Energy security remains elusive

The Czech Republic must take every opportunity to diversify energy sources for a safe and reliable energy supply in the future, according to government officials, key policymakers and private companies at the International Energy Regulation Forum held in Prague March 24.

The forum was held under the auspices of the Industry and Trade Ministry to "look at the security and reliability of supply from a Czech point of view," according to Josef Fiřt, chairman of the Energy Regulation Office of the Czech Republic.

Most importantly, the conference highlighted the need to build a portfolio of varied energy sources and move away from over-reliance on a single source.

Natural gas will have to continue to play an important role in the energy security of the Czech Republic, panelists said, but, for geo-political reasons, it is important to look for alternative transit routes in order to reduce reliance on Russia as a gas energy provider.

The biggest way to do that will be the completion of the proposed Nabucco pipeline, a project designed to bring gas from Central Asia and Azerbaijan directly to Europe through a 3,300-kilometer (2,051-mile) pipeline that bypasses Russian and Ukrainian territory.

"The goal of Nabucco is to further diversify gas to Europe. We [the EU consortium] have made an investment worth 8 billion euros in the project, and we are working hard in negotiating with the owners of gas fields in Azerbaijan and other countries in order to create a higher level of diversification," said Martin Herrmann, CEO of gas operator RWE Transgas, a firm that currently holds a 72 percent share on the Czech market.

Herrmann himself agreed a greater mix is necessary for the energy sector.

"Never put all your eggs in one basket," he said. "That is true in everything in life but especially in energy. We need to be truly diversified."

Whether that diversification is attainable isn't just a matter of cost, however. Politics are inextricably connected with the energy sector and may even threaten the realization of the Nabucco gas line.

On July 13, 2009, EU Nabucco transit countries signed an 11 billion euro Nabucco gas pipeline deal with Turkey. At the time, EU Commission President José Manuel Barroso said the deal was a testament to Europe's commitment to diversifying its gas supplies.

"We are determined to make the Nabucco pipeline as quickly as possible," he said.

However, over the past nine months, the project has hit roadblocks in the face of an alternative Russian-led pipeline called the South Stream project. Turkey's commitment to the Nabucco project has also come into question, as well as the project's economic viability.

One of the project's supporters, Václav Bartuška, the ambassador-at-large for energy security, openly questioned whether Turkey is truly committed to the project or whether it would use the project to get leverage for EU membership. Negotiations on Turkey's bid began in 2005 and are expected to continue for several more years.

"The original idea of Nabucco is still valid and important, but I question if it will ever be carried out. The EU may not be successful in negotiating with Turkey, in which case Turkey will not become a member of the EU and will take revenge," Bartuška said.

However, Bartuška stressed Nabucco, while important, is only a part of the diversification that must take place.

"Nabucco is nothing on its own; it's all about getting an energy mix, which involves all these things combined," he said.

After the conference, Bartuška told The Prague Post the Czech Republic needs to explore all sources of energy, but part of its energy security plan must include increasing the amount of gas storage tanks in the country.

Currently, 6.5 percent of the country's energy consumption is met by renewable resources, and one-third of it is nuclear. The remainder of the country's energy needs is met by domestic coal and imported gas.

With the construction of two additional units at the Temelín nuclear power plant already approved and currently up for tender, the percentage of electricity generated from nuclear energy is likely to increase in the future, something that Bartuška said he supports.

"Czech nuclear power plant policy is fundamental to our strategy, and I support the moves to provide 50 percent of our energy through nuclear power."

At a separate Czech Energy Congress held March 16 and 17, Prime Minister Jan Fisher said it was important to cooperate in a joint European energy policy and "stop a fatal shortage of supplies," adding that energy security would continue to be an issue for the next 50 years.

Cillian O'Donoghue can be reached at
codonoghue@praguepost.com