Energydesk
Transforming Germany's energy system
The Germany Embassey give us their view on the German Energiewende, arguing it's not just about climate change but also about stimulating economic growth.
UK
Britain came close to running out of gas… or did it?
The Crown Estate – which owns the UK’s gas storage infrastructure – told the FT that the UK came to within six hours of running out of gas in March. This wouldn’t have meant lights going out – but could have impacted on industry. By contrast The Guardian reports that energy suppliers were – instead – holding back gas in storage during the March squeeze. It all comes as the big six utilities call on the government to fast-forward support for new gas plants – so-called capacity payments – warning that otherwise the UK could face a generating shortage, rather than a gas shortage.
EDF and UK near agreement on nuclear
Citing sources with direct knowledge of the negotiations the WSJ reports that the UK government and EDF have agreed on all the details of a contract to build new nuclear plants… except for the price. The contract will last 35 years and EDF has lined up at least 12 potential joint investors, the source claimed. The Times reports the price range being haggled over is between £93 and £95 for every MW of energy produced with Abu Dhabi joining China in the list of potential investors. Don’t get too excited though, the WSJ warns talks on all the details could last “well into the autumn”.
Are US swamp forests being felled to fuel UK power?
The BBC’s Roger Harrabin travels to the US to see how the UK’s largest coal to biomass project sources its wood. Is the problem burning wood or US laws on biodiversity which allow rich and diverse swamp forests to be sold or felled. It depends, somewhat, how much wood you plan to burn.
UK to block EU renewable 2030 target – but back 50% climate target
The UK will push for the EU to adopt a legally binding target to cut its collective greenhouse gas emissions by as much as 50 per cent by 2030 – but won’t back a new renewable energy target. The move will disappoint environmental campaigners who believe that targets for renewable energy are important to reducing the global costs of renewable technologies.
World
Coal and LNG in trouble as China stumbles
Coal for use in Chinese power stations fell to its lowest price in four years as manufacturing shrank and hydro-electric output rose – according to Bloomberg – whilst the Wall Street Journal reports that there are also problems for Austrailia’s ambitious and ever more expensive LNG projects, designed largely to export gas to China.
Germany told to ease cost of energy transition to households
The IEA has suggested Germany should reduce act to reduce the impact of its renewable energy reforms on low-income households. The Paris-based think tank warned that exemptions for large industrial users meant consumers had burdened a disproportionate level of the subsidy costs whilst industry benefited from lower wholesale power costs from renewable energy. It suggested the government look at cutting VAT on power to compensate. It comes as the FT reports that BMW chose the US over Germany for its newest plant because of its cheaper power costs. Not from gas – mind- but from a local hydro-electric power plant.
IEA warns US to return to coal
The IEA has warned that rising US gas prices – though still well below those in Europe – could see a surprise return to coal burning – pushing up US emissions. The agency warned that economics alone could not keep US emissions down."If it is left only to economics, around $5 we may see a (coal) comeback, which would definitely be a development which would catch many people by surprise," said chief economist Fatih Birol.
Germany and UK act to block EU solar trade war
Germany led a majority of EU states in a bid to stop the EU imposing tariffs on imports of solar panels from China. Trade policy in the EU is led by the commission but can – ultimately – be blocked by national governments.
And finally – Germany beer makers come out against Fracking
Reuters reports that Germany’s Brauer-Bund, a brewers’ association, has warned that fracking for shale gas could endanger the country’s lager supply by polluting water wells. The warning comes as Berlin is weighing a law that would allow limited drilling, part of a broader effort to diversify energy supplies as the country abandons nuclear power.
