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Vol.1974/0316

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)1960 final
Brussels .27november 197^
COMMUNITY ENERGY POLICY
OBJECTIVES FOR 1985
(Communication from th«Commission totheCouncil )
COMm )1960 final .

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
COMMUNITY ENERGY POLICY :OBJECTIVES FOR1985
Contents
Page
Introduction 1
I.Nature andscope oftheobjectives 1
II.TheObjectives 4
III .Policies bysector 7
1)Thedemand forEnergy
(a)Conservation andthe'Rational
Use ofEnergy 8
(b)Electricity consumption 8
2)TheSupply ofEnergy 9
(a)Solid fuels 10
(b)Nuclear Energy 12
(c)Hydrocarbons 13
Annexe : Draft Council Resolution ontheobjectives
ofaCommunity Energy Policy .
–O–O–O –

COMMUNITY ENERGY POLICY
OBJECTIVES FOR1985
Introduction '
Having studied theCommission 'scommunication of5June 1974 entitled .
"Towards anewenergy policy strategy fortheEuropean Community "l),
4
theCouncil decided tostate itsposition ,"before theendof1974 »on
quantitative objectives fortheproduction andconsumption ofenergy
"bytheCommunity "between nowand1985 »ontheguidelines andmeasures
necessary forthedevelopment ofeach source ofenergy ,andonthe
conditions required fortheproper functioning oftheenergy market 2).
Inthis newcommunication ,theCommission hassetoutobjectives revised
inthelight oftheMember States *ownforecasts ,andtheprincipal
measures necessary ifthose objectives aretobeattained .Adraft
resolution isannexed which the Commission asks the Council toapprove .
i
o
o 0
NATURE AND SCOPE OPTHE OBJECTIVES
Thepurpose oftheobjectives ofthecommon energy policy istodefine
theprecise nature andextent ofthepolitical commitment which the
Community would enter into with aview tolaying down specific guidelines
for itssupply structure xthey constitute guidelines fornational
policies andatthe same time major indicators for Community energy
producers andconsumers 3).
This commitment will express itself first ofallatCommunity level :
awide range ofmeans canbeused ,inaccordance with Community procedures ,
depending ontherequirements andthenature ofeach objective .Over
andabove their direct impact ,Community measures will also provide a
framework within which theMember States ,producers andconsumers cantake
action todevelop andextend Community measures .
./•
1)Doc .COM(74)550 final
2)Doc.R/2391/74(ENER 45)
3)Councils resolution of17»9*74 »doc.R.2391/74(ENER 45/3)

Furthermore ,theCommunity'bcommitmentshouldfindexpressionin
thepoliciesoftheMemberStates,whichshouldhebasedonthe
guidelinesadoptedbytheCommunity.Toasubstantialdegree,the
Communityinterestcoincideswithnationalrequirements ,because
thebenefitsofgreaterself–sufficiency andeconomyinconsumption
areimportantforeachoftheMemberStates.However,whendeciding
uponCommunityobjectives,MemberStateswillhavetotakeaccount
ofCommunityinterestswhichgobeyondnationalrequirements tofind
therationalbalance. '
Thefullimportanceoftheefforttoachieveabalancedenergysupply
isillustrated bytheeconomicconsequences ofthehigheroilprices,
whichgravelythreatenthestandardoflivingandtheeconomicand
socialprogressofalltheCommunity.ThefactthatMemberStates
areveryunequallyaffectedexacerbates -thedangerstotheextentthat
itriskscompromising theinternalcohesionoftheCommunityandits
capacitytoprogresstowardsthedefinitionofcommonpolicies.
2.AdaptingtothenewsupplyconditionsrequirestheCommunityto
reduceasfaraspossible,thescaleofitsenergydependenceandalso
itodiversifyit.
Theobjectivemustbetocreateasupplystructureinwhichnosingle
decision–makingbodycanhavesogreataninfluenceoversuppliesthat
itcouldthreatentheoverallstabilitywhetherintermsofvolumeor
ofprice.
Untilthisbalanceisattained,measureswillhavetobetakeninthe
Communitytodealwithanyinterruptions insupplieswhichmightoccur
TheMemberStatesmustaccordingly undertaketocarryoutmeasuresto
ensureafairdistribxition ofburdensandresourcesintheCommunity.

Theobjectives ofensuring thelong-term security ofsupplies should
not "beconfused with anillusory desire forself-sufficiency .This
notonly seems impossible ,but itwould ,above all ,conflict with the
Community 'sinternational outlook andtheprinciples onwhich the
Community isbased .
t
Bysetting itself thegoal ofreducing itsdependence onthe outside
world from 63$to40$between nowand1985 »theCommunity does not
intend toweaken itsrelationship with theenergy-exporting countries .
Itseffeots toachieve amore balanced supply structure arelinked to
theattempt tocreate anewform ofrelationship which would take
into account the overall economic development ofthose countries .
Furthermore ,this attempt toreduce theCommunity ^dependence on
external supplies fits inwith theefforts being made bytheother
major consumers tocutback demand ,tohusband theworld<6 .energy
resources andthus torestore market stability .
Bydefining itsownenergy policy ,theCommunity cantake part in
thedialogue between themain protagonists ontheworld market .
3.Theenergy policy relates mainly toenergy supply problems ,but
itispart ofawhole range ofrelevant Community policies :policy
inthefields oftheenvironment ,scientific andtechnical research ,
transport ,industrial policy ,social policy ,co-operation with the
developing countries ,and soon.Noreference ismade here tothese
problems ,they aretaken upelsewhere intheCommission *srecent
communications tothe Council .Theadoption ofCommunity objectives
intheenergy field will give anewstimulus totheenergy aspects
ofthese policies .
Asregards thepolicy forscientific andtechnical research inparticular ,
acommunication about therole ofresearch anddevelopment intheenergy
field hasbeen sent tothe Council . Thestrategic areas ofaction
envisaged bythat communication respond tothe objectives ofaCommunity
policy .
4.The Council hasalready decided that theobjectives should besubject
toconstant review andthat itwill hold periodic discussions ontheprogress
(2)made v.Inthis waytheobjectives canbeflexibly adapted totheway
the situation develops .
./•
(l)"Energy forEurope iResearch andDevelopment "Doc.SEC(74 )2592 Final
(2)Doo.R/2391/74(ENER 45)/10

-4-
This leads tothequestion ofthe time-speui .Aminimum often
years isrequired ifeconomic structures aretobechanged andnew
investments made affecting "both theproduction andconsumption of
energy *Some changes will have amore rapid impact such asconsumer
 
reactions tohigher prices .Elsewhere ,1985 will simply mark the
point atwhich thetrend will have gained sufficient momentum to
exert theforce needed tobring about aturning point :anexample
ofthis istheconstruction ofnuclear power-stations .The
objectives canonly find their full significance ifthey areput
inadynamic perspective inwhich slight time-lags maybeless
important than theunderlying trends they foster provided the
determination exists topursue them constantly .
II. THE OBJECTIVES
Thefollowing table gives asummary ofthequantitative objectives
which theCommission proposes tosetitself fortheperiod 1975~1985 »
and compares them with theexisting supply structure :thus thescale
oftheeffort required canbeseen comparing them with theforecasts
made in1972 before oilprices rose .Theprojections oftheMember
States areademonstration that the objectives have been drawn up
consistently andtaking account ofthelikelihood oftheir
implementation l).They indicate thesupply structure which could
berealized ifthenecessary decisions were taken with minimum
delay andapplied without intermission .
./•
1)Doc.R/2391/74(ENER 45)/7.

Totalprimaryenergyneedsin19851)–Community
*1973
Estimâtes!1985
!Initialfore­
!casts1985
Otnectives
Mill.toe $Mill.toe 1"Mill.toe
!%
Solidfuels 22722.6 1751025017
Oil 6176I.4 1160646OO-65O 41-44
INaturalgas 11711.626515340-290 23-20
Hydroelectric and
geothermicpower303.0 402433
Nuclearenergy 141.4]
1.1609I
124216
TOTAL 1005100 1800100I
1475100
1)Internalconsumption +exports+"bunkers
2)Source:"ProjectsofprimaryenergydemandintheCommunity
(1975-1980-1985)(doc.SEC(72)3283final),andanadditional
estimatemadeinJanuary1973forthenewMemberStates
(doc.SEC(73)128). 1
Inpracticalterms,theobjectiveswillmeanthefollowingfordemand
ontheonehandandforenergysupplyontheother.
/■

-6-
1.Energy demand
A*Restrict thelong term growth rate ofinternal consumption to
3«5$Perannum instead of5%asoriginally planned ,andfix
according tocircumstance particular objectives fortheeconomy
ofenergy inthe shorter term .
B.Inparallel with thedevelopment ofnuclear energy ,promote a
progressive increase inelectricity consumption ,sothat this
form ofenergy represents 35i°°ftheenergy consumption in
1985 (25 in1973 ).
2.Energy supply
Reduce dependence onimported energy toapproximately 40$(63$in1973 ).
A.Solid fuels
–Maintain thelevel ofCommunity coal production inabsolute terms
(170-180 mtoe in1985).
–Increase theopenings for coal imports from non-member countries
(35 "to40mtoe in1985).
–Raise "brown coal andpeat production to30mtoe .
B.Natural gas
–Step upCommunity production (land andunderwater deposits )to
obtain atleast195mtoe ,andifpossible225mtoe ,in1985.
–Secure imports of95–115 mtoe from non-member countries .
C.Nuclear energy
-Install power stations with capacity of200GWeby1985,supplying
almost half oftheelectricity generated inthe Community .
D.Hvdroelectric and géothermie power
-Establish anddevelop sites fortheproduction ofhydroelectric and
geothermic power toraise their contribution totheoverall energy
supply to43mtoe (30mtoe in1973 )*
E.Oil
–Limit oilconsumption where itcanbereplaced economically byother
sources ofenergy .
–Increase production byMember States intheNorth Seatoobtain
180mtoe by1985 atlatest .
–Reduce imports ofoilfrom non–member countries to420–470mtoe ,
about30 oftotal energy requirements (61$in1973)or70to12$
ofoilconsumption (9856in1973)*
P.Other sources ofeneray
–Ensure ,byapolicy fortechnological research anddevelopment abetter
utilization ofthetraditional forms ofenergy andtheir replacement by
newsources ofenergy inthelong term l).
l)This point ,which wasdiscussed intheCommission communication tothe
Council entitled "Energy forEurope :research anddevelopment "
(SEC(74)2592 final )ismentioned here fortherecord andnofurther
reference will bemade toitinthis document .

-7-
Itisimpossible toconstruct anaccurate profit andloss account
forachieving these objectives .Butifthere areobvious obstacles
tobeovercome toachieve these objectives ,obstacles evidenced by
difficulties more orless marked according tothemember country
*
concerned ,itstill remains that ,forthewhole European economy ,the
plan proposed isnotonly possible butnecessary .
Ineffect ,itisaquestion ofdeciding between apolicy centred on
investment andallother policies giving more importance toimports .
Now the cost ofimports issuch that onemaysustain theargument
according towhich ,even inthefairly brief period under consideration ,
allinvestment expenditure meant toensure alesser energy dependence
means again ,inbalance ofpayment terms ,ofanamount several times
greater .
III . SECTORAL POLI CIES
Toachieve these objectives ,theCommunity andtheMember States must
implement specific measures for ",each source orform ofenergy .These
measures are described indetail inthe various Commission communications
totheCouncil ^";insomecases asproposals forCouncil resolutions ,
directives orregulations onwhich the Council isasked todecide .
Without going into detail onthemeasures described inthose documents ,
theindented paragraphs ofthis chapter setoutthechoices ,andthe
basic commitments ,which theCommunity andtheMember States must make
inorder toachieve theobjectives .
Community programme ofaction fortherational utilization ofenergy (doc .
–ACommunity policy forhydrocarbons (doc.
-Medium-term guidelines forcoal (doc.
-Medium-term guidelines forelectricity (doc .
-ACommunity supply policy fornuclear fuel (doc.

-8-
1.Demand
A. The rational use ofenergy and ,energy savings
Thesudden increase inthecost ofenergy hasalready cut "back the
growth ofdemand andifprices remain high they could continue to
brake consumption .
/
Byitself ,this price effect -which infact could diminish intime -
will not beenough torestrain theincrease indemand for oilandto
redirect consumption towards alternative sources ofenergy .Promoting
therational use ofenergy will also require more determined action .
Apart from theefforts ofMember States ,this action should beatCommunity
level whenever there isapossibility that thefree movement ofgoods or
thefree play ofcompetition within thecommon market could bejeopardised .
This Community approach isalso required forefficiency reasons ,toprevent
thesuccess ofonecountry 'sefforts being compromised bytheinaction of
another ;itisintheinterests ofalltoreduce theoverall pressure of
oilimports onthebalance ofpayments and itseffect ontheeconomic
equilibrium oftheCommunity .Finally ,itisjustified because individual
measures bytheStates ,however important they maybeatnational level ,
have only alimited impact ontheworld energy market andarenot ona
scale toinfluence it.
Aprogramme forrational use ofenergy isadopted ,whose
result will beareduction inconsumption of15%compared
with earlier forecasts for the Community asawhole andover
aperiod oftenyears ,without endangering theobjectives
foreconomic andsocial development .This programme isto
beachieved ,ontheonehand ,byco-operation ofMember
States intheexchange ofinformation andexperience and
rigorous analysis ofproblems and ,ontheother hand ,bythe
co-ordination -andasfarisnecessary bytheharmonization -
ofnational measures ,atleast totheextent necessary for
thefunctioning ofthecommon market .Inaddition ,important
results fortheeconomy ofenergy could beobtained by
Community research anddevelopment actions ,andtechnical
innovation .
B. Consumption ofelectricity
Theeconomic advantages ofelectricity andsecurity ofsupply itoffers ,
should speed upitsdevelopment ,particularly fortheheating ofpremises ,
industrial thermoeletrio uses and transport .
/.

Such growth indemand ,however ,must not come about attheexpense
ofthe overall energy balance byincreasing dependence onoilproducts :it
must relate totherate ofdevelopment ofnuclear energy inelectricity
generation ,andthus progressively reach ahigher rate ofgrowth than
past trends starting from theearly eighties .
/
Until that time ,theinherent features ofelectrical energy andlikely
cost trends (inreal terms )means that ,whatever change there maybein
thefactors influencing demand ,thedemand forelectricity will grow
faster than energy consumption overall .
Furthermore ,themeasures which mayhave tobetaken topromote increased
consumption Bhould notinhibit producers from financing theheavy investments
required ,particularly those fornuclear power stations .Intheimmediate
future ,this means that itwill benecessary toadjust thelevel ofreturns
inrelation tolong-term costs .
Therate ofgrowth ofelectricity consumption will not
bespeeded upsolong asitcould mean increasing theuse
ofhydrocarbons inthermal power stations ,butthe
stimulus tofaster growth will beapplied progressively
asthecontribution ofnuclear energy andsolid fuels
reduces dependence onhydrocarbons .This encouragement
will take account oftheneed toensure thefinancing
ofinvestment intheelectricity sector .
Energy supplies
TheMember States use differing energy resources insofar astheir state
ofdevelopment andeconomic characteristics differ .
From apurely quantitative point ofview ,aslarge asupply aspossible of
these resources isofmajor importance inreducing theCommunity 'sdependence
onimported energy .Itisessentially theweight ofeffort used inproduction
ofcoal ,hydrocarbons andespecially nuclear energy intheCommunity which
will determine thebalance ofrequirements tobecovered byoilimports .
./•

Incertain cases ,Community support will "beneeded ,toaccelerate the
development ofthese resources ,toprotect them against therisks of
theeconomic situation andfinally forthecontribution tosecurity
ofsupply .These measures should not ,however ,lead toeconomically
unjustifiable energy supply inthelong-term .
/
Tocreate areference framework toallow thecompanies togive direction
totheir initiatives andinvestments ,theCommunity should periodically
establish objectives for thedevelopment ofthese tesources .
Theenergy resources ofeach Member State shall
bedeveloped asquickly aspossible under satisfactory
economic conditions ,taking into account theneeds of
theCommunity ,with theobject ofreducing energy
dependence .This maymean Community support incertain
cases .Independently ofthemeasures taken foreach
particular energy source ,ageneral energy programme
for the Community will beestablished periodically by
the Commissionj ,defining long-term policy forproduction
andexploration andrelating toinvestments forevery
facet ofthese activities .
Solid fuels
Theincrease inoilprices since October 1973 means that alarge proportion of
Community coal production hasbecome competitive with other fossil energies .
./•
Brown coal andpeat areproduced only intwoMember States andarenot
involved inanymajor intracommunity trade .The conditions governing
their extraction andutilization mean that they are ofprimary importance
inelectricity generation .Ifthepolicy oftheMember States concerned
complies with theobjectives stated above ,seepage 6,2.A. ,there should
benoneed for Community-level measures covering these energy sources .

11
Themaintenance ofthis situation ,however ,will only toepossible ifconsiderable
obstacles areovercome :thedifficulty ofimproving productivity ,thetime
required todevelop newproduction capacity ,theneed toguarantee aneconomic
return onthemajor investments which will berequired ,andthetime needed for
recruiting andtraining thenecessary manpower .
The steel industry isandwill long remain aspecific sector fortheuse ofcoal .
Thefield inwhich coal mayreplace large quantities ofhydrocarbons ,under
acceptable cost conditions ,ispower stations ;this use istobeencouraged .
Theincreased capacity for conventional power stations should bereserved for
coal ,ontheunderstanding that appropriate measures would guarantee competitive
supply conditions tothecommercial users ofCommunity coal .
Thepresent level ofCommunity coal production will
bemaintained bymeasures which ensure outlets inmajor
consuming sectors ,i.e. ,steel andpower stations .
This also means that measures must beadopted to
facilitate thefinancing ofinvestment inthe coal
industry ,together with apricing policy toenable
public aid to.be reduced oreven eliminated asfar as
possible :increased revenue for theundertakings
will enable them tocover these costs and-inpart at
least –torenew and extend their installations .An
appropriate manpower policy inthe coal-producing Member
States will make itpossible torecruit andtrain skilled
workers .
Part ofthepotential market for coal intheCommunity will beopen toimports from
non-member countries ,totheextent that theCommunity coal industry isnotable
fully tomeet thedemand under equally favourable conditions .These imports which
maywell beingreater quantities than atpresent ,should meet thecriteria of
long-term security .Although they maynotbeavailable for some considerable time
yet ,thescale ofcoal reserves outside theCommunity (particularly incountriesthe
which canhelp todiversify theorigin ofsupplies )and/probable development of
cost trends give reason toexpect that theworld market will ,intime ,meet the
growth indemand byconsumers intheMember States .
•/•.

-12-
I
Inapplying theconditions oftheCECA Treaty ,thecommercial policy
for coal remains inthe domain oftheMember States .Certain of
theStates arecompletely open toimports from third countries ,others J
control them more orless toalarge extent .Theobjective -ofthe
maximisation ofresources ofcoal –makes itnecessary toco-ordinate
commercial policies ,while taking into account thedifferent situations
withm the Community .
Progressively ,and dep'ending onhowfarthe
internal production objective isattained ,
allcoal consumers intheCommunity will
have free access tothe world market at
acceptable prices andwith assures security
ofsupply .
B. Nuclear energy
Nuclear energy isofcrucial importance toanyimprovement inthestructure
ofenergy supplies ,and itisinthis sector that thegreatest efforts will
beneeded toachieve thecommon .objectives .
Itisnowunquestionably competitive with fossil fuels forthegeneration
ofelectricity .Itsexpansion will depend ontheadoption ofconvincing ,
carefully planned andfirmly executed programmes spread over asufficiently
long period ;
Such programmes would remove anyremaining capacity constraints inindustries
manufacturing nuclear components ,andensure theavailability ofqualified
staff .Aclose watch should bekept ontheir progress toprevent apparently
minor short-term delays from bringing about much more serious time–lags in
thelonger term .
Inco-operation with allinterested parties ,the
Commission will establish annual nuclear construction
programmes which will give thegovernments guidelines
forthedefinition oftheir national policies and to
Community industry thenecessary framework ofreference .
Theproblems ofnuclear energy asregards public safety andenvironmental
protection arevery properly ofincreasing importance inthepublic mind .
These problems transcend national frontiers because oftheir very nature .
Therefore public concern ,must find aresponse attheCommunity level as
*/

-13-
well asatthe level ofthenational authorities .
Member States *programmes forelectricity generating
plant will henceforth ,inaddition tothecontribution
from solid fuel stations ,be "based onnuclear power
' from large capacity stations .These programmes must
intheinterests ofthewhole oftheCommunity ,be
determined insuch away astoensure thebest siting
fornuclear power stations ;,andwill take account ,as
forother energy sources ,ofthesafety ofthepopulation
and environmental protection .
The construction ofnuclear plant whereever thepower stations areactually
located ,will contribute toachieving theCommunity objectives andacommon
effort isrequired which maythen demand Community participation inthe costs
for certain Member States .
Thenuclear construction programme isnotconfined tothebuilding ofpower
stations :itmust also ensure that they receive regular fuel supplies from
reliable sources and onacceptable economic terms .This applies tonatural
uranium aswell astoenriched uranium ,andinboth cases decisions must be
taken without delay toensure that thelong-term requirements areoovered .
Thenuclear programme mentioned above (p.12)will in
particular define future Community needs fornuclear
fuels .Asregards access tonculear fuels ,theCommunity
-encourages theidentification ,development and
valorisation ofindigeneous resources ;
–will develop aconsultation process with Third Countries
about exploration ,development andthevalorisation of
their resources .
Stockpiling byproducers ,users andeventually theMember
States and theCommunity will bemade theobject *ofi
discussions andifnecessary action atCommunity level .
•A

-14-
C.H.ydro cartons
Whatever happens ,oilandgaswill remain foralong time tocome very
important sources ofenergy fortheCommunity *Inaddition ,theobstacles
ordelays which therealisation ofobjectives could encounter will result
inanincrease inoilconsumption .
f
Thus theCommunity must provide itself with ahydrocarbons supply policy
which will ensure stable supplies ,both interms ofquantity andofprice .
Inother words ,theCommunity should define inaflexible manner adapted
tothecircumstances oftheday ,thekind ofrelationships itisintended
toestablish with theCommunitys *suppliers ,whether they betheproducing
countries ortheindustry .Eventhough ,incertain respects ,specific
anddifferent actions necessarily apply tooilandnatural gas ,thebasic
guidelines which arethereason foracommon polioy aresimilar forthe
whole hydrocarbons sector *
The Community 'ssupply policy finds it'splace within aco-operation with
theexporting countries andwith theother importing countries ;and
rests onregular ,standardized exchanges ofinformation ,andonaflexible
butwide-ranging consultation between public authorities ,andbetween
public authorities andtheindustry itself ;andfinally ,where necessary ,
onthe means ofaction .
Thepolicy implies inessence :
–therational use ofavailable resources ;
–therapid development ofexisting resources inthe Community ;
–anexternal supply which isdiversified andsure ;
–apolicy forprices forconsumers based ontransparency ;
–asearching after abetter use ofexisting orproposed investments •
intheCommunity ;
–measures toensure ,incase ofdifficulties ,thebalanced supply
oftheCommunity market andthemaintenance ofit'sunity .

DRAFTCOUNCILRESOLUTION' ;ONTHEOBJECTIVES OPA
COMMONENERGYPOLICY
4/16^ΟιιΧίΟΐΙι/
HavingtakennoteoftheCommission'scomnnmicationof.theNovember1974
"ACommunityenergypolicy-Objectivesfor1985"(l)»
Consideringtheresolutionitadoptedthe17thSeptember1974(2);
Consideringthattheimplementation ofacommunityenergypolicyimpliesthat
quantitative objectivesincommonbedeveloped,whichrepresenttheguidelines
fornationalpoliciesand,atthesametime,theguidelinesfortheproducers
andoonsumersofenergyintheCommunity(3);
Consideringthatthecontinuation ofahighdegreeofdependancefortheCommunity
vis-&r-visenergyimportedfromthirdcountries,andespeciallyoil,would
compromise,underpresentandlikelyfuturecircumstances ontheworldmarket,
theeconomicbalanceoftheCommunityandeconomicandsocialprogress;and
thatthereforeitisnecessarytoreduceasmuchaspossible .thisdependence :
•
Consideringtheoutlookforthevarioussourcesofenergyfortherealisation
ofthisobjective,takingaccountofthetimetakentointroducethem,oftheir
potentiallongtermcontribution ;oftheeconomioconditionswhichmustbe
associatedandofthenecessityofensuring ,theproteotionoftheenvironment(4);
*1.Approvesfortheperiod1975""1985 »thefollowingobjectivesheldin
commonforanenergypolicy:
_ ./•
Cl)Doc.
(2)Doc.R/2391/74(ENER45)
(3)Doc.R/2391/74(ENER45).*3
(4)TheCouncil'sresolitionofthe7November1974onenergyandthe
environment (Cf.Doc.R/2788/74(ENV128)(ENER48)

Energydemand
A.Restrictthelongtermgrowthrateofinternalconsumptionto3.5%per
annuminsteadof5%asoriginallyplanned:andfix,accordingtocircum­
stance,particularobjectivefortheeconomyofenergyintheshorter
term.,
B.Inparallelwiththedevelopment ofnuclearenergy,promoteaprogressive
increaseinelectricity consumption ,suchthatthisformofenergyre-
1presents35%ofenergyconsumptionin1985(25%in1973)
Energysupply
Reducedependenceonimportedenergytoapproximately 4C%(63%in1973)
A.Solidfuels
-MaintainthelevelofCommunityproductioninabsoluteterms(170-180
mtoein1985)•
-Increasetheopeningsforcoalimportsfromnon-membercountries(35"to
40mtoein1985).
-Raisebrowncoalandpeatproductionto30mtoe.
<
B#Naturalgas
–StepupCommunityproduction (landandunderwaterdeposits)toobtain
atleast195mtoe,andifpossible225mtoe,in1985«
-Secureimportsof95-115mtoefromnon-membercountries.
C.ÎTuclearenersy
-Installpowerstationswithcapacityof200GWeby1985,supplying
almosthalfoftheelectricity generated.
D.Hydroelectric andgéothermie power
-Establishanddevelopsitesfortheproductionofhydroelectric and
geothermicpowertoraisetheircontribution totheoverallenergy
supplyto40mtoe.
E.Oil
-Limitoilconsumption whereitcanbereplacedeconomically byother
sourcesofenergy
-IncreaseproductionbymemberStatesintheNorthSeatoobtain180mtoe
by1985atthelatest
-Reduceimportsofoilfromnon-membercountriesto420-470mtoe,whichistosayaround30$oftotalenergyneeds(61%in1973).
F.Othersourcesofenersy
–Ensure,byapolicyfortechnological researchanddevelopment
abetterutilization ofthetraditional formsofenergyandtheir
replacement bynewsourcesofenergyinthelongterm.

-3-
*2.AsksthatmemberStatestakeaocountoftheseCommunityobjectives when
formulatingtheirsupplypolicies;
*3.Expressesitswillingnesstousethefollowingmethodsofachievingthese
objectives :
I.ForenerOTdemand:
A.Aprogrammefortherationaluseofenergyandfortheeconomyofenergy
inuseisadopted,whoseresultisto"beareductioninconsumption
of\J/ocomparedtoearlierforecastsfortheCommunityasawhole
andoveraperiodoftenyears;whileensuringthatthisdoesnot
endangerobjectivesforeconomicandsocialdevelopment .Thisprogramme
istobeachieved,ontheonehand,bytheco-operation ofmember
Statesintheexchangeofinformation ,experienceandstudiesofthe
problemsand,ontheotherhand,bytheco-ordination -andasfar
asnecessarybytheharmonization ~ofnationalmeasures,atthe
leasttotheextentnecessaryforthefunctioning ofthecommonmarket.
Inaddition,importantresultsfortheeconomyofenergycouldbe
obtainedbycommunityresearchanddevelopmentactions,andtechnical
innovation .
B.Trendsinelectricity consumptionwillnotbeaccelerated wherethis
oouldleadtoanincreaseduseofhydrocarbons inthermalpower
stations,butthestimulustofastergrowthwillbeappliedassoon
asthecontribution ofnuclearandsolidfuelsreducesdependence on
hydrocarbons .Thisencouragement willtakeaccountoftheneedto
ensurethefinancingofinvestmentintheeleotricitysector.
II.ForEnergysupplies
A.TheenergyresourcesofeachofthememberStateswillbedeveloped
asquicklyasisconsistentwitheconomicallysatisfactory conditions,
taldngaccountoftheCommunity'sneedsandtheobjectiveofare­
ductioninitsdependenceforenergysupply.Thiscouldrequire,
incertaincases,measuresofcommunitysupport.
B.Independently ofthemeasurestobetakenforeachindividualsource
ofenergy,anindicativeprogrammewillbeperiodically drawnup
fortheCommunitybytheCommission,todefineguidelinesforpro­
ductionandexplorationinthelongtermandcoveringallthein­
vestmentsimpliedbysuchactivities.

Approvesthefollowingastheguidelinestobefollowedwhetherat
thenationalorattheCommunitylevel,foreachsourceofenergy:
I.SolidFuels
A.ThepresentlevelofcoalproductionintheCommunitywill"be
maintained,inparticular "bymeasurestoensureoutletsinthe
principalconsumingsectors-steelandpowerstations.This
alsomeansthatmeasuresmustbeadoptedtofacilitatethe
financingofinvestmentinthecoalindustry,togetherwith
apricingpolicytoenablepublicaidtobeprogressively
reducedoreveneliminatedasfarasispossible;increased
revenuefortheundertakings willenablethemtocoverthesecosts
and-inpartatleast-torenewandextendtheirinstallations .
Manpowerpolicyinthecoal-producing MemberStateswillmake
itpossibletorecruitandtrainskilledworkers.
B.Progressively ,anddependingonhowfartheinternalproduction
objectiveisattained,allcoalconsumersintheCommunitywill
I
beassuredfreeaccesstotheworldmarketatacceptableprices
andsecurityofsupply.
II.NuclearEnergy
A.Inco-operation withallthepartiesconcerned,theCommissionwill
establishanannualindicativenuclearconstruction ,programmewhich
willgivegovernmentsguidelinesforthedevelopmentofnational
policiesandCommunityindustriesthecontexttheyneed.
B.Programmesforelectricitygeneratingplantwillbebasedhence­
forthonnuclearenergyforlarge-capacity powerstations,exceptfor
thescopeitispossibletogivetopowerstationsburningsolid
fuels.
•/.

-5-
Theseprogrammeswillsetouttoensureabetterdistribution ofnuclear
powerstationsthroughouttheterritoryoftheCommunity,takingaccount,
asforothersourcesofenergy,ofthesecurityofthepopulation and.
theprotectionoftheenvironment .
Theindicativeprogrammedescribedabovewill,inparticular ,definethe
futureneedsoftheCommunityfornuclearfuels.
Asregardsaccesstonuclearfuels,theCommunity
-encouragestheidentification ,development andvalorisation
ofindigeneous resources ;
-willdevelopaconsultation processwithThirdcountriesabout
exploration ,development andthevalorisation oftheirresources.
Creatingstocksheldbytheproducers,theusersandeventuallyby
theMemberStatesandbytheCommunity,willbeconsideredbyaconsultation
processleading,ifnecessary,toactionattheCommunitylevel.
III.Hydrocarbons <
TheCommunity'ssupplypolicyfindsitsplacewithinaco-operation
withtheexportingcountriesandwiththeotherimportingcountries;
andrestsonexchangesofinformation ,andonconsultation between
publicauthorities ,andbetweenpublicauthorities andtheindustryitself;
andfinally,wherenecessary,onthemeansofaction.
Thepolicyimpliesinessence:
–therationaluseofavailableresources;
–therapiddevelopmentofexistingresourcesintheCommunity;
–anexternalsupplywhichisdiversified andsure;
.–apolicyforpricesforconsumersbasedontransparency ;
–asearchingafterabetteruseofexistingorproposedinvestments
intheCommunity;
–measurestoensure,incaseofdifficulties ,thebalancedsupplyof
theCommonMarket;andthemaintenanceofitsunity.

5.TakesnotethattheCommissionwillreport "backtoitforthe
firsttimeonthe30thJune1975»on"theprogressmadetowards
realisingtheCommunityobjectivesandinparticular onthe
measurestakenatthenationalorcommunitylevel
6.TakesnotethattheCommissionwillsubmittoitproposalsfor
«theimplementation ofthispresentresolution.
(l)cf.TheCouncil'sResolutionofthe17September-Doc.R/239V74
(ENER.45)para.10.