capacity markets

Exclusive – Klaus Shäfer, CEO Uniper: “Security of supply is too important to leave to the market”

Klaus Schäfer-slider

The market on its own cannot be relied upon to deliver secure electricity and gas supplies, says Klaus Schäfer, CEO of Eon-spin-off Uniper, in an exclusive interview with Energy Post. According to Schäfer, it will become “dramatically more difficult” to balance the power market as the share of renewables increases. He also sees the gas market becoming “more and more complex” and argues policymakers should establish minimum requirements for gas … [Read more...]

Can UK power market reform replace the capacity market?

National Grid helicopter inspecting power lines

The UK has just completed another auction for a large amount of backup power capacity. The country’s capacity market scheme will cost ratepayers many billions of pounds. Independent consultant Gerard Wynn wonders if they are really necessary. … [Read more...]

What a CO2 price floor can (and cannot) do for German climate goals

photo Luc van Braekel-slider

Germany can meet its climate goals for the energy sector if it introduces a CO2-price floor of between €50 and €75 per ton, write Fabian Huneke, Carlos Perez Linkenheil and Simon Göß from the Berlin-based independent energy market specialist Energy Brainpool. However, if neighbouring countries don’t take similar measures, more than half of the reduced CO2- emissions will be shifted abroad, note the authors. As long as power markets are … [Read more...]

What is holding renewable energy back?

solar power needs grid modernization (photo Amy Alethela Cahill)

For all the enthusiasm about renewables, there are glaring weaknesses being overlooked, writes Todd Royal, an independent strategic consultant, researcher and author based in southern California. According to Royal, for renewable energy to truly break through numerous obstacles such as costs, back-up generation power, storage, and – above all – grid modernization will need to be solved. Article courtesy of OilPrice.com. … [Read more...]

The End of the Energiewende?

Energiewende demonstration in 2014 (photo Bundjugend)

The prominent German economist Heiner Flassbeck has challenged fundamental assumptions of the Energiewende at his blog site makroskop.eu. According to Flassbeck, the former Director of Macroeconomics and Development at the UNCTAD in Geneva and a former State Secretary of Finance, a recent period of extremely low solar and wind power generation shows that Germany will never be able to rely on renewable energy, regardless of  how much new capacity … [Read more...]

A rush to subsidies as power plants in Europe face existential threat

Abengoa solar power plant in Spain (photo Wim Hertog)

So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: more public subsidies for electric utilities, writes independent consultant Gerard Wynn. In a new report for the Institute for Energy Economics and Financial Analysis (IEEFA), Wynn takes a critical look at capacity payments in Spain, which cost taxpayers €1 billion annually. Meanwhile, the UK just forked out £1.2 billion in a capacity … [Read more...]

EU energy package: What it means for coal, renewables and efficiency

Commissioners Anna-Kaisa Itkonen, Maroš Šefčovič, Miguel Arias Cañete present Winter Package (photo Europe by Satellite)

The literature on EU energy regulations got longer by about a thousand pages [on 30 November], as the European Commission put forward its vision for achieving a “clean energy transition”, writes Sophie Yeo for Carbon Brief. The vast collection of documents — including revisions to directives, impact assessments, enquiries and new regulations — will determine the future of energy in the EU up to 2030. It touches upon subjects including coal … [Read more...]