Green Nightmare: War On Coal Can’t Stop Fuel’s Enduring Demand

Originally published in 2016

Brexit: Green Campaigners Fear ‘Bonfire’
Of Green Regulations

You know the war on coal isn’t working when it’s up more than 50 percent this year. “The strength in coal is amazing,” said Trevor Sikorski, an analyst at Energy Aspects Ltd. in London. --Ladka Mortkowitz Bauerova and Mathew Carr, Bloomberg, 13 October 2016

After years of delay, Prime Minister Theresa May is set to defy fierce opposition from key members of her Cabinet, including Foreign Secretary Boris Johnson, to boost Britain’s airport capacity. Campaigners predict an announcement about Heathrow could be made by Transport Secretary Chris Grayling in the Commons as early as Tuesday. A decision to back Heathrow would be welcomed by business groups, which claim that expanding it will provide a much bigger boost to the economy than the alternative choice of a second runway at Gatwick. It was also claimed last night that the Government plans to urge Birmingham Airport to push forward proposals for an additional runway – an option which was not even considered by the independent Airports Commission in its report, published more than a year ago, that unanimously backed a third runway at Heathrow. --James Salmon and James Slack, Daily Mail, 14 October 2016

The Government must not abandon the fight against global warming after Brexit – despite calls to do so from the climate-sceptic wing of the Conservative party – its official advisers have said in a report. There are fears of a “bonfire” of regulations designed to protect the environment and reduce greenhouse gases after the UK leaves the European Union, which has developed world-leading standards. --Ian Johnston, The Independent, 13 October 2016

Despite relatively low wholesale prices, electricity consumers in all sectors of the UK (domestic, industrial, commercial and public sector) are facing the prospect of sharp price rises. This is largely as a result of the direct and indirect effects of unilateral climate and energy policies. Electricity capacity margins are tightening and there are few signs of the necessary investment in firm generating capacity, needed to meet peak demand and keep bills low. Britain’s recent decision to leave the EU should promote a wholesale re-evaluation of its decarbonisation policies. --GWPF submission to the House of Lords Economic Affairs Committee, October 2016

China is the world’s largest energy consumer overall and the largest coal consumer in particular, using nearly as much coal as the rest of the world combined. It is also the largest coal producer, providing more energy to the world’s economy than the entire Middle Eastern oil production. Since 2011, it has also become the world’s largest importer of coal. But in contrast to China’s oil and gas investments abroad, Beijing’s expanded investments in foreign coal mining and coal power projects have failed to garner much international attention. This lack of interest exists, presumably, because the West does not see comparable geo-economic and geopolitical implications in these investments, even if said investments cast a shadow over on-going energy policy and emission reduction debates at the global climate summit in Paris and beyond. --Frank Umbach & Ka-ho Yu, European Centre for Energy and Resource Security (EUCERS)

German Energiewende To Cost €520 Billion By 2025,

First Full-Cost Study Finds

The total cost of Germany’s green energy transition (Energiewende) amounts to over €520 billion euros by 2025 in the electricity sector alone. This is the result of a report commissioned by the Düsseldorf Institute for Competition Economics (DICE). The study is the first full-cost estimate which takes all the costs of the energy transition in the electricity sector into account. At the end of 2015, 150 billion euros had already been spent on the Energiewende, not including the cost for network expansion. The bulk of the costs (25.000 euros for a family of four) will have to be paid in coming years. --Initiative Neue Soziale Marktwirtschaft, 10 October 2016

The total cost of Germany’s green energy transition (Energiewende) amounts to over €520 billion euros by 2025 in the electricity sector alone. This is the result of a report commissioned by the Düsseldorf Institute for Competition Economics (DICE) on behalf of the Initiative New Social Market Economy (INSM).
 

By far the biggest cost driver with a total of €408 billion is the levy to finance  renewable energy (EEG levy). The expansion of electricity and distribution networks totals €55.3 billion. The study is the first full-cost estimate which takes all the costs of the energy transition in the electricity sector into account. In addition to the direct costs of subsidising renewable energy, indirect expenditures such as the cost for the expansion of transmission and distribution networks were included in the calculations, as well as offshore liability expenses and network, capacity and replacement costs.

At the end of 2015, 150 billion euros had already been spent on the Energiewende, not including the cost for network expansion. The bulk of the costs (25.000 euros for a family of four) will have to be paid in coming years.  Full story & full report (in German)