The EU is on the verge of a full redesign of its electricity market. Market rules need to be updated to the reality of a much more decentralised system where renewables and the consumer are king. This is the essential next step in the European energy transition. It is an opportunity for policymakers to shape the future. What will they do? Based on leaked documents and conversations with Brussels insiders, Sonja van Renssen explains what choices … [Read more...]
A system of unconnected vessels: the gas market(s) in the Baltic States
An internally integrated gas market independent from Russia is an official goal of the Baltic States’ energy policies. Above all the launch of the LNG terminal in Klaipeda, Lithuania, at the end of 2014, was intended to provide an alternative to Russian gas. However, Latvia rejects the opportunity to import gas from Lithuania, and Estonia is pursuing its own projects, including cooperation witn Finland.  This makes the creation of a regional … [Read more...]
Image of gas suffers another blow as trilateral gas talks fail
Russia, Ukraine and the EU failed to reach an agreement to govern gas flows between Russia and Ukraine at a meeting in Vienna because of a “lack of political will”. European Commission Vice President for Energy Union Maroš Ĺ efÄŤoviÄŤ is frustrated with the Ukrainians as much as with the Russians. “The lack of a deal is not good for the image of Russia as a reliable supplier or Ukraine as a reliable transit country”, he said. He added that “Gazprom … [Read more...]
Gazprom deals deepen EU gas dilemmas
Gazprom has been very active in Europe recently, signing a strategic cooperation agreement with Shell, an agreement to build a second Nord Stream pipeline with Shell, E.on and OMV, and a memorandum with the Greek government about building an extension of its Turkish Stream project. All of these initiatives fit perfectly with Gazprom’s strategy, write Szymon KardaĹ› and Agata Loskot-Strachota of the Centre for Eastern Studies (OSW) in Warsaw. But … [Read more...]
Lignite in Europe: fighting back renewables
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...]
Can the smart grid survive a cyberattack?
Technological advances in grid operation have made the power grid increasingly vulnerable to cyberattacks, writes Michael McElfresh, Adjunct Professor of Electrical Engineering at Santa Clara University.  The growth of the smart grid has created many more access points for penetrating grid computer systems – the “internet of things” will only make this worse. … [Read more...]
On the road: EU goes for efficient and electric, ponders biofuels
The European Commission’s strategy for decarbonising the road transport sector is finally taking shape: Brussels wants efficiency first, electrification second. But it doesn't know what to do about biofuels. “There is no appetite for [new] targets”, says Commission Director Marie Donnelly. Sonja van Renssen takes us on the bumpy road to a climate-friendly European transport sector. … [Read more...]
Unique: Dutch court orders government to do more against climate change
In a unique decision, the district court of The Hague has ordered the Dutch government to reduce greenhouse gas emissions by 25% in 2020 compared to 1990. Current ambitions of the Dutch government amount to a reduction of around 17%. The case was brought by Dutch NGO Urgenda and nine hundred co-plaintiffs. … [Read more...]
The grid will not be disrupted: why Tesla’s Powerwall won’t catalyze a solar revolution
When Tesla Motors debuted the Powerwall home storage battery at a glitzy launch at the end of April, the press and blogosphere hailed CEO Elon Musk as the inventor of the Holy Grail of renewable energy storage – and the nail in the coffin for the centralized grid. But does all the messianic talk of battery-powered “disruption” and solar triumphalism stack up? Hardly. For all their ballyhooed price reductions, Tesla batteries are still too … [Read more...]
Tories are backing the wrong energy horses
By opting for nuclear power and shale gas, and reducing support for wind energy, the new Tory government is betting on the wrong energy horses, write Peter Strachan and Alex Russell of Robert Gordon University. "New nuclear looks a very costly and unreliable drain on the government’s budget, while fracking looks expensive, incompatible with emissions targets and probably uneconomic at current oil prices." … [Read more...]
Dimitri Pescia, Agora Energiewende: “No more baseload in 2030, no case for new nuclear in Europe”
There will be no more baseload power in Germany in 2030 and possibly not anywhere in Europe. There is no business case for new nuclear power in Europe. Renewables, not thermal power, should get capacity payments - and be responsible for balancing. These are some of the explosive messages from a new report from the influential German think tank Agora Energiewende, which represents government, industry and NGO's. In an exclusive interview with … [Read more...]
Worldwatch Institute: energy costs rise as national debts grow
Although current oil prices are temporarily low, long-term energy costs are on the rise, reports the Worldwatch Institute in its State of the World 2015 report. The Worldwatch Institute warns that “higher energy costs will have ripple effects through economies built around continued large energy-input requirements”. … [Read more...]
Four reasons for business to follow the Paris process
Most companies pay little attention to the complex processes going on within the UN climate negotiations. There are, however, good reasons why companies should follow the Paris process, write Maarten Neelis and Rolf de Vos of energy consultancy Ecofys, and especially the “intended nationally determined contributions” (INDCs). These provide companies with vital information on how climate policies will develop in different countries and what … [Read more...]
Heaven belongs to us all – the new papal encyclical
With his encyclical "Laudato Si" the Pope has written more than a moral appeal without obligation. He has presented a pioneering political analysis with great explosive power, which will probably determine the public debate on climate change, poverty and inequality for years to come, argues Brigitte Knopf from the Mercator Research Institute on Global Commons and Climate Change. Through her secular eyes the implications of the encyclical become … [Read more...]
Brussels, don’t leave customer participation in the electricity market to the incumbents!
Consumer participation in the electricity market is essential to make the energy transition possible. However, writes Philip Baker of the Regulatory Assistance Project (RAP), a think-tank specializing in regulatory and market policy, incumbent suppliers cannot be relied upon to make this happen. Â Therefore, the European Commission needs to ensure that new players can enter the market. … [Read more...]
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