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How to Avoid Gas Shortages in the European Union in 2023
A practical set of actions to close a potential supply-demand gap European and global natural gas markets are not yet out of the danger created by Russia’s cuts to pipeline deliveries of gas. If gas exports from Russia drop to zero and China’s LNG imports rebound to 2021 levels, there is a risk of a shortfall gas supplies in 2023. Measures already taken by EU governments on energy efficiency, renewables and heat pumps should help reduce the size of this potential natural gas supply-demand gap in 2023. A recovery in nuclear and hydropower output from their…
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Will new PV manufacturing policies in the United States, India and the European Union create global PV supply diversification?
…with achieved production, the IRA provides a PTCs for the manufacturing of certain equipment, including solar PV modules, cells, wafers and polysilicon through 2032.According to estimates, PLI support closes nearly 80% of the investment cost gap between India and the lowest-cost manufacturers in China. However, the one-time subsidy means that manufacturing efficiencies will need to be achieved through economies of scale to maintain long-term competitiveness. Meanwhile, fully monetising manufacturing tax credits in the United States could bring all the country’s segments of solar PV manufacturing to cost parity with the lowest-cost manufacturers. Favourable solar…
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Is renewable energy capacity in the European Union making windfall profits from high wholesale prices?
Renewables 2022 This report forms a component of Chapter 4 of Renewables 2022 and addresses a key question in renewable energy markets. Russia’s invasion of Ukraine triggered a global energy crisis, leading to sharp increases in oil, natural gas and coal prices. As a result, electricity prices in Europe have risen drastically because natural gas-fuelled plants remain the price-setter in the wholesale market. Furthermore, high fossil fuel prices have resulted in windfall profits for some energy companies. In fact, the profits of major oil, gas, coal and refinery companies in the first half of 2022 more than…
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Northwest European Hydrogen Monitor 2022
Northwest European Hydrogen Monitor Northwest Europe is at the forefront of renewable and low-emission hydrogen development. This region accounts for around half of Europe’s total hydrogen demand, and has a vast and untapped renewable energy potential in the North Sea. It also has a well-developed, interconnected gas network which could be partially repurposed to facilitate the transmission and distribution of renewable and low-emission hydrogen from production sites to demand centres.The development of renewable and low-emission hydrogen in Northwest Europe is expected to gradually scale up in the short- to medium-term to reach a…
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A 10-Point Plan to Reduce the European Union’s Reliance on Russian Natural Gas
Measures implemented this year could bring down gas imports from Russia by over one-third, with additional temporary options to deepen these cuts to well over half while still lowering emissions.Europe’s reliance on imported natural gas from Russia has again been thrown into sharp relief by Russia’s invasion of Ukraine on 24 February. In 2021, the European Union imported an average of over 380 million cubic metres (mcm) per day of gas by pipeline from Russia, or around 140 billion cubic metres (bcm) for the year as a whole. As well as that, around 15 bcm was delivered in…
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Is the European Union on track to meet its REPowerEU goals?
Renewables 2022 This report forms a component of Chapter 4 of Renewables 2022 and addresses a key question in renewable energy markets. The REPowerEU plan’s aim is to rapidly reduce dependence on Russian fossil fuels by 2027, and the European Commission estimates that this will require significant expansion of renewable energy shares in the electricity, transport and heating sectors. Although the use of renewable energy does increase in all three of these sectors by 2027 in our main-case forecast, in none of them are levels consistent with the REPowerEU plan. While the share of renewables in electricity expands…
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Coping with the Crisis: Increasing Resilience in Small Businesses in Europe through Energy Efficiency
Proposed Energy Saving Strategies Today’s global energy crisis has driven up the cost of fuels and electricity, creating shortages and hurting consumers, businesses and entire economies. Small to medium enterprises (SMEs) are some of the most exposed economic players, lacking the margins, economies of scale, and support staff that allow larger companies to mitigate the impact of the crisis. At the same time, SMEs are the backbone of economies around the world, making their survival essential.To help smaller businesses overcome these perilous challenges and to sustain European economies, the European Commission and the International Energy Agency have teamed…