What happened when Sweden introduced a 25% rebate on the cost of an e-bike for 12 months over 2017-18? Lucas Davis at the Haas School of Business reviews a study that digs into the consequences. Sales increased by 70%. E-bike prices remained steady, so the sellers didnât simply raise prices to eat up the rebate. The study estimates that although a third of those sales would have âhappened anywayâ (i.e. no additionality) the remaining two-thirds … [Read more...]
Electricity markets with high shares of Wind and Solar will need Nuclear
When electricity markets have high shares of wind and solar â the goal of many regions around the world â is it more efficient to build a nuclear power plant instead of investing further in more renewable capacity? The answer is yes, according to a study by Machiel Mulder, Xinyu Li and Arjen Veenstra at the University of Groningen. In essence, itâs because nuclear benefits from the high (scarcity) prices when thereâs little wind or sunshine. Here … [Read more...]
Worldâs biggest Carbon Capture project: Shute Creekâs âsell or ventâ business model isnât working
ExxonMobilâs Shute Creek CCUS facility is the worldâs largest carbon capture project. But since its launch in the 1980s half of that CO2 has been vented into the atmosphere, with most of the rest sold for pumping it underground to push out more oil from depleted wells (called Enhanced Oil Recovery). Only 3% has been sequestered underground, explain Bruce Robertson and Milad Mousavian at IEEFA, following their study based on publicly available … [Read more...]
What is Energy Security? And what it isnât
What is energy security? Thatâs what Maximilian Auffhammer at the Energy Institute at Haas asks and tries to answer, and he starts by saying what it is not and what solutions should not be used. Not importing wonât help because prices are global. âEnergy securityâ canât be taxed as an externality for much the same reason. Subsidising high prices for consumers decreases the value of energy efficiency investments. Instead, Auffhammer says the … [Read more...]
Germany: can 100% renewable power reduce energy costs within the decade?
A bold report is presented by Thure Traber, Hans-Josef Fell and Sophie Marquitan at Energy Watch Group. It says that a 100% renewable power system for Germany can undercut fossil power within this decade. The authors look at the full cost of fossil power, including subsidies. Importantly, they explain how unit costs will rise further, as demand declines, due to the decreasing utilisation of its expensive infrastructure. Meanwhile, total system … [Read more...]
Clean transport in Europe: key trends to watch out for
T&Eâs quarterly trends series gives a snapshot of the key developments that will define the future of clean transport in Europe. And what Europe does â given it wants to lead this field â should influence what happens worldwide. T&Eâs Thomas Earl brings attention to four issues. First, proven progress in this major sector makes it a contender for a significant role in Europeâs new industrial strategy. It ranges from battery and … [Read more...]
End Fossil Fuel subsidies by shifting them to poorer households
In May, the environment ministers of the G7 agreed to end fossil fuel subsidies within this decade. Around $650 bn/year is spent worldwide on subsidising all energy sources, with the majority ($450bn) going to fossil fuels despite the climate crisis. But simply removing the subsidies has proven difficult. They keep energy costs low for consumers. Itâs why public protest resisted the change in Ecuador and France in 2019. And developing nations … [Read more...]
Hydrogen: can gas, electricity and industrial majors agree on the next steps?
Hereâs our written summary of our panel debate held on 16th June âHydrogen: Designing the Net Zero Gas Systemâ. With representatives from BASF, SNAM and ELIA to cover consumption, gas and electricity, there were plenty of differences of opinion. For example, with no end in sight for demand for green electricity for the grid, is it efficient to use some of it for hydrogen? Will subsidies for hydrogen skew markets away from industrial … [Read more...]
Outlook USA: even with battery costs, Wind and Solar can undercut Coal and Gas by 2023-24
IEEFA has published its U.S. Power Sector Outlook 2021. Its authors, Dennis Wamsted, Seth Feaster and David Schlissel summarise and explain the projections. They say that coal and gas are set to become the biggest losers as renewable generation climbs quickly. The future for wind and solar â coupled with storage to address intermittency - is looking very good. They present estimates from NextEra (the largest renewable energy developer in the … [Read more...]
Germanyâs plans to be a Hydrogen leader: producer, consumer, solutions provider
Germany is getting in early on the proposed hydrogen economy as a producer, consumer and with intentions to be the leading international supplier of hydrogen technologies. Simon Göss at Energy Brainpool runs through the main drivers for hydrogen before summarising the German strategy. The German 2030 target is to have electrolyser capacity of 5GW installed to produce 14TWh of green hydrogen, providing 15% of the hydrogen consumed in Germany by … [Read more...]
Are EV owners driving less than we thought?
Research from California, the EV leader in the U.S., suggests that EV owners drive their vehicles half as much as the average gasoline car owner. Catherine Wolfram at the Haas School of Business explains that their research project reveals mileage data is so hard to gather that itâs difficult to know whatâs actually going on. Is the data wrong (they donât think so), or are EVs only being bought by drivers who don't use a car much? If so, the … [Read more...]
Low gasoline prices create a window for tax changes to fund energy transitions
Low crude oil and gasoline prices create an opportunity for all governments to reform the way they tax or subsidise these important fuels. In general, richer importing nations have high gasoline taxes to generate substantial revenues. Poorer nations subsidise them to cut the bill for their citizens and industries. Oil producing nations do little of either. Domenico Lattanzio and Alexandre Bizeul at the IEA explain how nations that use subsidies … [Read more...]
Washington State (U.S.) bill could make it the home for next generation Nuclear
Nuclear may soon be getting a boost from Washington State in the north-west of the U.S. There, a bill is being presented to promote the manufacture and deployment of new nuclear reactors. It will provide generous tax incentives to nuclear investments in the state. Itâs the sort of support that renewable energy technology is used to, yet nuclear struggles to get because of critics of nuclear energy. That opposition is very frustrating, explains … [Read more...]
Germanyâs Renewable Energy Act 2021: how to implement the fine policy detail of emissions reduction targets
After much haggling and debate, Germanyâs Renewable Energy Act (EEG) 2021 was finally approved in December and came into force on 1 January 2021. Sila Akat and Simon Göss at Energy Brainpool outline the most important changes imposed by the amendment. It gives an insight into how a nation is dealing with the finer details of increasingly ambitious emissions reduction targets. The authors cover the main issues and outcomes. How Germany is dealing … [Read more...]
How do we get EV payback periods down to 4 years?
The take-off of EVs will happen when the lifetime cost of ownership falls below that for a conventional car. But letâs remember that âlifetimeâ for a Brit means 4 years as thatâs the average period of ownership. Gerard Wynn and Arjun Flora at IEEFA show how the payback period on Gerardâs Renault Zoe ZE50 has been cut by over a fifth simply by signing up to a smart meter tariff. Itâs dropped from 10 to 8 years. The UK is nearing the universal roll … [Read more...]
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