In our energy system we treat electricity as a commodity, which is sold by the unit, writes Walt Patterson, Associate Fellow at Chatham House. This provides an incentive to suppliers to maximise consumption – which is why our user-technology is so wasteful. But according to Patterson, electricity is not a commodity, it’s a process in infrastructure. What matters is not the functioning of some ‘electricity market’ but long-term investment in this … [Read more...]
2015: an energy year in which everything gets connected?
It is often said that there are major trade-offs between energy security, equity and sustainability. But what if this is a misconception? Energy Post editor Karel Beckman argues that by creating a new sustainable energy system we can at the same time advance energy security and reduce energy poverty. … [Read more...]
The new China-Europe connection: how China’s new Silk Road strategy will change the face of the world
China’s “New Silk Road” strategy is intended to connect the Chinese industrial powerhouse first with Eurasia and then Europe. This will be done through a gigantic, intricate network of road and rail transport lines and energy pipelines, which will cut overland travel time from China to Europe to just two days. It is the greatest trade story in the world, writes reporter Pepe Escobar, even though we hear little about it in the West. Europe, notes … [Read more...]
Emission trading now a major new source of low-carbon finance in the EU – but will it stay that way?
Last year for the first time many of the CO2 allowances in the EU Emission Trading Scheme (ETS) were auctioned rather than handed out for free. Surprisingly perhaps, the EU member states used much more of the ETS revenues for low-carbon development than EU law suggests they should. This suggests that the ETS could become a major source of low-carbon finance in the future, writes Emil Dimantchev, senior analyst at Thomson Reuters. But Dimantchev … [Read more...]
EXCLUSIVE – new Vattenfall CEO Magnus Hall: “What is true for Eon, is pretty much true for us”
Vattenfall’s CEO Magnus Hall likens the selling of its lignite operations in Germany to Eon’s recent split in two. “The problem we needed to solve was the CO2 issue,” says Hall in an exclusive interview with Energy Post. The new chief of the Swedish state-owned company has abandoned the idea of splitting up the company geographically. Its future lies in sustainability, says Hall, e.g. in offshore wind. He notes the European market is distorted by … [Read more...]
Putin’s gas gambit: what’s next after South Stream
The Russian cancellation of South Stream is not an end, but a beginning: a new start of Russian gas games in Europe and beyond, writes Agata Łoskot-Strachota of the Centre for Eastern Studies (OSW) in Poland. She discusses three likely scenarios for what will happen after South Stream and notes that this is a chance for Russia and Europe to look afresh at their bilateral gas relations and new pipeline options. But, she adds, it also makes it … [Read more...]
What Eon and Gazprom have in common
What does Eon’s change in corporate strategy and Gazprom’s decision not to build South Stream have in common? Quite a lot. Both decisions are responses to the increasing speed in which Europe is moving towards a low-carbon society. Both are also bold and risky decisions for the two companies involved. The rest of us probably need not be (too) concerned, writes Energy Post editor Karel Beckman. … [Read more...]
Eon’s new strategy: focus on renewables, distribution, customer solutions, get out of old power generation
Eon, the largest German energy company, will henceforth “focus on renewables, distribution networks, and customer solutions and combine its conventional generation, global energy trading, and exploration and production businesses in a new, independent company, a majority of which will be spun off to Eon SE’s shareholders. … [Read more...]
The Five Energy Labours of Juncker
The new team heading the European Commission in Brussels is lucky. Its predecessors closed two sensitive deals before the reshuffle: a European energy and climate strategy for 2030 and a gas winter package between Ukraine and Russia. On top of that, outgoing Energy Commissioner Günther Oettinger finished off a thick report on the way forward for a European energy market. The new Commission will follow up on these three dossiers, plus two more … [Read more...]
Europe’s nuclear future may hinge on UK’s Hinkley deal
The fate of future nuclear power projects in Europe could hinge on whether government-backed guarantees for Britain’s Hinkley Point C power station survive an expected challenge from Austria in Europe’s highest court. Analysts agree that large nuclear undertakings have become too costly and risky for private investors alone. For this reason many EU countries are backing the UK’s support for nuclear power. Timothy Spence reports from Vienna. … [Read more...]
How to solve the crisis in the EU electricity market
Climate policy and government support of renewable energy are often blamed for the current crisis in the European electricity market. In reality, however, this crisis is caused by changed market fundamentals as well as the inadequacy of the existing market design, argue Andreas Rüdinger and Mathilde Mathieu of the Institute for Sustainable Development and International Relations (IDDRI). What is needed is better integration of climate and … [Read more...]
André Faaij, Energy Academy Europe: “The energy transition has only just begun"
While policymakers and companies generally acknowledge the need for an energy transition, they still underestimate the enormous task that is facing us. The real energy transition, says André Faaij, the new academic director of the Dutch research institute Energy Academy Europe, has yet to start. And, he adds, it will only succeed if it is strongly directed by government policy – preferably coordinated by Brussels – and approached in a … [Read more...]
The EU's great 2030 energy and climate compromise
European leaders agreed new climate and energy targets for 2030 of “at least” 40% greenhouse gas emission reductions, 27% renewables and 27% energy efficiency at a summit in Brussels on 23 October. Central and Eastern European countries led by Poland succeeded in getting substantial financial concessions in return for signing up to the package. Stakeholder reaction ranged from bitter disappointment among NGOs and energy efficiency advocates to … [Read more...]
Understanding the Polish anti-climate crusade
However much the Polish Government says the EU can’t commit to higher emissions reduction without similar efforts by its other big economies, only naïve western-European negotiators would believe this is the reason for Poland’s anti-climate position. The 2030 climate and energy package will be unwelcome in Poland as long as coal drives our politics, argue Marcin Stoczkiewicz and llona Jędrasik of the Polish NGO ClientEarth. … [Read more...]
Brussels reveals: public support for renewables hardly different from non-renewables
For the first time ever, the EU Commission has mapped out how much public money flows to the energy sector in Europe and where it goes. According to a new report prepared by consultancy Ecofys, Europe spent €113 billion on energy subsidies in 2012. Remarkably, public support for coal is equal to that of onshore wind and total support for renewables is not much higher than for non-renewables. Also remarkably, the estimated “levelised costs” for … [Read more...]