Electric Shock: Oettinger finds out that Green energy doesn't attract the most subsidies

Energy Commissioner Guenther Oettinger seems to have gotten quite a shock over energy subsidies. The German commissioner, who also proposed a list of Common Interest infrastructure projects this week, has long maintained that Green energy receives more in subsidies than other non-nuclear power sources and asked for a report from his Directorate-General. But the Sueddeutsche Zeitung has reported that the results weren't quite what the Commissioner expected, and claims that he has had the more embarrassing figures removed.

The SZ uncovered that the figures for the energy industry for the 27 Member State bloc (i.e. before Croatia joined) were: €30 billion on renewable energy, €35 billion for nuclear, and for fossil fuels €26 billion in direct subsidies, with a further €40 billion in subsidies delivered indirectly. The embarrassing numbers didn't make it into the final report (the SZ provides the draft and the final report in the article).

As the paper notes, it is strangely reminiscent of the behaviour of the CDU-FDP German government in editing the report on inequality in Germany. This report initially reported that the inequality gap in Germany has grown in recent years but the final report had key sections altered to suppress this finding, allegedly at the behest of the market liberal FDP.

In any case, the numbers indicate that subsidies and state intervention are a pretty key part of the energy sector in Europe. The politics of slamming renewables for being "expensive" to support need to give way to a broader debate about the energy industry. What does it say about this market that it requires such a high level of state support - and what do we get in return? And are our priorities right in what energy sources we are supporting (coal being part of this mix)? Are these subsidies cost effective?

Cost effectiveness will be a key point, particularly for renewables that are supposed to be the growing market sector. Are we getting the growth in this sector that we should be?

Because it just wouldn't be New Year's without...

...A gas crisis.

EUobserver has reported that there are warning signs of yet another gas crisis on the horizon, with Ukraine looking for high transit fees. Though the article reads as if everyone involved is trying to give off reassuring signals, budgetary pressures on both Russia and Ukraine (though perhaps particularly Ukraine) may work against a quiet solution.

It's stressed that there are enough reserves to see out any cut-offs in supply:

"The EU's executive body has re-assured, however, that there is "no current threat to supplies to households or to businesses" as emergency oil stocks in the 27-nation bloc stand at comfortable level of 122 days of consumption.

Hungary, Slovakia and the Czech Republic also report having sufficient reserves - 118, 94 and 101 days, respectively - figures well above the mandatory 90 days."

If there is another gas crisis, then the EU's response will be very interesting. By now, the EU's approach should be more coherent, given the regularity of the gas crises, but even beyond that the role of Baroness Ashton, the new High Representative, will be worth watching. Would she prove effective at advocating a common position and articulating it? Would pressure be brought to bear more on Ukraine or on Russia, and how? Would pressure be applied (can it be applied) through the Eastern Partnership?

Since the HR's work will be mostly done behind the scenes, and with so many factors outside her control, it may be a difficult to fairly access her approach, however...

"Is Nuclear in Ireland's Energy Future?"

Here's my latest post over at Th!nk About It:

Yesterday the Institution for Engineering and Technology (IET) at Queen's University Belfast held what will be their first annual Christmas Lecture. Christmas Lectures have quite a history, and are a part of a kind of scientific and educational tradition: "... in 1825, Michael Faraday, co-founder of the Institution of Engineering and Technology, started a series of Christmas Lectures to present scientific topics to young people at the Royal Institution in London."

When I first heard about the Lecture this year - and that it would take the form of a debate on the place of nuclear power in Ireland's energy future - I thought it was great that they were starting up this tradition again with the IET's Northern Ireland branch, and I asked if I could film parts of it for Th!nk2. In the end the original opposition to the motion pulled out on short notice, and I was asked to step in as part of a new opposition (which I did, despite warning them that I didn't really know much about the subject) - so it ended up being a much more educational experience than I'd expected!* Personally, I don't have very strong opinions on nuclear power either way, apart from the waste issue, and I wouldn't mind leaving existing nuclear power plants in operation for the time being (why focus on them if emissions are the big target and oil and gas produce more emissions?). Luckly, my team-mate, Michael, had some personal experience of green industry, and we tried to make the best case possible on (mainly) practical cost terms, rather than some of the traditional arguments (though we used some of them too).

The Proposition's case was that nuclear power would become part of Ireland's energy mix through interconnectors with the UK and the mainland continent - that, while renewables should be expanded on in Ireland, Ireland should be able to draw on the stability and controlability of nuclear power as part of its energy mix. Emphasis was on the improving technology and the utility of nuclear.

The Opposition's case focused on the costs of nuclear and its alternatives. Production, construction, and other costs were highlighted, along with the level of subsidies the nuclear industry receives compared with the relatively new renewables sector. Problems with waste were explored, and alternatives were highlighted.

Each speaker spoke for 10 minutes each, and then there were questions from the floor.

Chair: Susan Whitla

Proposition: David Laverty and Thejus Kodiayt

Opposition: Conor Slowey and Michael Montgomery.

 

I tried to record the debate, and I got most of it on the iFlip, but the distance means you might have to turn up your volume to hear it. I split it up into 6 parts, and I currently have 3 parts uploaded online, so I'll try to update this page later with the rest of the debate. (I wasn't able to get the PowerPoint presentations in-shot, but they mostly weren't relied on by the speakers).

[UPDATE: I've now uploaded the remaining 3 parts of the debate, which includes the first 2 questions from the audience. Unfortunately the iFlip ran out of space before the end of the Q&A part: the questions related mainly to the viability of the alternatives (particularly when it comes to scale) and on technical and waste issues with nuclear power. Though the PowerPoints weren't central to the debate, they were refered to occasionally, so you can find them here if you want to take a look.]

 

 

 

 

 

In the end, the House voted that nuclear was in Ireland's energy future. A big thanks to David (the first speaker for the Proposition, who organised the event); I hope to see the Lecture becoming a regular feature of the university year!

 

 

* Having to research and debate a topic I didn't really know much about reminded me of a point we talked about during the first test ThinkCast: that blogging can be valuable by encouraging people to become more informed on a topic - perhaps blogging is more useful for the bloggers themselves than for the readers?