Archive for the 'Emission Trading' Category

Platts 7th Annual European Power Summit: Germany – New Market Design Examined

Platts is currently holding its 7th Annual European Power Summit in Amsterdam. I had the pleasure of speaking on “Germany: New Market Design Examined“.

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103 Million Tonnes of EEG Related CO2 Reductions Through Renewables in 2015, at about EUR 219 per Tonne

In 2015, CO2 reductions using renewable energy electricity supported by the German Renewable Sources Act (EEG) amounted to about 103 million tonnes. In the same period, net EEG payments amounted to about EUR 22.6 billion. Average cost per tonne of CO2 reduced using the EEG therefore amounted to about EUR 219/tonne. During the same period, the price for EU Emission Allowances (EUA) at the EEX secondary market was somewhere between above EUR 6 and below EUR 9 per tonne CO2.

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EU Parliaments Adopts Reform on European Emission Trading Scheme

On 8 July 2015 the European Parliament agreed to the reform of the ETS, including the introduction of the Market Stability Reserve (MSR).

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Reportedly Alternative Proposal to Controversial Climate Levy – Government Decision on 1 July?

Reports are increasing about an alternative proposal for the controversial climate levy. A a number of coal-fired power plants shall allegedly be made part of a pool of back-up power plants, for which the operators would receive a remuneration. The government is to decide on 1 July, various media sources say.

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Delay Publication of White Paper on Electricity Market Design / Update Climate Levy Project

According to an answer to a minor interpellation by Green Party member and energy expert Oliver Krischer, the government is now planning to present the White Paper with specific proposals for the future energy market in Germany “in June or July”. Besides the answer contains information as to the increase of electricity costs for consumers if a climate levy for conventional power plants is introduced as the government plans.

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Climate Levy for Conventional Power Plants Remains Controversial Despite Softened Proposal

Plans by German Energy Minister Sigmar Gabriel (SPD) to impose a climate levy (Klimabeitrag) on CO2 emissions of conventional power plants to reach the government’s political goal of reducing CO2 emissions by 40% by 2020 remain controversial. Despite a proposed lowering of the electricity industry’s additional reduction target from 22 million tonnes to 16 million tonnes, RWE and Vattenfall as well as members of the Conservatives continue to oppose the plan. We continue to doubt that the proposed climate levy will be compliant with European and German constitutional law.

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Latvian EU Presidency: Council and Parliament Negotiators Agree to Start EU ETS Market Stability Reserve in 2019

Council and European Parliament representatives reached an agreement in principle on the decision concerning the establishment and operation of a market stability reserve (MSR) for the European Emission Trading System (EU ETS), the Latvian Presidency informed. MSR shall start in 2019 and correct supply-demand imbalances due to an surplus of emissions allowances in the EU ETS of about 2.1 billion allowances.

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E.ON 2.0: Uniper in Düsseldorf and New E.ON in Essen

As of 1 January 2016 E.ON spin-off Uniper will start operations at the current E.ON headquarters in Düsseldorf managed by long-term E.ON manager and CFO Klaus Schäfer. The new company will encompass conventional power generation, energy trading, and exploration and production. E.ON CEO Johannes Teyssen will continue to head the company that wants to focus on renewables, energy networks, and customer solutions. Michael Sen, currently CFO of Siemens Healthcare, will become E.ON’s CFO effective June 1, 2015. Headquarters will be in Essen.

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Killing Coal Controversial – Proposed New Climate Levy Debated Among Ruling Political Parties, States and Utilities

Plans by German Energy Minister Sigmar Gabriel (SPD) to impose a new so-called climate levy (“Klimabeitrag”) for specific German power plants to squeeze them out of the market continue to spark controversy among and within the ruling political parties, the federal states and German utilities. The – most doubtful – legality of the levy is not being discussed much.

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German Greenhouse Gas Emissions Down 4.3% in 2014 – Energy Related Emissions Down 5.2%

Germany’s greenhouse gas emission for 2014 were down 41.3 million tonnes, or 4.3% compared to 2013, the Federal Environment Agency (Umweltbundesamt – UBA) reported. Energy related emissions were down even further at minus 5.2%.

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