5 ms·
Summary : some EU energy experts believe the lesson from the 2022 crisis is we need more of the same policy.
by pyrale 3y ago
Summary : some EU energy experts believe the lesson from the 2022 crisis is we need more of the same policy.
- doingtheiroming 3y agoDamn. Came to post the same. You said it better. It's the real disease of the EU. There's no problem of failed policy that shouldn't be addressed by deepening the policy and making it harder to back track. The only possible response to problems of complexity is to make the complexity more intractable.
- pyrale 3y agoThe real shocker for me is that the authors completely ignore the difference between grid integration and market integration. They seem to hold a maximalist line where the market can and should drive planification of the power grid, and where "managerial-governance" can emerge from that abstraction.
- deleted 3y ago[deleted]
- doingtheiroming 3y agoYep. Grid integration is great. Engineered markets much less so. Sadly, the incentives for regulators and market participants are well aligned here...
- jnsaff2 3y agoI want to understand your reasoning a bit better. Care to expand please? The way I see 2022 was a crisis of energy PRICES, had the markets not been there it might have been a crisis of energy AVAILABILITY. Strictly worse.
- pyrale 3y agoInterconnexions existed before the market, and their development is not purely related to the market. A significant part of grid cooperation through ENTSO-E is about stability, not increased market benefits. If you will, this is like saying you need an exchange for trade. Well, no, OTC markets exist.
- jnsaff2 3y agoInterconnections sure, but the crisis of 2022 was mostly about cost of gas and other fossil fuels. The markets made sure that the plants got their costs covered and stayed online. One can argue whether the last-price-wins is the best market structure but how would you have forced plants to generate at a loss without nationalizing them?
- pyrale 3y ago> The markets made sure that the plants got their costs covered and stayed online. I don't really understand your point here. In an otc trade, costs are also covered, no one works for free. That being said, my original point was not even about that. It was more about lines in the article that strongly hint that, in the author's opinion, the current issue is politicians not doing enough to force their citizen to swallow the pill. Relevant paragraph: > Further market integration requires substantial political investment. Governments will need to deal with significant distributional effects within and between countries. Experience has shown that domestic political constraints in this respect are often numerous and difficult to overcome.
- mrweasel 3y agoThe problem, in this case, is that the EU lives in it's own little bubble where it assumes that the member countries and commercial interests act rationally and in the best interest of Europeans. As such I don't see an issue with an integrated electricity marked, if you at the same time ensure that countries and companies doesn't simply stop investing in energy infrastructure because: We can just buy what we need from someone else. It's fine to buy cheap wind power and shutdown a power plant if the wind is blowing, but if you only building wind farm and assuming that you can piggy back on the nuclear reactor or dams next door when the wind stops blowing, then it quickly falls appart. Each country, or region, needs to have a plan for self-sufficiency, in all circumstances, but that's not a financially sound idea. Better to have a electricity shortage once in a while, if you only care about money. This is the bit that the EU does not understand. For some reason the EU has always had a blind spot when it comes to the actions companies, and countries, will take in the name of financial gains.
- pyrale 3y ago> Better to have a electricity shortage once in a while, if you only care about money. This is the way 100% of power grids work, even the more autonomous ones. The cost to remove some once-in-a-century risks is simply too high. So every single grid operator focuses on two parameters: how often does an equipment fail, and how impactful it is to lose it.