Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Fast-track route to renewables best option for European industry-research

Commodities Oct 27, 2021 03:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: High-voltage power lines and electricity pylons pictured near Berlin, November 7, 2006. REUTERS/Pawel Kopczynski

FRANKFURT (Reuters) - Delaying the expansion of renewable energy in the European Union would drive up carbon emissions prices and result in higher electricity costs for industries while a fast renewable rollout would stabilise or cut bills, researchers said on Wednesday.

Aurora Energy Research studied different speeds of rolling out wind and solar capacity up to 2030 which hinge on policymakers' resolve to prop up the share of carbon-free power in the generation mix to help the bloc meet its climate targets.

The study came just before the COP26 United Nations climate summit which runs Oct. 31-Nov. 12.

"In order to secure the competitiveness of European industry in the long term, governments will need to quickly remove current hurdles to the expansion of renewables," Aurora said in a press release.

Aurora assumes that massive capacity of renewables will allow maximal utilisation of wind and sunshine patterns, resulting in rising availability of zero carbon power and falling costs as investments in the installations are eventually being amortised.

Wholesale power is directly related to the CO2 price in the mandatory EU carbon trading system (ETS) under which conventional power stations must cover their output with pollution allowances.

The EU is committed to cutting its emissions by 55% from 1990 levels by 2030 under the "Fit for 55" package.

Aurora said failure to rev up green power construction could lead to an 80% increase in CO2 prices by 2030, driving up wholesale power in Germany by 31% over price averages in first-half 2021.

Construction has slowed because of land restrictions, social-distancing rules and excessive bureaucracy.

If unremedied, this scenario would necessitate more gas plants to be constructed or coal plants to stay online, increasing dependencies on importers and demand for CO2 permits, and hence prices, Aurora said.

By contrast, aligning renewable expansion rates to Fit for 55 targets could see German prices drop by 14% by 2030.

Fast-track route to renewables best option for European industry-research
 

Related Articles

Oil prices rise $1 after drop in U.S. stockpiles
Oil prices rise $1 after drop in U.S. stockpiles By Reuters - Aug 17, 2022

By Emily Chow KUALA LUMPUR (Reuters) -Oil prices rose over $1 on Wednesday, rebounding from six-month lows hit the previous day, as an unexpectedly large drop in U.S. oil and...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Michael Mcdonough
Michael Mcdonough Oct 27, 2021 4:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Faulty logic
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email