There is a strong case for an oil benchmark in euros. Trading energy markets in more than one currency is not unprecedented, and indeed used to be the norm. Europe – with its powerful currency and reliable regulatory environment – should stand a good chance of success.
This book, co-edited by Bruegel's Research Fellow Simone Tagliapietra, explores in detail the challenges which the European gas markets currently face, and the opportunities they present. Bringing together some of the most prominent gas experts on Europe from both academia and industry, this edited volume provides a comprehensive analysis of the various economic, political and technological factors that interact in this sector.
What’s at stake: Two years ago, a debate started on whether it would be feasible for the US to achieve 100% renewable energy power. The arguments on both sides have been fierce, and more has been written recently. We review the debate.
Europe talks a lot about energy market reforms, but what is the global context? Which measures would be most effective in delivering the kind of energy market needed for decarbonisation?
The broad definition of an Energy Union may enable the European Commission to facilitate a radical compromise between the member states. Because Germany's energy and climate policy goals can be realised only within the European network, the country ought to play an active role in this process.
The European energy landscape has changed markedly in 2014. Now the EU must rethink its relationship over gas with Russia and Ukraine.
To meet the EU's objectives for emissions, electricity supply and gas security of supply, well-designed European markets could provide better results at lower cost than uncoordinated national approaches. In other areas – such as energy efficiency and supporting innovation – markets alone might not be enough. Europe should thus rethink its quantitative headline targets for 2030.
A comment on the ‘Schengenisation’ of EU energy policy: going for regional electricity markets instead of an EU-wide market comes at a cost.
Why the economic pressure to create a comprehensive internal energy market is building
To reap the significant benefits from an integrated European electricity market, we propose the following blueprint: First, we suggest adding a European system-management layer. Second, the role of the European ten year network development plan (TYNDP) needs to be upgraded. Third, sharing the cost of network investments in Europe is critical.
Bruegel Fellow Georg Zachmann explains the state of the internal energy market in Europa and outlines the benefits of making rapid progress on its completion.
Enabling the seamless trade in electricity across borders would help to deliver on all three European energy policy targets – security, sustainability and competitiveness.