The EU has set ambitious goals for its electricity and gas supply sectors. These goals involve decarbonisation, an increased share of renewables, improved security of energy supplies and a reduction of demand. Do these goals all point to higher prices per unit of energy? The answer is, quite simply, yes.
Reducing the carbon emissions from the energy sector necessarily means raising the price of carbon dioxide released from gas and from power production. This can happen through a combination of reducing the cap on the quantity of emissions traded in the EU emissions trading scheme, via higher carbon taxes or by higher emissions performance standards. Higher carbon prices (actual or implicit) are essential to underpin low-carbon investments.
Read the full article at Guardian UK.
Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.