EU Energy Policy Blog

The pump-storage technology allows the transformation of low-altitude water into high-altitude water using off-peak electricity, and then the production of electricity at peak periods releasing water through turbines like in any hydroelectric plant. Because of large energy losses in the transformation of electricity into water and then of water into electricity (the cycle efficiency is of the order of 80%), this process is not generically good at saving energy but it can be profitable on economic grounds, both by decreasing production costs and by increasing consumers’ surplus.
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The debate about the true level of nuclear electricity generation cost is far to be closed. The estimates are regularly reviewed and updated. In the same time, new nuclear builds provide new data. The newest observations stimulate a question about the possible impact of the recurrent cost overruns and delays in on-going construction of EPRs on the electricity generation cost and the competitiveness of nuclear power.
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Demand for gas is on the rise in Europe, yet its indigenous production is in decline. The need for imports from remote sources will grow. At the same time, a pan-European market for natural gas is expected to develop, leading to new movements of gas in addition to the traditional direct flows from production facilities to consumers. Continue reading »