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Increasing evidence of climate change and growing dependence on energy has underlined the European Union's (EU) determination to become a low-energy economy and that the energy consumed is secure, safe, competitive, locally produced and sustainable.

In addition to ensuring that the EU energy market functions efficiently, the energy policy promotes the interconnection of energy networks and energy efficiency. It deals with energy sources ranging from fossil fuels, through nuclear power, to renewables (solar, wind, biomass, geothermal, hydro-electric and tidal).

Article 194 of the Treaty on the Functioning of the European Union introduces a specific legal basis for the field of energy based on shared competences between the EU and its member countries.