Speech Andris Piebalgs: een gezamenlijk energiebeleid van Europa en Turkije (en)

SPEECH/07/368

Energy Commissioner

EU and Turkey: Together for a European Energy Policy

Speech at the conference "Turkey and the EU"

Istanbul, 5 June 2007

Dear Ministers,

Excellencies,

Distinguished guests,

I am very pleased to be here today and I would like to start by thanking all our officials on the Turkish and the Commission's side who have thoroughly worked during several months to prepare this very important meeting.

I want to begin by underlining [the comment my colleague just made about] our geopolitical interdependence. Turkey needs the EU, and the EU needs Turkey. This is particularly true within the field I am concerned with: energy. The mutual benefits of further cooperation within this field are obvious, but we need to give a strong, joint political statement about our intentions to go forward and realise these benefits. This conference is an excellent opportunity to do so.

As a background, I would like to say some words about where we stand today with respect to European Energy policy.

Energy has been at the core of European cooperation and integration process for more than 50 years and much has been achieved.

Today we are facing new challenging times for the world's energy sector and for mankind. Energy security and climate change are again on the top of world's political agenda.

Global demand for energy is set to increase by more than 50% by 2030, global population is expected to grow from 6,6 billion to more than 9 billion people. If continuing business as usual, such a dramatic increase of energy demand poses a threat to the global economy and to the climate, as energy consumption will be accompanied by a related rise in CO2 emissions. By 2030, this could mean an increase of CO2 emissions by 110%.

The European Union recently made an unprecedented step by agreeing on an integrated climate and energy policy, backed up by a detailed action plan. It aims to respond to the challenges of competitiveness, security of supply and sustainability.

This energy package contains a strategic policy objective: an independent EU commitment to reduce greenhouse gases by at least 20 % by 2020, compared to 1990 levels. This commitment will be extended to a 30 percent reduction, if other developed countries commit themselves to comparable emissions reductions.

The action plan included in the energy package contained clear indications about the steps to undertake:

• 1) 

  a 20% increase in energy efficiency by 2020 by means of a number of concrete measures,

• 2) 

  a binding target of 20% for renewable energy in the EU energy mix by 2020,

• 3) 

  boosting development of low carbon technology,

• 4) 

  agreement to further develop a fully integrated single energy market. The aim is to open the way for new investment, new entrants and new choices for customers,

• 5) 

  a set of concrete measures strengthening the solidarity between the member-states,

• 6) 

  developing the external dimension of the EU energy policy.

This background sets the scene for our today's discussion. I would like now to focus my intervention by addressing the geo-strategic aspects of our cooperation and then turning to various inter-action frameworks.

Geo-strategic aspects of our cooperation:

From my perspective, being responsible for European energy security, the key questions facing the European Union and Turkey are in the East & South. Turkey is the link, the corridor, the bridge to those regions. To Turkey's East & South lies the greatest concentration of energy resources on the planet, far larger than those that lie in continental Europe. Within Turkey there is huge potential renewables capacity, large reserves for indigenous energy supply. And - perhaps most importantly - a modern and vibrant economy that is expanding and can create a hub for investment across the Eastern Mediterranean, the Black Sea and the Middle East.

Turkey is already a significant bridge. This role can be developed further with the right legal regulatory and financial environment. This role will have benefits for the EU - in diversifying supply and also in developing economic opportunity. Already now Turkey has made significant regulatory and legal changes necessary for this role. Infrastructure investments are also going ahead.

In opening the way for Turkey towards becoming an energy corridor, the Baku - Tbilisi - Ceyhan oil pipeline has been a milestone project. We have already forgotten that when it started, its realisation seemed simply unconceivable. Today it brings to the world market roughly 1 million barrels of oil per day and doubling of its capacity has been already envisaged. This project has had also a decisive geopolitical importance as it opened a new transport corridor for abundant Caucasus and Central Asia oil resources to the world market.

The Kirkuk - Ceyhan pipeline transports 800 000 barrels of oil per day and would be able to go up to 1,4 million barrels per day with maintenance and repairs.

A month and half ago, I had the opportunity to welcome the beginning of the construction of Samsun - Ceyhan oil pipeline. Its envisaged capacity of up to 1 million barrels by 2011, could also significantly contribute to reduce the increasing pressure of maritime oil transport through the Bosporus and the Dardanelles straights.

As I said, the Baku-Tbilisi-Ceyhan project opened a new corridor. Gas followed the oil flow. Baku-Tbilisi-Erzurum pipeline will have a capacity of transporting around 6,6 bcm of gas per year from the rich Shah Deniz field.

I am very encouraged also by the progress made on Turkey - Greece inter-connector which first phase is already under commissioning and I wish all the success to the Poseidon project linking further Greece to Italy. These transport volumes could reach 11 billion cubic meters.

Let's look into future! Both Turkey and the EU have expressed their firm commitment to realize the Nabucco project which would bring natural gas from various origins to Europe through Turkey. The Nabucco pipeline with an envisaged capacity of 17-20 billion cubic meters by 2010-2011 and further potential of 25 to 31 billion cubic meters by 2020, will enable Turkey to become the fourth artery of the EU for natural gas supply. But we must fill it. And on that, only joint EU-Turkey action can deliver. The Commission is committed to do its homework. Soon, in line with the March European Council conclusions, the Commission will propose a coordinator in order to accelerate the project.

We definitely have further ambitions! The Trans-Caspian natural gas connection is our common next step. Turkey and the European Union must emphasize their strong willingness to realize this projects and to coordinate efforts.

Connections in the power sector are also undergoing important developments. By 2010, Turkish electricity grid should be synchronized to UCTE. In this context, it is important to make progress on Turkey - Greece electricity interconnection.

To realise these projects, it is of crucial importance that Turkey is seen by gas producing countries and investors as a fully reliable energy partner, with an attractive investment climate.

Ladies and Gentlemen,

In Turkey's own energy strategy, the vision of the future is one of rapid growth; an increase of 150% of total primary energy supply, reaching 220 million tonnes of oil equivalent by 2020. This combined with a higher import dependency ratio of 70% - much higher as compared to the EU which stands around 50% - shows that Turkey's energy challenge is even greater than that faced by the EU. Being in a rather similar position, the EU is ready to share its policy and experience with Turkey. Our approach and main principles are well known:

• - 

  a strong and effective domestic market showing real prices, with a price formation mechanism that reflects fundamentals, and,
• - 

  the development of the market and of the infrastructure have to go hand in hand. Stable and predictable investment climate and legal framework are crucial in this regard.

Now, I would like to turn to cooperation frameworks. I will start with the broader one.

The Commission values Turkey's active involvement in the regional energy cooperation framework established between the EU, the littoral states of the Black and Caspian seas and their neighbours. The last Ministerial meeting held in Kazakhstan in November 2006 endorsed the Road map which focuses the regional cooperation on the following objectives:

• - 

  Converging of energy markets on the basis of the EU internal energy market principles taking into account the particularities of the Partner Countries;
• - 

  Enhancing energy security by addressing the issues of energy exports/imports, supply diversification, energy transit and energy demand;
• - 

  Supporting sustainable energy development, including the development of energy efficiency, renewable energy sources and demand side management;
• - 

  Attracting investment towards energy projects of common and regional interest.

Taking into account our common geo-strategic interests and the wide range of participants in this initiative, this cooperation has an important potential in the future.

The next one is Energy Community:

Currently observer, Turkey has a standing invitation to join the European Energy Community. As my Colleague pointed out this is a process that of course has nothing to do with the EU accession - the one does not prejudge the other or vice versa - but I would like to make a reflexion on that point. As I see it these two processes have a common ground in the fact that they both stem from the understanding that further cooperation is needed between EU and Turkey in a number of fields.

Last but not least - potential for strengthening our bilateral cooperation:

Within all the areas I have just mentioned, I believe that further cooperation between EU and Turkey will be fruitful and of mutual benefit for all of us. The liberalisation of the rapidly growing Turkish Energy market, with 72 million consumers will create a strong domestic energy market to the benefit of all. Our perspective has always been that the growing Turkish economy can be a motor for regional economic growth and energy sector development. A strong Turkey will bring these benefits to the EU - and we fully support your domestic focus.

These major elements - a strong domestic market acting as a regional leader for energy market reform and a strong Turkey acting as an impartial link between West and East, North and South - lead us to one conclusion.

There is a potential for a deepened energy relationship and to create the necessary stable environment towards third country suppliers. I invite my Turkish colleagues to reflect on the possibilities for strengthening of our energy co-operation. This could cover the following elements:

Co-operation on the common geo-strategic challenges facing both of us, in our common neighbourhood of the Black Sea, the Caspian, Central Asia, the Mediterranean and the Middle East.

A broad-based agreement to exchange best practice in energy market reform and regulation, as well as a commitment to implement an internal market in network energy sources, inspired by EU internal market principles, within Turkey. The best means for this in my view would be Turkey's accession to the Energy Community Treaty as an equal partner with full rights and influence on our common external energy policy.

A technology component and reinforced efforts for joint research in areas of interest, such as renewables and hydro-power.

A transfer of knowledge on the market-based means to finance new infrastructure, so that the market will not lead to constraints on growth in the Turkish domestic market - this should include all energy sources in its scope.

I would like to see this common perspective wrapped up in appropriate instruments; and we can encourage our staff to elaborate them in order to have a result by the end of the year. There could be an overarching framework for co-operation to give stability and predictability for the future.

Ladies and gentlemen,

I believe I have stated our intentions very clearly. Like my colleague Olli Rehn speaking before me, I am extending a very clear, and I believe, also very strong political message:

There are mutual benefits for both sides in further EU-Turkish energy co-operation, and we are determined to work together with Turkey to realize these mutual benefits.

Thank you.