DRAFT EU COUNCIL CONCLUSIONS ON ENERGY SECURITY

UNCLAS BRUSSELS 000389 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EPET EUN SUBJECT: DRAFT EU COUNCIL CONCLUSIONS ON ENERGY SECURITY Sensitive but Unclassified - not for Internet distribution. ¶1. (SBU) The energy security portion of the draft conclusions presented by the Czech Presidency for the March 19-20 European Council endorses the broad initiatives set out in the Commission's Second Strategic Energy Review (SER) and further refined in the Energy Council meeting of February 19. The draft emphasizes that energy security is a key priority that needs to be enhanced by improving energy efficiency, diversifying energy suppliers, sources, and supply routes, and promoting the EU's energy interests vis-a-vis third countries. To deliver on energy security, the EU collectively, as well as each Member State, must be prepared to combine solidarity with responsibility. ¶2. (SBU) In particular the draft conclusions state that: -- The EU's energy infrastructure and interconnections between Member States must be developed and calls on the Commission and Member States to rapidly present detailed actions required to realize the priority projects identified in the SER (Southern Gas Corridor, a diverse and adequate LNG supply for Europe, effective interconnection of the Baltic region, the Mediterranean Energy Ring, adequate North-South gas and electricity interconnections with Central and Southeastern Europe, and the North Sea and North West Offshore Grid); -- Crisis mechanisms and solidarity plans must be established to ensure security of gas supply and calls on the Council to examine by the end of 2009 the Commission proposals to revise legislation on the security of gas supply; -- Energy efficiency should be encouraged as a method to increase energy security and calls on the Council to agree, before the end of the year, on the proposals contained in the Energy Efficiency Package and the revision of the Energy Efficiency Action Plan; -- The internal market should be liberalized under the conditions set forth in the Third Energy Package; -- Diversifying sources plays an important role in enhancing the EU's energy security and calls on the Commission to propose by mid-2009 a "concrete mechanism to facilitate access to Caspian gas;" -- "Speaking with one voice" is of particular importance in delivering a consistent message to supplier and transit countries; and -- Recalls the need for the EU to make best use of its own energy resources including renewables, fossil fuels, and (in countries that choose to do so) nuclear energy. ¶3. (SBU) Comment. The broad principals laid out in the draft will likely find wide acceptance among Member States. The devil, as always, will be in the details of how the EU goes about achieving these goals. The Third Energy Package is still being negotiated between the Council and the Parliament and whether or not the two parties will be able to reach a compromise during the Czech Presidency and before the Parliamentary election cycle is still an open question. The question of how to go about "unbundling" the gas and electricity grids remains the sticking point with the Parliament arguing for more stringent requirements than Member States have so far been willing to accept. The concept of supply diversification is another concept which is easily agreed upon but for which the Member States have very different ideas about how it should be achieved -- with some Member States arguing to use EU funding for projects such as Nabucco and others arguing for the need for the EU to support the Russian Nord Stream and South Stream projects. End Comment. Murray .