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APsplainin EU, German leaders pledge reform to cut electricity prices, 29 Aug
special re-regulation operation
European Commission President Ursula von der Leyen said in a speech in Bled, Slovenia, that soaring electricity prices "are now exposing the limitations of our current [internal] electricity market design."

"It was developed for different circumstances," von der Leyen said. "That is why we are now working on an emergency intervention and a structural reform of the electricity market."

The continent's electricity market is underpinned by a "merit order" system in which the power stations offering the cheapest electricity are tapped first, but prices are determined by the last and most expensive power stations to be tapped -- at present, those using gas, whose price has risen sharply following cuts in supplies "embargo" by Russia EU27 to several European countries amid the war in Ukraine.

EC | The internal market in energy: Coordinated measures on the security of energy supply (2002)
The process of opening up the market in natural gas and electricity to competition is governed by rules relating to access to resources and transport networks, competition and transparency which should protect the countries of the European Union against disruption of their internal supplies. This regulatory framework is essential and will make it possible to avoid crises such as that which hit California in 2000 [?!] when it experienced serious disruption of electricity supplies.

Of major importance for the proper functioning of the internal energy market is the interlinking of networks since it plays a fundamental role in the flexibility of supplies. The lack of network infrastructure, including maintenance of the quality of supplies (stability of networks) could hinder the integration of national markets and thus restrict security of supplies. On 20 December 2001, the Commission proposed a set of new measures relating to energy infrastructures aimed at optimising the use of existing gas and electricity infrastructures and encouraging the construction of new infrastructures of European interest. ...

"Clearly what is currently being asked as a market price does not reflect supply and demand in the proper sense," [German Chancellor Olaf Scholz] said.
FAIL
Speaking earlier in Berlin, a German economy ministry spokeswoman said that the idea is to keep the principle of the "merit order" system, "but do away with the negative effects the merit order has, so that the high gas prices can no longer impact immediately and automatically on electricity prices." The aim is for customers to benefit from cheaper production prices for renewable energy, for example, spokeswoman Beate Baron said.
archived After Shock | ancient history, new realities
by Cat on Mon Aug 29th, 2022 at 05:15:38 PM EST
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by Cat on Mon Aug 29th, 2022 at 05:24:50 PM EST
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euractiv | Berlin, Brussels join calls for 'fundamental reform' of EU power market
The goal of the reform is "to decouple the development of end-customer prices for electricity from the rising price of gas," the spokesperson added.
[...]
"Electricity is produced today at a price that is much lower than the price at which electricity and gas are sold. There is no longer any link between the cost of production and the selling price. This European electricity price formation system needs to be reviewed," [BE energy minister, Tinne Van der Straeten] wrote on Twitter.
[...]
France and Spain were the first to call for a radical overhaul of the current marginal pricing system for electricity, with Madrid asking for "structural solutions" at the European level to decouple gas and electricity markets. They were backed by the leaders of Italy, Portugal and Greece, who urged the EU executive to address the "contagion effect" of high gas prices on electricity markets. Yet, the German plan amounts to a rejection of a Greek proposal that was outlined in the summer, government sources told EURACTIV.
EUI | The end of the long-term contracts era: which consequences for the EU Gas Market?, 31 May 2017
Long-term contracts (LTCs) used to be the most commonly used supply agreements in the gas sector and necessary to ensure the security of supply.  Indeed, the current EU gas infrastructures often reflect the geography of existing LTCs.

But, as the EU gas market has undergone intense structural changes for the past 10 years, LTCs may no longer represent the most adequate instrument to comply with the market's new requirements. Furthermore, according to a recent study of the European Commission, Cedigaz and ENTSOG, the existing long-term commodity contracts are expected to terminate in the course of the next 20 years. ...

European Commission Moves to Ban Long-Term Natural Gas Contracts After 2049, 20 Dec 2021
by Cat on Mon Aug 29th, 2022 at 06:54:34 PM EST
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Globalisation exported manufacturing jobs ... the Corona pandemic caused Trump and Biden to shut out allies of essential goods ... Trump already introduced the reversal of globalisation ... MAGA and bring the jobs back home, "Lazy" or "Easy" Joe continued the policy and took it a bit further in foreign policy to declare Russia and China enemy states ...adding the Ukraine is America's national interest and will be defended to the last Ukrainian ... similarly the Chinese province of Taiwan is a US colony and the US will intervene to keep it out of CCP's influence.

Thanks for your excellent coverage ... much appreciated. Level headed input to undercut disinformation and the war narrative.

The EU-2827 failed miserably with the libertarian free market principle selling national energy interests to the highest bid. A curse on state ownership to advance competition, lower price and greater choice for the consumer. A poisonous mix of capitalism ... in December the Ukraine and Russia were near a long-term natural gas deal. Uncle Joe had something else on his feeble mind ...

'Sapere aude'

by Oui (Oui) on Mon Aug 29th, 2022 at 08:04:33 PM EST
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,

'Sapere aude'
by Oui (Oui) on Tue Aug 30th, 2022 at 03:49:41 AM EST
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Today's grape vine advises, Tapei is taking pot shots at PLA drones, yanno, to free up some space for fresh inventory.
by Cat on Tue Aug 30th, 2022 at 07:45:50 PM EST
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How Europe can cut natural gas imports from Russia significantly within a year, 3 Mar 2022

origin story
The IEA was born with the 1973-1974 oil crisis OPEC embargo, when industrialised countries found they were not adequately equipped to deal with the oil embargo imposed by major producers that pushed prices to historically high levels.
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The IEA's founding members were [EU:] Austria, Belgium, Canada, Denmark, Germany, Ireland, Italy, Japan, Luxembourg, The Netherlands, Norway (under a special Agreement), Spain, Sweden, Switzerland, Turkey, United Kingdom, Greece (1976), Portugal (1981), Finland (1992), France (1992), Hungary (1997), Czech Republic (2001), Slovak Republic (2007), Poland (2008), Estonia (2014), and Lithuania (2022);

[QUAD-lite:] New Zealand (1977), Australia (1979), Republic of Korea (2002), the United States;

and Mexico (2018)

Chile, Colombia, and Israel are seeking full membership.

CNBC | Husseini: The U.S. doesn't have the LNG capacity to replace Russia's exports to Europe, 29 Aug A/V interview (EN)
oh
by Cat on Mon Aug 29th, 2022 at 10:26:20 PM EST
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