Energy security as top priority for Poland and Europe
24-06-2014    energy

Diversification of energy sources, efficiency improvement and creation of an energy union were the central themes of a debate on energy security which took place on the first day of the European Financial Congress. Piotr Chełmiński, member of the PKN ORLEN Management Board responsible for business development and power and heat generation, stressed the importance of operational excellence as a still underrated source of cost savings and energy efficiency.

The European Financial Congress, co-organised by PKN ORLEN and held in Sopot, Poland, is among the most important economic forums in Central Europe. What is new about this year's Congress is that its agenda covers the energy security theme. Expert speakers participating in the debates which opened the fourth edition of the event in Sopot had no doubt that together with financial security and innovation, energy security is a prerequisite of further convergence in the EU policy and improved competitiveness of the continent's economy.

PKN ORLEN, Poland's largest company and most valuable brand, was host to the first part of a debate on energy security from the EU's perspective. Among the panellists participating in the discussion, moderated by Janusz Lewandowski, European Commissioner for Financial Programming and Budget, were Joschka Fischer, Vice Chancellor and Foreign Minister of Germany 1998-2005; Maria van der Hoeven, Executive Director of the International Energy Agency; and Günter Verheugen, European Commissioner for Enlargement in 1999-2004 and European Commissioner for Enterprise and Industry in 2004-2010.

In an introduction, Janusz Lewandowski emphasised that energy security is currently a subject of active debate in the European Commission. “Every single one of the 28 member states relies, to a greater or a lesser extent, on energy imports. In total, over 80% of crude oil supplies and 66% of natural gas supplies are sourced from outside the community. Looking from this angle, ensuring secure energy supplies is as important to the EU right now as its competitiveness improvement effort,” Mr Lewandowski stressed.

Maria van der Hoeven, Executive Director of the International Energy Agency, noted that Europe needs a secure and cost-effective energy system that will ease our dependence on imports and take into account environmental needs. In Ms van der Hoeven's opinion, energy efficiency and a gradual shift to low-carbon and renewable energy sources will play a key role in the transition. “The greatest challenge of the 21st century is to achieve cooperation at the EU level, primarily through interconnectivity, appropriate regulatory regime, and a stable climate for investors. We must do everything to avoid a scenario where we meet here in ten years' time to discuss reasons why we did nothing to improve Europe's energy security,” Maria van der Hoeven urged the participants.

Joschka Fischer joined the discussion, stating his support for the Polish government's proposal to create an energy union. In his view, such a union should aim towards diversification of energy supplies, common purchasing arrangements and increased share of renewables. “Europe has no alternative but lessen its dependence on Russian supplies. The task is daunting, but we can and we must accomplish it,” Mr Fischer observed.

He was backed by Günter Verheugen, who underlined the need to define energy security and improve energy policy coordination at the EU level. “The member states today try to resolve the energy supply problem on their own. This leads to fragmentation of national policies and diffusion of powers and responsibilities within the European Commission itself,” emphasised Mr Verheugen. He believes that the new European Commission should appoint a vice-president for energy tasked with converging national policies into a single EU energy policy and ensuring more effective use of Europe's indigenous energy sources.

The second part of the debate on energy security as seen from the Polish perspective was attended by Jan Chadam, President of the Management Board of Operator Gazociągów Przesyłowych Gaz-System; Piotr Chełmiński, Member of the PKN ORLEN Management Board; Ireneusz Łazor, President of the Management Board of Towarowa Giełda Energii; Henryk Majchrzak, President of the PSE Management Board; Marcin Moskalewicz, President of the Management Board of PERN Przyjaźń; and Marek Woszczyk, President of the Management Board of PGE Polska Grupa Energetyczna. This part of the debate was moderated by Jan Krzysztof Bielecki, Chairman of the European Financial Congress Programme Board.

Piotr Chełmiński, Member of the PKN ORLEN Management Board responsible for business development and power and heat generation, noted that the latest developments in Ukraine prompted everyone to look for new sources of energy supplies. "We should look for alternative sources of gas supplies. PKN ORLEN is one of the leading companies exploring for unconventional gas deposits in Poland and we are currently expecting to see the first effects of our efforts in this area," added Piotr Chełmiński.

In his opinion, greater integration is needed in the exchange of other energy carriers to facilitate more effective use of existing energy sources. In this respect, the development of the European gas market moves in a similar direction as the Community electricity market currently being created.

"Gas will be a fuel of the future," Piotr Chełmiński has no doubts about it. "As a capital group, we see this potential and invest in gas-based power assets through, inter alia, the construction of a CCGT unit in Włocławek. We will supply this new power to Polish customers," added Piotr Chełmiński, Member of the PKN ORLEN Management Board.

Participants in the debate also discussed an issue of the highest priority for Poland, that is expansion of cross-border interconnectors with the networks of other member states. Such interconnectors facilitate transmission of power generated in different countries from different sources (e.g. coal, gas, nuclear or RES). In this way, electricity from Polish plants 'mixes' with power generated, for instance, in Scandinavia.

In the recommendations concluding the discussion, Piotr Chełmiński pointed to the cost saving potential lying in ongoing operational improvement of energy companies. "Measures reducing the cost of fuel and energy used may yield enormous savings on a nationwide scale. The regulations being currently developed should support such initiatives as they will drive the competitiveness and effectiveness of the Polish economy for years to come, concluded Piotr Chełmiński.

The 4th European Financial Congress, held in Sopot on June 23rd−25th 2014, brought together an outstanding group of several hundred leading representatives of European and national authorities, regulatory and supervisory bodies, as well as the world of business, science, politics, and the media. Congress participants meet each year to identify risks to and find solutions ensuring security, stability and further integration of the European Union.

This event, unique on a European scale, was organised by the Gdańsk Institute for Market Economics, PKN ORLEN, the Warsaw Stock Exchange, Bank Pekao, and NDI.

For more information see: http://www.efcongress.com/

Contact details for the media:
Aleksandra Pustelnik, 605 185 995
Anna Chwaliszewska, 605 186 063

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