EC warns of €1,000bn power challenge

http://politics.guardian.co.uk/eu/story/0,,1726525,00.html

The European commission yesterday warned EU countries that radical changes in energy policy were essential if the 25-nation bloc was to meet the challenges of climate change, security of supply and rising prices.

It said the European Union needed to develop a common energy policy and an effective single market, increase diversity of supply, cut consumption, bolster pan-European networks for gas and electricity transmission, raise storage capacity to cope with crises and create a pan-European market regulator.

In a green paper outlining "the new energy realities facing Europe" the commission estimated the EU would need to spend €1,000bn (£685bn) over the next two decades to meet expected demand and replace ageing infrastructure. "The energy challenges of the 21st century require a common EU response. A common approach, articulated by a common voice, will enable Europe to lead the search for energy solutions," commission president Jose Manuel Barroso said.

The review comes two months after the EU received a sharp reminder of its vulnerability to energy shocks when a dispute between Russia and Ukraine disrupted supplies. The commission has also been under pressure from Britain over concerns about the availability and price of gas from continental Europe.

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