EU Energy Policy Blog

2011 will remain as one of the year that shaped the fate of nuclear power the most. The Fukushima accident has had profound consequences on energy policies in several countries, and even France and its unique system have not escaped the controversy. But if the debate focuses mostly on an assessment of a partial or total phase-out with 2030 as a global deadline, there is few economic appraisal of the optimum pace for a nuclear power plants’ retirement. Closing a nuclear power plant earlier than expected, even though the operator complies with all the safety requirements, would mean getting rid of a still valuable asset, and a global loss for the economy. Continue reading »

A drastic change in the way we produce and consume energy is necessary to contain the risk of a global environmental catastrophe. For its part, the EU has set targets for reduction of GHG emissions by up to 80-95% of 1990 levels by 2050 to keep global temperature increases below 2°C. One key policy for achieving this target cost-effectively is the European Emission Trading System (EU ETS). However, the only partial coverage of important emitting sectors (namely transport) creates economic inefficiency. While the ETS has succeeded in containing carbon emissions in the power sector, it has not provided sufficient signals for incentivising low-carbon investments. Thus, we suggest making the EU ETS wider and deeper. Continue reading »

A quick overview of European energy policy over the past 15 years shows that rationales for interconnections have evolved as new concerns have reinforced their importance. Originally they were seen as an instrumental part of the liberalization process. They are now considered as key to move renewable electricity across Europe.

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