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Energy Post

The best thinkers on energy

Opposition to Nord Stream 2 ignores market fundamentals [Energy Post Weekly]

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Criticism of the Nord Stream 2 project routinely misses the bigger picture of EU’s lower carbon targets, Groningen’s impending switch-off and Russia’s own dependence on natural gas exports to Europe. … [Read more...]

IEA: Future is electric and increasingly renewable

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"The IEA is no longer the conservative bastion of oil it once was" writes Fereidoon Sioshansi. Distilling all 650 pages of their latest Outlook, he summarises how the pressing need to address climate change means the dwindling supremacy of oil is giving way to a growing role for electricity that will, amongst other things, cater for 1 billion EVs by 2040. Courtesy EEnergy Informer … [Read more...]

A Just Transition – or a transition, but only just?

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At COP24 the Polish Presidency has issued a declaration for a "Just Transition". Jennifer Tollman of climate think-tank E3G says a Just Transition must make allies of those working in and dependent on the high-carbon economy by supporting them in the transition. They must not be left behind. But they warn that this support should not be an excuse for a “go slow” on the transition, as missing our global climate targets is a clear disaster. … [Read more...]

Investment risk: nuclear high, new load-following fossil fuel plants low

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In the current policy environment many energy technologies can appear attractive with the right set of assumptions: discounted clean energy technologies (wind, solar and nuclear) where the discount rate is heavily influenced by risk (see graph) and, perhaps surprisingly, new load-following fossil fuel plants (especially natural gas) where continued wind/solar technology forcing actually provides substantial upside potential. CCS researcher Schalk … [Read more...]

Study says no way to decarbonise the gas sector by 2050

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Gas industry advocates argue that expansion of gas infrastructure is justified because it will be possible to switch to low-carbon gases such as hydrogen and biomethane in future. But research by the International Council on Clean Transportation (ICCT) predicts that biomethane production will remain modest, even with massive subsidies. … [Read more...]

Coal can’t compete – and its true costs are even higher than they appear

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In Texas, income from electricity sales does not even cover the direct costs of coal power plants. But their hidden costs are much higher, explains Daniel Cohen of Rice University in Houston. Courtesy The Conversation. … [Read more...]

Taxing carbon may sound like a good idea but does it work?

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Exxon Mobil is financing lobbying for a US plan to tax oil, gas and coal companies for the carbon they emit. But do carbon taxes work to reduce greenhouse gas emissions? The evidence is underwhelming and support for the proposal is not down to altruism, says Paul Griffin of the University of California, Davis. In his view, what would impact climate change is for energy companies to disclose their carbon risks and footprints. … [Read more...]

Coal’s cost increase leaves no cause for celebration

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Coal’s carbon impact is clear from the fact that it produces 20% of electricity and 65% of EU power sector emissions. But even with EU coal prices at a five-year high, we are unlikely to see short-term European coal emissions reductions. Emissions Trading System prices would have to double to push coal out of the EU electricity mix, says Paul Deane of University College Cork's Environmental Research Institute. … [Read more...]

US shale has a glaring problem

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With oil prices high and production booming, 2018 was supposed to be a year of profits for US shale oil and gas companies. A report from the Institute for Energy Economics and Financial Analysis (IEEFA) and the Sightline Institute shows that hasn’t happened. As 3Q 2018 results start coming in, investors around the world should be considering if there is a fundamental problem with the fracking business model, says Nick Cunningham of Oilprice.com. … [Read more...]

A blacklist of the world’s top 120 coal plant developers

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Nearly 1,400 new coal power plant developments are planned or under construction in 59 countries that would add 33% to coal power capacity. But the risks of investing in such projects are growing, and many banks and investors are looking to move away from coal. To help them, non-governmental organisation Urgewald has created a database of the world’s top 120 coal plant developers, says Kathy Hipple of the Institute for Energy Economics and … [Read more...]

RWE’s lignite: between a rock and a hard place

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The power giant RWE has faced fierce opposition to its plans for expanded lignite mining in Hambach forest, Germany. But as energy expert Gerard Wynn writes, a new report from the Institute for Energy Economics and Financial Analysis suggests there could be four more significant reasons for RWE to renounce its commitment to coal. Courtesy of Energy and Carbon. … [Read more...]

How can gas contribute to the achievement of EU climate targets

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What role is there for gas in the European energy system over the next decades? Some believe the EU must give priority to coal-to-gas switching. Others see no role for natural gas at all in the long run and argue that EU policy must promote only “renewable” gas. An Energy Post panel debate in Brussels, sponsored by Nord Stream 2, saw conflicting views sound off against each other. Meanwhile, a new “Gas for Climate” initiative proposes a 10% … [Read more...]

Khashoggi and Skripal: wake-up calls for European energy policy

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The apparent brutal murder of Jamal Khashoggi in Turkey by the Saudi Arabian regime and the equally brazen attempted murder of Sergei Skripal in England should serve as wake-up calls for European energy policymakers, writes Karel Beckman, editor-in-chief of Energy Post. These misdeeds demonstrate the aggressive nature of the Saudi and Russia regimes and underline the necessity for Europe to reduce its reliance on oil and gas much more rapidly … [Read more...]

Gas revolution? Prospects for increasing gas production in Ukraine

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Ukraine wants to be self-sufficient in gas by 2020, which means increasing production by 35%. A plan is in place, reforms have been made, investments have increased and an international auction for 50 mining concessions is scheduled for 2019. But, says Wojciech Konończuk of the Centre for Eastern Studies (OSW), the country will only be able to fully exploit its large gas reserves if there are more reforms, corruption is reduced and foreign money … [Read more...]

Russia’s evolving gas relationship with the European Union

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Europe has long had a touchy relationship with Russia, with Europe’s dependence on Russian gas being a potentially major source of concern. But away from the rhetoric, the dependence is growing, and the question is how to diffuse tensions. Keeping Ukraine in the picture could be a key move, argues Marco Siddi, senior research fellow with the European Union Research Programme. Courtesy of the Finnish Institute of International Affairs. … [Read more...]