Growing confidence in emissions trading / Nord Stream 2 unnecessary?
Süddeutsche Zeitung
The European Energy Exchange in Leipzig on Friday auctioned a total of 4.36 million emission allowances for the German government that brought in 64.7 million euros, Michael Bauchmüller writes in Süddeutsche Zeitung. The success of the auction marks a new development for emission allowances, which are bought and sold as part of the EU’s Emissions Trading System (EU ETS). While the price of the allowances has long been low, a recent tightening of EU regulations has resulted in rising prices. "The reforms have restored confidence in the market for many," says Patrick Graichen, head of Berlin-based energy think tank Agora Energiewende*. The government is expecting some 1.6 billion euros in revenue from the auction of emissions allowances in 2018.
Read the article in German here.
Read a CLEW factsheet on the EU ETS here.
*Like the Clean Energy Wire, Agora Energiewende is funded by Stiftung Mercator and the European Climate Foundation.
Handelsblatt
In an interview with Silke Kersting and Klaus Stratmann of financial daily Handelsblatt, German environment minister Svenja Schulze warns that the country is facing an uphill battle to achieve its climate protection goals. “We have already lost too much time, with the result that the likelihood of narrowing the gap for our 2020 target is diminishing.” Schulze says it is indeed a problem that the special auctions for wind and solar power capacity agreed upon by Chancellor Angela Merkel’s coalition government are overdue and must take place soon. “Germany was a pioneer in climate protection, but unfortunately that is no longer the case. That is why we are not only unable to fulfil our national climate goals, but also our European obligations. And that will be expensive.”
Read the article in German here.
For background, read the article Renewables hit record as concerns of German government quarrels grow and the factsheet Climate, energy and transport in Germany’s coalition treaty.
PV Magazine
In a parliamentary debate, representatives of the centre-left SPD and Greens again called on Peter Altmaier, the federal minister for economic affairs and energy, to set a date for the promised special auctions for a combined 4 gigawatts of solar photovoltaic and onshore wind power capacity as agreed to in the government’s coalition agreement, Sandra Enkhardt writes in PV Magazine. The auctions are set to take place in 2019 and 2020 and environment minister Svenja Schulze sees them as imperative in closing the gap in meeting the country’s 2020 climate protection target. Altmaier says the auctions will be scheduled on time, but adds that the ability for the country’s grid to handle the increased capacity must first be guaranteed.
Read the article in German here.
DIW Berlin
The planned construction of a second Baltic Sea natural gas pipeline from Russia to Germany, known as Nord Stream 2, is not necessary to secure natural gas supplies for Germany and Europe, according to a study by the German Institute for Economic Research (DIW Berlin). “The energy consumption forecasts on which the project is based, especially the EU Reference Scenario, significantly overestimate natural gas demand in Germany and Europe,” DIW says. Furthermore, there will be no supply gap if Nord Stream 2 is not built, it adds, pointing out that various profitability studies suggest that high losses in the billions can be expected from the project. It also remains unclear to what extent Nord Stream 2 would lead to higher prices for natural gas customers in Germany.
Read the DIW press release in English here and the full report in English here.
Read a CLEW dossier on the role of natural gas in the energy transition here and the interview Biggest German gas grid operator sees role in renewable energy future.
Montel
Low river levels have forced barge operators to reduce the volume of coal loaded onto vessels earmarked for Germany, potentially limiting seaborne import demand, Laurence Walker writes in Montel. Barges are currently loading at around 60 percent of capacity, according to one source.
Read the article in English here.
Read a CLEW factsheet on Germany’s dependence on imported fossil fuels here.
