Dear bills? Blame Brussels, that’s why. Tabarelli’s analysis (Nomisma Energia)
Economist Tabarelli accuses the European Union of spreading the idea of an "easy" ecological transition. Here because
What are the reasons for the expensive bills?
Davide Tabarelli, professor of economics at the University of Bologna and president of the energy research company Nomisma Energia, today published a comment in the newspaper La Stampa on the energy price crisis: an international problem but a serious one especially in Europe; in Italy, in the first quarter of 2022, the electricity bill will increase by 55 percent and that of gas by 41.8 percent.
FAULT OF THE ECOLOGICAL TRANSITION?
Tabarelli accused Italian and European politics for having "placed the ecological transition at the basis of their programs" and presented it as "easy" to citizens. “Bring us renewables this winter that should bring gas and electricity prices down,” he adds, referring to the very high costs of natural gas and electricity on the European wholesale market.
The ecological transition foresees, with a view to a progressive reduction of greenhouse gas emissions up to net zero, a detachment from fossil fuels (such as gas, often used to produce electricity) in favor of a greater use of renewable sources (such as wind and solar power).
COAL AND AMERICAN LNG
“The solution would be to maximize coal capacity, however, with enthusiasm, the closure of La Spezia and Fusina has just been announced in Italy. Meanwhile, Germany, despite the ruling Greens, has increased its coal consumption by 30% this year. If new gas from the US is arriving in Europe now, it is because less of it is consumed in Asia ”.
Many American ships loaded with liquefied gas , in fact, are heading towards Europe, attracted by the greater earning possibilities compared to Asia: the countries of the region – and in particular those in the north-eastern portion, such as Japan – have already bought it. in large quantities, ensuring sufficient supplies for the winter.
THE PROPOSAL OF TABARELLI
Tabarelli invites the European Commission to "force Germany to give the green light to Nord Stream 2 and propose to individual countries a relaxation of environmental constraints on CO2 emissions, to allow the consumption of fuels other than coal". The energy economist particularly criticizes Frans Timmermans, executive vice president of the EU Commission, for the Green Deal (the Union's energy and climate plan), for his "satisfaction in seeing high energy prices , because this accelerates the abandonment of fossil fuels ".
Nord Stream 2 is the direct gas pipeline between Russia and Germany, which would increase the availability of gas in Europe and lower its prices. However, many fear that the infrastructure represents a geopolitical weapon in the hands of Moscow, which will allow it to increase its influence on Europe (it is already the first supplier of gas, with a share of about 40 per cent) and to marginalize Ukraine (a country that the Kremlin has an interest in isolating from the West; the main Russian pipelines arriving in Europe pass through its territory).
As the Guardian explained, the German authorities are demanding that Nord Stream AG, the consortium operating the pipeline and which is registered in Switzerland, transfer its assets and balance sheet to a German subsidiary. For this reason they have suspended the authorization process.
NUCLEAR? NO, ACCORDING TO TABARELLI
On the role of nuclear power as a remedy for possible energy shocks in a decarbonised future, Tabarelli has already shown himself skeptical. "There have been two referendums, and above all there is a basic problem that has always been Italy's inability to manage complex systems, as France does, for example," he says. "We should be honest and recognize that we wouldn't make it."
RETURN TO ADMINISTRATED RATES
Rather, the analyst proposes to “return to administered tariffs, that is, established by the public authorities. But in Rome and Brussels they say that what we are witnessing is a normal manifestation of the free market, and that everything will be adjusted automatically ”.
STARTMAG INSIGHTS ON THE ENERGY CRISIS
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–Cingolani wants to give gas to Italy?
– Russia and China are gassing themselves, but to what extent?
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/aumento-bollette-analisi-davide-tabarelli/ on Fri, 31 Dec 2021 11:40:46 +0000.