U.K.

IEEFA Research

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

Paying Producers for Electricity They Might Never Generate

  So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: More public subsidies for electric utilities. Utilities may get—but not necessarily need or deserve—high-level government support for a variety of reasons, including for their role in equity markets, where they supply returns and dividends for pension […]

Read More →
IEEFA Europe: Can Coal Power Hang On?

IEEFA Europe: Can Coal Power Hang On?

Investors May Not Be Eager to Absorb More Losses Like Those Seen in Recent Dutch Build-Outs

Investment in new coal-fired power plants appears off the agenda in Western Europe. Witness the astonishing write-down of brand-new assets in the Netherlands, where European utility giants RWE, Uniper, and Engie have drastically reduced their valuations of plants barely a year old (read the report we published this morning, “The Dutch Coal Mistake,” which concludes […]

Read More →
IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

An Acceleration to Renewables, Faster-Than-Expected Shifts Regionally and Nationally, Growing Risk for Investors Who Lag Behind

Three notable takeaways emerge from the rapid transformation of the global energy economy, as we detail in a new paper we published today as the landmark Paris Agreement officially goes into effect. The global transition to renewables is accelerating. Change is happening faster than expected. Those left behind in this transition face growing financial risk. […]

Read More →

More News and Commentary

U.K. Electricity Auction Raises Questions on Coal Subsidies

Andrew Ward for the Financial Times: Coal-fired power generators were among the winners of contracts worth £378m to generate electricity next winter, highlighting the tension between government efforts to reduce carbon emissions and the need for energy security. Critics have highlighted the apparent contradiction between government plans to phase out all coal-fired power from the […]

Read More →
IEEFA Europe: Can Power Market Reforms Curb U.K. Ratepayer Handouts to Gas, Coal and Nuclear?

IEEFA Europe: Can Power Market Reforms Curb U.K. Ratepayer Handouts to Gas, Coal and Nuclear?

Capacity Subsidies May Be Redundant

The U.K. this week holds its biggest auction ever for electricity generating capacity under a multi-billion-pound scheme whose stated aim is to increase investment in new, flexible generation. The intent is to help balance the growth in variable wind and solar power while ensuring there are enough power plants to cover demand. Under the so-called […]

Read More →

Offshore Wind Seen Now as Cheapest Large-Scale Renewable Power Source in U.K.

Anna Hirtenstein for Bloomberg News: U.K. offshore wind power is on target to become the cheapest source of large-scale clean energy, surpassing the government-mandated price target four years early. The levelized cost of energy for offshore wind — a benchmark measuring affordability over the lifetime of generation assets — dropped below 100 pounds ($125) a […]

Read More →

On the Blogs: Another Wind-Generation Record in the U.K.

James Murray for Business Green: The recent flurry of UK wind power records continued today, as analysts confirmed Scotland generated power equivalent to the country’s entire electricity demand on four consecutive days late last year. WWF Scotland, drawing on data from WeatherEnergy, today reported all of Scotland’s power demand was matched by output from wind […]

Read More →

On the Blogs: U.K. Got More Electricity From Wind Than From Coal in 2016

Simon Evans for Carbon Brief: The UK generated more electricity from wind than from coal in the full calendar year of 2016, Carbon Brief analysis shows. The milestone is a first for the UK and reflects a collapse in coal generation, which contributed just 9.2% of UK electricity last year, with 11.5% from wind. The […]

Read More →
IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

Paying Producers for Electricity They Might Never Generate

  So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: More public subsidies for electric utilities. Utilities may get—but not necessarily need or deserve—high-level government support for a variety of reasons, including for their role in equity markets, where they supply returns and dividends for pension […]

Read More →

IEEFA Report: Spain’s Outmoded Capacity Payment Structure Encourages Wasteful Subsidies for Coal and Gas, Thwarts Electricity-Sector Modernization

Reforms Should Include an Interconnected Grid, an Independent Regulator, and a More Transparent Market

Dec. 13, 2016 (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) published a brief today showing how Spain provides inflated subsidies to owners of coal- and gas-fired power plants through an expensive electricity-sector capacity market. A dozen European countries, including France, Germany, Italy and the U.K., are either considering or already have […]

Read More →
IEEFA Europe: Can Coal Power Hang On?

IEEFA Europe: Can Coal Power Hang On?

Investors May Not Be Eager to Absorb More Losses Like Those Seen in Recent Dutch Build-Outs

Investment in new coal-fired power plants appears off the agenda in Western Europe. Witness the astonishing write-down of brand-new assets in the Netherlands, where European utility giants RWE, Uniper, and Engie have drastically reduced their valuations of plants barely a year old (read the report we published this morning, “The Dutch Coal Mistake,” which concludes […]

Read More →
IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

An Acceleration to Renewables, Faster-Than-Expected Shifts Regionally and Nationally, Growing Risk for Investors Who Lag Behind

Three notable takeaways emerge from the rapid transformation of the global energy economy, as we detail in a new paper we published today as the landmark Paris Agreement officially goes into effect. The global transition to renewables is accelerating. Change is happening faster than expected. Those left behind in this transition face growing financial risk. […]

Read More →

Health Groups Call for Closing of Remaining U.K. Coal Plants

John Vidal for the Guardian: Groups representing Britain’s 600,000 doctors and health professionals say it is “imperative” to phase out coal rapidly to improve health and reduce NHS costs. The doctors and nurses say tackling outdoor air pollution from traffic and power stations would cut climate emissions, reduce air pollution, and deliver a powerful boost […]

Read More →