a crucial prerequisite not only for EU energy policy goals, but also for the EU's economic strategy. Developing our energy infrastructure will not only enable the EU to deliver a properly functioning internal energy market, it will also enhance security of supply, enable the integration of renewable energy sources, increase energy efficiency, and enable consumers to benefit from new technologies and intelligent energy use.
The EU pays the price for its outdated and poorly interconnected energy infrastructure. In January 2009, solutions to the gas disruptions in Eastern Europe were hindered by a lack of reverse flow options and inadequate interconnection and storage infrastructures. Rapid development of offshore wind electricity generation in the North and Baltic Sea regions is hampered by insufficient grid connections, both off- and onshore. Developing the huge renewables potential in Southern Europe and North Africa will be impossible without additional interconnections within the EU and with neighboring countries. The risk and cost of disruptions and wastage will become much higher unless the EU invests as a matter of urgency in smart, effective, and competitive energy networks, and exploits its potential for energy efficiency improvements.
[...]
A new EU energy infrastructure policy is needed to coordinate and optimize network development on a continental scale. This will enable the EU to reap the full benefits of an integrated European grid, which goes well beyond the value of its single components. A European strategy for fully integrated energy infrastructures based on smart and low-carbon technologies will reduce the costs of making the low-carbon shift through economies of scale for individual Member States. A fully interconnected European market will also improve security of supply and help stabilize consumer prices by ensuring that electricity and gas goes to where it is needed. European networks including, as appropriate, with neighboring countries, will also facilitate competition in the EU’s single energy market and build up solidarity among Member States. Above all, integrated European infrastructure will ensure that European citizens and businesses have access to affordable energy sources. This in turn will positively contribute to Europe's 2020 policy objective of maintaining a strong, diversified and competitive industrial base in Europe.
Referring to the map above, "EU priority corridors for electricity, gas and oil," open and read the EU publication, Energizing Europe [47].
Visit the European Files [48] website. There are a number of free online magazines that contain articles written by important business and policy leaders throughout Europe. This is a great resource for learning about a variety of current issues in Europe. Feel free to tool around - there is a LOT of information available! Then, please do the following:
Please review Canvas calendar for all due dates related to your Nonmarket Analysis Case Study.
Complete "Weekly Activity 10," located in the "Weekly Activities" folder under the Modules tab. The activity may include a variety of question types, such as multiple choice, multiple select, ordering, matching, true/false, and "essay" (in some cases these require independent research and may be quantitative). Be sure to read each question carefully.
Unless specifically instructed otherwise, the answers to all questions come from the material presented in the course lesson. Do NOT go "googling around" to find an answer. To complete the Activity successfully, you will need to read the lesson, and all assigned readings, fully and carefully.
Each week, a few questions may involve research beyond the material presented in the course lesson. This "research" requirement will be made clear in the question instructions. Be sure to allow yourself time for this! You will be graded on the correctness and quality of your answers. Make your answers as orderly and clear as possible. Help me understand what you are thinking and include data where relevant. Remember, numbers should ALWAYS be accompanied by units of measure (not "300" but "300 kW"). You must provide ALL calculations/equations to receive full credit - try to "talk me through" how you did the analysis.
This Activity is to be done individually and is to represent YOUR OWN WORK. (See Academic Integrity and Research Ethics [51] for a full description of the College's policy related to Academic Integrity and penalties for violation.)
The Activity is not timed, but does close at 11:59pm EST on the due date, as shown in Canvas.
If you have questions about the assignment, please post them to the "Questions about EME 444?" Discussion Forum. I am happy to provide clarification and guidance to help you understand the material and questions (really!). Of course, it is best to ask early.
In this lesson you learned...
You have reached the end of Lesson 10! Double-check the list of requirements on the first page of this lesson to make sure you have completed all the activities listed there.
Links
[1] http://www.nationsonline.org/oneworld/europe_map.htm
[2] http://unstats.un.org/unsd/methods/m49/m49regin.htm
[3] http://europa.eu/about-eu/basic-information/about/index_en.htm
[4] https://european-union.europa.eu/principles-countries-history_en
[5] http://www.investopedia.com/terms/e/eurozone.asp
[6] https://european-union.europa.eu/institutions-law-budget/euro_en
[7] https://european-union.europa.eu/institutions-law-budget/euro/countries-using-euro_en
[8] http://www.nationsonline.org/oneworld/europe.htm
[9] http://europa.eu/about-eu/countries/member-countries/index_en.htm
[10] http://europa.eu/about-eu/eu-history/index_en.htm
[11] https://www.youtube.com/watch?v=XgnXwrsMBUs
[12] https://web.archive.org/web/20170915183512/http://www.euintheus.org/who-we-are/how-the-eu-works/
[13] http://www.europarl.europa.eu/factsheets/en/section/187/european-union-institutions-and-bodies
[14] http://europa.eu/about-eu/institutions-bodies/index_en.htm
[15] http://europa.eu/eu-law/index_en.htm
[16] https://european-union.europa.eu/institutions-law-budget/institutions-and-bodies/institutions-and-bodies-profiles/european-commission_en
[17] https://www.thebalance.com/brexit-consequences-4062999
[18] http://www.flickr.com/photos/european_parliament/5099255413/
[19] http://www.flickr.com/photos/european_parliament/
[20] http://creativecommons.org/licenses/by-nc-nd/2.0/
[21] http://europa.eu/rapid/press-release_MEMO-09-531_en.htm?locale=en
[22] http://europa.eu/lisbon_treaty/glance/better_life/index_en.htm
[23] https://ec.europa.eu/clima/eu-action/eu-emissions-trading-system-eu-ets_en
[24] https://ec.europa.eu/clima/eu-action/climate-strategies-targets/2020-climate-energy-package_en
[25] https://ec.europa.eu/clima/eu-action/climate-strategies-targets/2030-climate-energy-framework_en
[26] https://ec.europa.eu/clima/eu-action/climate-strategies-targets/2050-long-term-strategy_en
[27] https://ec.europa.eu/clima/eu-action/climate-strategies-targets/progress-made-cutting-emissions_en
[28] https://ec.europa.eu/clima/eu-action/international-action-climate-change/climate-negotiations/paris-agreement_en
[29] https://www.brookings.edu/articles/the-coming-of-age-of-sustainability-disclosure-how-do-rules-differ-between-the-us-and-the-eu/
[30] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2464
[31] https://op.europa.eu/en/publication-detail/-/publication/41488d59-2032-11ec-bd8e-01aa75ed71a1/language-en
[32] http://www.aps.org/policy/reports/popa-reports/energy/units.cfm
[33] http://www.iea.org/
[34] http://web.archive.org/web/20160611201747/http://www.iea.org/aboutus/faqs/organisationandstructure/
[35] http://www.iea.org/about/structure/
[36] http://www.flickr.com/photos/oecd/4024912499/
[37] http://www.flickr.com/photos/oecd/
[38] https://www.iea.org/reports/energy-technology-perspectives-2020
[39] https://webstore.iea.org/download/direct/4165
[40] http://www.iea.org/etp/explore/
[41] https://www.iea.org/classicstats/ieaenergyatlas/
[42] https://www.iea.org/etp/explore/
[43] https://webstore.iea.org/
[44] https://webstore.iea.org/market-reports?pagesize=24
[45] https://climate-adapt.eea.europa.eu/en/metadata/publications/energy-infrastructure-priorities-for-2020-and-beyond-a-blueprint-for-an-integrated-european-energy-network
[46] http://climate-adapt.eea.europa.eu/en/metadata/publications/energy-infrastructure-priorities-for-2020-and-beyond-a-blueprint-for-an-integrated-european-energy-network
[47] http://www.ab.gov.tr/files/ardb/evt/1_avrupa_birligi/1_9_politikalar/1_9_6_enerji_politikasi/2011_energising_en.pdf
[48] https://www.europeanfiles.eu/
[49] https://www.europeanfiles.eu/magazine/energy-system-integration-in-europe-decarbonization-of-the-european-economy
[50] https://www.europeanfiles.eu/climate/energy-efficiency-buildings-help-structurally-reduce-fuel-poverty
[51] https://www.ems.psu.edu/undergraduate/academic-integrity/academic-integrity-undergraduates