Reform of the electricity market will not solve the EU’s energy crisis
Commission President Ursula von der Leyen has repeatedly made the point that the design of the EU’s electricity market urgently needs reform to address the crisis. Several Member States seem to share that view. From this, one could get the impression that this will solve the EU’s energy woes. It will not. What’s wrong, if […]
Why gas price caps and consumer subsidies are both extremely costly and ultimately futile
The EU is facing an energy crisis. Russia’s de facto embargo on gas exports has sent spot prices on Europe’s exchanges to unprecedented levels. The prices paid by consumers have also increased, albeit much less so than the spot prices. Prices for households have doubled in many Member States, while gas spot prices on the […]
With a looming winter gas crisis, the EU doesn’t need an empty symbol of solidarity
EU energy ministers’ recent ‘political agreement’ on natural gas was touted as an example of European unity and solidarity. It might be a show of political unity but there was very little substance on display. The essence of the agreement is a ‘voluntary reduction of natural gas demand by 15 % for this winter’. Moreover, it […]
Unpacking the sense and nonsense behind energy price caps
A tense debate is taking place on what to do about spiralling gas and oil prices. A special meeting of the European Council on energy was originally scheduled for the autumn but is now being brought forward. Meanwhile, the European Commission is working on an emergency plan to prepare for a complete cut-off of Russian […]
Think basins, not borders
Following the outbreak of the energy price crisis in late 2021 and Russia’s invasion of Ukraine in 2022, offshore wind has gained strategic importance in the EU as a renewable energy source well suited to substituting natural gas in the mid-term. Offshore wind could have even greater significance for the Black Sea coast, considering the […]