WRITTEN QUESTION E-0518/99

by Herbert Bösch (PSE) to the Commission

(8 March 1999)

Subject: Assistance for hydroelectric power stations from the PHARE and TACIS programmes

Rumour has it that no assistance is being provided for the modernization and improvement in the efficiency of hydroelectric power stations or for the promotion of decentralized alternative energies in the CEEC.

Can the Commission say:

1. Is it true that no financial assistance is being provided from the PHARE and TACIS programmes for the modernization and improvement in the efficiency of hydroelectric power stations or for the promotion of decentralized alternative energies in the CEEC?

2. On the basis of what criteria are energy projects assisted under the PHARE and TACIS programmes?

3. For what types of energy (hydroelectric, coal, gas, nuclear) is financial assistance provided?

4. What distribution key is used for the various types of energy?

Answer by Mr van den Broek on behalf of the Commission

(28 April 1999)

TACIS

Tacis finances many projects to promote efficient energy use in the New Independent States (NIS) and Mongolia. From 1991 to 1997 an average of 10 % of Tacis funding went to the energy sector, and 20 % to nuclear safety and the environment. The strategic energy plans financed by Tacis in a number of partner countries attach great importance to the reduction of consumption (both in homes and in business and industry) and the development of alternative resources. Tacis also provides support for the restructuring of traditional production sectors. For example, in 1996-1998 it provided [fmxeuro] 5 000 000 to restructure the coal sector in Ukraine.

Within Tacis - apart from the nuclear sector, which is administered under a special programme - energy projects can be divided into two categories: a) energy planning and efficiency (including the restructuring of traditional sectors and the development of alternative sources) financed through national action programmes; and b) further development of energy distribution networks (gas and oil pipelines) financed through the Tacis inter-state programme (Inogate programme).

All types of energy are involved: hydroelectric power stations, coal, gas and nuclear energy. The priorities of the Tacis programme, which has so far been designed to meet demand, have been set by the partner countries under the negotiations of their one- or two-year action programmes. This programming approach means that the share of different types of energy varies from country to country. Coal and nuclear energy predominate in the Ukraine, whereas the demand of specific production sectors in Uzbekistan in 1996-1998 was principally for gas and electricity.

PHARE

Phare supports the development of energy policy, including efficient energy use, through both national and multi-country programmes, including the current 1996 Phare multi-country energy programme. Decisions about the distribution of Phare support in the applicant countries are based on the short- and medium-term priorities set in the accession partnerships. Where these include energy or energy-related priorities, such as restructuring the coal industry in Poland or Rumania or improving nuclear safety in Lithuania and Bulgaria, Phare is in principle ready to provide assistance.

Alternative energy sources

Extensive support for the development of renewable energy has been provided under Phare and Tacis programmes, and has been instrumental in developing a decentralised approach to energy consumption. Various projects in Central and Eastern European Countries and the NIS have facilitated the identification of suitable projects for investment in alternative energy sources. However, such sources can only be developed where the economic situation allows and the energy prices can withstand the pressures of competition. Outside Phare and Tacis, other Community programmes have also considered and promoted alternative energy projects.