COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 645 final 
Brussels, 14.02.1994 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL. THE EUROPEAN PARLIAMENT AND THE ECONOMIC AND SOCIAL COMMITTEE 
ENERGY AND ECONOMIC AND 
SOCIAL COHESION 
-A-
TABLE OF CONTENTS 
Page 
SUMMARY AND CONCLUSIONS 1GL 
The need to integrate the objective of economic and social cohesion 
into the Community's energy policy 
The need for supporting measures 
Strategy and guidelines for supporting measures 
Cone I us i ons 
I ANALYSIS OF THE ROLE OF ENERGY IN STRENGTHENING 
ECONOMIC AND SOCIAL COHESION 6 
1. Links between energy, the economy and economic and 
social cohesion 6 
2. The impacts of Community energy policy on economic and 
social cohesion and the need for supporting measures 7 
2.1 Security of supply and cohesion 
2.2 Cohesion and the promotion of energy efficiency and 
the development of renewable energy resources 
2.3 Environmental objectives and cohesion 
2.4 Cohesion and the internal energy market 
2.5 The need for supporting measures 
3. Taking account of energy in other Community policies 15 
3.1 Energy w 
3.2 Energy w 
3.3 Energy w 
3.4 Energy w 
3.5 Energy w 
3.6 Energy w thin environment policy 
thin the Common Agricultural Policy 15 
thin transport policy 
thin research policy 
thin regional planning and development policies 
thin employment and industrial development policies 
3.7 Conclusions 
II IMPLEMENTING THE SUPPORTING MEASURES 20 
The two lines along which the measures should be developed 20 
1. Energy Policy and Cohesion 
2. Other policies, Energy and Cohesion 
Annexes 
1. Tables: "Energy and Cohesion" indicators 
2. Information sheets on programmes: THERMIE, SAVE, ALTENER, JOULE, VALOREN, 
POSE IMA, REGEN, Energy Planning. 
Supporting documents produced by Commission departments 
A. "Energy and Cross-Border Areas" - DGXVM/TF-2 
B. "Energy and the Countryside, Islands and the Outermost Regions" -
DGXVII/TF-2, 29 April 1993 
C. "Energy and the Urban Environment" - DGXVII/TF-2, 30/9/1993 
- VL-
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object of "cnefios ri-st L>o -nî^g. a* J «."îr a'i tae Cc*"-un:W& c^'iuis, 
and ipor? p&i i icuiâ*" I v into those wlr *h are " f.or liants I " n *he ex ns »hat 
they affect ?!! economic sectors as *j'l as people's standards of ln/ng 1 
2. Energy policies are undoubtedly horizontal in this sense and their 
implementation has a decisive influence on the fundamental parameters of 
economic and social cohesion, namely economic activity, the environment and 
standards of living. At this time, when long-term unemployment is 
increasing throughout the Community, it is vital that energy policy should 
take full account of the direct and indirect effects which energy options 
and decisions have on employment, in both quantitative and qualitative 
terms. 
2 bis. In fact the Community's fifth environmental action programme 
'Towards sustainabiIity' makes specific reference to the importance of the 
energy sector in relation to sustainabiIity and environmental protection. 
The programme also recognises the special needs of the Cohesion Regions in 
regard to the sustainable growth in which energy plays an important role. 
Moreover, the key role of measures in the field of energy is also 
highlighted in the Commission's strategy for the limitation of carbon 
dioxide emissions and the commitments of the Community and the Member 
States in the Framework Convention for Climate Change.1* 
3. The main objectives of Community energy policy are to ensure security 
of supply, to promote energy efficiency and the use of renewable energy 
resources, to minimize environmental impact and to complete the internal 
energy market, while at the same time contributing to regional development 
and to cooperation with third countries. An analysis is therefore needed 
of the ways in which the objectives of greater cohesion dovetail with those 
of the Community's energy policy, and ways must be found of ensuring 
consistency between the two sets of objectives. 
4. Community energy policy is developing in the context of very disparate 
rational, regional and local situations. Moreover, the least developed 
countries and regions are not only handicapped by having insufficient 
access to energy supplies but are also the least efficient in their use of 
energy. If greater integration between energy systems in Europe is to help 
reduce these disparities, energy policy must include the objective of 
cohesion and must be prepared to play an important part in achieving that 
objectIve. 
1 Articles 130a and 130b of the Treaty on European Union, 
1* C0M(92)23 final, 27.3.1992, vol II 
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The need for supporting measures 
5. The Community has already taken a number of specifically energy-related 
initiatives in the context of its structural policies, some of which have 
been adopted in the context of energy policy, including its R&D aspects and 
are oriented towards the "cohesion" objective. The main initiatives 
concerned relate to: 
- the improvement of energy infrastructure in the least favoured regions 
(REGEN Programme), financed from the Structural Funds; 
- improvements in energy management and energy efficiency, the exploitation 
of renewable energy resources and the promotion of new energy 
technologies (the THERMIE, SAVE and ALTENER Programmes in the context of 
energy policy, the JOULE R&D Programme and the VALOREN Programme financed 
from the Structural Funds); and 
- the promotion of regional and urban energy planning in the context of 
energy policy. 
Furthermore within the Community Support Framework Programmes (CSFP) of the 
regions whose development is lagging behind (objective 1) and from the 
point of view of improving basic economic infrastructures the Community has 
allocated to energy 1.712 million Ecu for the period 1989-19931bjs 
6. The accelerating process of integration and the fact that large 
disparities remain in spite of the efforts made to reduce them show that 
those energy-related measures and initiatives which can help strengthen 
cohesion must be consolidated and expanded, and that we must seek to ensure 
that they are better suited to the specific needs of the least developed 
regions. Resources for this purpose can be found at Community level, but 
the Member States and the regions must recognize that this is a priority 
for them too. 
7. The principle of subsidiarity must be applied here. 
The Member States and the regions: 
- must ensure that energy is taken into account in their regional 
development programmes; 
- must provide for the necessary institutional and legal measures; and 
- must make available the financial resources needed for implementing 
measures to reduce inequalities in their access to energy. All this must 
be supported, as necessary, by Community resources, in the form not only 
of financing but also of know-how, technology and the capacity to 
organize cooperation between the less developed regions and those which 
enjoy greater advantages. 
The Community, for its part, must draw up a strategy and implement the 
supporting measures needed if energy is to help strengthen cohesion. In 
fact: 
- the need for Community action (second paragraph of Article 3(b) of the 
Union Treaty) arises from one of the main objectives laid down in the 
Treaty, namely economic and social cohesion; 
TbTs (See SEC (92) 1327 of 1.7.1992) 
- 3 -
- the nature (type) and intensity of the proposed action at Community level 
must comply with the criterion of proportionality implicit in the 
subsidiarity principle (see the third paragraph of Article 3b of the 
Treaty), in particular, such action will consist of: 
* recommendations to the Member States and the regions; 
* encouragement for cross-border and inter-regional cooperation; 
* financial support, both under the Community's energy policy programmer 
and from the Structural Funds. 
Strategy and guidelines for supporting measures 
8. In this Communication, a strategy is proposed for integrating the 
objective of economic and social cohesion into energy policy and, at the 
same time, for using energy to help strengthen such cohesion. This 
strategy consists in: 
(i) developing an overall approach to the study of links between energy 
and cohesion, highlighting the role that energy can play in 
strengthening cohesion both at the level of energy policy and in terms 
of other policies such as regional development, agriculture, 
environment, transport, research and social policies; 
(ii) introducing a set of supporting measures relating to energy 
infrastructure, energy efficiency and the exploitation of regional 
energy resources. 
9. There would be two aspects to this strategy: 
* the "Energy Policy and Cohesion" aspect, in which energy policy takes 
account of cohesion via: 
programmes already developed or being drawn up under this policy, 
namely programmes for energy management and the development of energy 
technology (THERMIE, SAVE, ALTENER, JOULE, regional and urban energy 
planning), and 
the completion of the internal energy market and the development of 
trans-European energy networks (see Title XII of the Treaty on 
European Union). 
* The aspect relating to "Other Policies, Energy and Cohesion", in which 
other policies take account of the ways in which energy can contribute 
to cohesion: 
via the consistent implementation of energy-related supporting 
measures, and 
by encouraging regional authorities to take account of energy projects 
in regional development programmes for which financing is made 
- 4 -
available under the Community's structural policies, including -
where appropriate - energy-related elements in new Community 
initiatives. These elements would relate, in particular, to: 
- "Cross-border energy", since action taken by frontier regions should 
be coordinated to able them to rationalize the management of their 
energy transport and distribution networks and to make better use of 
their own energy resources; 
- "Energy and the Countryside, Islands and the Outermost Regions", 
where improved access to energy and the exploitation of local energy 
resources can make an important contribution to the diversification 
of economic activity; and 
- "Energy and the Urban environment", since the interplay between 
energy, the environment and the economy has a considerable impact on 
the quality of life. Towns and cities, especially in the less 
developed regions, often have difficulty in improving and 
diversifying their energy supplies and cannot always pay sufficient 
attention to energy management. In this connection, attention 
should be drawn to the importance of planning, constructing and 
maintaining energy distribution infrastructure (gas pipelines, 
electricity grids, heat distribution networks, etc.), rational 
energy management and the exploitation of local energy resources, 
particularly renewable resources and waste. 
Conçlu.81 ons 
10. The purpose of this Communication is to propose an overall approach to 
the problems of energy and Community cohesion. It has been drawn up by the 
Commission on the basis of studies, contacts with experts in these fields, 
the experience of Community programmes and their assessment and the 
discussions which arose from the conferences organized in Lisbon in 
June 1992 on the subject of "Energy and Economic and Social Cohesion in the 
Community" and in Milan in July 1993 on the subject "Energy and the 
Reg i ons". 
This is essentially a discussion and information document intended to fuel 
debate and to prepare for the decisions which the Community and the Member 
States will eventually have to take, on policies and programmes relating 
to energy and regional development or on the use of the Structural Funds. 
- 5 -
The Commission is sending this document to the Council, to Parliament 
the Economic and Social Committee and the Committee of Regions ami mv n,* 
the Counci1 : 
(a) To take note of the Commission's analysis and its intention to: 
* ensure that the objective of greater economic and social cohesion 
taken into account in measures introduced under the Community's 
energy poi icy; 
* to ensure that the potential contribution of energy to cohesion is 
integrated into other Community policies; 
* to integrate, where appropriate, energy-related elements such as 
those referred to in point 9 above into new Community initiatives 
financed from the Structural Funds; 
(b) to recommend that the «iember States «nc&ude 3n energy component n 
their regional devetoomer* D'ans and ^J 09 ^mmes 
- 6 
I ANALYSIS OF THE ROLE OF ENERGY IN STRENGTHENING ECONOMIC AND SOCIAL 
COHESION 
1. Links between energy, the economy and economic and social cohesion 
Economic development and social progress are closely linked to the 
availability of energy resources which enable people to produce 
goods, carry on trade and satisfy the whole set of needs which 
arise from the improvement in their living conditions. Energy and 
development are thus intimately bound up with one another, but the 
relationship between them changes over time in line with the 
changes in economic and social structures, which are themselves 
conditioned by factors as diverse as technical progress, 
international relations, political and institutional frameworks and 
our relationship with our environment. There are various ways of 
looking at energy in terms of economic development: 
it is a production factor and therefore one of the keys to 
industrial competitiveness; 
there is a whole series of energy-related branches of industry 
which play a considerable role in national economies and 
international trade, so that energy has a significant impact on 
employment;(2) 
it plays a key role in satisfying people's essential needs and 
its availability determines standards of living; 
its production and use cause a large number of environmental 
and sometimes health problems. 
Thus, however one looks at the energy question, one finds that it 
is intimately bound up with the various parameters by which 
economic and social cohesion is measured: economic activity, the 
quality of the environment and standards of living. 
It cannot be denied that the least favoured regions of the 
Community are in the worst situation as regards energy: 
the countries in which they are found are the most heavily 
dependent on imported sources of energy.2 Thus Greece, 
Ireland, Italy, Portugal and Spain have levels of dependence of 
between 85% and 65% - considerably greater than the Community 
average (50%) - with Greece, Italy and Portugal being 
particularly dependent on oil (which accounts for more than 60% 
of their energy supplies, as against 36% for the Community as a 
who le);3 
these regions have the lowest per capita levels of energy 
consumption (between 1 and 2.5 toe/year/inhabitant as against 
3.4 toe for the Community as a whole). This is because they 
produce fewer goods and services and frequently enjoy a mild 
2 See Annex 1, tables 1 (relating energy to cohesion) and 1 (a) (employment in the energy sector). 
3 Greece, Ireland, Italy, Portugal and Spain import virtually all the oil they consume. 
- 7 -
climate. In addition, their inhabitants have a relatively 
limited purchasing power and own less equipment 
(electrodomestic goods, cars, heating systems or air 
conditioning, etc.) than the Community average; 
these regions are relatively inefficient in their use of 
energy,4 chiefly because they are technologically backward and 
their sources of energy supply are less diversified.5 This 
lower efficiency is the main reason for their high energy 
intensity (toe/unit of GDP) - higher, in general, than that of 
the most developed countries of the Community; 
they have little or no access to the major interconnected 
energy networks (electricity and, above all, natural gas), 
which hampers the diversification of energy supplies and denies 
consumers high-quality energy. 
In terms of energy, therefore, the less developed regions of the 
Community are in an unfavourable situation which is both one of the 
causes and one of the consequences of their economic backwardness. 
An energy policy which takes account of the need for greater 
economic and social cohesion, i.e. which aims to provide all 
countries and regions of the Community with a sufficient level of 
development, must ensure that all enjoy security of supply and have 
access to reasonably priced high quality energy obtained from a 
range of sources. Such a policy must manage, in a consistent 
fashion and in the long term, the complex bundle of actions and 
interactions between energy and the economy, energy and the 
environment, energy and decisions affecting where people live and 
work. 
The impacts of Community energy policy on economic and social 
cohesion and the need for supporting measures 
The main objectives of Community energy policy are to ensure 
security of supply for the Community as a whole at a reasonable 
cost, to minimize the environmental impact of energy systems, to 
make the internal energy market a reality, to promote greater 
energy efficiency and the development of renewable resources, while 
at the same time contributing to regional development and to 
cooperation with third countries. 
The achievement of these objectives can often have widely differing 
impacts on economic and social cohesion. For example: 
2.1 Security of supply means, in the first place, making better use 
of Community energy resources and further diversifying both of 
the forms of energy used and the sources from which it is 
obtained. 
4 A comparison of one sector with another (see the country-by-country comparison of the MEOEE and MURE 
databases developed in connection with the programmes run by 06 XII) shows that the amount of energy 
consumed in supplying a particular service (transport of goods), producing a particular product (e.g. 
steel, aluminium) or satisfying a particular need (heating) is generally greater in the least developed 
countries of the Community. 
5 Thus consumers who have no access to certain forms of energy (e.g. natural gas in Portugal) are obliged 
to make less efficient choices (using electricity for heating). 
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This is particularly true in the case of natural gas and oil, 
of which the Community is a major importer. Security of supply 
also involves constituting strategic stocks (chiefly of oil) 
because of the latent risks of a disruption in supplies. 
Finally, it means improving and extending the supply networks 
(particularly for gas and electricity) and their 
interconnections so as to provide greater access to the 
available resources and capacities, and it means taking steps 
to ensure that demand is more flexible. 
These various elements of a supply security policy have very 
different effects on economic and social cohesion: 
the improved exploitation of local energy resources can 
only be of benefit to the less favoured regions, since it 
means that wealth and jobs are created while the 
environment is protected; 
the constitution of strategic stocks involves considerable 
expenditure and costs which place a proportionally heavier 
burden on the less developed countries for reasons already 
mentioned (greater dependence on oil, greater dependence on 
imported energy and the greater energy intensity of their 
GDP); 
extending and improving networks and their 
interconnections, where the latter affect the less 
developed regions, helps improve standards of living and 
stimulates economic activity. Access to high-quality 
electricity or natural gas supplies enables households and 
the tertiary sector to use more suitable equipment in terms 
of efficiency, price and comfort, improves capacity in the 
sense of providing better value for money and at the same 
time enhances economic competitiveness. 
Such extension and improvement of networks and 
interconnections requires major capital expenditure, and 
since the initial level of consumption in the less favoured 
regions is so low such projects are generally economically 
viable only in the medium to long term. They consequently 
have little attraction for private operators. Moreover, 
the less developed regions and Member States do not have 
sufficient resources to bear the total cost in all cases. 
Consequently, when such capital projects are potentially 
economically viable, the Community may help finance them 
(e.g. under the REGEN Programme). 
Clearly, however, excessive subsidies for the networks can 
prove a serious disincentive to the exploitation of 
regional or local energy resources. (For instance, a major 
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subsidy granted to the gas distribution network in a rural 
area may enable the distributor to sell his gas at a price 
which is competitive with that of wood and thus endanger, 
for example, a local system for deriving energy from wood). 
In addition, the extension of energy networks will have to 
take account of possible synergies with other networks, in 
particular transport and telecommunications, thus limiting 
environmental impact. 
2.2 The promotion of energy efficiency and the development of 
renewable energy resources help strengthen economic and social 
cohesi on : 
both these approaches generate economic activity, thereby 
creating added value and employment. In many cases it can 
be shown that the exploitation of renewable energy 
resources and investments in energy efficiency make it 
possible to replace operating costs (arising from the 
purchase of imported energy) by regional investment and 
maintenance costs (essentially the creation of local Jobs). 
Moreover, by making economic activity less energy intensive 
one increases the competitiveness of local firms; 
they both improve the quality of the environment and 
standards of living. Each ton of oil equivalent (toe) 
saved is, by definition, non-polluting since it represents 
one ton less of oil product in circulation, and renewable 
energy resources have the lowest environmental impact per 
toe, though their impact must not be neglected. Some of 
these resources also make it possible to supply 
high-quality energy (such as photovoltaic solar energy) to 
places which the networks cannot reach, and the rational 
use of energy often helps improve people's quality of life 
(e.g. maintaining homes at a comfortable temperature thanks 
to good insulation); 
most of the less developed regions of the Community have 
considerable potential for using energy resources which 
are, for the most part, renewable, and we know that 
although such resources are already making a significant 
contribution to meeting current demand (though this is 
often overlooked in the statistics), much greater use could 
be made of them. 
Energy efficiency and the development of renewable energy 
resources imply a major investment both in financial terms and 
in terms of human resources (appropriate training in the field 
of energy). An additional obstacle for the less developed 
regions is the need to acquire technology and know-how which 
are not always readily available. Programmes such as THERMIE 
or the earlier demonstration programmes were designed to 
overcome such problems throughout the Community, but it must be 
admitted that although their overall impact has been positive 
they have been less effective in the less developed regions. 
Most of the aid for projects supported by the Demonstration 
Programmes or, at present, under the THERMIE Programme is 
channel led6 to the 
6 More than 2/3 of such aid have been used in regions not covered by objectives 1, 2 and 5b (see "Thermie 
and economic and social cohesion", EVE/ADEME. a document prepared for DG XVII, September 1992). 
- 10 -
developed regions, and a higher percentage of approved projects 
is abandoned in the less developed regions. It should also be 
noted that the projects implemented in these regions include a 
considerable element of innovation imported from the more 
developed regions but which is not always particularly suitable 
or does not offer the best opportunities for dissemination. 
The obstacles encountered in implementing such programmes in 
the less developed regions are chiefly as follows: 
local resources are less competitive7 than "centralized" 
energy resources (gas, the electricity grid, oil products, 
coal). This is often a matter of price'* but it can also 
be related to the regional and local operators' lack of 
know-how, which means excessively high capital costs, 
unreliable equipment and greater difficulties in financing 
projects relating to energy efficiency or the exploitation 
of renewable energy resources-,8 
it is more difficult to disseminate technologies in these 
regions because too little is known about the potential 
markets, users are less well informed, and the smaller 
number of economic operators with the technical ability to 
inform users and to plan and carry out projects means that 
there is less regional and local capacity for absorbing 
such technologies; 
inappropriate institutional and legal frameworks mean that 
the potential of these regions cannot always be fully 
exploited. All too rarely does one find structures (such 
as a Regional Energy Agency) whose purpose it is to 
organize such exploitation, and certain monopoly situations 
make it difficult or impossible to use certain resources or 
to exploit local potential (hydro-electric resources, wind 
power or combined generating potential).9 
3 Regulations on the environment and research, demonstration and 
development programmes aimed at reducing the environmental 
impact of energy systems help to improve the quality of the 
environment and hence that of human health in all regions of 
the Community and are thus favourable to cohesion. 
7 Measured in terms of the cost of supplying the consumer with a unit of energy produced from local 
resources (e.g. solar heating, photovoltaic electricity) as compared with the cost of supplying the 
same unit of energy produced from "conventional" sources (e.g. gas, electricity, oil products). It 
must be borne in mind that the consumer does not make his choice simply on the basis of a comparison of 
costs but is also influenced by the comparative quality of the service provided (e.g. reliability of 
equipment) or by the subsidies (see point 2.1) which can alter the terms of the economic comparison. 
7* The purchase price for consumers usually fails to take account of the environmental costs of the 
energy. 
8 For instance, projects for installing more efficient heating systems in public buildings (such as 
hospitals, schools, etc.), though extremely viable on paper (sometimes with payback periods of less 
than a year), are thwarted by inflexible budgets and the fact that there are no firms to provide 
third-party financing. 
9 The report from the Commission to the Council on the progress on cooperation between public utilities 
and auto producers of electricity (SEC(92)1411, 22 July 1992) shows that the prices paid in some 
countries to independent electricity producers make it uneconomic to exploit such resources or 
potential. 
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The Commission's proposed strategy10 for reducing carbon 
dioxide (C02) emissions includes the introduction of a 
carbon/energy tax. This tax is considered as one of the 
measures needed to increase energy efficiency and the use of 
clean and renewable energies along with SAVE and ALTENER, 
thereby increasing economic activity, employment and energy 
security, as well as for reaping environmental benefits "lobis. 
To ensure that environmental measures in the energy sector are 
in accordance with the objectives of cohesion, particular 
emphasis will have to be placed, in the less favoured regions, 
on the other elements of the proposed strategy for reducing 
CO2 emissions, namely the promotion of energy efficiency, the 
development of renewable energy resources and the efficient use 
of natural gas. 
2.4 The completion of the internal energy market should make it 
possible to take greater advantage of the complementarity 
between energy systems which are as yet too compartmentalized, 
to restructure costs and to rationalize the production, 
transport and distribution of energy. In the long term, the 
costs of access to energy will decrease for most industries and 
other Community consumers.11 However, prices will not fall 
equally in all countries and regions of the Community. For 
instance: 
some less-developed regions and areas (especially some 
rural areas and the outermost regions and islands) are not 
and will not be supplied with natural gas, since the low 
level of consumption and the remoteness of these regions 
makes it uneconomical, even with subsidies, to extend the 
infrastructure to those areas; 
intensive consumers in the less developed regions, given 
their remote geographical location, will benefit only 
slightly from the relative decrease in gas and electricity 
prices. Industries in Greece, Ireland and Portugal and in 
the south of Italy and Spain will find it more difficult 
than those in other regions of the Community to diversify 
their sources of gas or electricity supplies;12 
10 Proposal for a Council Directive introducing a tax on carbon dioxide emissions and energy (COM 
(92) 226 final, 30.6.1992). 
10bis See also the Commission's White Paper on Growth, Competitiveness and Employment (C0M(93)700 
final of 5.12.1993). 
11 They will decrease in the sense that, for a given price level for primary energy resources (and 
equal tax treatment for energy products throughout the Community), the costs of supplying 
energy to consumers will be lower than they would be if there were no internal market. 
12 Being more remote from the major power stations and from the places where natural gas is 
imported or stored, they will have greater difficulty in obtaining supplies from other 
countries. 
12 -
the liberalization of the market in oil products (which are 
the main sources of energy in the less favoured regions) 
will intensify competition and lead distributors to 
undertake increasingly severe rationalization which will 
mean a further reduction in the number of sales outlets in 
areas which have a low population density and are not 
within easy reach of the major road networks. Consumers 
will then have to bear additional costs (of transport time 
and fuel) in order to obtain their supplies and will, 
moreover, have to pay higher sale prices than in densely 
populated areas. 
It is thus clear that in the least-developed regions of the 
Community and especially in certain rural areas and in the 
outermost and island regions, the internal energy market will 
initially not necessarily mean easier access to energy. 
2.5 The need for supporting measures. This analysis shows that the 
implementation of Community energy policy can make a positive 
overall contribution to economic and social cohesion if, in the 
less developed regions, support is given for measures aimed at 
strengthening this cohesion. Such supporting measures have 
three main aims: 
(see boxes: No 1: Impacts of the objectives of energy policy 
on cohesion and the proposed supporting measures; 
No 2: Details of the proposed supporting 
measures). 
to extend and improve the natural gas and electricity 
transport and distribution networks, including the 
interconnections between Member States and third 
countries 12bis . 
to promote energy efficiency; 
to make optimum use of endogenous energy potential, 
chiefly renewable energy resources. 
12bis "Electricity and Natural Gas Transmission Infrastructures in the Community", Communication from 
the Commission to the Council (SEC(92) 553 of 27.3.1992). 
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BOX No 1 
Impoctt of the objectives of energy policy and the proposed supporting measures 
Impact* on 
cohesion and 
Objectives the proposed 
of measures 
Energy 
Policy Benefits to 
less-developed 
regions and areas Disadvantages for 
less-developed 
regions and areas Proposed supporting 
measures to 
strengthen cohesion 
Security of supply Security in the 
economic sector 
and 
diversification. 
Job creation 
(e.g. construction 
and maintenance 
of networks) - Major financing 
required for 
the networks. 
- Costs of 
srategic storage, - To increase 
energy efficiency. 
- To develop endogenous 
potential. 
- Aid for extending 
the networks. 
Promotion of energy 
efficiency and 
endogenous energy 
resources (especially 
renewable resources), 
to contribute to 
sustainabi* development. Generates economic 
activity and thus 
employment. 
Improves the 
environment and 
living standards. - Major capital 
expenditure 
required. 
- Penetration is 
slower and more 
expensive. Aid for identifying 
potential, dissemin­
ating technology, 
financing projects; 
programmes such as 
THERMIE. SAVE. 
ALTENER, JOULE, etc. 
to bo applied 
differently. 
Reducing the 
environmental impact 
of energy systems. - Improved 
environment and 
living standards. Higher costs 
of these 
measures in 
those regions. 
Completion of the 
internal energy market. Better complement­
arity between 
energy systems, 
improved cost 
structures; 
rationalization of 
•ncrgy systems, 
price transparency. Unequal access 
to networks. 
In same coses, 
energy prices 
may increase 
relatively. To develop endogenous 
potential, in 
particular renewable 
resources, and to 
promote the efficient 
us* of gas. 
Aid for developing 
endogenous potential 
Extension and 
improvement of 
networks. 
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BOX No 2 
Details of the proposed supporting measures 
Supporting Details of the Msasures 
measures (investment aid. technical aid, regulatory measures, 
institutional support, etc.) 
- Constructing or strengthening interconnections (gas and 
electricity) between the outlying regions and the other 
regions while taking account of possible synergies 
- with transport and télécommunications networks. 
- Extending the electricity grids so as to supply all 
rural areas (if this course of action is more economical 
NETWORKS than decentralized solutions). 
- Improving electricity grids to provide better quality 
electricity supply. 
- Constructing gas distribution networks, especially in 
urban areas. 
- Aid to local and regional authorities for managing the 
networks. 
- Energy auditing, going beyond mere diagnosis, to identify 
potential energy savings, to propose alternative solutions 
and to help implement those solutions (in all sectors: 
transport, industry, household and tertiary). 
- Efficient energy management in towns and cities 
ENERGY (transport systems, energy distribution, etc.) by setting 
EFFICIENCY up local and regional teams. 
- Specific measures to promote Community programmes 
(THERMIE. SAVE. JOULE, etc.). 
- New heating systems for run-down urban areas. 
-Aid for acquiring efficient equipment (e.g. gas) for 
SMEs and households. 
- Aid for providing information and training in the least-
favoured areas (THERMIE. SAVE, JOULE, etc.). 
- Investment aid for generating electricity from renewable 
energy resources (small-scale hydro-electric and wind 
power to supply a grid; micro-hydroelectric, wind and 
EXPLOITATION photovoltaic power for decentralized uses). 
OF RENEWABLE - Production of electricity and heat from waste (especially 
ENERGY POTENTIAL urban waste). 
(PARTICULARLY - Exploitation of the energy potential of forests and the 
ENDOGENOUS production of bio-fuels. 
RESOURCES) - Creating or strengthening a supporting structure to 
identify projects and to help implement them 
(e.g. via the activities of OPETS - Organizations for 
the Promotion of Energy Technology). 
- Promotion of solar heating and air-conditioning in buildings. 
N.B. 
P.M. This list of specific measures is not exhaustive. These measures may be carried out 
at different levels - Community, national and regional. 
The CORDIS system of information operated by DGXIII in 
Luxembourg contains a description of these measures. 
- 15 -
3. Taking account of energy in other Community policies 
The proposed supporting measures help strengthen cohesion not only 
via energy policy but also through their impact on other Community 
policies. For instance: 
3.1 As already pointed out, promoting energy efficiency and the 
exploitation of endogenous potential and making greater use of 
natural gas are among the priority strategies for reducing the 
environmental impact of energy systems.12 Their beneficial 
effects, however, go well beyond that of simply replacing coal 
or oil, since they make it possible to tackle other 
environmental problems while being vigilant as regards the 
impact which measures may have on human health. Household 
waste, for example, can be used to produce energy-, forests and 
woodlands can be maintained (particularly in terms of fire 
protection) thanks to the efficient organization of the timber 
industry, one of whose outlets is the production of energy; 
energy can be extracted from pollutants which arise as by­
products of certain activities. 
3.2 The recent decisions reforming the Common Agricultural Policy 
(CAP),13 aim to reduce surplus production while keeping a 
sufficient number of farmers on the land. This is to be 
achieved by changing farming methods and diversifying the 
environment-friendly uses of the countryside. In both these 
respects, energy efficiency and renewable energy resources can 
play an important role: 
as regards the reduction of production costs, this aspect 
has been somewhat neglected in past years by reason of the 
relatively high guaranteed price level. It will be 
necessary to modernise installations in order to 
rationalize energy consumption (eg. solar energy for 
greenhouses, photovoltaic pumps for water) or to promote 
the combined use of renewable (wind, solar) and non­
renewable energies. 
in terms of the diversification of economic activity, 
endogenous energy potential could be exploited for the new 
uses to which farmland is being put. This could be 
achieved via forestry policies including the development of 
energy production from wood, and by growing energy crops. 
The latter essentially concern bio-fuels whose development 
could have important repercussions on the future of 
agriculture and on the maintenance of employment in 
agriculture. A draft directive,13*concerning the 
défiscalisation by at least 90 % of this type of fuel, is 
under discussion. 
12* See Fifth Community Action Programme "Towards SustainabiIity" 
13 See the analysis set out in the supporting document "Energy, the countryside, islands and the 
outermost regions". 
13* C0M(92)36 final of 05.03.1992 
- 16 -
The role to be played by energy efficiency and renewable energy 
resources (including bio-fuels) must be seen in the context of 
a countryside less dominated by farming than it has been in the 
past. The Community's countryside is extremely heterogeneous 
and cohesion problems particularly affect areas where the main 
activities (farming and forestry) are dominant but show little 
diversity, are relatively unproductive and are carried out by 
an aging population. These declining rural areas have, in 
fact, plentiful renewable energy resources which, if properly 
exploited, could help relaunch the economies of these regions. 
3.3 Transport in the less developed regions is dominated, to a 
greater extent than the Community average, by road transport, 
both of goods and passengers.14 Despite all the efforts which 
have been made to improve public transport and to build 
railways, inland waterways, etc., this situation has not 
changed significantly. The future common transport policy (CTP) 
developed in the White Paper14* devotes particular attention 
to the protection and conservation of the environment. Since 
environmental problems are often due to energy use, it is 
necessary to take account of the latter in the CTP. One of the 
priorities for transport policy should be to deal with the 
adverse effects of this predominance of road transport. The 
main problems are that oil-based fuels account for an 
overwhelmingly large proportion of energy consumption in those 
regions that their, towns and cities are congested with traffic 
and heavily polluted and that there is a large number of road 
accidents which take a terrible toll in terms of deaths and 
serious injuries. The proposed supporting measures can help 
combat these problems and strengthen cohesion. For instance: 
extending and interconnecting energy distribution networks 
will reduce the need to transport energy products (which 
are often highly dangerous) by road, and will thus reduce 
the costs of supplying the less-favoured regions; 
energy efficiency in transport means, above all, reducing 
the energy consumed by vehicles but it also involves 
improving transport systems,( e.g. traffic flow in urban 
areas, road maintenance, etc. changes in users' behaviour 
patterns regarding public transport, the use of more 
environment friendly fuels and vehicles, such as electric 
vehicles and bicycles etc..) This may lead not only to 
lower energy consumption but also to considerable 
improvements in the environment and the quality of life. 
3.4 A number of Community research activities,14**,particularI y 
in the field of energy, are still concentrated in the more 
developed countries and regions. The major energy research 
programmes concern fields (such as nuclear fission and fusion) 
which are of Community interest but remote from the industrial 
capacity of 
14 As shown by the data supplied by the MURE model developed under the JOULE Programme (see Note 
4). 
14* See also COM (92) 494 final of 2 December 1992: "The future development of the common 
transport policy". 
14** See also COM (93) 203: "Synergies between RJbT policy and economic and social cohesion policy", 
- 17 -
the less-favoured regions, and programmes involving non-nuclear 
energies, such as JOULE, even if they include many technologies 
of clear interest to the less favoured regions, (energy 
efficiency and renewables) are not sufficiently fosterd in 
those areas. The supporting measures proposed in this 
Communication imply the promotion of technological development, 
innovation and technology dissemination suited to the less-
favoured regions. Such activities should be carried out 
preferably by research teams in the countries and regions 
concerned, priority being given to inter-regional and 
international cooperation. The results of such research should 
be tested in the places where they will actually be used. In 
this way, stimulus can be given to research activities and 
facilities, which are a key element in strengthening cohesion. 
3.5 Improving energy infrastructures and promoting energy 
efficiency have been major themes in a number of Operational 
Programmes under the Structural Funds. Help provided under 
regional Community Support Frameworks amounted to 1.7 billion 
Ecu between 1989 and 1993. In addition programmes such as 
VALOREN and REGEN have been proposed, adopted and implemented 
on the basis that better energy infrastructure and greater 
exploitation of endogenous potential both have a major impact 
in the less developed regions on the policies of town and 
country planning and regional development. 
As has already been pointed out (see para 5, page 2), 
strengthening or extending infrastructure, developing energy 
efficiency and exploiting renewable energy resources make it 
possible to correct regional imbalances since they provide 
economic operators with favourable conditions for creating new 
economic activity. Nor must it be forgotten that improved 
access to high-quality energy supplies can help halt the 
depopulation of regions with a low population density. 
Moreover, as has already been shown by many studies of urban 
and regional energy planning, energy projects and similar 
schemes can make a very significant contribution to the 
creation of Jobs (e.g. the construction, operation and 
maintenance of energy systems). 
It is still too early to say what has been achieved by the 
VALOREN and REGEN programmes or to present a complete analysis 
of their impact on the development of the beneficiary regions 
and on strengthening economic and social cohesion. 
The VALOREN programme has just been completed and is currently 
being evaluated. The REGEN programme concerns capital projects 
for the period 1990-93. Not all these projects are yet 
completed and, in some cases, must be continued beyond the end 
of that period. However, the success achieved so far and the 
difficulties encountered in implementing these programmes 
illustrate both the potential for strengthening cohesion and 
the very real obstacles to be overcome. 
- 18 -
In addition to these programmes relating specifically to energy 
and aimed at the same general objectives as the supporting 
measures proposed in this Communication (see point 2.5), other 
programmes set out under the regional policies15 could support 
energy projects but very little attention has actually been 
given to energy in the projects implemented so far. 
3.6 Integration into policies for employment and industrial change 
The application of technologies and systems of production and 
work organisation aimed at raising the level of energy 
efficiency give rise to new needs in terms of developing human 
rsources, training and professional qualifications. On the 
response to those needs will depend the capacity of 
undertakings to adopt successfully to indstrial change and thus 
to the strengthening of their competitivity and the future 
development of employment. 
Interventions by the European Social Fund, and in particular 
those under the new objective 4 and the community initiative in 
preparation for "industrial change", are faced with this 
challenge. It is a question of easing the adaptation of workers 
to industrial change and the development of production systems, 
in particular by professional training and retraining. It is 
aimed at workers in work, and particularly those threatened 
with unemployment, within the whole of industry and the 
services area. 
Measures under this objective cover: 
training and professional requalification; 
guidance and counselling; 
anticipating trends in the labour market and requirements 
for professional qualifications; 
assistance to allow adquate training systems to be improved 
and developed. 
In this context, ESF interventions contribute to eliminate 
obstacles linked to an insufficient level of qualifications, 
which run the risk of braking the development of community 
energy policy. The training of undertakings salaried staff (not 
only engineers and executives but also administrative staff) in 
the application of energy technologies aimed at ensuring 
increased energy efficiency, together with the adoption of 
energy consumption models by Industry which are more 
environmentally friendly (development of eco-industrles and 
clean technologies). This constitutes a crucial stake. But 
training is not limited to the strictly technological aspects; 
it also aims at creating flexible organisational methods and 
production systems, in the absence of which technological 
success itself runs the risk of being compromised. 
15 Projects having the same general objectives as the measures proposed in point 2.5 have been 
financed under the following programmes: Operational Programmes under Regional Community 
Support Frameworks; Integrated Mediterranean Programmes (IMP); Rural Areas Development Plans 
(RADP); LEADER (covering rural areas); REGIS (for the outermost regions); ENVIREG 
(environment); STRIDE (research); PRISMA (tendering for services by businesses); EUROFORM 
(training and qualifications), etc. This list is not exhaustive. In addition, the EAGGF has 
financed a number of programmes to supply mains electricity to rural areas. 
- 19 -
3.7 Cone I us i ons - Untii now it has not been a matter of priority 
for the o her Community policies to take account of the 
contribution which energy could make to cohesion, even though 
some initiatives have made it possible to improve the energy 
situation in certain regions and to use energy projects to 
further their development. Proper implementation of energy 
related measures can clearly make a significant contribution to 
the success of these other policies and, through them, 
strengthen economic and social cohesion. However, certain 
obstacles will have to be overcome (see point 2.2), and a more 
integrated overall approach must be adopted for implementing 
such measures. 
- 20 -
II IMPLEMENTING THE SUPPORTING MEASURES 
Ihe two lines along which the Measures should be developed 
The supporting measures to which priority must be given in order to 
take fuller account of the objective of strengthening cohesion, whether 
directly via energy policy or indirectly via their impact on other 
Community policies, naturally relate to the different regions which, 
for one reason or another, receive aid (areas covered by objectives 1, 
2 and 5b). As already stated, these measures cannot be implemented 
merely with the financial resources of the Member States and the 
regions concerned, and in view of their positive contribution to 
strengthening cohesion they will naturally find their place in the 
Community's aid policies. 
Joint efforts at Community, Member State and regional levels must be 
made in accordance with the principle of subsidiarity: 
the Community must provide not only financial aid but must also 
define the proposed measures and the ways in which they are to be 
developed. The Community should also provide support in terms of 
technology diffusion, the organization of inter-regional 
cooperation, network development, making available the accumulated 
experience of local and regional energy planners and putting 
forward proposals as to how energy policies can best take account 
of economic and social cohesion; 
the Member States and the regions must take account of energy in 
their regional development programmes by including the proposed 
supporting measures and by taking the necessary steps to implement 
them. These include extra support for the local and regional 
bodies responsible for preparing and carrying out the measures 
concerned (or setting up such bodies where they do not yet exist); 
setting up training programmes; adopting rules to remove the 
obstacles in the way of resource exploitation; supporting the 
dissemination of Community programmes (such as THERMIE) and 
mobilizing financial resources to complement Community aid. 
The actual methods to be used in developing and implementing the 
proposed measures will therefore depend on whether the problems 
concerned can most appropriately be resolved at Community, Member State 
or regional level. Action must be taken basically along the two lines 
described above, namely: 
"Energy Policy and Cohesion", and 
"Other Policies, Energy and Cohesion". 
- 21 -
1. "Energy Policy and Cohesion" (including the energy R&D aspects) 
means talcing account of cohesion in the context of energy policy. 
For the purposes of the recommended supporting measures, this might 
include the following: 
As implied by the Regulation setting up the THERMIE Programme.16 
the programme should be implemented differently in the less-
developed regions. Detailed research should be carried out to 
identify the innovative technologies which are best suited to the 
energy requirements of these regions and, at the same time, to 
discover and support the economic operators who would be interested 
in using such technology and those capable of installing it, or who 
could be trained to do so. One possibility is to entrust this task 
to the OPETs17 located in or near these regions. These 
organizations could help potential candidates, particularly small 
and medium-sized businesses and industrial firms, to draw up their 
proposals, to find partners and financial backers and to set up 
their projects. At the same time, greater account should be taken 
of the particular characteristics of these regions when assessing 
the projects presented: innovation does not necessarily have the 
same meaning in regions with very different levels of development. 
Application procedures should also be simplified and payment of 
grants should be speeded up, since constraints of time and 
financing place a greater burden on the less favoured. 
The JOULE programme 16supports a substantial number of projects 
in the less well developed regions, mainly in the area of renewable 
energies. Research bodies from those regions are associated with 
most of the projects, in partnership with others situated outside 
those regions. It is nevertheless appropriate to seek to strengthen 
this practice though, on the one hand, the extension of projects 
to other areas, in particular energy efficiency, and on the other 
by means of initiatives for applications of an integrated type 
directly developed on a major scale in those regions, and implying 
a larger number of sectors and economic players. 
The SAVE Programme16 must also treat the less-developed regions 
differently, as provided for in the Regulation. Although it is too 
early to assess the implementation of this programme, special 
treatment for the less-developed regions is to be highly 
recommended since these regions are generally more energy-intersive 
than the Community average. 
In the context of this Programme, therefore, account should 
certainfy be taken of the fact that less-favoured regions have a 
lower capacity for implementing certain recommended measures such 
as: 
See the attached sheets presenting the various programmes. 
OPET - Organization for Promoting Energy Technology. 
- 22 -
Building certification. This is not always possible when the 
bodies responsible do not have trained technicians, when many 
building permits are issued retrospectively and when architects 
are not specifically prepared for it; 
The development of bodies which practice third-party financing. 
This presupposes technical and financial capacity which is hard 
to find and which must therefore be given greater support than 
in the developed regions; 
Energy auditing. There is an urgent need to promote this 
activity in the less favoured regions, but it is often 
difficult to do so not simply because there are few firms 
specializing in this field but also because industrialists 
generally have little awareness of the need for it and must 
therefore be informed and convinced. Energy auditing must go 
beyond mere diagnosis and must propose alternative techniques 
and help firms find financial backing. 
Similarly, with respect to the ALTENER Programme 16 emphasis must 
be placed on the institutional and financial aspects as they affect 
the less favoured regions. As has already been stated, it is 
important to remove legal obstacles (e.g. by ensuring proper 
application of the Council Recommendation on the auto-production of 
electricity),18 to provide investors in renewable energy with 
financial conditions at least as favourable as those available to 
the major energy producers (at present, a small producer of 
electricity from wind power has to pay a much higher interest rate 
than a major electricity company) and to take proper account of 
externalities (in particular environmental effects) when costing 
renewable forms of energy. 
The specific characteristics of the less developed regions could 
better be taken into account by enhancing and taking full advantage 
of the results of regional and urban energy planning schemes.19 
This should mean more precise identification of projects which 
might be carried out under the abovementioned programmes, better 
coordination of schemes and measures with regional and national 
authorities and aid for the creation of local capacity for 
implementing the programmes. It should also clarify the impact of 
the single market on cohesion in the less developed regions, the 
emphasis which should be placed on supporting measures and the 
question of which areas should be selected for priority action. 
18 0J L 335/88, 7.12.1988. p. 29 
19 See 00M(91) 53 final of 8 May 1991 on "Energy Planning in the European Community" and the 
conclusions of the Council meeting of 21 May 1992. 
- 23 -
Such Community action must be supported by a major contribution 
from the Member States and regions, which must become more involved 
in energy planning and must make greater use of the results of such 
planning when they draw up their regional development programmes. 
They must also assist, when necessary, in strengthening or setting 
up regional and local bodies responsible for such planning. 
Another objective of Community energy policy is to extend and 
strengthen energy networks, since they contribute to the security 
and reliability of supplies. With respect to the major energy 
transport networks (gas and electricity) included within the 
concept of Trans-European Networks, the "cohesion" priority is 
explicitly recognized: "action by the Community shall aim at 
promoting the interconnection and interoperability of national 
networks as well as access to such networks. It shall take account 
in particular of the need to link island, landlocked and peripheral 
regions with the central regions of the Community" (Title XII, 
Article 129b of the Treaty on European Union). Cohesion must also 
be a clear priority when implementing the measures provided for in 
connection with the Trans-European Networks (guidelines, financing, 
etc.) 
The development of local energy distribution networks could, of 
course, be assisted as necessary by the Structural Funds or by 
existing Community loan facilities (EIB). 
"Other Policies, Energy and Cohesion" means integrating supporting 
measures into other Community policies because of their impact not 
only on the energy situation in less-favoured regions but also on 
the various parameters used for measuring the strength of cohesion. 
As already stated (see the conclusion of point 3), such integration 
has often been attempted and sometimes achieved in the past but 
never sufficiently - to judge from the simple fact that developed 
and less developed regions enjoy very unequal access to energy. 
Analysis clearly shows that greater consistency is needed in 
introducing supporting measures via a range of Community policies. 
With regard to aid policies, Member States must ensure that their 
regional development programmes take proper account of the energy 
dimension. 
- 24 -
Particular attention should be given to the following points: 
"Energy and the Countryside, Islands and the Outermost 
Regions", where priority would be given to energy-saving 
schemes, leaving room for network extensions where these make 
sense. 
Energy demand in the regions concerned is very thinly spread 
(with the exception of some densely populated islands such as 
Madeira). Moreover, these regions have a limited range of 
supply options but significant local resources, especially 
renewable energy resources. Energy supply costs are higher 
than in other regions while the quality and range of supplies 
is inferior. The promotion of renewable energy uses and energy 
efficiency is particularly attractive for such regions and 
areas, as was seen in certain countries during implementation 
of the VALOREN Programme. 
In these regions energy actions ought to highlight the 
development of endogenous potential, and particularly renewable 
energy resources. To Judge from the experience of the VALOREN 
Programme, and bearing in mind the new directions being taken 
by the CAP, emphasis could be placed on the uses of biomass, 
small hydro-electric power stations, solar energy (solar 
heating and photovoltaic electricity) and wind energy. Energy 
efficiency, both in rural dwellings and in farming methods, 
would also play a role, as would improvements and certain 
extensions to electricity grids. Although priority should be 
given to capital grants, other supplementary measures 
(training, organization, aid for the purchase of efficient 
equipment using natural gas) could be supported. 
"Energy and the Urban Environment", where the accent should be 
on: 
the management of gas, electricity and heating networks: 
local authorities may take on the role of distributor and 
occasionally even that of producer - for example in the 
production of energy from waste; 
urban energy management: local authorities could 
rationalize energy consumption in buildings. (Town and 
city councils manage a great many buildings, issue building 
permits and can ensure that heating insulation standards 
etc. are complied with); 
- 25 -
schemes to improve energy efficiency in urban areas, in 
particular run-down urban areas, so as to ensure, among 
other things, an acceptable standard of living for the 
least-favoured social groups; 
the organization of transport systems, providing support 
for the creation of alternatives to private transport, 
improving traffic management and adopting town 
planning/1 and use regulations which would reduce commuter 
travel time. 
In objectives 1 and 2 towns and regions energy actions ought to 
concern above all energy efficiency and networks, while not 
excluding the considerable endogenous energy potential offered 
by waste. Support for these various schemes could range from 
capital grants to aid for supplementary measures. 
In addition, within the framework of Community initiatives for 
actions to encourage rationalisation of energy use in industry, 
energy networks and cooperation to facilitate the exchange of 
knowhow are envisaged. Thus, for example, in the framework of 
INTERREG, the following actions could be implemented, aimed at: 
"Energy and Cross-border Areas", involving in particular: 
interconnections between gas or electricity networks along 
the lines of the REGEN Programme; 
creating distribution networks (gas, electricity, heat) 
which would be shared by frontier cities or regions, thus 
providing sufficiently large markets to make the 
development of these networks economically viable; 
schemes for the joint exploitation of endogenous potential 
(hydro-electric schemes on frontier rivers, energy crop 
projects, the creation of a market in firewood, etc.); 
support for setting up bodies responsible for organizing 
and implementing these various schemes. 
The Commission will decide on the content of further Community 
initiatives when the debate on the Communication on the Green 
Book20 nas encjeci and conclusions have been drawn from it. 
Past experience of programmes such as INTERREG, with their 
successes and problems, shows the special nature of schemes set 
up between frontier regions, bringing together heterogeneous 
institutions, harmonizing regulations and getting people with 
different experience and know-how to work together. 
20 Green Book on Community initiatives (COM (93) 282) 
- 26 -
ANNEX 1 
TABLES 
"ENERGY AND COHESION" INDICATORS 
Table 1: Per capita consumption: dependence on imported energy; 
energy intensity 
Table 1a: Employment in the energy industries 
Table 2: Proportions of primary energy consumption accounted for by 
oil, coal and natural gas. Estimated proportion accounted 
for by renewable energy resources. 
Table 3: Per capita CO emissions, and emissions of COo as a 
funct ion of GDP. 
Table 4: Relative distribution of energy infrastructure. 
- 27 -
TABLE 1 
Per capita consumption; Energy intensity; Dependence on imports (Community averages; 
figures for Spain, Greece, Ireland, Italy and Portugal) 
INDICAT0RS(3) 
COUNTRIES PER CAPITA 
CONSUMPTION (1) 
toe/inhabitant ENERGY 
INTENSITY 
toe/$1000 GDP 
(90) RATE OF 
DEPENDENCE 
(2) 
EUROPEAN 
COMMUNITY 
SPAIN 
GREECE 
IRELAND 
ITALY 
PORTUGAL 3.6 
2.1 
2.3 
2.7 
2.2 
1.5 0.219 
0.239 
0.396 
0.306 
0.177 
0.349 59 
67.6 
76.2 
77.7 
86.9 
96.7 
(1) Note that, in the cases of Italy and Spain, these figures do not distinguish between the 
situations in the developed and the less-developed regions. For the latter regions, 
the information available shows that the figures are close to those for Greece and 
Portugal. 
(2) The balance of trade in energy products (including electricity) as a percentage of 
primary energy consumption. 
(3) Study in hand to develop indicators associating energy and the socio-economic situation 
in the Member States and regions. 
(Sources : Eurostat; IEA/OECO; ENERDATA; World Bank) 
28 -
TABLE 1(a) 
Employment in the energy industries 
(NACE 11,12,13.14,15,16) 
YEAR EMPLOYMENT 
(thousands) 
1980 2017 
1981 2055 
1982 2026 
1983 2015 
1984 1967 
1985 1915 
1986 1870 
1987 1797 
1988 1756 
1989 1725 
1990 N/A 
1991 N/A 
(Source Panorama of Community Industry) 
- 29 -
TABLE 2 
The proportions of prisiary energy consumption accounted for by oil, coal and natural gas, 
(EEC average, Spain, Greece, Ireland, Italy and Portugal). 
INDICATORS 
COUNTRIES 
EUROPEAN 
COMMUNITY 
SPAIN 
GREECE 
IRELAND 
ITALY 
PORTUGAL TOTAL 
CONSUMPTION OF 
PRIMARY ENERGY 
(Mtoe) (1) 
1212 
88 
21.4 
9 
153 
15.5 PROPORTION 
ACCOUNTED FOR 
BY OIL (X) 
42.9 
53.4 
60.7 
55.5 
60.1 
77.4 PROPORTION 
ACCOUNTED FOR 
BY COAL (X) 
24.3 
22.7 
37.3 
22.2 
9.1 
17.4 PROPORTION 
ACCOUNTED FOR 
BY NATURAL 
GAS (X) 
17,7 
5,7 
0,4 
21.1 
25,5 
(1) The figures used in Eurostat minimize the role of renewable energy resources since no 
account is taken of biamass while hydro- electricity is evaluated 
on the basis of 86 toe/GWh. Thus for a country such as Portugal, once biomasa is 
included (approximately 1.1 Mtoe per year) and with hydro-electric power rated at 230 toe/GWh, 
primary energy consumption rises to 17.5 Mtoe. 
(Sources: Enerdata; Eurostat) 
- 30 -
TABLE 3 
C02 EMISSIONS PER CAPITA AND AS A FUNCTION OF GDP 
INDICATORS TONNES COg/ 
CO*/INHABITANT ECU 1000 GDP 
COUNTRIES 
EUROPEAN 8.86 0.63 
COMMUN ITY 
SPAIN 5.41 0.54 
GREECE 7.34 1.42 
IRELAND 8.73 0.92 
ITALY 6.98 0.47 
PORTUGAL 4.07 0.85 
(Source: "Energy in Europe" December 1992, p. 9) 
31 -
TABLE 4 
RELATIVE DISTRIBUTION OF INFRASTRUCTURE 
EC7 
IRL 
GR 
ES 
PT TRANSPORT 
100.0 
57.7 
32.0 
56.8 
41.7 COMMUNICATIONS 
100.0 
50.5 
75.6 
56.7 
27.8 ENERGY 
100.0 
46.5 
22.1 
37.1 
35.5 TOTAL INCL. 
EDUCATION 
100.00 
66.5 
43.4 
60.5 
35.3 
EC7 : D, F, B, NL, L, UK and DK 
(the seven most developed Member States). 
Source: 1985 - information from BIEHL & COLLABORATORS, "Study on 
Infrastructural Endowments, Infrastructural Financing and the 
Regional Development, 1986. 
COM (92) 84 - 18.3.1992 Community Structural Policies - Assessment 
and Out look. 
-VL 
PROGRAMME: THERMIE ANNEX 2 
(European Technologies for Energy Management) 
To promote energy projects involving innovative technology and 
econom i c r i sks; 
to disseminate efficient energy technologies. 
ECU 700 mi I I ion NB This Programme follows up the 
demonstration energy programmes 
which, together with THERMIE, 
accounted for Community aid 
totalling approximately 
ECU 1400 mi II ion untiI 1991 
Durât ion 1990 - 1994 
Energy saving (in buildings, industry, transport) 
Decentralized energy production (heat, electricity) 
Renewable energy resources (solar, biomass, wind, water, 
geothermal) 
Energy production from waste 
Clean and efficient techniques for processing coal and other solid 
fuels 
Prospecting for, extracting, transporting and storing oil and gas 
An invitation to tender for this Programme is issued every year and 85% 
of the budget is allocated to this. The balance (15%) is used to 
finance action taken by the network of organizations for the promotion 
of energy technology (OPET) and certain specific measures decided by 
the Commission. 
Concerned zones The Community as a whole 
State of advancement 
To date 2900 projects have been accepted and 2000 carried out 
(demonstration programmes + THERMIE). 
THERMIE and Economic and Social Cohesion 
When projects are selected, the Commission takes account (subject 
to other criteria) of dissemination projects due to be implemented 
in the less developed regions. 
The Commission gives priority in particular to projects which have 
a major impact on improving energy supplies in the less-favoured 
regions. 
The competitiveness of small and medium-sized businesses and 
industries is improved, in particular, by the transfer of know-how 
and technology. 
Information and training in the less-favoured areas are promoted 
(e.g. by local associations cooperating with others from more 
developed areas). 
However, the regions covered by objectives 1, 2 and 5b - which 
represent more than 40% of the population - receive a considerably 
smaller share of THERMIE financing. Consideration is currently being 
given to ways of improving this situation. 
~=k> "*> " 
PROGRAMME: : S.A,Vil 
(Special Action programme for Vigorous energy Efficiency 
To assist member States in achieving their energy efficiency and 
environmental goals through a strengthening of energy efficiency 
infrastructures. 
To support the exchange of information on energy efficiency at aii 
levels within the Member States. 
To create a positive environment for investment in energy 
efficiency. 
To assist in creating behavioural change in energy consumers with a 
view to improving energy efficiency. 
Durât ion 5 years, 1991-1995, total budget 35 M.Ecu. 
Establish energy efficiency legislation, where required, at 
Community level. 
Support the strengthening of energy efficiency infrastructures by 
part-financing sectoral pilot projects. 
Establish or assist in establishing energy efficiency networks. 
Concentrate on improving electrical and use efficiency. 
Concerned zones : EC and third country 
State of advancement 
The programme has been in operation for two years. Three directives 
(energy efficiency of boilers, energy labelling of domestic appliances 
and a framework-directive) have already been approved. A total of 141 
sectoral pilot projects have been supported and a number of conferences 
and seminars have been co-sponsored. 
SAVE and Economic and Social Cohesion 
Since SAVE is primarily aimed at reducing energy consumption and 
therefore increasing consumer's disposable income, it could be argued 
that SAVE, if successful, would contribute significantly to economic 
and social cohesion. This might be more true in less developed regions 
where the poorer population spends a disproportionately large amount of 
their income on energy. 
—^hou-
PROGRAMME: ALTENER 
(Alternative Energy) 
3ES 
To help stabilize CO emjSsions in the year 2000 at 1990 levels 
in order to combat tne greenhouse effect; 
to promote use of the least-polluting renewable energy resources: 
this should cut CO. emissions by 180 million tonnes and double 
(from 4 to 8%) the proportion of total energy demand met by new and 
renewable energy resources in the year 2005. 
ECU 40 mi I I ion 
Durât ion 
Haemal Five years (1993 - 1997) 
Hydroelectric power: the output of small power stations to be 
tripled (from 8 GW and 25 TWh in 1991 to 27 GW and 80 TWh in 2005); 
biofuels: the aim is to produce 11 million toe in 2005, i.e. 5% of 
the total energy consumed by motor vehicles; 
other new and renewable resources: for example, electricity 
generated from biomass. 
Financing (up to 100%) for studies and technical assessments to 
define technical standards or specifications; 
support for improving or creating renewable energy infrastructure 
(meeting between 30 and 50% of the costs); 
encouragement for setting up a European and international 
information and coordination network for renewable energy resources 
(meeting between 30 and 50% of the costs); 
aid for technical and economic assessments of the potential for the 
industrial production of energy from biomass. 
In implementing this Programme, the Commission will be assisted by a 
committee made up of representatives from the Member States. 
State of advancement 
This Programme was adopted by the Council on 13 September 1993. 
ALTENER and Economic and Social Cohesion: 
Rural areas and island regions are virtually the only places where 
renewable energy resources can be exploited, and many such areas are 
situated in less-favoured regions eligible for the Structural Funds 
(objectives 1 and 5b). 
In such areas, the exploitation of renewable energy resources makes it 
possible to generate maximum added value for energy and local 
employment. 
~"*>ll 
PROGRAMME: JOULE ,1 AND 
(Joint Opportunities for Unconventional or Long-term Energy Supply) 
To carry out R&D in energy technologies so as to protect the 
environment (combating the greenhouse effect) and the overall 
energy situation in Europe (security of supply, imports, processing 
costs). 
To improve the availability of technology by increasing and 
disseminating European know-how in the energy sector. 
To maintain and develop endogenous energy resources, whether 
existing (rational energy use, solid fuels) or potential (renewable 
energies). 
ECU 144 million for Joule I; ECU 155 + 104 
Joule 11 259 mi I ion for 
Durât ion 1989-1992 - Joule I; 1991-1994 - Joule II, phases 1 and 2 
Non-nuclear energy resources and the rational use of energy 
Development of techniques, processes and products enabling 
renewable energy to be more widely used 
Development of techniques, processes and products which make it 
possible to save energy in all sectors of consumption. 
Strategic evaluations of energy R&D and the development of 
quantitative Energy - Environment - Economy models. 
Concerned zones The Community as a whole 
Joule and Economic and social Cohesion 
Examples: 
the exploitation of renewable energy resources may be an asset to 
certain backward regions. 
Measures for energy efficiency, especially in transport combined 
production or the consumption of electricity can reduce the energy 
dependency of regions. 
Support for the development of clean and efficient technologies for 
using endogenous solid fuels may help alleviate the economic 
recession in Europe's coalfields. 
Joule I (240 contracts) is nearing completion. It has made it possible 
to identify the most promising technologies, and these will be the 
subject of more detailed research under Joule II (220 contracts in 
phase 1). There is to be a second phase (restricted and public 
invitations to tender issued in May and June 1993 for contracts lasting 
on average three years). 
-^>r 
PROGRAMME: VALOREN 
(Exploiting Endogenous Energy Potential) 
To exploit local energy resources 
To improve the structure of supplies (substitutes for oil) 
To disseminate efficient energy technologies 
To contribute to local development by creating jobs 
To improve the quality of life. 
Durât ion ECU 392 mi I I ion 
From 1987 to 1991 
VALOREN is a programme set up under the Structural Funds aimed at 
implementing multi-annual schemes for the rational use of energy and 
the exploitation of local energy resources, and to help promote 
appropriate energy technologies for the regions concerned. 
State of advancement 
The programme has been completed and a good many schemes have bean 
implemented. Its social and economic impact, as well as its effects in 
the energy sector, are currently being assessed. Some of the 
beneficiary regions have already asked for a VALOREN II Programme. 
VALORLN and Economic and Social Cohesion 
This Programme is aimed exclusively at 
(Objective 1). the less developed regions 
-\6-
PROGRAMME POSEiMA 
(Programme of options specific to the remote 
and insular nature of Madeira and the Azores) 
Better Community integration (establishing an appropriate framework 
for the application of common policies) 
To help the Portuguese islands benefit from the progress of the 
internal market through the optimum use of existing Community rules 
and instruments 
To help both archipelagoes catch up with the rest of the Community 
In economic and social terms. 
Approximately ECU 72 million (of which some ECU 25 million is 
for energy) 
1991-1993 
A whole series of special measures to help local development, including 
a three-year programme of Community aid to offset the excessive cost of 
transporting oil and oil products by sea to the Azores and Madeira. 
The aid i» granted subject to the implementation of investment 
programmes to improve the rational use of energy (energy saving and the 
development of local and renewable energy resources). The capital 
expenditure for such programmes must be equivalent to at least 50% of 
the Community subsidy for oil transport costs. 
State c+ aovancemer 
The energy budgets amount to ECU 5 million for 1992 (disbursed) and 
ECU 8 million for 1993 (allocated). In the course of 1993 the 
Commission should receive the first report from the regional 
authorities concerning their counterpart expenditure on rational energy 
management. 
POSEIMA and Economic anf a i Cohes ion 
Madeira and the Azores are extremely remote islands (covered by 
Objective 1) where Community aid can only contribute to better 
cohes i on. 
-*y-
PROGRAMME: REGEN 
(Infrastructure of Energy Transports) 
To contribute to the development of peripheral regions by opening 
up their energy markets; 
To contribute to Community integration and the completion of the 
single market in energy; 
To help diversify and strengthen security of energy supply in the 
less developed regions. 
ECU 300 mil lion 
1990-1993 
This programme concerns: 
Natural gas distribution networks in regions where there are none 
The main interconnections needed to link the isolated gas and 
electricity networks in the peripheral regions with the major 
trans-European networks. Durât ion 
REGEN is a Community programme set up by the Commission under the 
Structural Funds. The Commission, acting on proposals received from 
the Member States, grants aid to finance infrastructure projects. 
State of advancement 
The Commission has approved aid amounting to: 
ECU 87 million for supplying natural gas to Greece-, 
ECU 105 million for supplying natural gas to Portugal; 
ECU 108.5 million for the gas pipeline linking Ireland with the 
United Kingdom; 
ECU 35 million for the first stage of the project to link the 
Italian and Greek electricity grids. 
This aid covers approximately 35% of the eligible expenditure planned 
until 1993. 
All four projects are under way. 
NB: Some of the work will continue after 1993. 
REGEN and Economic and Social Cohesion 
This Programme relates only to the less developed regions 
(Objective 1). 
- 1>8-
GIONAL AND URBAN ENERGY PLANNING 
To help achieve the major Community objectives (internal market, 
economic and social cohesion, improvements to the environment and the 
quality of life) by promoting rational energy management, energy 
efficiency, the use of local and renewable energy resources and 
research into the best ways of supplying energy to regions, towns and 
cit ies. 
This is an annual programme, which started in 1982 
ECU 3 to 4 mi I I ion annual I y 
This Programme finances three kinds of measure: 
Energy planning studies at regional or urban level (inventories, 
analyses and reports, medium- and long-term forecasting, choice of 
strategies and the establishment of a multi-annual programme of 
energy-related measures). 
Feasibility studies, supplementing the studies referred to above, 
relating to energy projects or sets of such projects. 
Aid for setting up local or regional teams to encourage and advise 
users on the rational management of energy. 
Since 1989, this scheme has been the subject of an annual invitation to 
tender. 
Concerned zones All regions and urban areas within the European 
Community. 
State of lavancei To date some 200 European regions, towns or 
cities had benefited from this scheme. 
The annual invitation to tender gives priority to "outlying or isolated 
regions of the Community and towns or cities within those regions, ... 
predominantly industrial and declining regions, towns or cities, ... 
rural or upland regions and areas...". 
Thus, for example, half the Community's island regions have already 
made use of this Programme. 
-"VV- ISSN 0254-1475 
COM (93) 645 final 
DOCUMENTS 
EN 10 05 12 
Catalogue number : CB-CO-93-693-EN-C 
ISBN 92-77-62599-6 
Office for Official Publications of the European Communities 
L-2985 Luxembourg