Germany is Planning a Mini Energy Union

Germany is Planning a Mini Energy Union

While many members of European Union are skeptical about the plans of European Commission to establish the European Energy Union, Germany wants to provide a good example and establish single energy market with its neighbors. Germany plans to make agreement with the neighbors to enable for mini union to operate under market model and not

While many members of European Union are skeptical about the plans of European Commission to establish the European Energy Union, Germany wants to provide a good example and establish single energy market with its neighbors.

Germany plans to make agreement with the neighbors to enable for mini union to operate under market model and not like market of capacity. Many EU members are not open to the idea of European Energy Union because they want to do energy policies by themselves and not to pass it on Brussels.

European Union intends to merge the 28 European energy market into one with this union. This merging will reduce dependence, improve climate protection, create new jobs and boost economic growth.

As a first step toward this European Energy Union Germany is beginning to deal with neighboring countries, including Sweden and Norway.

“If we work on single market, we need to define common rules to prevent lack of energy”, stated Rainer Baake, State Secretary for Energy in the German Ministry of Economy.

With this agreement with neighbors there will be fluctuations in prices of electricity in the wholesale market rather than in market of capacity. Thus price of energy for members of mini union will depend on the market, not on corporations and energy lobbies.

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