Proposal for a COUNCIL REGULATION (EC) adopting a multiannual programme to promote international cooperation in the energy sector - SYNERGY programme
Date: 1995-09-06
Institutions: European Commission
Subjects: EU financing, action programme, energy policy, energy technology, environmental protection, international cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  06.09.1995 
COM(95)  197 final 

95/0126  (CNS) 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL  AND  THE EUROPEAN  PARLIAMENT 
concerning  a multiannual  programme to promote international  cooperation  in the 
energy  sector  -  SYNERGY  programme 

Proposal  for a 
COUNCIL REGULATION  (EQ 
adopting a multiannual  programme to promote international  cooperation  in the 
energy  sector -  SYNERGY  programme 

(presented by the  Commission) 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
concerning a multiannual  programme to promote international  cooperation  in the 
energy  sector - SYNERGY programme 

This  document  proposes  the  establishment  of  a  multiannual  programme  to  promote 
international  cooperation  on  energy  policy  definition  and  formulation  in  non-member 
countries. 

The objectives  of the programme are: 

- 

to  promote  sustainable  development,  notably  by  reducing  emissions  of  greenhouse 
gases and of pollutants linked to energy consumption; 

- 

to enhance security of supply; and 

- 

to improve energy  efficiency. 

The proposal  is based on: 

• 

• 

the  Community's  need  for  a  specific  instrument  in  view  of  the  changes  on  the 
international  energy  scene and of Community  policy (see Annex I); 

the  positive  balance  and  the  lessons  that  can  be  drawn  from  the  operation  of 
international  energy cooperation on the basis of the resources available in the budget 
since  1980 (see Annex II). 

It will  also bring benefits  in terms of complementarity,  subsidiarity  and  efficiency. 

1. 

Complementarity 

SYNERGY covers elements not covered by the existing Community instruments and will 
contribute to preparing or supporting action taken under these programmes. 

The  latter  point  will  be  reinforced  by  close  collaboration  between  the  different 
instruments, which should also exclude any overlap. 

(a) 

As regards means, SYNERGY will implement cooperation in the field of energy 
policy definition  and formulation.  There is no such instrument at present in the 
Community. The framework research programme concerns more the development 
of  energy  policy  tools,  and  the  other  programmes  tend  to  be  devoted  to  the 
implementation  of  energy  policies.  Some instruments  carry  out energy  policy 
measures, but in the framework  of national  or regional priorities0*. 

(1)  See Annex III for a presentation of the various instruments currently available in the 

field of international  energy  cooperation. 

SYNERGY will be integrated  in the current set-up: 

• 

• 

firstly,  by  launching  operations  which  lead  to  projects financed by  other 
Community programmes; 

secondly,  by  carrying  out  projects  of  interregional  or  even  global  scope: 
training  of  energy  decision-makers,  creation  of  networks  of  agencies 
working on a common subject, conferences in various regions of the world 
on major topics, etc. 

Given that international energy problems are likely to become increasingly urgent 
in  the  coming  decades,  particularly  as  regards  security  of  supply  and 
environmental factors, the Community must have the means to act in accordance 
with its global energy  strategy. 

(b) 

As  regards  the  ends,  SYNERGY  can  contribute  to  the  development  of  the 
Community's energy  strategy vis-à-vis non-member countries: 

• 

• 

on  the  supply  side,  by  establishing  an  on-going  technical  dialogue  with 
producer countries, mobilizing the industrial  circles concerned, discussions 
on the treatment and financing of investments and cooperation on transit and 
interconnections; 

on the demand side, by promoting energy efficiency,  transferring European 
experience  in  this  area  and  setting  up  a  structure  for  dialogue  between 
European  producers  of  energy  equipment  and  users  in  non-member 
countries. 

(c) 

There will be close collaboration with other Community cooperation instruments. 
SYNERGY  will  involve  the  people  responsible  for  these  instruments  in  its 
deliberations  on  annual  and  multiannual  programmes  from 
the  outset. 
Conversely,  SYNERGY should be involved  in the preparation  of more  specific 
multiannual  operations under the other Community  programmes. 

In particular,  an interface  will  have to be defined  between  SYNERGY and the 
participation  by  Central  European  countries  associated  with  the  JOULE, 
THERMIE,  SAVE  and  ALTENER  programmes,  not  forgetting  the  activities 
under the PHARE programme. 

2. 

Subsidiarity 

The  objectives  envisaged  by  this  programme  can  be  achieved  more  efficiently  at 
Community level than at national  level.  This is the case as regards improving Europe's 
image in these  countries and  strengthening  its economic presence.  Europe has greater 
weight in competing with the USA and Japan on these markets than the Member States 
individually. 

2.1 

2.2 

According  to a recent  study(2), the energy  capabilities  of Europe  and  most  of its 
Member  States  are  little  known  in  Asia  and  Latin  America  in  particular,  while 
only  the  Community  has  sufficient  prestige  to  be  respected  and  accepted  to 
contribute  its  experience  to  the restructuring  of  the  energy  sector. 

Action at the Community level is particularly justified  in the field of international 
energy  cooperation,  since its aim is to realize the objectives  cited earlier that are 
common  to  all  the Member  States. 

In  addition,  to  the  extent  that  these  actions  lead  to  the  promotion  of  European 
technologies  outside the  Community,  it is desirable to  coordinate them  in  order 
to  obtain  the best  possible  results. 

2.3 

Such a programme will also enable the Community  to have a lasting presence at 
the  level  of  political  decision-making  and  in  this  way  to  influence  energy  and 
environmental  choices,  rather than  restricting  itself  to isolated  technical  sectors. 

3. 

Efficiency 

3.1 

The  installation  of  a  multiannual  legal  framework  will  permit  the  successful 
application  of  long-term  measures:  network  creation,  training,  programme  of 
conferences  spread  over  several  years  in  various  parts  of  the  world. 

It will  also lead to the development  of a multiannual  action programme based on 
the  guidelines  and  priorities  agreed  with  the  member  countries,  taking  account 
of  complementarities  with  other  Community  programmes  and  the  activities  of 
multilateral  capital  providers, while permitting  speedy  action.  The  effectiveness 
of  individual  Member  States'  action  will  thus  be  improved. 

3.2 

The  guidelines  set  out  in  the  annual  plans  will  enable  international  energy 
cooperation  to  be  focused  on  certain  selected  themes  with  considerable  impact 
on  the  achievement  of  the  desired  objectives. 

Creation  of  a programme  like  SYNERGY  will  not  lead  to  duplication  of  effort 
with existing activities but, on the contraiy, it will contribute to consolidating and 
improving  the  Community's  overall  policy  on  international  energy  cooperation 
and  to  integrating  it  more  effectively  in  the  Community's  external  policy  and 
energy  policy  as a  whole. 

Consolidation  and  improvement 

By  using  what  was  set  up  in  the  pilot  phase:  collaboration  with  COPED,  the 
international  network  of  energy  policy  research  institutions,  present  in  two 
developed  and  four  developing  countries;  follow-up  to  the  Athens  Conference 
on  energy  and  the urban  environment,  follow-up  to  the Black  Sea  Conference 

(2)  The  development  of  energy  resources in  Latin  America  and  Asia.  Cooperation with 

Europe.  Bernard  Meunier  and  Didier  Unverzagt  (DG I). 

• 

• 

• 

• 

on new energy  realities in the  region;  energy  centres;  regular contacts with  the 
energy  authorities  of  these  countries,  etc. 

By permitting action at the initiative of the Community  concentrating on  specific 
objectives  and  benefiting  from  energy  expertise. 

By  avoiding  compartmentalization  of  action  by  geographic  zone. 

By  using  the  new  resources  of  the  fourth  RTD  framework  programme,  more 
particularly  the  specific  JOULE-THERMIE  programme  and  the  cooperation 
programme with  non-member  countries, which  could be allocated to joint  action 
on  technological  development,  dissemination  and  the  development  of  energy 
planning  tools. 

By  leading  to  joint  action  or  action  financed  by  other  instruments  (PHARE, 
TACIS, economic cooperation  with Asia and Latin  America,  MED A, etc.) or by 
bank  loans  (EIB,  EBRD,  ECSC,  etc.). 

By  permitting  a  response  to  the  increase  in  energy  demand  from  non-member 
countries  characterized  by  energy  saving,  integration  of  renewable  energy 
sources, particularly biomass, supply management and environment  conservation. 

Finally,  this  programme  should  require  few  resources  to  produce  major  results. 

Integration 

• 

By  making  it  possible  to  meet  the  needs  of  a  global  European  energy  strategy, 
rather  than  one based  purely  on  priorities  by  geographical  region. 

• 

• 

3.3 

By  adding  an extremely  flexible  energy  dimension  to  other  Community  policies 
in the field of international relations, the environment,  employment,  international 
cooperation  on  RTD  as well  as the  common  foreign  and  security  policy. 

By  providing  the  framework  for  harmonization  of  energy  policies,  particularly 
with  the  associated  Central  and  East  European  countries,  which  figures  among 
the  objectives  of  the  association  agreements.  These  agreements  have  already 
been  drawn  up  in  the  spirit  of  future  membership. 

By  contributing  to  the  establishment  of  an  energy  dimension  to  the  Euro-
Mediterranean  partnership  which  should  be 
the  Barcelona 
Conference. 

launched  at 

The  existence  of  a  stable  instrument  will  permit  the  application  of  a 
medium-term  policy  and ensure the continuation  of relations with the institutions 
the 
of  non-member  countries,  making  SYNERGY 
international  energy  bodies  and  the  producer  countries  in  the  area  of  energy 
policy. 

interlocutor  for 

the 

3.4 

In  the  medium  term,  this  legal  framework  would  also  provide  the  tools  for 
possible  cooperation  measures  in  the  event  of  an  international  energy  crisis. 

THE  BROAD  LINES  OF  THE  PROGRAMME 

As  in  the  pilot  phase,  SYNERGY  will  continue  to  be  dedicated  to  cooperation  and 
assistance  in  the  definition,  formulation  and  implementation  of  energy  policy  by 
non-member  countries,  but  with  a medium-term  strategy. 

The  action  taken  under  SYNERGY  could  be  of  relevance  to  all  non-member  countries 
facing energy problems, particularly the countries of Central and Eastern Europe, the new 
independent  States of the former  Soviet Union,  Mediterranean  countries, the  developing 
countries in  Latin  America  and  Asia  and the  countries  of  Africa,  the  Caribbean  and  the 
Pacific  which  have  signed  the Lomé  Convention. 

Priority  objectives will be defined  as regards both the activities to be undertaken  and the 
beneficiary  countries in the form  of  a multiannual  plan  in the light  of the broad  lines of 
the  Community's  four  policies  with  an  energy  dimension  (international  relations, 
environment,  employment,  research  and  technological  development)  and  of  the 
Community's  energy  strategy. 

Hence  specific  action  plans will  be  drawn up  every  year in  liaison  and as a  complement 
to: 

•  other  Community  programmes  and  instruments; 
•  Member  States'  activities  in  certain  non-member  countries; 
•  needs  expressed  by  Member  States'  industries; 
•  needs expressed  by the  beneficiary  countries. 

To  take  account  of  the  various  complementarities,  these  plans  will  be  drawn  up  in 
interdepartmental  consultation  within  the  Commission,  then  submitted  to  an  advisory 
committee  of  Member  States'  representatives,  who  will  examine  them  and  the  periodic 
reports  on  implementation  of the various  programmes. 

It  is therefore  clear  that  SYNERGY,  while  making  a  new  contribution  to  international 
energy cooperation, is not intended to become the exclusive vehicle for  such  cooperation, 
since  SYNERGY  operations  will  complement  the  energy  strategies  defined  in  the  other 
Community  and  Member  States'  instruments. 

The  cooperation  measures will  take the  form  of: 

•  conferences  promoting  dialogue  and  exchanges  of  information  and  experience; 
• 
• 
• 
• 
• 
• 

information  dissemination  (brochures,  newsletters); 
training  activities  (courses,  seminars,  technical  visits); 
secondment  of  European  experts to  non-member  countries'  institutions; 
studies; 
support  to  international  networks  reflecting  and  advising  on  energy  policy; 
to  become 
support 
self-sufficient  and  promotion  of  synergies  with  existing  or  planned  structures: 
Eurocentre  in  Latin  America,  Technology  Windows  and  Business  Centres  in  Asia. 

to  the  energy  centres  of  non-member  countries  aiming 

SYNERGY  could  fund  the  whole  of  a  specific  project  or  part-finance  projects  together 
with  another  partner. 

The programme  would  run  for  five  years  and  it is proposed  to  allocate ECU  50  million 
to  it. 

Part  of these resources will  also be destined to  cover temporarily  the operating  expenses 
of the  Secretariat  of the European  Energy  Charter  Treaty. 

Indeed,  given  the  Community's  important  role  in  negotiating  this  Treaty,  the  need  to 
support the Secretariat and the delay in the signing of the Treaty by the USA, Community 
support,  possibly  in  the  form  of  an  advance,  cannot  be  excluded. 

The  following  table  shows  the  main  themes  of  SYNERGY  operations  and  the 
corresponding  priorities. 

THEMES 

CORRESPONDING 
PRIORITIES 

MEANS 

Enhancing  Europe's  image 

— . — _— 

i 

' 

' 

' 

Supporting  sustainable 
development  in  non-member 
countries 

Promoting  dialogue  with  producer 
countries 

Promoting  a reduction  in the 
greenhouse  effect  and  the 
pollutants  linked  to  consumption 
in  all  sectors 

General 

General 

Training,  experts,  conferences 

Facilitating  transfer  of  clean 
technologies:  seminars,  technical 
visits 

Security  of  supply 

Conferences 

Environment 

Training,  audits,  conferences, 
diagnostic  seminars,  feasibility 
studies,  energy  centre  activities 

Promoting  network 
interconnection 

Competitiveness  and 
security  of  supplies 

Feasibility  studies,  conferences 

Promoting  energy  planning  in 
non-member  countries 

Security  of  supplies 
and  environment 

Training,  experts,  studies, 
energy  centre  activities, 
development  of  strategies 

Promoting  the  integration  of  non- 
member  countries 

Security  of  supplies 
and  environment 

Training,  studies,  conferences, 
experts,  energy  centre  activities 

These  objectives  will  naturally  be  adapted  to  the  situation  of  each  region  of  the  world. 
In  the  countries  of  Central  and  Eastern  Europe,  for  example,  the  emphasis  could  be 
placed on reorganization of their production  system and preparation of their membership, 
in  Latin  America  and  Asia  the  emphasis  might  be  on  the  urban  environment  and 
transport, while in the Mediterranean region activities targeting energy integration and the 
urban  environment  might  be  more  appropriate. 

ANNEX I 

NEW TRENDS IN THE WORLD ENERGY ECONOMY 

1.  The world energy outlook in the coming decades has been the subject of studies both 
by the Commission  and the International  Energy Agency.  These analyses revealed 
several probable developments: 

• 

• 

• 

a moderate growth  in energy demand in the OECD countries, vigorous growth 
in the developing countries and low growth in the former  Soviet Union; 

particularly  high  growth  in  Asia  and  Latin  America  for  both  economic  and 
demographic reasons, especially  in the transport sector; 

extremely  high  growth  in  the  Mediterranean  countries  too,  with  particular 
problems for the coastal  and urban  environment; 

on the  basis  of  existing  energy  resources,  coal,  oil  and  gas will  maintain  and 
consolidate their predominant position, particularly in China and South America, 
despite the attendant environmental problems; 

• 

C02  emissions  are,  as  a  result,  likely  to  increase  if  there is  no  change  in  the 
political  and regulatory  situation. 

2.  The Commission has also had several studies carried out on the energy outlook to the 

year 2020 which reveal, among other things, the following two trends: 

•  world energy consumption is likely to double, mainly as a result of the trends in 

the developing countries; 

• 

despite the moderate growth in energy consumption, the decline in production in 
Europe is likely to be reflected in dependence of the order of 70% on imports for 
the Community  in the year 2020. 

3.  Non-member  countries,  for  their part,  are encountering  energy  problems specific  to 

each region of the world: 

Central  and Eastern Europe is faced  with problems of infrastructure  modernization, 
improvement of energy efficiency  and environmental degradation.  This region is also 
a  transit  zone  for  energy  resources  from  the  former  Soviet  Union  destined  to  the 
European  Community. 

The  Republics  of  the  former  Soviet  Union  are  facing  the  same  problems  as  the 
countries  of  Central  and  Eastern  Europe,  with  nuclear  safety  and  the  need  for 
investments in the production  sector and energy efficiency  being particularly  critical 
issues.  These  problems  could  also  have  repercussions  on  the  political  and  social 
stability  of those Republics which, in  some cases (Russia, the Ukraine) could  affect 
the supply situation  in Europe. 

In  general  terms,  the  example  of  the  Ukraine  shows,  as  the  conclusions  of  the 
Corfu  Summit  indicated,  that  decisions  on  nuclear  safety  must  be  examined  in  the 
context  of the  general  energy  policy  of the  countries  concerned. 

The  Mediterranean  countries  and  other  developing  countries  will  be  faced  with  a 
foreseeable  increase  in  their  energy  consumption. 

In  the  case  of  the  Mediterranean  countries,  the  forecasts  for  2020  suggest  almost  a 
threefold  increase in  energy  consumption,  including  a fourfold  increase in electricity 
consumption.  A  major  production  drive  will  be  needed  both  to  supply  the  home 
market  and  to  maintain  and  step  up  exports  to  Europe.  The  forecast  increase  in 
demand for electricity will impose new requirements on transportation, production and 
consumption. 

For  this  reason,  energy  should  be  an  important  dimension  of  the  new  Euro-
Mediterranean  partnership  which  should  be  launched  at the Barcelona  Conference. 

As  for  the  other  developing  countries,  in  Asia  and  Latin  America,  their  energy 
demand  could  more  than  double  between  1991  and  2010,  and  their  share  in  world 
energy  consumption  may  reach  40%  as  compared  with  27%  in  1991.  The 
International  Energy  Agency  believes  that  two-thirds  of  the  growth  in  energy 
consumption  will  be  located  in  these  countries  in  the  coming years. 

Such  a trend  will  have three  major  consequences  given  the low  energy  efficiency  in 
these  countries: 

• 

• 

very  substantial  investment  and  hence  financing  requirements,  at  a time  when 
public financial  resources are limited or dedicated to other priorities, resulting in 
an  appeal  to the private  sector  and  a reappraisal  of  the  role  of  the  State; 

tensions  regarding  supplies  to the  developed  countries,  in  particular  Europe; 

environmental  degradation  effects: 
may  account  for  one-quarter  of  C02  emissions  in  2010. 

it  is  estimated  that  India  and  China  alone 

4.  It  is appropriate  to  recall  the  conclusions  of  the  Energy  Council  of  November  1992 
regarding the broad outlines of cooperation on clean and efficient  energy  technologies 
with  developing  countries. 

These  conclusions  attached  the  utmost  importance  to the follow-up  to  Chapter  34 of 
Agenda  21  of  the  UN  Conference  on  Environment  and  Development,  which 
emphasized the primordial  role of the transfer  of environmentally  sound technologies. 
In this context,  special  attention  was to be  paid  to: 

• 

the  progressive  substitution  of  low  carbon  fuels  for  fossil  fuels  with  a  high 
carbon  content, 

the  development  of  clean  combustion  technologies; 

• 

• 

the  development  of  renewable  energy  sources; 

the improvement  of  energy  efficiency. 

The  Community's  accession  to the  Climate  Change  Convention  designed  to  stabilize 
C02 emissions implies a commitment to intensify  cooperation activities in these areas. 

The  conclusions  of  the  Berlin  Conference  on  Climate  Change  in  April  1995 
recommend  initiating a process enabling emissions to be reduced from  the year 2000. 

In  this  context,  several  developed  countries  have  reached  agreement  on  promoting 
measures  to  develop  new  technologies  for  the  reduction  of  emissions. 

It  appears  that  the  industrialized  countries,  in  addition  to  reducing  their  own 
emissions,  must  enter  into  cooperation  with  the  developing  countries  to  enable  the 
latter to continue their development path while at the same time limiting any attendant 
increase in  emissions  of  greenhouse  gases. 

SYNERGY  could  thus provide the host  structure  for  such  activities by,  among  other 
things,  creating  specialized  energy  centres  that  would  also  be  responsible  for 
environmental  protection  and  the  establishment  of  partnerships. 

In  parallel  with  the  European  Energy  Charter,  a  Protocol  on  Energy  Efficiency  and 
Related  Environmental  Aspects  was  signed  by  39  countries.  This  Protocol  defines 
three  objectives: 

• 

• 

the promotion  of  energy  efficiency  policies; 

the creation  of  a framework  to  promote the rational  use  of  energy  by  producers 
and  consumers; 

• 

increased  cooperation  in  this  area. 

The development  of consumption  in non-member countries will represent the opening 
up of new markets on both the supply  and  demand  side, on which European  industry 
must  be  present. 
In  addition,  the  White  Paper  on  growth,  competitiveness  and 
employment cites the development impetus of the trans-European transport and energy 
networks  and  their  effects  on  reducing  costs  through  the  best  utilization  of  existing 
capacities  and  improved  security  of  supply. 

The "Communication on an industrial competitiveness policy for the European Union", 
for  its  part,  identifies  a  number  of  areas  in  which  industrial  cooperation  should  be 
developed,  including  initiatives  based  on  the  European  Energy  Charter  and  the 
development  of  energy  resources  in  non-member  countries. 

Technological  cooperation  with  non-member  countries,  particularly  developing 
countries,  and  with  the countries in  economic  transition,  is destined  to play  a crucial 
role 
field.  Clean, 
environment-friendly  technologies  will  make  a  substantial  contribution  to  reducing 
total  C02  emissions,  of  which  these  countries'  share  is  on  the  increase. 

the  Community's  RTD 

the  energy 

strategies 

in 

in 

10 

8.  International  relations will  thus have  enhanced  importance  in the  European  Union's 

energy  sector. 

The Commission  stresses the importance  of  international  cooperation  as a means  of 
ensuring  security  of  supply  and environmental  protection  in its  Green Paper  "For a 
European Union  energy  policy". 

International  energy  relations  in  turn  are  an  important  part  of  four  Community 
policies: international political  and economic relations, environment, employment and 
research  and technological  development. 

11 

ANNEX  II 

SPECIFIC  ACTION  ON  INTERNATIONAL  COOPERATION  IN  THE 
ENERGY  FIELD 

I.  THE  BALANCE 

1.  Energy  cooperation  with  non-Community  countries  began  in  1980  as  a  means  of 
dealing  with  the  consequences  of the  second  oil  crisis.  It began  with  appropriations 
ofECU650  000. 

2.  The  Council  Resolution  of  16  September  1986  concerning  new  Community  energy 
policy  objectives  for  1995  and  convergence  of  the  policies  of  the  Member  States 
stated  that  the  energy  policy  of  the  Community  and  the  Member  States  should 
endeavour  to  achieve  among  its horizontal  objectives: 

"(a)  more  secure  conditions  of  supply  and  reduced  risks  of  sudden  fluctuations  in 

energy  prices through  ... 

-  geographical  diversification  of  the  Community's  external  sources  of  supply 

(h) 

the  development  of  the  Community's  external  relations  in  the  energy  sector  by 
virtue  of  a  coordinated  approach,  in  particular  on  the  basis  of  regular 
consultations  between  Member  States  and  the  Commission  ..." 

The sums allocated to cooperation have been renewed  and increased every year given 
the  growing  importance  of  the  international  aspects  of  energy  problems.  Budget 
provision  in  1995  amounts to ECU  9  million. 

3.  For two years now, all the activities initiated in this field have gone under the heading 

of  SYNERGY to facilitate  presentation  and  promotion. 

4.  SYNERGY finances cooperation activities with non-Community  countries in the field 
of  formulation  and  implementation  of  energy  policy  to  the  mutual  benefit  of  the 
two parties  concerned. 

The operation  of  the Conference  on the European  Energy  Charter  and  its  Secretariat 
has  also been  financed  by  SYNERGY  since  1990. 

Unlike  the  other  cooperation  programmes  which  are  of  a  more  general  nature  and 
include  energy  as  one  of  several  aims,  SYNERGY  is  a  specific  energy  policy 
programme.  It  is also  a flexible  programme,  making  very  rapid  action  possible. 

SYNERGY  can  operate  in  any  non-member  country,  which  is  an  added  advantage 
compared  with the other Commission  cooperation  programmes  and  instruments with 
It  is  therefore  very  easy  to  carry  out  a  project 
their  limited  geographical  scope. 
covering  both  the  countries  of  Central  and  Eastern  Europe  and  the  CIS  with 

12 

SYNERGY,  something  which  is  more  difficult  under  the  PHARE  and  TACIS 
programmes, even though it can be done and, indeed, is done on an ad-hoc basis. 

Concerning, as it does, the formulation  of energy policy, SYNERGY differs from the 
operations  undertaken  in  non-member  countries  under  other  specific  energy 
programmes such as THERMIE, which concerns measures of a technological nature. 

The main activities under the SYNERGY heading consist  of: 

• 

• 

• 

• 

• 

facilitating  and  promoting  dialogue  between  the  Community,  non-member 
countries and international organizations in the energy field (e.g. conference with 
the oil-producing  countries of the Persian  Gulf in Oman); 

the  creation  of  institutions  capable  of  defining  energy  requirements  in  the 
countries  concerned  and  of  channelling  the  resources  needed  to  meet  these 
requirements (e.g. Energy Centres in the countries of Central and Eastern Europe 
and in Asia); 

the  provision  of  advice  to  the  national  energy  authorities  (e.g.  secondment  to 
ministries of senior experts in energy policy); 

assistance  in  the  design  of  energy  policy  tools  (e.g.  energy  planning,  tariff 
policies, etc.) compatible with Community policy; 

training/information  for public authorities and economic operators (conferences, 
seminars, workshops, etc.); 

studies  and  energy  audits  leading  on  to  other  operations  financed  by  other 
Community  programmes, in  particular  in the  sphere  of international  economic 
relations; 

market  studies  and  analyses  of  the  barriers  to  the  introduction  of  new 
technologies,  in  particular  clean,  environment-friendly 
technologies,  as  a 
preliminary  to other programmes. 

Particular attention  is devoted to transnational  projects, not only where this involves 
joint action by the Member States and non-member countries (e.g. "Energy and urban 
environment  in  the Meditenanean  countries"  or  "Network  interconnection  between 
Central  and  Western  Europe"),  but  also  in  the  case  of  projects  involving  several 
non-member countries (e.g. Black  Sea energy centre, or energy  cooperation between 
the MERCOSUR countries). 

While retaining  its  specific  character,  SYNERGY thus  serves to complement  other 
Commission programmes with an energy cooperation dimension.  On the ground, this 
complementarity  is  translated  by  the  implementation  of joint  activities  with  these 
programmes, with  SYNERGY often  providing the structure for overall  coordination, 
e.g.  SYNERGY -  THERMIE -  PHARE  in  the  framework  of  the  Budapest  energy 
centre.  Secondly, SYNERGY serves to promote dissemination, i.e. application of the 
principles  enshrined  in  the European  Energy  Charter  and  the energy  section  of the 
association/cooperation  agreements  concluded  between 
the  Community  and 
non-member  countries  (e.g.  auditing  of  national  energy  legislation,  legal/economic 

13 

training  seminars  for  senior  staff  from  ministries,  companies  and  energy  industries). 
In  this  respect,  SYNERGY  is  an  instrument  of  integration  for  future  membership 
candidates.  The Energy Charter and the abovementioned  agreements also serve as an 
institutional  framework  for  the  SYNERGY  operations. 

Finally,  SYNERGY  co-finances  activities  with  international  organizations,  Member 
States and  the national  energy  saving bodies. 

6.  SYNERGY activities often  target the energy demand  side.  However, if speedy action 
is  required  in  a given  country  -  a  possibility  which  SYNERGY  offers,  thanks  to  its 
flexibility  (e.g. action  in Armenia  and the Middle  East)  - action  can also be taken  on 
the  supply  side.  A  conference  to  promote  dialogue  between  oil  producers  and 
consumers  was therefore  organized  in  Oman  with  the  oil-producing  countries  of  the 
Persian Gulf, and others are to be held in Tunis with the Mediterranean  countries, and 
in  Caracas with  the Latin  American  producers. 

7.  All  of these activities were subjected  to a preliminary  evaluation in  1990, and ad  hoc 
evaluations  of  training  and  energy  planning  operations  have  been  carried  out 
since then. 

The results of these evaluations were positive and included recommendations on ways 
of  improving  the  effectiveness  of the  action. 

An evaluation  of all the projects  carried out from  1990 to  1994 inclusive has recently 
been  the  subject  of  an  invitation  to tender.  The  results  of this  evaluation  should  be 
available  before  the  end  of  the  year,  and  will  be  made  available  to  the  Council  and 
Parliament. 

8.  As SYNERGY concerns the formulation  of energy policy, it is not easy to give results 
in the form  of  figures.  Nevertheless,  it is possible to  state  several  positive  effects  of 
its activities. 

• 

to  improve  the  difficult  energy  situation 

SYNERGY  helped 
in  certain 
non-member  countries  and  contributed  to  their  economic  development.  For 
example,  it  enabled  the  Polish  Government  to  take  the  necessary  decisions  to 
restructure  the  oil  sector.  SYNERGY  also  provides  advice  to  the  Romanian, 
Slovenian,  Albanian  and  Indian  Governments  and,  more  recently,  to  the 
Palestinian  authorities,  which  it  also  helped  in  setting  up  their  first  energy 
institution. 

• 

SYNERGY  contributed  to the formulation  by these  countries  of  energy  policies 
that  take  account  of  global  problems,  particularly  regarding  the  environment. 

It  also paved  the way  to  a better  understanding  of  energy  problems,  notably  in 
the developing countries, and helped create an awareness of the need for  efficient 
energy  policies  even  in producer  countries  such  as Mexico  or  Algeria. 

• 

It is  a partner  for  non-member  countries  in  their endeavours  to  achieve  rational 
use  of  energy  and  to  improve  their  energy  efficiency  through,  among  other 
things,  the  installation  of  "energy  centres"  (e.g.  in  India,  China,  Indonesia, 
Hungary  and the autonomous Palestinian  territories).  This aspect is all the more 

14 

important as the international  banking institutions have tended to finance energy 
production  and  transmission  rather  than  energy  savings  as  such. 

It  helps  open  the  door  to  European  industry  in  non-member  countries,  whose 
needs it knows well  having  studied them in the context of its operations.  China 
is a particular case in point in the field of  "clean" combustion  methods for  coal. 

It provides improved  information  on the energy  situation  of these countries and 
better  forecasts  of the  evolution  of  global  energy  problems. 

It ensures that the Community  is represented  in these regions and  in this  sector, 
and enables lasting contacts to be forged  with regional  cooperation  organizations 
such as the Latin-American Energy Organization, ASEAN or the national energy 
saving committees.  It thus contributes to maintaining  relations in this field and 
to the  implementation  of the Community's  energy  strategy. 

SYNERGY  can  be  an  instrument  to  improve  cohesion  for  future  membership 
candidates  in  Central  Europe. 

II.  SOME  PROJECTS  FINANCED  BY  S Y N E R GY 

SYNERGY  has  enabled  activities  to  be  carried  out  on  training,  programming, 
consultancy,  energy  studies  and  audits,  information  and  the  setting-up  of  long-term 
institutions  and the  holding  of  several  conferences. 

The activities  described  below  are a representative  selection  of the action  taken over the 
last  three  years,  during  which  ECU  8  million  per  year  have  been  committed  to  the 
programme. 

1.  Training 

The European Union has contributed to a whole series of training courses for  technicians 
and  managers  in  non-member  countries. 

That  contribution  by  the  European  Union  consists  of  helping  to  defray  the  overall  cost 
of  holding  such  courses,  providing  speakers  and  funding  the  attendance  of  a  certain 
number  of  students. 

These  activities  are  either  targeted  directly  by  the  Union  on  subjects  which  seem 
particularly important or form  part of a programme devised by the non-member countries. 
In  the  latter  case  involvement  of  the  Union  enables  it  to  insist  on  topics  which  it 
considers  important  and  to get to  know  those  attending  those courses better.  By  way  of 
example  the  following  activities  may  be  mentioned: 

Latin  America 

•  Latin-American  energy-saving  course  in  Argentina.  SYNERGY  has  enabled  88 
students  from  energy  companies  and  administrations  to  attend  such  courses  since 
1984. 

15 

•  Energy  planning  courses to be held  alternately  in Europe  and in another  continent by 
European  universities  and  Latin  American  countries.  These  were  held  in  Latin 
America during three SYNERGY rounds, thus enabling 20 mainly European  speakers 
to  be  involved,  plus  31  Latin  American  students  from  energy  administrations  and 
utilities. 

Asia 

•  Training  of training  officers  in  India  and  the ASEAN  countries. 

•  Training  course  on  nuclear  safety  for  Chinese  experts  held  in  Peking  in  September 
1992  and  six-week training  course  for  a Chinese  expert  in  a European  power  plant. 

•  Training course in China offering,  in particular, training on energy in the environment 
and  also the  "clean" burning  of  coal.  More than  3 000  persons  concerned  by  energy 
decision  making  received  courses  on  energy  management  and  efficiency. 

Mediterranean 

•  Training of Moroccan  technicians in rational  energy-use techniques and  energy  audit 

methods. 

East-European  and  former  Soviet  Union  countries 

•  A  symposium jointly  funded  by the  ADEME  on  energy  policy  based  on the  demand 
which  could  be generated  in Eastern  Europe  was held  in  Grenoble  in  October  1992. 
Fifteen  official  representatives  of  eight  East  European  countries(3)  attended  this 
symposium  and were thus able to exchange views on a number of subjects linked with 
energy  policy.  The  symposium  mainly  covered  the  following  aspects. 

energy  policies  and  bodies within  the European  Union  and  Eastern  Europe; 

examples  of  energy-efficiency  programmes  conducted  by  the  Commission; 

specific  problems  linked  with  the  implementation  of  those  programmes,  and  in 
particular  customs  duties  and  funding. 

• 

In  order  to  help  to  restructure  the  coal  industries  in  the  Eastern  European  countries 
a  workshop  was  held  in  Brussels  on  18-21  October  1993,  in  cooperation  with  the 
United  Nations  Economic  Commission  for  Europe.  It  was  attended  by  those 
responsible  for  coal  in  those  countries  -  all  in  all  70,  of  whom  30  came  from  the 
East European  countries. 

•  Workshops on energy law and regulations in the former  Soviet Union. Four three-day 
workshops held in Alma Ata, Moscow,  Yerevan  and Kiev between May  and  October 
1993.  A  new  series  of  symposia  have  been  in  progress  since  1994 in  the  other  CIS 
republics. 

(3)  Bulgaria,  Czechoslovakia,  Hungary,  Poland,  Romania,  Russia,  Slovenia  and 

the Ukraine. 

16 

• 

In  order  better to understand  the European  Union's  energy  policy  and  in order to get 
to  know  those  to  contact  within  the  various  help  programmes  (PHARE,  TACIS, 
SYNERGY),  SYNERGY held  an information  symposium  in Brussels in March-April 
1994 for  experts  from  Central  and  Eastern  Europe  and  another  for  experts from  the 
CIS. 

At world  level 

•  Nine-week course  in Dakar,  Senegal, in April-May  1993, on energy management and 

planning. 

2.  Programming 

The  main  SYNERGY  activities  in this  area  were  as  follows: 

•  Setting-up information  systems with OLADE in Latin America, and ASEAN in South-

East  Asia,  and  with  Algeria. 

•  Getting  an  international  network  of  nine  energy  study  and  research  centres  up  and 

running:  the  COPED  network. 

•  Mapping  out  energy  programmes  (Jordan,  Ecuador,  Peru,  Thailand),  international 
energy  programming  studies (Latin  America,  Maghreb),  similar  studies on a national 
basis  (Cyprus),  or  a regional  basis  (the  State  of Buenos  Aires  in  Argentina,  State of 
Rio  Grande  do  Sul  in  Brazil,  Province  of  Zheijian  in  China)  or  on  an  urban  basis 
(China,  India,  Argentina,  Poland,  Hungary,  Egypt,  Turkey  and  Israel). 

3.  Advice  and  assistance 

SYNERGY  funds  full-time  experts  within  the  energy  ministries  of  non-member 
countries  or  energy  centres  in: 

•  The  self-governing  Palestinian  tenitories 
•  Slovenia 
•  Hungary 
•  Romania  and 
•  Estonia 
•  Albania 

Energy  centres  have  also  been  established  in  Hungary  and  in  the  self-governing 
Palestinian  territories. 

SYNERGY  has  also  helped  to  set  up  an  Energy  Management  Agency  in  Turkey. 

It  has  also  helped  to  set  up  institutions  such  as  the  Jordanian  Energy  Authority,  the 
Agency  for  the  Rational  Use  of  Energy  (in  Algeria),  the  ASEAN-EC  Energy 
Management  Training and Research  Centre, the National  Energy  Institute  in Ecuador 
and  the  Comision Nacional  para  el  Ahono  Energético  in Mexico. 

SYNERGY  also  advises  the  East  European  countries  in  drawing  up  laws  and 
regulations  in  line with  (free)  market  economics. 

17 

4.  International  conferences 

•  Conference  entitled  "Energy and urban  environment  in Mediterranean  towns" held in 
Athens  in  November  1993, which  brought  together  high  ranking  figures  (ministers, 
Directors-General  for  Energy,  ...) 

This conference  led to a declaration  and the formation  of a follow-up  committee that 
was  responsible  for  identifying,  preparing  and  supporting  local  "energy  and 
environment" teams. The actual formation  of "energy and environment" teams in some 
Mediterranean towns will be funded  by SYNERGY. The twinning of these towns with 
EU towns  will  be funded  by  the MED  URBS  programme  that  is managed  by  DG I. 

•  Oil  and  gas  conference  entitled  "Links  between  the  European  Union  and  the 
Member  States of the Gulf  Cooperation  Council  in  a changing world"  held  in  Oman 
on  19-20 April  1994. 

•  Conference  on  "New  energy  realities  in  the  Black  Sea  Area"  held  in  Chalhidiki  on 
30-31  May  1994.  One  of  the  consequences  of  that  conference  is that  a joint  energy 
centre  is  about  to  be  set  up  between  the  countries  in  the  Black  Sea  area  and  the 
European  Union. 

•  EUROMEX  ENERGIA  93  conference  held  on  28-29  June  1994 that  was  organized 
jointly with the CONAE. Twenty  six European undertakings attended that  conference, 
which  enabled  more than  100 contacts  to be  made with  Mexican  partners,  a  quarter 
of  which  were  able to  go  on to  commercial,  investment  or  cooperative  agreements. 

•  A conference  on East-West  links between  the European  gas and  electricity  grids  was 

held  in  Budapest  in  October  1994  and  was  attended  by  200 people. 

•  Conference  on  the  funding  of  energy  projects  in  the  Central  European  and  former 

USSR  countries,  planned  for  Budapest  in  January  1995. 

5.  Overall  activities 

These  are  projects  specifically  targeted  at  different  activities:  studies,  methodology  or 
information  transfer,  symposia  etc. 

By  way  of  example: 

•  Programme  promoting  CHP  in  three  Latin  American  countries:  Mexico,  Chile  and 

Peru. 

•  Restructuring  of  the  oil  industry  in  Poland:  advance  studies,  laying  down  the  bases 
needed  for  liberalization,  definition  of  a  detailed  organization  and  regulatory 
programme  submitted  to the Polish government,  sectoral  symposium  and  conferences 
held  in  Warsaw  in  April  1993. 

•  Programme  of  energy  saving  assistance  to  Mexico,  including  training,  energy 

diagnoses  and the  creation  of  data bases. 

18 

6.  Energy  audits  and  studies 

• 

Indo-EC  bus:  this  is  a  mobile  energy-audit  unit  in  India  which  has  conducted  more 
than  100 audits revealing  an  energy  saving  potential  of  about  10%. 

•  Energy  bus  for  Indonesia:  this  programme  completed  its  pilot  stage  in  1992,  thus 
enabling  energy  audits  to  be  carried  out  in  companies  in,  in  particular,  the  paper, 
textile  and  sugar  industries. 

•  Study  on the  energy  consequences  of  Mercosur  in Latin  America. 

•  Market study of the energy efficiency  of Chile and the scope for European technology 

transfer. 

•  Study  of the  electricity  industry  in the  Ukraine  intended  to  provide  short-,  medium-
and long-term  electricity  demand forecasts,  to survey the scope for  energy  saving and 
to  assess the  cost  of  this in  order to  improve  supply-deficit  management. 

•  SYNERGY  has  also  funded  several  studies  via  the  COPED  network.  Those  studies 

have  centred  on the  electricity  sector  over the  last  three years. 

19 

INSTRUMENTS FOR  INTERNATIONAL 

COOPERATION 

IN THE  ENERGY FIELD 

ANNEX  ffl 

P & ^^ 

T Y PE  OF 

P R O J E C TS 

FINANCED 

REGION 
COVERED 

Research  and 
technological 
development  projects, 
including 
demonstration  activities 

All  non-
Community 
countries 

programme-
coopération 

• .Cominuttity:::;:::: m 
countries 

::^PBAmM:mïïm 

Technical  assistance 
and joint  financing  of 
investments 

Countries  of 
Central  and 
Eastern  Europe 

Annual 

MbèÈÉË&mM 

Technical  assistance 

CIS 

Annual 

D U R A T I ON 

OF 

PROGRAMME 

1994  -  1998 

BUDGET 
(MECU) 

F O RM  OF 
AID 

540 
(total) 

Subsidies 

Subsidies 

Subsidies 

1  100  in 
1994, of 
which  58 
for  energy 

510  in  1992, 
of  which 
130  for 
energy 

1994-1998 

1  000 

Loans 

since  1990 

200 

Loans 

unlimited 

10 000 

EIJRATOM 

Investments  to  improve 
nuclear power  station 
safety  and  reliability 

^we&€y:-y :•••%•••: 

Investments  in the  coal 
and  steel  industries 

:. E B RD E  ;:. ;: ::: :;•:•; ••; 

Investments  in  all 
sectors,  including 
energy 

New 
Mediterranean 
:::ppïlcy':V:::i-:::;;::\v.;-

- Protocols  with 
individual  countries 

Countries  of 
Central  and 
Eastern  Europe 
+ former  Soviet 
Union 

Countries  of 
Central  and 
Eastern  Europe 

Countries of 
Central  and 
Eastern  Europe 
+  CIS 

Mediterranean 

1992-1996 

2  940 

-  Regional  cooperation 

2  075 

C^nvention 

Investments,  training 
and technical  assistance 
in all  sectors,  including 
energy 

70  African, 
Caribbean  and 
Pacific  countries 

1990-1995 

12 000 

20 

3%share  in 
the  capital  of 
the  EBRD 

ED3 grants 
and  loans 
(2  062) 

EIB  grants 
and  loans 
(1  800) 

Subsidies 
+  EIB  loans 
(1  200) 

EIB 

-  Investments  in all 
sectors,  including 
energy 

-Investments  in all 
sectors,  including 
energy 

Cooperation 
with  Asia and 
Latin  America 

E C» 

Capital  investment, 
training  and  technical 
assistance  in all 
sectors,  including 
energy 

Part-funding  of  joint 
ventures  in all  sectors, 
including  energy 

Countries  of 
Central  and 
Eastern  Europe 

Asian  and  Latin 
American 
countries 

Asia  and  Latin 
America 

1994-1996 

3 000 

Loans 

1993-1995 

750 

Loans 

1991-1995 

2  750 

Subsidy 

All  developing 
countries 

Annual 

40 
+  bank 
funding 

Interest-free 
loans 
Subsidies,  to 
be 
reimbursed 
in  the  event 
of  success 

JOULE/THER 
MIE 

Community  + 
non-member 
countries 

Research  and 
technological 
development  projects, 
including 
demonstration 
activities:  non-nuclear 
energy 

1994-1998 

1  002  <*> 

Subsidies 

SYNERGY 

Energy  policy  and 
strategy 

All  non-member 
countries 

Annual 

8  in 1994 

Subsidies 

SAVE 

ALTENER 

Rational  use of  energy: 
promotion,  regulatory 
measures,  information 
and  exchanges 

Renewable  energy 
sources:  promotion, 
regulatory  measures, 
information  and 
exchanges 

Community  + 
non-member 
countries 

Community  + 
non-member 
countries 

1991-1995 

3 5( 4) 

Subsidies 

1993-1997 

50<*> 

Subsidies 

N.B.:  Unless  stated  otherwise, 

the  amounts 

indicated  are for  the  entire 

programme. 

(*)  Total amount, including the Commumty. 

21 

Proposal  for a 
COUNCIL REGULATION (EC) 
adopting a multiannual  programme to promote international  cooperation in the 
energy  sector - SYNERGY programme 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 235 thereof, 

Having regard to the proposal from  the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  the  Community's  accession  to  the  European  Energy  Charter  Treaty  and  the 
Convention on Climate Change commits it to cooperation  in the energy  field; 

Whereas according to the Green Paper  "For a European Union energy  policy" presented by 
the Commission international energy cooperation is essential owing to the increase in pollution 
due  to  the  growth  of  consumption  in  the  developing  countries,  the  role  of  energy  in  the 
stability  of  society,  whether  in  consumer  or  producer  countries,  the  increasing  energy 
dependence  of  the  Community  and  the  growth  of  world  markets  in  production,  transport, 
distribution  and consumption technologies; 

Whereas this need for  international  energy  cooperation  can be satisfied  by the creation  of a 
cooperation and assistance programme on the formulation and implementation of energy policy 
in non-member  countries; whereas in view of the Community's  experience in this area and, 
in particular, of the steps it has taken  since  1980, these activities should be based on a legal 
instrument  capable of adjusting  them to the various Community policies; 

Whereas the objectives  of the  programme  envisaged  cannot  be attained,  by  reason  of their 
wide-ranging nature, other than at a Community level; 

Whereas it  is necessary  to  establish  a multiannual  framework  for  the activities  carried  out 
under the Community's international  energy  cooperation programme for the next five years; 

Whereas the objectives of the energy cooperation under the programme should be to promote 
sustainable  development,  to  enhance  security  of  supply  and  to  improve  energy  efficiency; 
whereas  effect  may  be  given  to  such  cooperation  by  the  provision  of  grants for  financing 
projects; 

Whereas  such  aid  should  be  anchored  in  a  multiannual  indicative  programme  and  annual 
programmes  and  may  be  the  subject  of  agreements  with  the  countries  concerned  or  with 
international  networks of study and research centres; 

22 

Whereas  since  the  aid  in  question  is  external  aid  it  is  governed  by  the  special  provisions 
laid  down  in  Title  IX  of  the  Financial  Regulation  applicable  to  the  general  budget  of  the 
European  Communities(1),  as last  amended  by  Regulation  (EC) No 2730/94(2); 

Whereas  it  is  appropriate  that  the  Commission  be  assisted,  in  the  implementation  of 
Community  aid,  by  a committee  made up  of Member  States'  representatives; 

Whereas it is necessary to coordinate this programme with other activities of the Community, 
Member  States,  non-member  countries  and  international  institutions; 

Whereas the  Treaty  does not  provide,  for  the  adoption  of this Regulation,  powers other  than 
those  of  Article  235  of the EC  Treaty, 

HAS  ADOPTED  THIS  REGULATION: 

Article 1 

A  Community  programme  of  assistance  and  cooperation  with  non-member  countries  in  the 
field of the formulation  and implementation of energy policy, hereinafter  called  "SYNERGY", 
is hereby  adopted. 

Article  2 

SYNERGY  shall  be  addressed  to  all  non-member  countries. 

Article  3 

1. 

SYNERGY  shall  be  implemented  from  1 January  1996 to  31 December  2000. 

2.  The  budgetary  authority  shall  determine  the  appropriations  available  for  each  financial 

year  with  due  regard  for  the  financial  perspectives  and  budget  discipline. 

Article  4 

1.  The purpose  of  SYNERGY  is to provide assistance  and cooperation  with the  definition, 
formulation  and implementation  of  energy  policy  for  non-member  countries in  areas  of 
mutual  interest. 

2.  The  objectives  of  SYNERGY  shall  be  in  accordance  with  the  detailed  rules  set  out  in 

Article  6,  in  particular. 

to promote  sustainable  development,  notably  by  reducing  emissions  of  greenhouse 
gases  and  of  pollutants  linked  to  energy  consumption; 

to  enhance  the  security  of  energy  supplies;  and 

to improve  energy  efficiency. 

(1)  O J N o L 3 5 6,  31.12.1977,  p.  1. 
(2)  OJ No  L  293,  12.11.1994,  p. 7. 

23 

These  objectives  shall  be  attained  in  accordance  with  the  rules  set out  in  Article  6.  To 
that  end, the  Community  may  maintain  relations with  international  organizations  in  the 
energy  sector. 

3. 

In  order  to  achieve  the  objectives  referred  to  in  paragraph  2,  the  Community  shall 
contribute,  in  particular,  to the financing  of  activities  concerning: 

technical  assistance  and  training; 
energy  planning; 
the  organization  of  conferences  and  seminars; 
the  creation  of  institutions  such  as the  energy  centres. 

Funding shall also cover costs related to the preparation, implementation, monitoring and 
evaluation  of  these  operations,  as  well  as  costs  concerning  information  and  its 
dissemination. Taxes, duties and the purchase of immovable property shall not be  funded. 

No  funding  may  be  granted  to  research,  development  and  demonstration  projects. 

The programme's resources may also be used temporarily to support the operation  of the 
Secretariat  of the European  Energy  Charter  Treaty. 

Article  5 

1.  Community  funding  shall take the  form  of grants which  shall be released  in tranches  as 

projects  materialize. 

2.  The  grants  may  cover  the  whole  of  a  specific  project  or  supplement  funding  by 
Member  States,  non-member  countries,  international  organizations  or  on  the  basis  of 
another  Community  programme. 

3. 

Financing  decisions  and  any  contracts  resulting  therefrom  shall  expressly  provide, 
inter  alia, for  acceptance by the beneficiaries  of supervision  by the Commission  and the 
Court  of  Auditors,  to be  carried  out  on the  spot  if  necessary. 

Article  6 

1.  An  indicative  programme  covering  the  period  referred  to  in  Article  3(1)  shall  be 
established in accordance with the procedure laid down in Article  8(2), without this being 
a  multiannual  budget  commitment. 

This  programme  shall  define  the  principal  objectives,  guidelines  and  priorities  of 
Community  assistance in the indicative areas referred  to in Article  4(2).  It shall  indicate 
the  objectives  considered  to  have  priority. 

The  programme  may  be  modified  in  accordance  with  the  same  procedure  during  the 
period  of  its  application. 

24 

2.  Action  programmes  based  on  the  indicative  programme  shall  be  adopted  each  year  in 

accordance with  the  procedure  laid  down  in  Article  8(2). 

These  action  programmes  shall  include  a list of the main projects  to be financed  within 
the indicative areas referred  to in Article  4(2).  The content  of the programmes  shall  be 
determined  in  detail  so  as  to  provide  the  Member  States with  the  relevant  information 
to  enable the  committee  referred  to in  Article  8(1)  to  deliver  its  opinion. 

3. 

Specific  agreements may be concluded with the non-member countries, in the  framework 
and for the duration  of the indicative programme  referred  to in paragraph  1, in order  to 
define  the  main  lines  of  cooperation  with  the  countries  concerned  and  the  annual 
consultation  procedures  regarding  the implementation  of  the  programme. 

4.  Contracts  may  also  be  concluded  with  international  networks  of  study  and  research 
centres  in  order  to  define  the  contribution  of  these  networks  to  the  achievement  of  the 
objectives  described  in the  indicative  programme. 

Article  7 

1.  The Commission  shall  implement  operations in accordance with the annual  programmes 

referred  to in  Article 6(2). 

2. 

Supply  contracts  shall  be awarded  by  means of  open invitations to tender,  except  in  the 
cases provided  for  in  Article  116 of the  Financial  Regulation. 

Service  contracts  shall,  as  a general  rule,  be  awarded  by  restricted  invitations  to  tender 
in  conformity  with  Article  118 of  the Financial  Regulation. 

Negotiated  contracts  may  be  awarded  for  operations  involving  an  amount  of  up  to 
ECU  50 000. This amount may be revised  by the Council  on the basis of  a Commission 
proposal,  account  being  taken  of  experience  gained  in  similar  cases. 

Participation  in  invitations  to tender  and  private  contracts  shall  be  open  on  equal  terms 
to all natural  and legal  persons in the Member  States and in the beneficiary  non-member 
countries. 

Participation by natural  and legal persons from  other countries may be authorized  by the 
Commission  on  a  case-by-case  basis  if  the  programmes  or  projects  concerned  require 
specific forms of assistance specifically  available in these countries, subject to reciprocity 
being  granted  by  those  countries. 

3. 

In  the  case  of  co-financing,  the  participation  of  undertakings  from  the  non-member 
countries  concerned  in  invitations  to  tender  and  contracts  may  be  authorized  by  the 
Commission  on  a  case-by-case  basis.  The  Commission  shall  render  account  thereof  in 
the report  provided  for  in  Article  10. 

25 

Article  8 

1.  The  Commission  shall  be  assisted  by  a  committee  of  an  advisory  nature  composed  of 
representatives  of  the  Member  States  and  chaired  by  the  representative  of  the 
Commission  ("SYNERGY  Committee). 

2.  The  representative  of  the  Commission  shall  submit  to  the  Committee  a  draft  of  the 
measures to be taken. The Committee shall  deliver its opinion  on the draft,  within  a time 
limit  which  the  chairman  may  lay  down  according  to  the  urgency  of  the  matter,  if 
necessary  by taking  a vote. 

The opinion  shall be recorded  in the minutes; in addition,  each Member  State shall  have 
the  right  to  ask to  have its position  recorded  in  the  minutes. 

The  Commission  shall  take  the  utmost  account  of  the  opinion  delivered  by  the 
Committee.  It  shall  inform  the Committee of the manner in which  its opinion  has been 
taken  into  account. 

3.  The Committee  may  examine  any  question  relating  to  the  implementation  of  this 
Regulation  which  may  be  put  to  it  by  its  chairman,  possibly  at  the  request  of  the 
representative  of  a  Member  State  and,  in  particular,  any  question  relating  to  general 
implementation,  the administration  of the programme,  co-financing  and the coordination 
referred  to  in  Article  9. 

Article  9 

1.  The  Commission  shall,  together  with  the  Member  States,  ensure  the  effective 
coordination of the technical assistance efforts undertaken in the beneficiary  non-member 
countries  by  the  Community  and  individual  Member  States  on  the  basis  of  the 
information  supplied  by  the Member  States. 

2.  Coordination  and  cooperation  with  the  international  financial  institutions  and  other 

sources  of  funds  shall  be  encouraged. 

3.  The  Commission  shall  examine  the  various  ways  in  which  co-financing  involving  the 
SYNERGY  programme,  the  bilateral  assistance  of  the  Member  States  and  other 
Community  programmes  might  be  promoted. 
It  shall,  in  particular,  ensure  that  any 
duplication  of  effort  between  SYNERGY  and  these  other  programmes  is  avoided. 

Article  10 

The  Commission  shall,  by  30 June  1998,  present  a  progress  report  on  the  implementation 
of the  programme  in  the  previous  financial  years.  This  report  shall  be  addressed  to  the 
European  Parliament,  the  Council  and the Economic  and  Social  Committee. 

26 

Article  11 

This Regulation  shall  enter into force  on the  twentieth  day  following  that of  its  publication 
in the Official  Journal  of the European Communities. 

This Regulation  shall be binding in its entirety and directly  applicable in all Member States. 

Done  at Brussels, 

For the Council 
The President 

27 

1.  TITLE OF OPERATION 

SYNERGY (International  cooperation with non-member countries in the energy sector) 

2.  BUDGET HEADING INVOLVED 

B4.1041  Energy  cooperation with non-member countries. 

3.  LEGAL BASIS 

Proposal  for  a Council Regulation based on Article 235 of the Treaty. 

4.  DESCRIPTION OF OPERATION 

4.1  General  objective 

To  promote  cooperation  in  the  formulation  of  energy  policy  with  the  following 
aims: 

• 

• 

• 

to  promote  sustainable  development,  notably  by  reducing  emissions  of 
greenhouse gases and of pollutants linked to energy consumption; 

to enhance security of supply; 

to improve energy  efficiency. 

To this end,  SYNERGY aims: 

• 

• 

to  advise the  national  energy  authorities  and  help  formulate  energy  policies 
compatible with those of the Community  (studies, secondment of experts) 

to  support  the  creation  of  institutions  capable  of  defining  energy  needs in 
non-member countries and of channelling the resources needed to satisfy these 
needs 

28 

to  organize  conferences  and  seminars  designed  to  provide  training  and 
information for the public authorities and economic operators in these countries 
on  European  experience  and  technologies  to  bring  together  the  people 
responsible for the energy sector in the Community and non-member countries; 

• 

to support the  establishment  of energy  cooperation  and policy  institutions  (for 
example,  European  Energy  Centres). 

Particular  attention  is paid  to transnational  projects,  not  only  between  Community 
countries  and non-member  countries, but also to promote the energy integration  of 
non-member  countries. 

4.2  Period  covered 

The  operation  will  run  for  five  years  from  1 January  1996 to  31 December  2000. 

The  operation  may  be  renewed  at this point  on the basis  of  a Council  Regulation. 

5.  CLASSIFICATION  OF  EXPENDITURE 

Non-compulsory  expenditure  - Differentiated  appropriations 

6.  TYPE  OF  EXPENDITURE 

Financing  of  studies,  technical  assistance  and  advice through  the  possible  intermediary 
of  experts,  training  and  promotion  activities,  organization  of  conferences,  seminars, 
workshops,  technical  and  educational  visits,  support  for  energy  cooperation  or  energy 
policy  institutions  and  other  activities in  support  of  energy  policy. 

6.1  100%  subsidy 

In  certain  cases the  Community  can  contribute  up  to  100%: 

to  finance  experts  seconded  full  time  to  the  authorities  in  non-member 
countries,  action  solely  in the interest  of the  Community  (preliminary  studies, 
reconnaissance  missions, European  Energy  Centres,  etc.) or forming  part  of a 
broader  programme  funded  by  other  sources  and  emergency  measures. 

6.2  Subsidy  for  joint  financing  with  other  sources  in  the  public  and/or  private 

sector 

Normally the Community  will  contribute not more than  50% of the total cost of the 
project and will fund projects jointly with non-member countries, the Member  States 
or international  organizations. 

29 

6.3  Interest subsidy 

Not applicable. 

6.4  Other 

Not applicable. 

6.5  Change in the level of revenue 

Not applicable. 

6.6  Reuse 

The cost of operation of the European Energy Charter will temporarily be borne by 
the budget for  SYNERGY. 

Any sums reimbursed  by the States which have signed the Charter will be reused. 

6.7  Commitment of expenditure 

The  operations  chosen  will  be  included  in  a  multiannual  indicative  programme 
setting out priorities and annual  action programmes. 

The  programmes  will  be  submitted  to  an  advisory  committee  of  Member States' 
representatives for  an opinion. 

Financing will be the subject of a contract between the Commission and the person 
responsible for  or coordinating implementation  of the operation  funded. 

The following  procedures apply to operations involving award of contracts: 

• 

• 

supply contracts are awarded by open invitations to tender, except in the cases 
mentioned in Article  116 of the Financial  Regulation; 

service  contracts  are,  as  a general  rule,  awarded  by  restricted  invitations  to 
tender  in  conformity  with  the  provisions  of  Article  118  of  the  Financial 
Regulation. 

In the  event that the  Commission  co-finances  a cooperation  activity  with  a body 
from a Member  State or a non-member country, the provisions of Article  118(4) of 
the Financial  Regulation  may apply,  and the tasks of drawing up, negotiating and 
concluding the contract may be delegated to the beneficiary  of the operation. 

30 

7.  FINANCIAL  IMPACT 

7.1  Method  of  calculating  total  cost  of  operation  (definition  of  unit  costs) 

Conferences: 
Energy  centres: 
Studies: 
Seminars: 
Training: 
Resident  experts: 
Implementation  of  Charter 
Other  expenditure 

ECU 400  000 x  5 = 
ECU  300  000 x  5 = 
ECU  100 000 x  15 = 
ECU  100 000 x  10 = 
ECU  100 000 x  10 = 
ECU  150 000 x  5 = 

2  000  000 
1  500  000 
1  500  000 
1  000  000 
1  000  000 
750  000 
I  000  000 
250  000 

7.2  Itemized  breakdown  of  cost 

Conferences 

Energy  Centres 

Studies 

Seminars 

Resident 
experts 

Training 

Implementation 
of  Charter 

Other  costs 

Total 

96 

2 

1.5 

1.5 

1 

0.75 

1 

1 

0.25 

9 

97 

2.5 

2 

1.5 

1 

1 

1 

0,5 

0.5 

10 

98 

2.5 

2 

1.5 

1 

1 

1 

0,5 

0.5 

10 

99 

2.5 

2 

1.5 

1 

1 

1 

0,5 

0.5 

10 

2000 

2.5 

2.5 

1.5 

1.5 

1.5 

1 

0.5 

11 

7.3  The  amount  will  be  decided  each year  by  the budgetary  authority. 

The  indicative  amount  available  for  commitments  and  payments  (in  million  ECU) 
will  be  as  follows: 

1996 

9 

1997 

10 

1998 

10 

1999 

10 

2000 

11 

Total 

50 

31 

8.  FRAUD PREVENTION MEASURES 

The  work  is  paid  after  its  acceptance  on the  basis  of  a percentage  set  before  award  of  the 
contract,  and in the light of a final financial report on the operation.  Documentary  proof of 
travel  and  subsistence  expenses  may  be  required. 

The  final  payments will  also be  made  subject  to receipt  of  a technical  report  on the  action 
taken.  Officials  from  DG  XVII  or the  delegations  and  independent  experts will  participate 
in  seminars,  conferences  or courses to check the  quality  of the  action  and that  it has really 
been  taken.  Regular  evaluations  are  requested. 

Inspections  will  be  carried  out  on the  spot by  staff  from  the Commission  and  the  Court  of 
Auditors. 

9.  ELEMENTS  OF  COST-EFFECTIVENESS  ANALYSIS 

9.1  Specific  objectives 

• 

• 

• 

• 

• 

To disseminate, at conferences  and seminars, the Community's experience and new 
technologies, particularly  on rational use of energy, renewable energy  sources and 
clean  technologies. 

To  train  the  managers  and  decision-makers  in  the  energy  sector  in  modern 
technologies  by  participating  in  training  courses  and  organizing  technical  visits. 

To  support  the  establishment  and  development  of  channels  for  cooperation, 
information  and  dissemination. 

To bring together, at conferences,  decision-makers in the public and private sectors 
in  the  Community  and  non-member  countries  and  encourage  partnerships. 

To advise the national authorities by seconding experts, conducting specific  energy 
planning studies making it possible to align legislation, to take account of Europe's 
environmental  concerns  and  to  manage  energy  resources  more  effectively 
throughout  the  world. 

Target  population 

The  ultimate  beneficiaries  are,  in  most  cases,  States  and  local  authorities,  public 
services,  businesses  and  other  organizations  in  non-member  countries. 

The  action  is  generally  taken  by  Community  institutions,  bodies,  businesses  and 
individuals. In specific  cases, authorities, businesses and individuals from  non-member 
countries  can  also participate  in  implementing  the  action. 

32 

9.2  Grounds  for  the  operation 

Action  at Union  level  is justified  for  the  following  reasons: 

• 

• 

• 

The  Union  as  such  is  designated  as  interlocutor  with  non-member  countries  in 
contexts such as G-24  or agreements concluded with  some non-member  countries 
which  explicitly  include  energy  in their  scope. 

Action  at Union  level  will  make it possible to complete the measures taken  at the 
level  of Member  States  and  to  strengthen  their  impact. 

The European  Union  can represent  better  the  interests of the Member  States as a 
whole. 

Action  at  Union  level  will  make  it  possible  to  use  the  expertise  available  in  the 
various  Member  States. 

To  ensure  complementarity  with  the  other  programmes  of  the  Community  or  the 
Member  States,  internal  interdepartmental  consultations  will  be  held  and  an  advisory 
committee  will  be  set  up  with  the  Member  States.  The  special  committee  will  be 
responsible  for  international  relations  and  energy  alike. 

9.3  Monitoring  and  evaluation  of  the  operation 

Performance  indicators  selected 

As  SYNERGY  is  a  programme  of  cooperation  in  formulating  energy  policies,  it  is 
difficult  to determine quantitative indicators of its impact short of attributing all energy 
efficiency  gains in some countries solely to the SYNERGY programmes.  Furthermore, 
action  relating  to  energy  policy  influences  production  or  consumption  figures  only  in 
the  medium  or long  term. 

Nevertheless,  it  is  possible  in  some  cases  to  quantify  the  dimension  of the  operations 
carried  out:  number  and  level  of  participants  in  courses,  seminars  and  conferences, 
number  of  commercial  contacts  made  during  a  conference,  expected  results,  e.g. 
percentage  reduction  in  energy  consumption  in  certain  sectors, etc. 

Details  and  frequency  of planned  evaluations 

During the pilot phase, the  SYNERGY programme is the subject of periodic  evaluation 
by an independent  expert every five years on average; the last took place in June  1990. 

It highlighted  several  positive  aspects of the programme  at that time: the  development 
of energy planning bodies, the full-time  secondment  of European  experts paid from  the 
programme  to the  authorities  in various  non-member  countries,  training,  a number  of 
studies  and  various  aspects  of  the work  of the  COPED  network. 

33 

However,  the  evaluation  also made  a number  of  recommendations: 

concentrate  on projects  which  can  lead  to tangible measures,  development  of  the 
institutions already  set up in non-member  countries to deal with energy policy and 
energy  efficiency,  provide  assistance  for  the  establishment  of  institutions  of  this 
type  where  none  have  yet  been  set  up,  training  and  organization  of  seminars, 
preferably  on  a regional  scale; 

reduce the  number  of  studies  and  make  sure  that  they  are  on  subjects  of  interest 
to  the Community  and  on  specific  energy  policy  issues; 

ensure better  dissemination  of the  results  of  the  programme; 

as  regards  management  of  the  programme,  adopt  general  objectives  for  the 
programme  in  the  form  of  a  three-year  plan  and  monitor  implementation  of  the 
plan as well as each individual  project in relation to the original terms of  reference 
and  conduct  regular  analyses  of  the  programme  by  country  and  type  of  activity; 

improve  coordination  and  the  flow  of  information  with  other  Commission 
departments  and  instruments; 

inform  the Member  States  and  step  up joint  funding  with  them. 

Most of these recommendations have been  acted upon in the meantime, particularly  the 
recommendations  on the  priorities  of the  programme. 

It  was  hard  to  implement  the  recommendations  on  programme  management  and 
information  for  the  Member  States  in  the  form  of  action  based  on  a  single  budget 
heading  and,  hence,  simply  on  an  annual  programme.  This  proposal  for  a  Regulation 
includes  procedures  to  implement  these  recommendations  too. 

Another  evaluation  was  launched  recently  concerning  all  operations  financed  for  the 
budget years  1991 to  1994  inclusive.  The corresponding  invitation  to tender  has been 
published  in  the  Official  Journal. 

The  guidelines  for  this  evaluation  are  to  analyse  the  contents  and  objectives  of  the 
programmes  financed  in  order  to  determine the  extent  to  which  these  objectives  fit  in 
with  energy  policy  and  have been  achieved. 

The  evaluation  must  also  examine: 

• 

• 

past and present guidelines of the programme in order to see where  improvements 
can be  made; 

relationships  between  the  means  employed  and  the  results  obtained; 

actual  and  potential  complementarities  between  these  programmes  and  the  other 
existing  instruments. 

34 

The  evaluation  report  should  be  available by  the  end  of the year.  An  interim  report  at 
least should be published while this proposal is being considered by Parliament  and the 
Council. In any event, the recommendations  made in the final report will be taken  into 
account  when  the  time  comes  to  prepare  the  multiannual  programme  provided  for  in 
Article  6  of this  proposal  for  a  Regulation. 

The Directorate-General  for  Energy  also has a Programme  Evaluation  Unit which  can 
examine  any  elements  it  considers  necessary. 

In  addition,  the  beneficiary  States  express  their  general  assessment  of  energy 
cooperation  with  the  European  Union  in  the  various  consultation  bodies  provided  for 
in  the  cooperation  agreements: joint  committee, joint  assembly,  etc. 

The  legal  basis  presented  also  provides  for  account  to  be  taken  of  the  opinions  of 
Member  States  and  of  European  businesses,  and  of  an  annual 
report  by 
the  Commission. 

An  evaluation  for  1996  to  2000  will  be  submitted  before  eventual  renewal  of  the 
programme. 

10.  ADMINISTRATIVE  EXPENDITURE 

The annual  decisions taken by the Commission  will  ensure that the administrative  resources 
required  are effectively  made  available, taking account,  in particular,  of  any  extra  staff  and 
funds  granted  by  the  budgetary  authority. 

10.1 

Impact  on  the  number  of  staff 

Type  of  post 

Staff  to be  assigned  to 
management  of  the 
operation 

Permanent 
staff 

Temporary 
staff 

Of  whom 

Duration 

Additional 
resources 

Existing 
resources 
within  the 
department 
concerned 

Officials 
or 
temporary 
staff 

A 
B 
C 

Other  resources 

2 

6 
2 
5 

2  seconded 
national 
experts 
2  suppliers 
of  services 

8 
2 
5 

2 

2 

Total 

13 

6 

19 

In the  case  of  additional  resources,  indicate the  rate  at which  they  will  have to  be  provided. 

35 

10.2 

Overall  financial  impact  of  the  additional  human  resources 

Not  applicable. 

10.3 

Increase  in  other  operating  expenditure  generated  by  the  operation 

Budget  heading 
(number  and  title) 

Amount 

Method  of  calculation 

(Ecus) 

Cost  of  meetings 

46.200 

Total"]  46.200 

Two  meetings  per year  with  two 
delegates  per Member  State, 
based  on  an  average  of ECU  770 
per delegate  (travel  expenses 
only) 

The amounts correspond  to the total  expenditure on the operation  in the case of  operations  of 
limited  duration  and  to  expenditure  over  12  months  in  the  case  of  operations  of  indefinite 
duration. 

36 

IMPACT  ASSESSMENT  FORM 

IMPACT  OF  THE  PROPOSAL  ON  BUSINESS 
WITH  SPECIAL  REFERENCE  TO  SMALL  AND  MEDIUM-SIZED 

ENTERPRISES  (SMEs) 

TITLE  OF  PROPOSAL: 

Regulation  concerning  international  cooperation  in the  energy  sector (Synergy  programme) 

REFERENCE  NO: 

2444-2 

THE  PROPOSAL: 

1. 

Taking  account  of  the  principle  of  subsidiarity,  why  is  Community  legislation 
necessary  in  this  area  and  what  are  its  main  aims? 

_ 

See point  2 of the  explanatory  memorandum. 

THE  IMPACT  ON  BUSINESS: 

2. 

Who  will  be  affected  by  the  proposal? 

Aid  solely  with  opening  up  new  markets  in  non-Member  countries  or  businesses  in  the  energy 
sector. 

-are there particular  geographical  areas  of  the  Community  where  these  businesses  are  found? 

No 

3. 

4. 

What  will  business  have  to  do  to  comply  with  the  proposal? 

What  economic  effects  is the  proposal  likely  to  have? 

-on employment 

-on investment  and  the creation  of new  businesses 

-on  the competitive  position  of  businesses 

5. 

Does  the  proposal  contain  measures  to  take  account  of  the  specific  situation  of 
small  and  medium-sized  firms  (reduced  or  different  requirements,  etc.)? 

CONSULTATION 

6. 

List  the  organisations  which  have  been  consulted  about  the  proposal  and  outline 
their  main  views. 

None. 

37 

ISSN 0254-1475 

COM(95) 197 final 

DOCUMENTS 

EN 

12  11 

Catalogue number  : CB-CO-95-241-EN-C 

ISBN 92-77-89275-7 

Office for Official Publications of the European Communities 

L-2985 Luxembourg 

38