The European Commission estimates that nearly three quarters of a trillion Euros will need to be spent on nuclear power over the next decades to enable it to maintain a market share of about one-fifth of the EU electricity mix in 2050. At the same time it notes that the cost of building new nuclear plants has risen 50% in the last decade. Critics say the Commission is too optimistic and has not analysed what the advent of renewables and changing … [Read more...]
Understanding the UK’s capacity market
According to a new report from the Institute for Public Policy Research (IPPR) the UK’s government capacity market is not working. With a consultation from the UK Department of Energy and Climage Change (DECC) just finished, Byron Orme, research fellow in energy, transport and climate policy at IPRR explains what the capacity market was supposed to achieve, where it has gone wrong and how it could be fixed. Courtesy of Carbon Brief. … [Read more...]
The end of coal: good riddance or dangerous gamble?
Scotland has become the first part of the UK to stop burning coal to supply electricity following the closure of Longannet, its largest power station, on March 24. According to Paul Younger, Professor of Energy Engineering at University of Glasgow, the closure of coal-fired power plants in the UK may lead to serious problems with voltage control. Prepare for power interruptions and flickering lights. … [Read more...]
Europe’s energy investment crisis: “the EU energy market needs a makeover”
Europe’s electricity market, which has some of the highest renewable energy shares in the world, is suffering from a profound investment crisis. Sonja van Renssen spoke with top experts from government, business and academia about the causes and possible solutions. Conclusion: “tinkering around the edges” won’t do - “a complete makeover” of Europe’s market design is needed. Courtesy of World Energy Focus. … [Read more...]
The cheapest way to scale up wind and solar energy? High-tech power lines
A new study from researchers at the prestigious National Oceanic and Atmospheric Administration (NOAA) in the US concludes that the US can cut greenhouse gas emissions from the electricity sector by 80 per cent while keeping prices at or below current levels. The key to achieving this is to build a nationwide, modernised grid that will allow large-scale systems integration of renewable energies.Scientist Christopher Clack explains how the … [Read more...]
Gasland EU: upcoming energy security package is all about gas
The European Commission’s first big energy initiative in 2016 will be a “winter package” on energy security, due in February. This will revise EU legislation on security of supply for gas and electricity, propose to give the Commission a greater role in international gas buying deals and set out new strategies for LNG and energy storage, and heating and cooling. Sonja van Renssen explains what’s at stake. … [Read more...]
Buying Vattenfall’s lignite business could be a risky bet
Vattenfall is currently looking for a buyer for its German lignite assets. However, any potential investor faces a high risk that they will find themselves forced to wind down the business before earning back their investment, write Julian Schwartzkopff and Sabrina Schulz of international environmental organisation E3G. In this article, a shortened version of their new report Vattenfall’s Lignite Business – a Risky Bet for Investors, they explain … [Read more...]
viEUws VIDEO: Brussels Briefing on Energy for December 2015
Brussels correspondent Hughes Belin reports on the EU's first ever State of the Energy Union report, with details on achievements to date and legislative proposals to come in 2016. He notes the many challenges the internal energy market still faces, notably from national capacity markets. The European Commission has fleshed out its thinking on a new governance system for energy, including obligations for Member States. EU Energy Ministers … [Read more...]
Klaus Schäfer, future CEO of E.ON spin-off Uniper: “EU should set a target for gas”
The EU should define how much gas it wants by when, and recognise that Nord Stream 2 can provide additional security of supply, argues Klaus Schäfer, the incoming CEO of E.ON spin-off Uniper in this exclusive interview with Energy Post. Schäfer, who is currently Board member of the E.ON Group, says Europe is further away than ever from a single market for electricity and calls on policymakers to recognise that security of supply has a cost. He … [Read more...]
viEUws Brussels Briefing on Energy: all you need to know for October/November
Hughes Belin gives details on what to expect in the first State of the Energy Union report due from European Commission Vice-President, Maroš Ĺ efÄŤoviÄŤ, on 18 November. In the meantime, he reports on the official signing off of a new gas interconnector between Lithuania and Poland, and looks ahead to an EU LNG strategy due next year. A public consultation on redesigning the European electricity market has closed and legislation on the back of … [Read more...]
Top 5 EU energy priorities for rest of 2015
In this video for viEUws – the EU Policy Broadcaster – Hughes Belin introduces the top 5 energy issues that will be discussed by the EU institutions under the Luxembourg EU Presidency (Luxembourg took over the rotating 6-month presidency in July). … [Read more...]
RWE sets up its lignite plants for a taxpayer bail-out
German utility RWE has kept uneconomic lignite plants open with the explicit intention of securing a public bail-out, argue Julian Schwartzkopff, Chris Littlecott and Sabrina Schulz at E3G. It would apear the energy giant has taken a bet on being “too big to fail” that might just pay off: RWE is set to be the biggest beneficiary of a new 2.7GW capacity reserve in Germany which will pay lignite plants for going on standby. The alternative, a … [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...]
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...]
Energy subsidies probe is the kind of competition policy the EU needs
Capacity problems can best be tackled by letting prices fluctuate and making energy providers responsible for intermittent supply. To the extent that support schemes are used, they should be technology-neutral and driven by market forces to ensure efficiency, argues Diego Zuluaga, Deputy Director of the Epicenter (European Policy Information Center), a coalition of six free-market think tanks in Europe. For this reason, writes Zuluaga, the sector … [Read more...]