Energy Post

Daily reports on the European and Global energy transition

China’s electricity market design should choose from successes in Europe, UK, Australia, USA

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China has made substantial initial progress in its electricity market reform, but it still faces an uphill struggle in promoting the consumption of renewables, resource allocation across provinces and regions, and unlocking demand side potential. To help choose the best solutions China could do well to look at the “Handbook on Electricity Markets”, says Daisy Chi at ECECP. The 600-page book looks at the current state of power markets around the … [Read more...]

EU Energy Outlook to 2060: how will power prices and revenues develop for wind, solar, gas, hydrogen + more

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Alex Schmitt and Huangluolun Zhou at Energy Brainpool present a summary of their “EU Energy Outlook 2060”. Its scenarios map out how the European (EU 27, UK, Switzerland and Norway) energy system will change dramatically in the coming decades. Current geopolitical tensions are added to climate mitigation and an outdated power plant fleet as the main drivers of change at the EU and national levels. The in-depth modelling is trying to answer the … [Read more...]

Small Modular Reactor cost overruns: the same old problems haunt new nuclear in Utah

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Much hope is being placed on Small Modular Reactors (SMR) making new nuclear plants competitive. But David Schlissel at IEEFA summarises their research into the publications, updates and statements coming from the stakeholders involved with the SMR by UAMPS (Utah Associated Municipal Power Systems) and NuScale Power Corporation that shows that costs are going out of control, a persistent problem in the nuclear industry. The original target power … [Read more...]

IEA says peak coal is a few years away, but China’s demand for energy suggests not

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Lucas Davis at the Haas School of Business questions the IEA’s optimism revealed in its latest World Energy Outlook 2022 that predicted coal will peak in the next few years. In 2021, global coal consumption increased 5% and global electricity generation from coal reached an all-time high. China is the main driver - last year over half of all coal-fired electricity generation came from China - and its energy demand keeps rising. Between 2000 and … [Read more...]

EU electricity market reform: completing, not dismantling, the integration is the answer

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Leonardo Meeus at the Florence School of Regulation explains why electricity market reform in the EU must be about completing the process of integration, not unwinding it. He breaks down his argument into five categories – Electricity Markets, Contracts for Difference (CfD) and Power Purchase Agreements (PPA), Capacity Remuneration Mechanisms (CRM), Energy Communities, and Demand-side Flexibility – and with each he defines their purpose, looks at … [Read more...]

Can the Czech Republic revive its clean energy ambitions?

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Although an early enthusiast for solar in 2009 the Czech Republic’s clean energy ambitions stalled. The share of green electricity was only 12% last year, with solar contributing 3% and wind just 1%. The current government is now reviving the nation’s drive towards carbon-free energy. Will new Czech policies along with EU initiatives like REPowerEU, the Green Deal and the Modernisation Fund successfully breathe new life into the Czech transition? … [Read more...]

Energy Security: what if the UK government had not “cut the green crap” from 2013

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The UK provides an example of a government that cut back its green ambitions only to see its energy security suffer. In 2013, then-prime minister David Cameron told his ministers to “cut the green crap”. That led successive governments to downgrade home energy efficiency, requirements for new homes to be “zero carbon”, end subsidies for onshore wind and solar, and effectively ban onshore wind in England. What if the UK had stayed on its … [Read more...]

Global Wind Speeds: are they falling due to climate change?

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Last year, Europe experienced a “wind drought”, with wind speeds falling 15% in many regions, sometimes more. Deeper research shows speeds dropped gradually between 1978 and 2010, though rose again in the last decade. It’s difficult for the science to create a clear picture and predict long term trends. But the IPCC forecasts slowing winds for the coming decades, saying average annual wind speeds could drop by up to 10% by 2100. Jim Robbins at … [Read more...]

Europe’s decoupling of electricity and gas prices: the crisis is temporary, so why do it?

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The debate is intensifying over how to decouple power prices from the extraordinarily high natural gas prices in Europe. Simona Benedettini and Carlo Stagnaro warn that the current problem of high prices is not caused by the mis-functioning of electricity markets, but by the exceptional trend in gas prices. So should the markets be re-designed at all? Will we lose the benefits of the current design, one being the reliable profits that renewables … [Read more...]

Is a Carbon Tax the best way to decarbonise the Grid?

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Severin Borenstein at the Energy Institute at Haas and Ryan Kellogg at the University of Chicago question whether carbon pricing is the best way to decarbonise the electricity grid. The authors did an empirical analysis of all of the fossil plants in the US. It shows that a CES (clean electricity standard) or zero-emissions subsidies would close down fossil plants in almost the same order as a carbon tax. So using alternative policy tools can … [Read more...]

Fossil fuel producers can decarbonise by exporting Electricity, Hydrogen, and Steel

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The compelling reason why fossil fuel producers will be needed even beyond 2050 is that they currently provide over 80% of global energy, and 90% of the world’s population still needs the wealth creation that energy delivers, says Schalk Cloete. Given that, he summarises his co-authored paper that takes a close look at how a fossil exporter, Norway, can trade with an importer, Germany, while decarbonising. The modelling focusses on electricity … [Read more...]

Reactor shutdowns in Nuclear-dependent France expose the need for a diversified mix of Renewables

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Events are showing that a nation’s heavy reliance on a single source of energy is unwise. It’s not just gas. The heatwave is causing problems for France’s nuclear fleet, where the use of water for cooling has had to be restricted. All compounded by routine and unexpected maintenance shutdowns. As nuclear typically delivers well over 60% of its power, and also made it Europe’s biggest power exporter (until now), France is feeling the consequences. … [Read more...]

As spot market electricity prices break all records, what is the prediction for winter?

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Spot market prices for electricity have been breaking all records, as European leaders and their ministers intensify their discussions on how to deal with the crisis. Simon Göss at cr.hub, writing for Energy Brainpool, starts by explaining how the markets work, noting that price rises are indeed being driven by fossil prices and not CO2 certificates. Göss looks at how prices have climbed in Germany, France, the Baltics and Spain, and how the … [Read more...]

Electricity market re-design should focus on the root cause of the crisis, Europe’s dependence on fossil fuels

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Amidst the perfect storm of the pandemic, war in Ukraine, and extreme weather events, Bruce Douglas at Eurelectric urges us all not to lose focus on our decarbonisation targets. Energy savings, electrification and renewables are more important than ever to help reduce dependence on fossil fuels. Douglas explains that Europe’s electricity sector remains totally committed to the drive towards clean energy, citing examples. He summarises the … [Read more...]

Can China’s 14th 5-year-plan for Renewable Energy deliver an early emissions peak before 2030?

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At the beginning of June China released its 14th five-year plan (FYP) for renewable energy for the five years 2021-2025. Hu Min at Innovative Green Development Program, writing for Carbon Brief, reviews the plan’s targets and actions, and its implications. Unchanged from the 13th FYP, 25% of China’s energy will come from non-fossil sources by 2030. But the 14th FYP says at least half of the increase in electricity demand will be covered by … [Read more...]