European Economic Observation | Energy interconnection under crisis: unity is not so easy

Author:21st Century Economic report Time:2022.09.23

As European weather is getting cold, European society's concerns about winter energy supply have continued to increase. Because each EU member country has different demand and reserves for natural gas, it is considered to be a reliable way to overwinter the winter. But a recent argument made people feel that it is not so easy to connect, and unity is not so easy.

This debate happened between France and Portugal and Spain. The focus of the debate is whether it should restore the MIDCAT project that was suspended due to France's opposition in 2019. This natural gas pipeline is planned to cost 3 billion euros to pass through the eastern Billy Nemis Mountains to connect the Spanish natural gas pipe network to France and other parts of Europe. After completion, the energy interconnection capacity of Spain and France will reach 14 billion cubic meters per year. Among them, the central part of the pipeline passes through the East Billy Nius Mountains. This pipeline has not achieved France's support, so the project is stranded to this day.

Today's environment is very different from three years ago, which is why Midcat has become the topic of round tables. If the pipeline can be built, the energy supply will be more guaranteed, thereby promoting the dependence of the Central and Eastern European regions to get rid of Russia's natural gas.

No one knows that the original intention of restoring this pipeline is political or energy security, but in the current environment, it is indeed a project with a halo. However, France has always held a negative attitude after the construction cost and influence of construction.

Macron believes that energy interconnection is okay, but only "those meaningful things" will only be supported. The cost and benefits of this project have not achieved the ideal goal, which is "not worth it" for France. Because the main beneficiary of the project is Germany, France also lacks the motivation to pay. Moreover, France has been trying to protect the country's nuclear energy industry, and of course it is unwilling to see challenges on this issue. However, Macron still reserves room for discussion, which depends on whether the two Portuguese West countries can find a way to persuade him.

Although the positions of all parties are clear, there is no controversy that Midcat cannot relieve the urgent urgentity of eyebrows. It is estimated that the completion of the project is estimated for ten years. At that time, the energy pattern may be another state. It's just the best time for the energy crisis to discuss the topic. At this time, when will it be more? After all, this means huge expected interests for Spain and Portugal.

Correspondingly there is another news, which is also related to natural gas. Hungary announced as early as June this year that from August, all fossil fuels in the country no longer exported to neighboring countries, and measures have taken measures to increase domestic natural gas output by 33%.

Hungary is the first EU country to clearly announce the non -exported fossil fuel. After Hungary opened this mouth, other countries have refused to conduct bilateral negotiations of natural gas circulation. As of July this year, only six bilateral natural gas unity agreements were signed between EU countries.

Although EU regulations are compulsory to require member states to make necessary technical and legal arrangements to achieve "natural gas unity", it is clear that the considerations of various countries themselves are unwilling to passively observe the regulations.

In contrast, electricity cooperation is much more peaceful. Six countries such as Germany, Austria, Czech Republic, Hungary, Poland, and Slovakia signed a memorandum to strengthen cooperation in power, and they were not at a loss when facing possible power outages and unable to buy electricity. They plan to create a working group to regularly send experts to participate in the discussion, and even to the extent of the telephone number of the exchanges.

EU Energy's Energy's State reached an agreement on reducing natural gas consumption and electricity cooperation, which seems to make people see the dawn of the Guanzhuan, and when facing the circulation of strategic energy, it is another different scene.

One reason for this difference is that the infrastructure conditions are very different. Compared with the natural gas pipelines that need to be constructed, the power network has already had the conditions for transporting each other, so there is no additional construction and maintenance costs. The MIDCAT project that has been repeatedly dropped by France actually contains a problem that is not profound: Since it is difficult for France to benefit from it, how can it be willing to bear the cost of construction without compensation?

Since the energy crisis, it has called for unity to become the keywords of the EU meeting. But only when the participants meet the relevant conditions, they are convinced that this condition is mutually beneficial or even global, not a burden, and the foundation of unity will not be weakened. This corresponds to the principles of unity and fair sharing of responsibility between member states in the EU Law.

In disputes and cracks, the EU is ushered in a dull and cold winter, and the urgency of energy supply and circulation is becoming increasingly prominent. Each country is unequal and asymmetric in infrastructure. The infrastructure can be connected to each other, but it is also necessary to adjust and improve it on the basis of the interests of each participant. The overall level calls for unity is only the first step. If the specific interests of the member states are ignored, the so -called unity is tantamount to the air tower.

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