Lords report: EU energy sector needs €1tr
According to an eight-month inquiry by the House of Lords, the upper house in the UK parliament, into the EU power sector, if the European Union is to stave off an energy crisis then it will require a total investment of €1 trillion.
The report says that there is an urgent need for investment in low carbon, interconnected and innovative energy systems. The committee agreed with the European Commission estimate that to achieve secure, green and cheap energy by 2020, €1tr will need to be spent on infrastructure.
Quoted by BBC News, Lord Carter of Coles, who chaired the committee, said: “The value of energy companies has slumped since 2008, the public purse is severely constrained, but there is more than enough money around in the investment community.
“This should be a great time to invest in long-term assets such as energy but clear policy is needed in order to release it.”
According to the Lords, a target for the proportion of renewables in the energy mix up to 2030 is rapidly required. They are also calling for the development of a regulatory structure for the exploitation of shale gas in the EU.
And the committee also called for the development of electricity inter-connections between member states along the lines of the agreement reached between the UK and Ireland over wind power in January.
“The inter-connection issue really needs to be developed quickly. We saw a case in the Pyrenees where the inter-connecter between Spain and France took 30 years because environmentalists couldn’t agree,” Lord Carter added.
