European Energy Transition Research Articles

A Coordinated Strategic Reserve to Safeguard the European Energy Transition

In Germany and beyond, various capacity mechanisms are currently being discussed with a view to improving the security of electricity supply. One of these mechanisms is a strategic reserve that retains generation capacity for use in times of critical supply shortage. We argue that strategic reserves have specific advantages compared to other capacity mechanisms in the context of the European energy transition. To date, however, the debate on capacity mechanisms has largely been restricted to national contexts. Against this background, we discuss the feasibility and potential benefits of coordinated cross-border strategic reserves to safeguard electricity supply and aid the energy transition in Germany and neighboring countries at large. Setting aside strategic reserve capacity which is deployed only in the event of extreme supply shortages could improve the security of electricity supply without distorting the EU’s internal electricity market. In addition, overall costs may decrease when reserve procurement and activation are coordinated among countries, particularly if combined with flow-based market coupling.

Catching two European birds with one renewable stone: Mitigating climate change and Eurozone crisis by an energy transition

The threat of climate change and other risks for ecosystems and human health require a transition of the energy system from fossil fuels towards renewable energies and higher efficiency. The European geographical periphery, and specifically Southern Europe, has considerable potential for renewable energies. At the same time it is also stricken by high levels of public debt and unemployment, and struggles with austerity policies as consequences of the Eurozone crisis. Modeling studies find a broad optimum when searching for a cost-optimal deployment of renewable energy installations. This allows for the consideration of additional policy objectives. Simultaneously, economists argue for an increase in public expenditure to compensate for the slump in private investments and to provide economic stimulus. This paper combines these two perspectives. We assess the potential for renewable energies in the European periphery, and highlight relevant costs and barriers for a large-scale transition to a renewable energy system. We find that a European energy transition with a high-level of renewable energy installations in the periphery could act as an economic stimulus, decrease trade deficits, and possibly have positive employment effects. Our analysis also suggests that country-specific conditions and policy frameworks require member state policies to play a leading role in fostering an energy transition. This notwithstanding, a stronger European-wide coordination of regulatory frameworks and supportive funding schemes would leverage country-specific action. Renewed solidarity could be the most valuable outcome of a commonly designed and implemented European energy transition.

Unconventional gas research initiative for clean energy transition in Europe

The clean energy transition and EU 2020 targets require a further shift from coal and oil toward natural gas. As a relatively clean fossil fuel, gas must bridge the transition period required for renewable energy technologies to mature such that larger energy quantities can be economically produced to meet demand. Until then, gas is required in Europe and energy scenarios suggest natural gas consumption will reach 650 bcma in 2020 and 780 bcma in 2030. However, conventional gas production in the EU will decline to 230 bcma in 2020 and 140 bcma in 2030. This means the dependency on intercontinental LNG and pipeline imports will increase further and – by 2030 – must account for up to 80% of total gas supply. Consequently, the development of European unconventional gas resources could reduce the required gas imports and would improve security of supply – and also reduces the risk of price shock. This paper outlines the imminent decline of Europe’s conventional gas production, highlights the potential of unconventional gas resources and advocates the key role of R&D to improve the performance of unconventional gas projects. Delft University of Technology has launched the Unconventional Gas Research Initiative (UGRI). The research framework, vision, aims and targets are outlined in this report.

North versus South: Energy transition and energy intensity in Europe over 200 years

This article examines energy consumption in Sweden, Holland, Italy and Spain over 200 years, including both traditional and modern energy carriers. The analysis is based on totally new series of energy consumption including traditional carriers along with modern sources. Our main purposes are a closer examination of the process of the energy transition in Europe and a revision of the prevailing idea of there being, over the long run, an inverted U-curve in energy intensity. Changes in energy consumption are decomposed into effects from population growth, economic growth and energy intensity. The results on energy intensity challenge the previous suggestions of most scholars. An inverted U-curve does not exist whenever we include traditional sources of energy in our analysis.

The Nuclear Option: Green Energy Goals in the European Energy Transition

The Nuclear Option: Green Energy Goals in the European Energy Transition