Network Power Europe: new instruments in EU external electricity governance

The EU’s international power in the area of energy has generally been conceptualized based on insights from its relationship with suppliers of oil and gas; most notably Russia. This paper seeks to contribute to a more differentiated picture by offering a conceptualization of the EU’s external role in the electricity sector. Highlighting the properties of the interconnected European electricity network and the dynamics resulting from transnational interdependencies, the EU is conceptualized as a network power. The central feature of a network power is the use of asymmetric network structures to influence third countries directly and indirectly for its own benefit. Direct forms of influence include the threat of or actual exclusion from key network functions that coerce third countries to behave in a preferred way, and the ability to branch off critical information or knowledge at the expense of others. Indirect forms of influence refer to third country actors changing their preferences and behavior in a way that promote the attainment of the EU’s objectives. This article develops a structured conceptualization of EU network power in the electricity sector. Contrasting alternative approaches to sector governance it claims that the EU has turned from a corporate market power to a regulatory market power and more recently has shown characteristics of a network power. This development was enabled through the gradual physical integration of the European electricity grid, the centralization of key network governance functions and increased control over network hubs. The consequence of network power is the application of a wider range of foreign policy instruments, making the EU a more versatile international actor. I illustrate the application of soft and coercive means by reviewing the EU’s relations with Switzerland and draw conclusions for its post-Brexit relationship with the UK.