The adoption of peer-to-peer (P2P) electricity trading will turn individual consumers from passive to active managers of their networks. Such a marketplace can relieve constraints on the growing system and offer an alternative to costly grid reinforcements. Arina Anisie and Francisco Boshell at IRENA run through the benefits, including investment costs, bills, resilience, congestion, mini-grids, energy access, and more. They note that very few … [Read more...]
Waste-to-Energy is underperforming. Whole-energy-system simulator can uncover the bottlenecks
The potential for Waste-to-Energy (WTE) in the U.S. is 674 TWh/year, roughly 8% of the energy used by the transportation sector. However, for reasons not easily understood, many WTE technologies struggle to make it to commercial scale. Researchers at NREL have built a first-of-a-kind simulation model, WESyS, to create scenarios and understand where the bottlenecks are. The whole-energy system is always complex. The WESyS simulation modules … [Read more...]
Renewables shares outperformed fossil fuels over 10 years. Have investors noticed?
Shares in listed renewables firms are outperforming their fossil fuel equivalents, both in terms of returns and volatility. But although investment is rising, they’re still not getting enough to meet our 2050 targets, says the IEA. Why? In this article summarising the first of a series of reports they look at the 5 and 10 year record of the two verticals. In all the three territories analysed – the U.S., the U.K., and Germany/France - renewables … [Read more...]
Gas oversupply and clean energy’s rise: now is the time to fast-track gas market reforms
Traditional monopolistic and oligopolistic gas markets artificially keep gas prices high, work against competition and efficiency, and have no place in the modern world, say Jean-Baptiste Dubreuil, Gergely Molnar and Songho Jeon at the IEA. They calculate that gas market reforms in the EU, begun in the mid 1990s, saved the bloc $15bn in 2019. But it typically takes 20 years for such a market to be properly established. The authors explain that … [Read more...]
Norway’s power markets, storage and CCS plans can make it a decarbonisation hub for Europe
Though still heavily reliant on oil and gas, Norway can claim to be a central piece in Europe’s decarbonisation puzzle, explains Tshin Ilya Chardayre writing for the IFRI Centre for Energy & Climate. Norway’s substantial hydropower infrastructure gives it a reservoir storage capacity that could account for 10% of EU-wide energy storage needs by 2050. That would require international transmission cables and power markets, the development of … [Read more...]
The new era of electricity needs modern ways to charge customers
Today’s technologies – wind, solar, storage - have widely differing cost and operating characteristics to fossil fuels. So the way customers are made to cover those costs – assigning different rates to different customer classes – should change. Jim Lazar and Mark LeBel at RAP explain why and how, referencing their comprehensive manual “Electric Cost Allocation for a New Era”. They describe how the full range of technologies now establishing … [Read more...]
Europe’s new Hydrogen Strategy: the questions that still need answering
Yesterday saw the launch of the EC’s new Hydrogen Strategy, the focus of our next live online discussion and Q&A. Register now to join us at the event next Wednesday at 12.45 CEST on Zoom to hear direct from the European Commission's Dr. Florian Ermacora, Future Energy System expert Prof. dr. Ad van Wijk, Giulia Branzi - Head of Regulation at event partner SNAM and trading specialist Marcel Steinbach of BDEW. Here, to set the scene, Gökçe … [Read more...]
Ukraine’s integration into the EU gas market is a positive lesson for the region
Ukraine is shaping its gas infrastructure and regulations to integrate into the EU market. On the infrastructure front, its interconnectors with neighbours, extensive pipeline network and storage facilities are making it an increasingly important European player, explains Aura Sabadus writing for the Atlantic Council. The gradual opening up to EU free market rules are evidenced by its gas prices following those of the EU. Ukraine's attractive … [Read more...]
EU ETS: The Market Stability Reserve should focus on carbon prices, not allowance volumes
The Market Stability Reserve (MSR) aims at providing carbon price stability for the EU Emissions Trading Scheme (EU ETS). But serious questions are being asked about how much stability – if any – it provides, say Michael Pahle at the Potsdam Institute for Climate Impact Research and Simon Quemin at the LSE's Grantham Research Institute. They argue that the MSR rules are too complex, have difficulty accommodating changing EU and national policies, … [Read more...]
2019’s grid storage additions fell for the first time since 2013. Why?
Globally, new installations of grid storage fell year-on-year in 2019 for the first time since 2013. This IEA summary of the landscape is taken from its latest series of Tracking Clean Energy Progress reports. The IEA’s recommendations reflect the fact that grid storage is new and complex, needing changes to existing regulations and market rules that are unviable in the age of transition. The policy goal is to monetise the value of storage in … [Read more...]
Bounceback or Recession? Modelling the impact on electricity prices to 2025
Carlos Perez Linkenheil at Energy Brainpool models three scenarios to understand the factors that are having the biggest impact on – and thereby make predictions for - electricity prices, revenues, energy source merit order, and emissions in the EU. Other parameters in the scope of their analysis include oil prices, gas prices, commodities markets, carbon taxes, and the EUA/emissions market. Clearly, collapsing prices are profoundly distorting … [Read more...]
Regulatory challenges to foster cross-border trade in electricity systems with increasing shares of renewables
The share of renewable generation in Europe’s power system is rising fast, but interconnection is not keeping up. Join us on May 19, 2020 to discuss this and related issues. More wind and solar makes the supply of electricity much more dependent on the weather. Nobody wants to build capacity only to switch it off when there’s too much heading onto the local grid. This could put an extra strain on delivering the Green Deal. One solution is to … [Read more...]
Grid Battery tech on track. It now needs re-designed markets, monetisation
The rapid expansion of variable renewable electricity generation is making cost effective storage more urgent. Sure enough, in Europe several electricity storage projects are under construction and new ones are announced almost on a weekly basis. The battery technology seems to be on track, with estimates of $156/kWh in 2019 dropping to $61/kWh by 2030. But progress is hampered by the lack of a market that recognises and rewards the true value of … [Read more...]
Don’t blame Wind, Solar for Coal cycling. It’s everyday variable demand
Joseph Daniel at the Union of Concerned Scientists explains why variable renewables like wind and solar are not forcing coal plants to cycle (ramp up and down). He presents data from the U.S. that clearly shows it’s straightforward variable demand that’s doing it, because demand has always varied considerably throughout the day. So stop blaming the arrival and growth of wind and solar for this “inefficiency”, he says. These renewables have plenty … [Read more...]
2019-2024: competitive auctions will launch over 2/3rds of utility-scale renewables, says IEA
Government support for new utility-scale capacity is being replaced with competitive auctions, the surest sign that the commercial appetite for renewables - particularly solar PV and onshore wind - is growing strong. This article by the IEA pulls out the essential numbers from their annual Renewables 2019 report (their 5-year market analysis and forecast for renewable energy and technologies in the electricity, heat and transport sectors). The … [Read more...]
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