Natural Gas, Nuclear and Hydrogen
Edited by François Lévêque, Jean-Michel Glachant, Julián Barquín, Christian von Hirschhausen, Franziska Holz and William J. Nuttall
Chapter 14: EU Energy Security of Supply: Conclusions
Jean-Michel Glachant, François Lévêque and Pippo Ranci 1 INTRODUCTION The chapters in this book have shown that energy security of supply is an extremely political matter. It involves consideration of international relations, geography and infrastructure control. Despite these realities economics has much to offer for improved policy making in the security of supply. In fact, economists can say a great deal about markets and policy. Markets (for example, for balancing, storage, reserves and access to crossborder capacity) as well as investment (which is guided by market prices) play a critical role in delivering security of supply, as does public policy (for example, for energy efficiency, storage obligations, and the fuel mix). Moreover, security of supply can give rise to ‘free-riding’, a phenomenon familiar to economists. This final chapter presents the conclusions of the book and it corresponds to the scientific consensus of the CESSA project at large. While focusing on ‘our’ three sectors, natural gas, nuclear, and hydrogen, we are well aware of the fact that there are plenty of other important issues in energy supply security. Thus, most of our conclusions go beyond the more sectoral level. The conclusions from the CESSA project are as follows: 1. 2. Short- and long-term disequilibria in security of supply are different phenomena. Solidarity between EU member states to cope with energy disruptions is necessary and even more so in the absence of satisfactory market liberalization and market design. Information provision and sharing improve energy security for all. Open access...
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