At the end of April, the winners were announced of the first pilot auction to allocate subsidies for EU hydrogen production via the European Hydrogen Bank. The winning bids were between €0.37 and €0.48 per kg, much lower than the €4 – €6 per kg estimated “green premium” cost gap between renewable hydrogen and fossil hydrogen in Europe. The low bids mean companies applied for fewer subsidies than needed to bridge that “green premium” gap because … [Read more...]
District Heating: trials face local permitting blocks. It’s because there’s too little national and EU guidance
The EU-funded WEDISTRICT project establishes sites to demonstrate innovative 100% fossil free heating and cooling solutions for new and existing district heating and cooling systems. But some of the sites have run into permitting problems with local authorities and stakeholders. In Poland, the project had to be withdrawn. In Spain, it had to relocate to a site in the University of CĂłrdoba. As Khatia Shamanauri and Fintan Burke at ESCI explain, … [Read more...]
District Heating: Molten Salt boilers beat Water for storing intermittent Wind & Solar power
District heating networks, an important part of the energy transition for buildings, need a way of storing intermittent wind and solar power. But water tanks have limits: they take up a lot of space, and have a low thermal energy storage density (limited by the 100°C boiling point). Molten salts have a much higher storage density (regular table salt has a melting point of 801°C), but a melting point that is too high is not safe where ordinary … [Read more...]
Building and financing the expansion of Europe’s electrical interconnection market
In the first of a series of four articles covering the expanding market for electrical interconnections in Europe, Jean-Baptiste Vaujour at the Emlyon Business School sets the scene by presenting the main points and current developments around the difficulties of building and financing these assets. Interconnectors allow power to be sent across borders to meet the shortfall where supply is not meeting demand. For example, European electricity … [Read more...]
Cost vs Resilience: Europe’s sourcing strategy will shape the regional Hydrogen economy
The upcoming EU Hydrogen Bank pilot auction and trilogue discussions are focussing minds on the future of hydrogen. Jonas Lotze and Massimo Moser at TransnetBW and Janina Erb, Roman Flatau, Felix Greven and Max Labmayr at d-fine present the results of their modelling of two hydrogen sourcing scenarios: "Global Market" (GM) where the import of hydrogen into Europe is unrestricted, and "Energy Resilient Europe" (ERE) where almost all hydrogen is … [Read more...]
Rooftop Solar: will subsidies benefit wealthy early adopters, while grid limits lock out the latecomers?
Subsidies encouraging homeowners to install rooftop solar are being won by the affluent who can afford to be first movers. And when the technology has come down in price, the remaining majority of households will be shut out of the benefits of own-generation because the grid won’t have the capacity to integrate everyone. That’s the argument made by Juan Jose Cuenca Silva, Barry Hayes and Hannah Daly at the University College Cork who summarise … [Read more...]
Spain: as Renewables rise, managing supply and demand is the next challenge
In May this year Spain reached a landmark day when it was powered 100% by renewables - solar, wind and hydroelectric power - from ten o'clock in the morning until seven o'clock in the evening. In four years the share of renewable energy generation rose from 37% to 50%, while non-renewables dropped from 62% to 49%. Its draft Law on Climate Change and Energy Transition targets 35% of renewable energy in final consumption by 2030 and 100% in the … [Read more...]
Buildings “Energy Performance Certificates”: piloting new tools to ramp up renovations
In Europe, any building put up for sale or rent must have an Energy Performance Certificate (EPC). But as climate ambitions rise, so too must the those of the EPC. That's the purpose of the TIMEPAC consortium, funded by the EU’s Horizon programme, is working to extend its effectiveness and range of tools, explains Patricia Contreras Tejada writing for the European Science Communication Institute (ESCI). She quotes experts who point out that a low … [Read more...]
Analysis: U.S. IRA subsidies put two-thirds of Europe’s battery production pipeline at risk
Major battery manufacturing projects earmarked for Europe are now looking to site themselves in the U.S. to take advantage of its IRA subsidies, according to a new report by T&E. It says over two-thirds of lithium-ion battery production planned for Europe – a pipeline potential of 1.8 TWh - is now at risk of being delayed, scaled down or cancelled. The nations most at risk of losing the business are Germany, Hungary, Spain, Italy, the UK and … [Read more...]
How to tax renewable energy firms for windfall profits from high wholesale electricity prices
Should windfall taxes be imposed on renewable energy firms that have benefitted from the current high electricity prices caused by the increases in oil, gas and coal prices triggered by Russia’s invasion of Ukraine? If so, how, and how much? The IEA has conducted a study of the EU to try to uncover who has (and hasn’t) made extraordinary profits, and how much. Up front they say this is difficult to do as the majority of installed renewable … [Read more...]
Distribution Grid Digitalisation – benefits, policy, cost & funding
About a third of European grids are over 40 years old. A rapid physical overhaul would be impossible, so the addition of a layer of digital technologies is the key to preparing them for the distributed and intermittent generation from renewable sources, the increased electricity demand from transportation, heat pumps and other sectors, and for ensuring energy efficiency at all levels. It’s why the EC expects about €584bn of investment in Europe’s … [Read more...]
Europe’s decoupling of electricity and gas prices: the crisis is temporary, so why do it?
The debate is intensifying over how to decouple power prices from the extraordinarily high natural gas prices in Europe. Simona Benedettini and Carlo Stagnaro warn that the current problem of high prices is not caused by the mis-functioning of electricity markets, but by the exceptional trend in gas prices. So should the markets be re-designed at all? Will we lose the benefits of the current design, one being the reliable profits that renewables … [Read more...]
EU Solar has avoided 20bcm of gas imports and saved €29bn
Solar generation in the EU has avoided the import of 20bcm of gas that would have cost €29bn, explains PaweĹ‚ CzyĹĽak at Ember, writing for Carbon Brief. The new solar power added since 2021 alone avoided €6bn of gas imports. Record EU solar generation increased by 28% in the summer of 2022, compared with the same period a year earlier. And it’s growing very quickly, with a consistent 15% year-on-year increases in installed solar capacity – from … [Read more...]
As spot market electricity prices break all records, what is the prediction for winter?
Spot market prices for electricity have been breaking all records, as European leaders and their ministers intensify their discussions on how to deal with the crisis. Simon Göss at cr.hub, writing for Energy Brainpool, starts by explaining how the markets work, noting that price rises are indeed being driven by fossil prices and not CO2 certificates. Göss looks at how prices have climbed in Germany, France, the Baltics and Spain, and how the … [Read more...]
Our Hydrogen future: 27 authors imagine the world in 2030-2050
Here’s something very different for our readers today, and an opportunity for you to register for our Webinar and Q&A on Wednesday Feb 16th at 09:00 CET (register here). It’s to mark the book launch of “Touching Hydrogen Future”, where 27 energy experts from around the world have written a chapter each. They are fictional accounts of what our world could like in the near future. The countries covered are the Netherlands (2029), Denmark … [Read more...]
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