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Picture credit: RF. RELATED ARTICLES MORE FROM AUTHOR. EIB funds installation of EV chargers in Spain. US and Israeli energy departments fund eight innovation projects.
Energy savings tops customer demands for distributed energy resources. Tensions in some of the weaker oil producers, in Africa, Latin America and other regions, will also be closely watched.
All have been hard hit by the drop in oil prices, threatening political stability. One of the worst sectors of the oil industry in was refining. That has meant low margins for much of the year.
Permanent plant shutdowns are widely expected to accelerate in , especially in Europe, with consumption patterns shifting east.
A good result would be a credible mechanism for efficient, economy-wide emissions reduction against firm milestones towards a credible objective; a set of reforms to the National Electricity Market that preserves the primacy of markets and satisfies the key concerns of the jurisdictions; and ministerial commitments to work with a renewed energy market governance structure.
The likely result: a well-regulated market delivers efficient investment that meets both emissions reduction and reliability objectives at lowest cost.
A bad result would be a government climate change policy stuck on vague long-term objectives and another battleground in the climate war; disintegration of the National Electricity Market in the face of ongoing government interventions and disagreement from industry; and a form of nationalisation of electricity and gas infrastructure driving higher costs, lower reliability, or both.
The likely result: planning and regulation delivers high certainty but at high cost. A muddled result would be a target of net-zero emissions by supported by a flimsy platform of technology commitments and questionable assumptions; ongoing market intervention by governments to meet their need for certainty without ever quite achieving that goal; and a semi-planned, pseudo-market that provides little confidence on reliability, emissions, or prices.
We can hope for the first, fear the second, and prepare for the third. Whichever way things go, there will be consequences, economically, financially, environmentally, and politically.
Twenty-twenty-one is shaping as a wild ride on energy and climate policy — hang on! Or, if you are already a subscriber Sign in. Other options.
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