Energy Post

Daily reports on the European and Global energy transition

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...]

Post-Brexit carbon tax would set Scotland against UK

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The UK is weighing up future carbon pricing options in a post-EU world, but Scotland will not abide a London plan for a national tax because that would impinge on devolved powers. Resolving the issue will not be easy, particularly in the event of a no-deal Brexit, writes Sara Stefanini, Climate Home News. Courtesy of Climate Home News. … [Read more...]

Poland’s PGE should accelerate its coal diversification plans

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Poland’s biggest utility, PGE, should accelerate plans to diversify away from coal, as surging carbon prices underscore risks gathering around its present PLN 21 billion ($5.6 billion) coal power investment programme, write Gerard Wynn of IEEFA (Institute for Energy Economics and Financial Analysis) and Paolo Coghe of the Paris-based independent consultancy Acousmatics. Courtesy Energy and Carbon Blog. … [Read more...]

Tipping point: new wind and solar competitive with existing coal and gas

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€20/ton carbon prices in combination with high coal and gas prices have created a new tipping point in Europe, writes Dave Jones of UK-based think tank Sandbag. For the first time, new onshore wind and solar can compete with existing coal and gas plants. … [Read more...]

The carbon floor price – a hammer in need of a toolbox

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Carbon pricing is often regarded as the Holy Grail of climate policy. But according to Richard Cowart, Principal at the Regulatory Assistance Project (RAP), carbon prices cannot be a stand-alone solution. They have limited reach and – especially in electricity -- can be expensive for consumers. Nor are high carbon floor prices a magical solution: they don’t reduce the surplus of allowances and may not even reduce emissions. According to Cowart, … [Read more...]

Poland’s largest utility, PGE, faced with growing risks from transition

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The financial stability of PGE, Poland’s largest utility, could be undermined if it sticks with its current fossil fuel-heavy generation profile, writes Gerard Wynn. In a new report for the Institute for Energy Economics and Financial Analysis (IEEFA), Wynn concludes that the company could be hit hard by increasing carbon prices and tougher air pollution rules if it does not shift away from coal.  … [Read more...]

Uneconomic coal could be squeezed out of European Union power markets by 2030

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Coal’s time is running out in Europe: deteriorating economics and stronger climate policies will soon make coal uneconomic, writes Silvio Marcacci of think tank Energy Innovation. Many European countries have already set an end date for coal power, utilities and investors are shifting away from it. The question is not if coal will lose, but when, and how well-managed its exit will be. … [Read more...]

German electricity market in 2017: records for battery storage and redispatch

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Renewable energy generation is still on the rise in Germany, though at a much lower pace than in the years around 2010, writes Marius Buchmann of Jacobs University in a detailed overview of the German electricity market in 2017. Costs of the feed-in tariff are stagnating, notes Buchmann, but redispatch costs which grid operators incur to keep the system stable, reached a new record far above €1 billion. Courtesy of Buchmann’s blog Enerquire. … [Read more...]

California shows auction reserve prices could be good idea for the EU Emission Trading System

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In California, the reserve price in auctions of emission allowances has proved successful in maintaining a minimum carbon price. This should encourage others, especially the EU, to introduce similar arrangements, writes climate change economist Adam Whitmore. The Californian experience does show the importance of political commitment and stability, Whitmore adds.    … [Read more...]

Paris Agreement: it’s all in the numbers

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The Paris Climate Agreement is based on voluntary pledges (Nationally Determined Contribution, NDC), which will have to be translated into verifiable emission reduction efforts. Countries aim to agree the details of such a “Rulebook” at the upcoming climate change conference, COP24, in Poland at the end of the year. David Hone, Chief Climate Change Advisor, discusses what kind of quantifications we may demand from countries. He argues that unless … [Read more...]

New German government adopts coal phase-out in all but name

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The coalition accord between Angela Merkel and Martin Schulz includes an increase in the renewables target in the electricity mix from 50% to 65% by 2030. Jon Berntsen and Anders Nordeng of Thomson Reuters Point Carbon have analysed how this will impact the German energy sector and conclude that it is a coal phaseout policy in all but name. … [Read more...]

Eon chief puts carbon tax back on the agenda [Energy Post Weekly]

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As the EU institutions wrap up a climate policy framework for 2030, the CEO of one of Europe’s biggest energy companies has issued a fresh call for a carbon tax for the transport and heating sectors as well as a carbon floor price for the industry and power sectors. What is more, Johannes Teyssen, CEO of German utility Eon, says the European Commission has done all it can to push climate policy – now it’s the turn of the Member States – Germany … [Read more...]

Emissions reductions from carbon pricing can be big, quick and cheap

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The UK carbon tax on fuel for power generation provides the most clear-cut example anywhere in the world of large scale emissions reductions from carbon pricing, writes climate change economist Adam Whitmore. These reductions have been achieved by a price that, while higher than in the EU ETS, remains moderate or low against a range of other markers, including other carbon taxes. … [Read more...]

China just launched the world’s largest carbon market. Here are 3 ways it can succeed

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On December 19, China formally launched its national carbon market. By setting a carbon price on the country’s largest greenhouse-gas emitters, China has launched a new, crucial endeavor in its efforts to tackle pollution and climate change, write Hal Harvey and Hu Min of the San Francisco-based think tank Energy Innovation. … [Read more...]