Gas demand has consistently been overestimated by EU bodies in recent years, write Dave Jones of Sandbag and Jonathan Gaventa and Manon Dufour of E3G. Even today, with gas demand at its lowest since 1995, the possibility of lower future demand is hardly taken into account. As a result, the EUâs energy security strategy, focused on sourcing more gas, may be misguided. In addition, infrastructure investment may be wasted. Time for a reality check. … [Read more...]
So we are reforming the ETS. Now what do we want it to do?
It would be a mistake to believe that a âreformedâ EU Emission Trading Scheme (ETS) would be a sufficient instrument for the decarbonisation of the EU economy, writes Oliver Sartor of the Institute for Sustainable Development and International Relations (IDDRI) in Paris. A carbon market is necessary, but it is not enough. A recent study from Climate Strategies, in which Sartor participated, suggests that Member States develop long-term climate … [Read more...]
The Chinese model: backing up climate policy with green growth
With the climate plan it has submitted to the United Nations, China demonstrates that it is prepared to back up its commitments to carbon reduction with real investments in green energy, writes John Mathews, Professor of Strategic Management at Macquarie University in Australia and author of a recent book on the Asian renewables revolution. It also shows it recognizes the authority of the UN - and provides a model for other developing countries … [Read more...]
EU electricity market redesign: a protean moment
The EU is on the verge of a full redesign of its electricity market. Market rules need to be updated to the reality of a much more decentralised system where renewables and the consumer are king. This is the essential next step in the European energy transition. It is an opportunity for policymakers to shape the future. What will they do? Based on leaked documents and conversations with Brussels insiders, Sonja van Renssen explains what choices … [Read more...]
Lignite in Europe: fighting back renewables
With an output of 350 million tonnes, four EU countries â Germany, Poland, the Czech Republic, and Greece â account for over a third of the worldâs lignite production. Renewable energies have cut into their profitability, but lignite producers are fighting back with increased deliveries and exports to third-party customers. In addition, they avoid CO2 penalties under the EU Emission Trading Scheme by  building plants below the 20 MW threshold. … [Read more...]
Unique: Dutch court orders government to do more against climate change
In a unique decision, the district court of The Hague has ordered the Dutch government to reduce greenhouse gas emissions by 25% in 2020 compared to 1990. Current ambitions of the Dutch government amount to a reduction of around 17%. The case was brought by Dutch NGO Urgenda and nine hundred co-plaintiffs. … [Read more...]
The grid will not be disrupted: why Teslaâs Powerwall wonât catalyze a solar revolution
When Tesla Motors debuted the Powerwall home storage battery at a glitzy launch at the end of April, the press and blogosphere hailed CEO Elon Musk as the inventor of the Holy Grail of renewable energy storage â and the nail in the coffin for the centralized grid. But does all the messianic talk of battery-powered âdisruptionâ and solar triumphalism stack up? Hardly. For all their ballyhooed price reductions, Tesla batteries are still too … [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...]
Worldwatch Institute: energy costs rise as national debts grow
Although current oil prices are temporarily low, long-term energy costs are on the rise, reports the Worldwatch Institute in its State of the World 2015Â report. The Worldwatch Institute warns that âhigher energy costs will have ripple effects through economies built around continued large energy-input requirementsâ. … [Read more...]
Heaven belongs to us all – the new papal encyclical
With his encyclical "Laudato Si" the Pope has written more than a moral appeal without obligation. He has presented a pioneering political analysis with great explosive power, which will probably determine the public debate on climate change, poverty and inequality for years to come, argues Brigitte Knopf from the Mercator Research Institute on Global Commons and Climate Change. Through her secular eyes the implications of the encyclical become … [Read more...]
Brussels, donât 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...]
Danish offshore wind: itâs getting better all the time
Denmark continues to set the pace in driving down the cost of offshore wind. In its latest tender for 350 MW of near-shore wind farms the maximum price has again been reduced. Danish offshore wind now costs roughly half of what the new nuclear plant at Hinkley in the UK will cost. … [Read more...]
Good luck G7 leaders – we won’t be off fossil fuels by 2100
The most powerful leaders in the West used the G7 summit in Germany to make a big statement on the environment. Their stated goal is to cut carbon emissions by 40% to 70% by 2050 and then end all fossil-fuel use by 2100. They announced a US$100bn (ÂŁ65bn) fund by 2020 comprising public and private money to help smooth the transition. My response to David Cameron, Angela Merkel and the rest is pretty simple: good luck with that. … [Read more...]
Limits of the âEnergy Unionâ: expect only pragmatic progress
On 8 June the EU Member States will discuss the European Commissionâs proposals for an Energy Union. According to Severin Fischer and Oliver Geden of the German Institute for International and Security Affairs (SWP) in Berlin, it is already clear that they will avoid or delay implementation of any meaningful steps in the direction of a political energy union. Over the next few years, they write, the focus of EU energy and climate policy will be … [Read more...]
Climate benefits of a natural gas bridge ‘unlikely to be significant’
Natural gas can only be a worthwhile bridge to a low carbon future if a series of tough conditions are met, according to a working paper from the influential New Climate Economy initiative. The paper says the climate benefits of gas, including shale gas, could in theory be significant. It suggests a 10% increase in global gas supplies could prevent 500 gigawatts (GW) of new coal capacity being added by 2035, avoiding 1.3 billion tonnes of annual … [Read more...]
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