Energy-Climate

With the approach of the 2014 deadline for the completion of a truly European liberalized energy market, there is growing concern on the adequacy of the market structure with the changed economic and geopolitical environment. Market-based and short-term approaches have been fostered for both gas and electricity markets. Energy and climate policies have therefore a primary function in designing the basic rules for these markets to develop.

The wave of deep offshore and unconventional gas and oil exploration projects, rendered economically feasible by relatively high prices and new technologies, has reached the shores of the Mediterranean. Levantine countries, including Cyprus, Israel, Palestinian Territories, Lebanon, Syria, have new offshore gas potentials.

 

Over the past four years, international coal trade has been reshaped by China’s surging imports. 

The contest for control of Russia's oil industry has been an integral feature of the country's politics ever since the collapse of the Soviet Union.

Europe has set ambitious but drastic targets in order to fight climate change. The 20-20-20 objectives demonstrate this. By 2020, emissions are to be reduced by 20%, the share of renewable energy sources (RES) in energy consumption is targeted to rise to 20%, and energy efficiency is planned to increase by 20% in comparison to the 1990 levels in Europe.

Kuwait is facing a surge in the consumption of power. The current power fuel mix, based on oil, appears unsustainable. Yet Kuwait has a large number of assets.

The European coal industry is at a crossroads. The European Commission (EC) Energy Policy by 2020, the 20/20/20 targets, is not favourable to coal:

a 20% decrease in CO₂ emissions does not favour coal compared with natural gas, its main competitor in electricity generation;

a 20% increase in energy efficiency will lead to a decrease in energy/coal consumption;

a 20% increase in renewables will displace other energy sources, including coal.

Over the last ten years, Kuwait's power consumption has doubled. This rising need for electricity has been mainly driven by the fast population growth rate, the increasing need for desalinated water, accounting for 93% of water consumption, and the economic development of the country.

Since the 2000s, China and India's needs for hydrocarbons, coming on top of those of older industrialized Asian countries (Japan and South Korea), have considerably strengthened customer-supplier links between Asia in general and the Persian Gulf, in the energy field.

The futuristic green city of Masdar in the United Arab Emirates or the latest announcements of Saudi Arabia which might now well become the new Eldorado for solar energy companies have a clear marketing varnish. But if they are showcases of green ambitions, they nonetheless reflect the situation the Gulf States face today driven by the development of heavy industry and petrochemicals but first and foremost by the rapid population growth (around 2% for Saudi Arabia and 3% for Kuwait; Qatar and the Emirates have higher population growth rate due to immigrants).

Nuclear fission was discovered in the late 1930s. The first application went towards military use, and gradually expanded to civil use such as power generation. Power generation gained importance in two stages: firstly, to shift away from oil in power generation after the oil shocks in the 1970s, and second, to arrest climate change due to CO2-free nature of nuclear power more recently. This typically applies to Japan, which has become the world third largest in nuclear power generation. However, nuclear power is violent by nature, and major accidents of nuclear power plants shook the public confidence in nuclear safety. Japan has been put into such situation in a most radical way due to the Fukushima nuclear disaster of March 2011.

Italy is currently hit by an unprecedented economic, political and social crisis. This changing and uncertain environment affects more than ever the ability to define an energy strategy, which has never really benefitted from a clear vision and a solid organization. Since the 1987 referendum, which acknowledged the end of the nuclear program, the Italian energy policy has been elaborated through a juxtaposition of decrees and rules. Several laws have been approved either to comply with the European regulation or to correct former policies. These have contributed to the creation of a highly intricate regulation puzzle, only accessible to the most voluntary ones or the better equipped. The “success” of renewables subsidies has compromised the profitability of thermal power stations and increased the energy bills of retail consumers.