Economice Assignment Example | Topics and Well Written Essays - 500 words

Economice - Assignment Example Along the European shores there are ten countries that will sign a pact to start working on an underwater electrical grid to link up disparate projects (The Economist, 2010). Norway has hydroelectric stations that can serve as giant batteries that store energy. Spain can take advantage of solar and wind renewable energies, while the Sahara desert has the potential to be a productive region for the implementation of solar technology. Europe would benefit tremendously if the producers of energy could trade energy over the grid in a single market. The estimated made by European officials established that energy savings of between 20%-25% could be possible. In Europe energy is being generated through multiple technologies including wind, sun, gas, and nuclear power. The European commission established that the government has to invest nearly $1.4 trillion over the next decade in its energy infrastructure. The fact that utilities are a public monopoly enables this industry to receive governmental assistance. Creating a single energy market in Europe will be difficult due to the fact that electricity and gas networks are treated as natural monopolies. Currently the only countries that are sharing their energy resources are Spain and Portugal. The fragmentation for the gas industry is even worse than the one for electricity in Europe. New regulations such as EU’s 20/20/20 which seeks a 20% greenhouse gas, a 20% reduction in energy, and a 20% increase in renewable energy should help increase cooperation. Another change in the industry that will help form a single market is the fact that companies must now either sell their distribution networks or run them as a separate business. A single energy market in Europe would represent the biggest utility monopoly market in the world. OIL and gas are being drained from under the North Sea. But its time as Europe’s energy reservoir is not over. Along its shores and on its waters, thousands of