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Energy Post

The best thinkers on energy

We need to trace the real fossil fuel users, not just the “end consumers”

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Climate-consciousness is rising among ordinary citizens. But most fossil fuels are consumed by large technological systems (electricity networks, urban transport systems, built environments, industrial and agricultural systems), not by individuals. Simon Pirani says we need to trace that consumption to its true source, and thereby put the pressure directly on them to transition. It’s not simple: even the IEA admits it loses track of who is … [Read more...]

New “Gas for Climate” scenarios: can green gas and hydrogen save gas pipelines?

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Gas has a key role to play in decarbonising the energy sector. Until a comprehensive clean energy network can accommodate variable renewables using storage, baseload power will be needed. Natural gas is a lower carbon option than coal, so there is a strong case for it to be the first-choice bridging fuel towards a net-zero energy economy. However, exactly how much gas, what type of gas and how existing infrastructure can store energy in the form … [Read more...]

Why does coal survive? A detailed real-world cashflow analysis

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Everyone knows coal plants are bad for the environment. So why do countries still use them? Coal’s attractiveness comes from the relatively low up front capital investment required to start generating energy. On top of that, the rapid rise of variable renewables (solar, wind) need something to rise with it to fill the generation gap when the sun doesn’t shine and the wind doesn’t blow. In his final instalment - after his similarly detailed … [Read more...]

East Mediterranean gas finds: EU energy bonanza or geopolitical headache?

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Some of the world’s largest natural gas reserves have been discovered off Cyprus. One of the questions being addressed at this year's CERA Week is, could these massive finds (totalling more than 70 trillion cubic feet!) be the answer to any perceived over-dependency on Russian gas imports to the EU? Maybe, maybe not. Geopolitical tussles could scupper the realisation of these much-needed resources for Europe. Whilst the potential is there, it may … [Read more...]

European Commission’s decision to approve Poland’s capacity mechanism challenged

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Electricity generators can pitch for awards from governments operating capacity markets. Capacity markets establish a price (at auctions) for back-up power which may, or may not, be needed. Either way, the operator of the power plant gets paid for guaranteeing security of supply to the grid. Last year, the European Commission approved the Polish capacity market and, according to CAN Europe, in its first auction the Polish government awarded 22,4 … [Read more...]

Green Oil: second wave of investment in low-carbon assets is substantial but hardly tidal

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Oil majors are under significant pressure from investors to develop climate-friendly business areas but less than 1.5% of their combined investment budgets is expected to go into low-carbon assets globally this year. However, 70% of that is set to come from European oil companies who are reacting positively to market signals by participating in coordinated industry schemes designed to help meet Paris targets. Here is an overview of some of the … [Read more...]

Transition: nation-by-nation review of race to phaseout coal

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The global effort to phase out coal consumption is speeding up. However, a lot of necessary work is still to be done, both to align with the ambition of the Paris Agreement and to ensure a just transition for affected workers and citizens. Oliver Sartor at the IDDRI runs through the leading examples of coal's phase-out across the world, nation by nation, and warns that coal producing and consuming countries that do not adapt are in danger of … [Read more...]

Investing in gas: the effect of carbon taxes, gas prices, and the growth of renewables

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Schalk Cloete presents his latest article looking at what affects the profitability of an investment in a specific power sector. After reviewing onshore wind, nuclear and solar, he now looks at gas. His analysis of coal is to come. The major variables are increasing CO2 prices, and natural gas pricing. He adds that the growth of wind and solar should benefit load-following gas power plants: they are plugging the intermittency gap when electricity … [Read more...]

IEEFA Germany: RWE’s coal phaseout compensation demands defy market prices

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How much should the coal producers be compensated for Germany’s phaseout? RWE wants €1.2bn per GW at least, basing its maths on an EU-approved scheme from 2015. But Gerard Wynn, writing for IEEFA, says too much has changed since then, not least the Paris Agreement and the actual market price for coal assets. By his calculations, the true price should be under €100m per GW down to near zero. Vattenfall and Engie have already taken such a hit. … [Read more...]

Does the U.S. really need new gas infrastructure?

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Gas prices within the U.S. vary considerably, largely due to poor local gas infrastructure: Boston’s gas prices can be triple New York’s, and Los Angeles’ over 50% higher than San Francisco’s. Should the U.S. spend billions upgrading that infrastructure? Not if money spent on assets that may one day be stranded is money wasted. Andrew Campbell, Executive Director of the Energy Institute at Haas at the University of California, says the best … [Read more...]

Greece: lignite asset sale failure could shift focus to electricity market reform and renewables

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This month Greece’s Public Power Corporation (PPC) admitted its effort to sell a third of its lignite assets had failed. Dr. Nikos Mantzaris, of the think tank The Green Tank, gives his explanation for why the numbers never added up for the buyers. He now fears the PPC will simply sweeten the deal. Instead, Greece should abandon failing lignite assets, reform the electricity market and refocus on renewables. … [Read more...]

Analysis: BP’s outlook for fossil fuels could be undermined by slowing energy demand

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BP’s latest projections, released last week, once again concede that their previous reports have been overestimating fossil fuel consumption and underestimating renewables. Yet BP still predicts total energy demand will grow indefinitely thanks to overall global growth, and fossil fuels will always be needed. But Simon Evans at Carbon Brief shows how these projections contrast starkly with McKinsey’s, who find that the efficiency of renewables … [Read more...]

Cañete: CCS will play a vital role in delivering a net-zero emissions economy

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Commissioner Cañete confirmed this week that natural gas and Carbon Capture and Storage (CCS) will be central to achieving a competitive and climate-neutral economy, notably in closing the circle for the energy intensive sectors for which other solutions for decarbonisation do not exist. Moreover, combined with renewable biomass, CCS could create negative emissions compensating for remaining CO2. Eurogas Secretary General, James Watson, … [Read more...]

EXCLUSIVE: Chinese government’s plan to meet the Paris goals

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China is leading the energy transition as the world’s largest producer, exporter and installer of solar panels, wind turbines, batteries and electric vehicles. It has a clear lead too in renewable energy patents, ahead of the U.S. and twice that of the EU. But it is also still heavily dependent on coal, the air pollution in its cities is legendary, and the economy is expected to quadruple by 2050. Against this background, Kaare Sandholt, Chief … [Read more...]

The compelling case for carbon capture and storage

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By 2040 60% of primary energy will still come from fossil fuels, says the IEA. That means Carbon Capture and Storage (CCS) must be part of the technology mix to hold back climate change. Yet today there are only 18 CCS facilities in operation, with 25 in the pipeline. We’ll need at least 2,000 by 2040. Brad Page, CEO of the Global CCS Institute, lays out the reasons why we have no time to lose. The World Economic Forum’s meeting in Davos … [Read more...]