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...]
Gazprom deals deepen EU gas dilemmas
Gazprom has been very active in Europe recently, signing a strategic cooperation agreement with Shell, an agreement to build a second Nord Stream pipeline with Shell, E.on and OMV, and a memorandum with the Greek government about building an extension of its Turkish Stream project. All of these initiatives fit perfectly with Gazprom’s strategy, write Szymon KardaĹ› and Agata Loskot-Strachota of the Centre for Eastern Studies (OSW) in Warsaw. But … [Read more...]
On the road: EU goes for efficient and electric, ponders biofuels
The European Commission’s strategy for decarbonising the road transport sector is finally taking shape: Brussels wants efficiency first, electrification second. But it doesn't know what to do about biofuels. “There is no appetite for [new] targets”, says Commission Director Marie Donnelly. Sonja van Renssen takes us on the bumpy road to a climate-friendly European transport sector. … [Read more...]
The grid will not be disrupted: why Tesla’s Powerwall won’t 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 – and the nail in the coffin for the centralized grid. But does all the messianic talk of battery-powered “disruption” and solar triumphalism stack up? Hardly. For all their ballyhooed price reductions, Tesla batteries are still too … [Read more...]
Tories are backing the wrong energy horses
By opting for nuclear power and shale gas, and reducing support for wind energy, the new Tory government is betting on the wrong energy horses, write Peter Strachan and Alex Russell of Robert Gordon University. "New nuclear looks a very costly and unreliable drain on the government’s budget, while fracking looks expensive, incompatible with emissions targets and probably uneconomic at current oil prices." … [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 2015 report. The Worldwatch Institute warns that “higher energy costs will have ripple effects through economies built around continued large energy-input requirements”. … [Read more...]
Four reasons for business to follow the Paris process
Most companies pay little attention to the complex processes going on within the UN climate negotiations. There are, however, good reasons why companies should follow the Paris process, write Maarten Neelis and Rolf de Vos of energy consultancy Ecofys, and especially the “intended nationally determined contributions” (INDCs). These provide companies with vital information on how climate policies will develop in different countries and what … [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...]
Danish offshore wind: it’s 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...]
GE-Alstom deal tests limits of EU competition law
The planned takeover of Alstom by GE has raised anti-trust concerns in Brussels. The European Commission is expected to soon come with an official “Statement of Objections”. The companies – and the French government – are putting heavy pressure on the Commission to let the deal go through.  “Blocking the deal would help Chinese rivals and cost jobs in Europe." … [Read more...]
Going for gas: the risky strategy of the world’s largest companies
They are the biggest companies in the world and they are making a huge bet: they are staking their – and our – future on natural gas. At the World Gas Conference in Paris, the major oil companies all avowed their belief that gas will be the world’s “fuel of choice”, because it is “the cleanest fossil fuel”, “abundant” and “competitive”. But Karel Beckman argues they are overstating the case for gas. And may even be betting on the wrong horse. … [Read more...]
The West must do as the Chinese: build renewables systems for energy security and abundance
In the western world renewables are burdened by the idea that they are a moral imperative, essential to fight global warming, writes professor John Mathews. By contrast China is building renewables systems as an economic imperative. Unless Western countries follow the Chinese model and intervene in their economies to build green energy and resource systems, they will continue to be defeated by China. … [Read more...]
The mixed outlook for new nuclear power plants
Nuclear power has had a makeover. What was once seen as a futuristic source of limitless energy has been reframed as a response to global warming, an ideal solution for countries looking for a continuous source of low-carbon power. Nuclear advocates claim that nuclear power capacity is expanding, but according to Paul Dorfman, Honorary Senior Research Associate at the Energy Institute at University College London, in reality the global picture is … [Read more...]
World’s largest investment fund from Norway set to divest from coal
The Finance Committee of the Norwegian Parliament has issued a unanimous recommendation to divest the country’s sovereign wealth fund from the coal industry. The Norwegian Government Pension Fund Global (NGPFG) is the world’s largest sovereign wealth fund and one of the top ten investors in the global coal industry. Environmental organisations are elated. They expect that many billions of euros will be withdrawn from the coal sector. … [Read more...]
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