Local authorities are taking an increasingly active role in bringing about a clean energy future. Their biggest worry: how to finance their efforts. One way is outsourcing to energy service companies, another is crowdfunding. But perhaps the most effective method to raise substantial money is by giving out municipal bonds. Clare Taylor takes a look at the blossoming municipal bond market for sustainable energy projects in Europe and the US and … [Read more...]
How to design a successful auction for renewable energy projects
In its new State Aid guidelines, the European Commission presents auctioning as the standard procedure for allocating support for renewable energy. Member States may deviate from this rule, but only for very good reasons. Although auctioning can in theory be a useful instrument, experience all over the world shows mixed results. It is crucial that auctions are adapted to the specific market context. If not, they will deliver sub-optimal results … [Read more...]
Policy failures have turned Belgium into high-price electricity island in Europe
Wholesale power prices in Belgium are now considerably higher than in its big neighbour Germany. In addition, Belgium is the only country in North West Europe to be faced with an electricity supply shortage. This situation is caused by a long series of policy failures on the part of the Belgian government, which has failed to create stable investment conditions, a competitive market and adequate interconnections, argues Benedict de Meulemeester, … [Read more...]
IEA review of Dutch energy policy: the real work still lies ahead
The Dutch energy sector is proud of the broad National Energy Agreement which was signed on to last year by representatives of the energy industry, consumer and trade associations and NGO’s, and which is now being implemented. But concluding an agreement is one thing, implementing it is another, notes the International Energy Agency (IEA) in an instructive review of Dutch energy policy. The Netherlands still relies heavily on fossil fuels and is … [Read more...]
The stolen fruit of the Energiewende: German suppliers are not passing on lower wholesale prices to consumers
Complaints about the high costs of the Energiewende are misguided. The primary reason German users pay high electricity prices is not the government’s support scheme for renewable energy. It is rather the fact that energy suppliers are not passing on to consumers the large drop in wholesale prices that results from the rapidly expanding wind and solar generation capacity. This is evident from an analysis of German prices. A similar situation … [Read more...]
After the goldrush: Japan’s second solar boom
A first gold rush driven by generous subsidies led to an uncontrolled boom in solar power projects in Japan, of which, however, only a very small percentage actually got built. Now, however, the government has taken charge and serious developers are entering the market. The liberalisation of the Japanese retail market in 2016 is expected to give another boost to solar power, as consumers will likely drive demand for renewable energy. The Japanese … [Read more...]
Biomass: the hidden face of the Energiewende
When people think about the “energy transition” in Germany and elsewhere, they tend to think of the success of solar and wind power. However, of all forms of renewable energy it is biomass that has seen the largest absolute growth and supplies by far the most renewable energy, writes Robert Wilson. In Germany biomass has grown three times as much as wind and solar combined. 17% of the country’s arable land (6% of total land) is now devoted to … [Read more...]
Time for real change: Ukraine crisis shows bankruptcy of “security-as-usual”
Poland’s proposal to reduce the EU’s energy dependence on Russia by collective buying of gas and maximising domestic production of coal shows a reactive, “security-as-usual” approach that is totally behind the times, writes Luca Bergamaschi of think tank E3G. According to Bergamaschi, the EU should instead improve its energy security by radically reforming its energy system, above all by improving energy efficiency. Studies show that Germany … [Read more...]
You cannot compare apples with climate policies: why there is no Modelgate in Brussels
The European Commission has recently suggested a new greenhouse gas reduction target for 2030 that is perceived as too low by many NGOs. Moreover, some claim that the Commission has hidden the fact that higher emission reductions than proposed would lead to GDP gains. Brigitte Knopf from the Potsdam-Institute for Climate Impact Research argues that GDP gains are a very specific finding with a non-standard model and that emission targets can only … [Read more...]
Experts warn: the “Great European Energy Transition” can still go wrong
The EU’s great power transition – the liberalisation and integration of its energy markets and the expansion of renewables – has reached a crucial stage. According to three seasoned energy experts, the EU's energy project - one of the greatest missions ever to be undertaken by the European Union - has delivered some positive results, but it is also faced with mounting challenges - political uncertainty being the most prominent one. The … [Read more...]
Welcome to Modelgate: Brussels’ justification for a small climate target is based on a big lie
The European Commission has recommended a low greenhouse gas reduction target for 2030, because it says that higher targets would hurt the European economy. But according to its own impact assessment, the opposite is true, writes Brook Riley of Friends of the Earth Europe. According to Riley, the Commission’s impact assessment shows that a more ambitious target has a more positive impact on GDP than a less ambitious one. … [Read more...]
A story of ice and fire: how methane hydrates could change the world
A recent technological breakthrough in Japan might soon render economically viable the large-scale exploitation of methane hydrates. The potential of this new (and global) form of unconventional natural gas is mind-blowing. Although a number of countries have already displayed strong interest in exploring their reserves, Japan is most likely to lead this new “dash for gas”. It has already made the development of methane hydrates an important … [Read more...]
Professor Ye Qi’s inside view on Chinese climate policy: “There is no way we can peak in 2015”
Although China is tackling climate change and air pollution in a serious way, there is no way the country’s greenhouse gas emissions will peak anytime soon, says the influential Chinese climate scientist Professor Ye Qi in an interview with Energy Post. Professor Qi, who is Director of China’s Climate Policy Institute School of Public Policy and Management – part  of Tsinghua University – and responsible for the publication of an important annual … [Read more...]
State aid: Commission adopts new rules on public support for environmental protection and energy
The European Commission has adopted new rules on public support for projects in the field of environmental protection and energy. The guidelines will support Member States in reaching their 2020 climate targets, while addressing the market distortions that may result from subsidies granted to renewable energy sources. To this end, the guidelines promote a gradual move to market-based support for renewable energy. They also provide criteria on how … [Read more...]
The Nuclear Power Imperative
As the world’s richest and most innovative economy and second largest source of carbon emissions, the United States should be leading a grand global innovation challenge encompassing the entire range of low-carbon options, including nuclear, argues Richard Lester, Japan Steel Industry Professor and Head of the Department of Nuclear Science and Engineering at the Massachusetts Institute of Technology. According to Lester, climate policy “is about … [Read more...]