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German lignite thrives on policy ambivalence
Stock divestment strategies have been widely proposed to undercut financial support for fossil fuels. The German lignite industry, however, cannot be tackled in this way, writes independent energy expert Jeffrey Michel in a highly informative analysis. Lignite stations and mines are owned by regional communities in the west and a Czech consortium in the east. Although some power plants are being phased out against government-arranged subsidies, … [Read more...]
Institutions in Hamburg are proposing to build a large underground thermal heat storage system that could supply roughly a quarter of the city’s heating needs with waste heat from industrial and power plants. If successful, it would make Vattenfall’s plans to realise a CO2-neutral district heating network superfluous. It could also serve as an example for other cities. … [Read more...]
German transmission system operator Tennet recently announced an 80% increase in its transmission fees because of the high construction costs of new power lines to accommodate renewable energy. A study of the Düsseldorf Institute for Competition Economics found that by 2025 costs of the Energiewende could exceed €25,000 for an average four-person household. Jeffrey Michel concludes that the Energiewende is running up against its limits – but may … [Read more...]
With the most photovoltaic capacity of any country in Europe, Germany has begun to store its excess solar power to enhance local usage. Last year, 41% of all new solar installations were equipped with backup batteries, a world record. Although home storage may only have a limited role to play in Germany due to a highly reliable grid, globally the German initiative could provide great benefits, for example in counterbalancing the predicted … [Read more...]
The accord between the German government and energy companies RWE, Vattenfall and Mibrag to put 2.7 GW of lignite-fired power capacity into reserve, will not be enough to wean Germany off lignite, writes Hamburg-based US energy expert Jeffrey Michel. The lignite sector is too well entrenched and lignite mining profitable enough to subsidize the loss-making power production. Only when renewables and gas-fired power generation have fully superseded … [Read more...]
With an output of 350 million tonnes, four EU countries – Germany, Poland, the Czech Republic, and Greece – account for over a third of the world’s lignite production. Renewable energies have cut into their profitability, but lignite producers are fighting back with increased deliveries and exports to third-party customers. In addition, they avoid CO2 penalties under the EU Emission Trading Scheme by building plants below the 20 MW threshold. … [Read more...]
The German government has proposed new regulations for penalising the country’s most inefficient coal and lignite power plants. This would particularly hit the troubled power giant RWE. What future is there for RWE in a low-carbon economy? Can it engineer its own energy transition? A lot will depend on whether the German government is willing – and even more so: able – to push through its climate legislation at the expense of the existing power … [Read more...]
While mining and combustion of lignite impose high burdens on the environment, Europe’s least expensive fuel remains impervious to climate policies or market trends. Poland remains committed to lignite power generation. In Germany, the world’s largest lignite industry provides backup electricity for nuclear phase-out and renewable power intermittency. Mediterranean sunshine has not kept Greece and Turkey from relying on lignite rather than … [Read more...]
Germany has justly become world famous for its Energiewende. What is less well known is that the German lignite industry is continuing to wreak its environmental havoc on a large scale. On the basis of current German energy policies, writes Jeffrey Michel, there is no “lignite Ausstieg” in sight. … [Read more...]
Volker Quaschning, a professor for renewable energies in Berlin and one of the most influential advocates of the “Energiewende” in Germany, is convinced that nuclear and fossil fuel power in Germany will be fully replaced by renewable energies in the not too distant future. The Energiewende, he says, does not even require the support of Germany’s EEG (Erneuerbare-Energien-Gesetz) feed-in law any longer. “The EEG is only needed to accelerate the … [Read more...]
Hamburg was the “European Green Capital of 2011”, but its climate ambitions are overshadowed by a new Vattenfall coal power plant, which will lead to three times higher CO2 emissions than the city has targeted. The case of Hamburg illustrates the difficulties Germany has in making the transition to a low-carbon economy. … [Read more...]
The German Energiewende is a heroic but – as it’s conceived now – increasingly disordered effort for unshackling industrial society from the chains of fossil fuels. Due to mistaken assumptions and unrealistic scheduling, it is now confronted with persistent obstacles. The new Merkel government has introduced some changes, but they won’t be enough to sustain the Energiewende, argues independent energy consultant (and renewable energy sympathizer) … [Read more...]
The only way to stimulate investment in industry while staying in line with CO2 reduction targets is to end coal plant construction in favour of renewable energies, argues independent energy consultant Jeffrey Michel. Carbon capture and storage (CCS) is just not going to deliver the goods. It is too costly and too risky. Photo: carbon dioxide sequestered in basalt (PNNL) … [Read more...]
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