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Thread: EU energy policy meddling affecting investment decisions

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    Default EU energy policy meddling affecting investment decisions

    UK gas prices for same-day delivery rose 50% to 115 pence/therm today due to a combination of outages and low levels of storage to prices not seen since 2006.

    UK natural gas prices reach seven year high - FT.com
    UK gas hits 108 pence/therm as North Sea outages cut supply - Natural Gas | Platts News Article & Story

    The rise in natural gas prices, low carbon prices and capricious energy policymaking is making it very difficult to invest in new gas plants:

    Statoil warns of political danger to gas - FT.com

    However, Rune Bjørnson, senior vice-president for natural gas at Statoil, told the Financial Times:
    “Continued political uncertainty around gas demand in Europe will ultimately have an effect on the willingness of producers, including ourselves, to invest in new gas supplies.”

    His comments highlight increasing energy industry concern about the lack of clarity in European policy. Gas is expected to be important in some European Union states’ emission-reduction strategies by replacing more polluting coal in power generation. But utility companies, which account for more than a third of EU gas demand, are refusing to invest in gas-fired plants until governments spell out policies for the sector.

    Eon, Germany’s biggest utility by revenues, is considering mothballing gas-fired power stations, Centrica has said it will not build any gas plants in the UK for at least four years and GDF Suez has taken a writedown on the value of gas-fired power plants across northwest Europe.
    Power companies won't invest in gas. New nuclear and coal plants can't get permitting. Public support for renewable subsidies is evaporating. All this points to a freeze in investment in EU power generation, so what does this mean for EU power prices 2015-2020?

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    Time perhaps to forget about political ideology influencing energy policy ?

    Otherwise EU power prices are headed only one way, with the UK suffering almost immediately.


    Aren't we lucky in Ireland that our fleet of power stations is relatively new, all we need to worry about is the cost of that gas.
    Best regards, Pat.Twitter-energy economy news _ _ Each to their ability, together we progress.

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    Prices now at 150 p/therm....

    UPDATE 2-Britain's gas price soars to record on pipeline closure | Reuters

    "Due to the failure of a water/glycol pump in the Bacton boiler house we are currently unable to flow gas. We are working to resolve the issue," Interconnector said in a market message published on Friday morning.

    If the pipeline remains shut for a number of days, Britain's grid operator will be forced to trigger all emergency supply options, including reducing demand from contracted users, which will cause an even higher price spike, traders said.

    Britain's National Grid said it was monitoring the situation.

    "I don't think the price has ever been higher. It's certainly super spike territory," said a gas trader at a utility. "The worrying thing is it can probably go higher."

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    Wait til the Russians get really pi$$ed over Cyprus and then see what happens to gas prices.

    The problem with Nuclear is that is is not commercial. It only works if the State underwrites all the cost and all the insurance liabilities.

    Gas is a problem because of declining supply, which will be accelerated as it gets switched to replace the even faster decline in oil supplies.

    The real answer to the question you pose is the concept of Negawatts. It is cheaper, by a factor of 10, to engineer energy efficiency and energy conservation solutions than it is to engineer new energy production and transmission infrastructure. As the cost of fuels increases, and as the urgency with which we must address climate change becomes more apparent, we will see much more activity and State supports in this area of demand reduction.


    Negawatt power - Wikipedia, the free encyclopedia
    "Always do right. This will gratify some people and astonish the rest." Mark Twain

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    Don't worry. Very soon the banks will be telling people to switch off Sky sports. Loads of power will be left unused on the grid, and loads of suburban, beerbellied, middle aged Irish males get up off the couch, and walk to work.
    Coveney's ambition is the be Ireland's next EU Commissar and Ireland will pay a price as he builds his CV to position himself sufficiently loyal to the nEU empire.

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    Quote Originally Posted by cimon9999 View Post
    UK gas prices for same-day delivery rose 50% to 115 pence/therm today due to a combination of outages and low levels of storage to prices not seen since 2006.

    UK natural gas prices reach seven year high - FT.com
    UK gas hits 108 pence/therm as North Sea outages cut supply - Natural Gas | Platts News Article & Story

    The rise in natural gas prices, low carbon prices and capricious energy policymaking is making it very difficult to invest in new gas plants:

    Statoil warns of political danger to gas - FT.com



    Power companies won't invest in gas. New nuclear and coal plants can't get permitting. Public support for renewable subsidies is evaporating. All this points to a freeze in investment in EU power generation, so what does this mean for EU power prices 2015-2020?
    Could people start using SI units to measure energy

    I therm of gas is contains 29.3 KW of energy

    Stg £1.15 per therm is about 3.92 pence per kilowatt for same day delivery.

    We could put a lot of construction workers to work building a big concrete storage tank using LNG technology to buy and store cheap summer gas to sell to the Brits in the winter and make a killing!

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    Quote Originally Posted by SPN View Post
    The real answer to the question you pose is the concept of Negawatts. It is cheaper, by a factor of 10, to engineer energy efficiency and energy conservation solutions than it is to engineer new energy production and transmission infrastructure. As the cost of fuels increases, and as the urgency with which we must address climate change becomes more apparent, we will see much more activity and State supports in this area of demand reduction.
    Its happening on a pretty large scale at present, energy costs are a huge part of the cost of manufacturing which is a big incentive for any company to conserve energy. The cost of control equipment has come down as a result of semiconductor use.
    About 15 years ago, I did a €1m project where we excluded speed control of 2 big water pumps to save cash. 2 years ago, I installed a kitchen extract fan in a canteen with speed control.

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