As Secretary-General of the Energy Charter Secretariat, André Mernier is in a privileged position to assess Europe’s energy security. Contrary to many, Mernier, Belgium’s former ambassador to Russia, is generally positive as to the overall level of energy security. One of the most important lessons of the 2006 and 2009 gas supply crises, according to Mernier, is the need for a fully functioning Energy Charter to serve as a legally binding means to manage East-West energy relations. The treaty, signed and ratified by 48 countries as well as two regional bodies - EURATOM and the European Commission, should not be replaced by a new agreement as proposed by Russia.

How secure is Europe’s energy supply? Where is supply less secure?

It is important when you talk about energy security to be clear what is involved. In fact, Europe has a considerable diversity of energy supplies - oil, gas, nuclear and renewables. The percentage of each source of energy in the total energy mix is generally well balanced and in many cases there is the option of ‘switching’; turning to a different source of energy, for example replacing the generation of electricity by coal with gas - although this may take some time and can be expensive. In general, the picture is positive for the EU’s energy supplies as a whole.

Are there areas of concern?

The ongoing difficulties over the supply of gas from the East to some European countries are a matter of worry, notably for states in the South-East of Europe that are heavily reliant on gas supplied through Ukraine. In January of this year, we saw the terrible impact on peoples’ lives and the high costs involved in the interruption of gas supplies for these regions. It is imperative that this issue is resolved in a rapid and satisfactory fashion to ensure the reliable, secure and long-term provision of Eurasian gas to European markets.

Could Europe have done more to prevent the gas crises in 2006 and 2009?

The gas crises of 2006 and 2009 were difficult and complex situations. It is clear that lessons have been learned from these events. Communications between suppliers, transit states and consumers have improved. The EU has taken steps to enhance the energy connections between is member states, promote solidarity and has begun the expensive task of building infrastructure to better survive possible future energy crises.

What role does the Energy Charter play in this?

One of the most important lessons of 2006 and 2009 is the urgent need for a fully functioning Energy Charter that can serve as a legally binding means to manage East-West energy relations in a genuinely cooperative fashion. The events of 2006 and 2009 also highlighted that the world of energy is very different from when the ECT was originally negotiated, nearly 20 years ago. It is important to recognise that the treaty requires modernisation to take account of the new demands, such as the need to manage energy crises in a way that can avoid supply interruptions and damage to the good relations between states. I hope that these two past difficult events will serve as the stimulus for all sides to develop a shared approach to building more robust arrangements for energy governance in Europe and Eurasia.

Do you see improvements in Europe’s security of supply in recent years?

We can point to projects, such as North Stream, South Stream and Nabucco. All these projects are needed. Everybody wants diversification of routes but we also need additional capacity. As far as gas is concerned, indigenous production within the EU is decreasing rapidly. We will need more gas imports, or to change the energy mix. There will probably not be one single decision to change existing approaches but a lot of changes. In any case, this will take years, we have to find solutions for the next five years. Shtokman ⁽¹⁾, in the sea North of Russia, is very difficult, climatically, financially. Let’s hope that North Stream will be operational in 2012.

How successful has revamping the EU’s internal energy market been in terms of increasing security of energy supply?

There has been a reasonable success. The internal market is progressing very well given the complexity of the question and the challenges. Renewables, too, are very welcome. For the moment, though, renewables need considerable investment. Even if we double the product of energy from renewable sources over five years, they will not solve our problem. All sources of energy are welcome.

“One of the most important lessons of 2006 and 2009 is the urgent need for a fully functioning Energy Charter”

Background

The Energy Charter Treaty establishes a framework for international cooperation between European countries and other industrialised counties with the aim of developing the energy potential of central and Eastern European countries and of ensuring security of energy supply for the European Union. The key provisions of the Treaty concern the protection of investment, trade in energy materials and products, transit and dispute settlement. The treaty was signed in 1991 by 51 countries. The Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects were signed in Lisbon, on 17 December 1994, by all signatories to the 1991 charter except for the United States and Canada. The EU and its member states are signatories to the treaty and the protocol, both of which entered into force in April 1998. Russia has signed but never ratified the treaty. www.encharter.org

⁽¹⁾ The Shtokman field is one of the world’s largest natural gas fields, situated in the Russian sector of the Barents Sea.