The Formation of the EU's Energy Union and Its Implications for the Northeast Asian Energy Market

Abstract

Since the European Commission announced the 'Energy Union' in February 2015 to make efforts toward integrating the EU's internal energy market, it has been expected that secure, sustainable, competitive and affordable energy would be delivered to consumers in the European Union. However, it would not be easy to achieve this goal, considering the historical barriers remaining in the EU's energy market, such as heavy dependence on Russian energy, insufficient regulatory frameworks, and lack of funds to modernize aging infrastructure and to enhance interconnectivity. The energy market in the Northeast Asian region could learn lessons from the EU's historical experience over the last decade and the formation process of the Energy Union. A Northeast Asian energy market is necessary for initiating an integrated energy grid, a multilateral cooperation mechanism, and collaborative regional energy research to further economic synergy within the region.