Abstract
Europe has suffered a severe economic crisis leaving millions of Europeans unemployed, indebted, excluded, and feeling hopeless and betrayed. These problems began as a financial crisis in 2007–2008 but soon expanded into economic, political and social domains.
The draft version of this Chapter was presented at the ECPR General Conference, which was held in Oslo during 6–10 September 2017
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Notes
- 1.
While competitiveness and affordability are used interchangeably in the literature, the Commission mentions both of them in the policy paper.
- 2.
Despite ‘great power management’ being the primary institution , we need to understand who is/is not a great power to be able to examine the functioning of great power management in energy security societies .
- 3.
Arguing that polarity theory does not explain the global system , Buzan proposes a tripartite classification of superpowers , great powers and regional powers. While superpowers and great powers play at the global-system level, regional powers do not. Accordingly, superpowers and great powers are able to have an impact on the structure of the global system, while regional powers are ‘takers’ and can play at regional level (Buzan 2004b: 66–67). The EU’s policy is to extend its values not only to its neighbours and market -integration partners, but also to key energy suppliers, transit states, key energy players worldwide and developing countries . Thus it is more appropriate to question whether the EU plays at the global-system level in the sphere of natural gas. The distinction between a superpower and a great power involves a level of expectations and realisation in terms of both capability and behaviour, which are less demanding for a great power . This feature of a great power justifies the choice for examining the EU as a great power in the sphere of natural gas.
- 4.
The Commission defines net-import dependency as ‘net energy imports (imports minus exports) divided by gross inland consumption of energy and marine bunkers, based on tonnes of oil equivalent’ (European Commission 2017: 32).
- 5.
Import dependency of less than 30 % is considered positive, whereas import dependency between 30 % and 50 % is considered medium, and higher than 50 % is negative (European Commission 2017: 28).
- 6.
The Reference Scenario assumes that ‘binding RES 20% targets for the EU and Member States will be met, considerations about the use of cooperation mechanisms by countries are also taken into account’, ‘the binding 10 per cent Effort Sharing GHG target for the overall EU will be met, albeit some Member States are projected not to achieve their targets domestically’ and ‘with regard to the energy efficiency target … the 20 per cent target will be missed’ (European Commission 2016b: 50).
- 7.
An N-1 value of less than 90 % is considered ‘negative’, whereas an N-1 value between 90% and 100 %is considered ‘medium’ and more than 100 % is considered positive (European Commission 2017: 11, 28).
- 8.
First, it does not take obstacles in a country ’s network into account. Second, it is based on capacities , which do not guarantee the availability of gas (European Commission 2017: 43).
- 9.
Although the period measures only half the year, ACER ‘believes that the results provide useful indicators ’ as the winter is the most critical season for natural gas (ACER 2015a: 25).
- 10.
Wholesale market means ‘the sum of gas trading activities with delivery agreed at one specific point and concluded using a transparent trading venue. The main delivery points are the virtual points of the entry/exit systems ’ (ACER 2015b: 25).
- 11.
Indicators for comprehending market health are different supply sources, the Herfindahl-Hirschmann Index (HHI), the residual supply index, market concentration for bid and offer activities, and market concentration for trading activities.
- 12.
Indicators for comprehending market participants’ needs are order -book volume, bid-offer spread, order-book sensitivity, and number of trades.
- 13.
Malta and Cyprus are not included in calculations as they do not consume natural gas.
- 14.
The market concentration index is based on the HHI and refers to the sum of the squared market shares of the wholesale gas-supply companies (European Commission 2017: 12).
- 15.
The required threshold for a competitive wholesale market is lower than 2000. An HHI score of more than 2000 means high concentration. A level of 10,000 indicates a monopoly (ACER 2015b: 25).
- 16.
This requires a market share equal to or less than 40 % per company (or group of companies) for the best 120 MW on each bid- and offer-side (ACER 2015b: 23).
- 17.
This requires a market share equal to or less than 40 % market share per company (or group of companies) for the sale and purchase of gas (ACER 2015b: 23).
- 18.
These indicators test whether market participants buy and sell when they need to, and if order -book volumes support effective risk management. Indicators determine whether there is low transaction cost and less additional cost, and support for market participants who have less flexibility. They question whether market participants trust transparency of prices , and the extent to which prices are reliable (ACER 2015b: 23).
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Korkmaz, D. (2018). Is the EU a Great Power? The Case of Natural Gas. In: Heiskala, R., Aro, J. (eds) Policy Design in the European Union. Palgrave Studies in European Political Sociology. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-64849-1_10
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