Energy developments

Since I work for Nuon (part of Vattenfall), I have gained quite a decent insight in the energy market. I understand the value chain, I see what’s happening in Sweden, Germany and the Netherlands and try to put it all together in an EU and global perspective. Let me have a go at putting it together in a few sentences:

USA went for shale-oil & gas, Germany for renewables and France stuck to nuclear. As usual, the Netherlands talked, wrote documents but did nothing. Sweden is happy with a hydro & nuclear mix. In the meantime the global economy collapsed due to the financial crisis. Due to the above a) the price of coal collapsed because USA dropped out of the market b) on a windy and sunny day Germany produces more energy than it needs and c) France goes on like they always do. Funny observation: Germany closes down nuclear power plants, but does not mind importing French power at night.

Crisis means less demand, so as a result wholesale prices dropped sometimes below zero: energy for free and loads of overcapacity due to decisions made 10 years ago. Good for consumers you may think, but the governments need money to pay for the energy transition to renewables and their other hobbies. So I still pay 23 cents per kWh and my German collegues pay 6 cents more. Gas prices went through the roof, I don’t understand why yet, and  as a result the modern Nuon gas-fired powerplants are sitting idle.

Coal emits loads of CO2 but unfortunately the governments gave in to the energy lobby and loaded the CO2 trading system with more CO2 then ever will be produced. So on top of coal being cheap to buy, burning it is also cheap. Until the CO2 price reaches a level again on which it has impact on the market, things will not change. That’s a sad conclusion!

Looking on a global scale: India and China are building coal powered plants at a frightening rate in their growing economies. No CO2 reduction the West achieves can compensate for this. So sooner or later this will take it’s toll and nature will wipe the human species of the face of this earth. I wonder what future visitors to our planet will make of what they find…

Until this happens, I did what half of Germany did: I put 12 PV-panels on my roof and took energy saving measures like replacing old light bulbs, the fridges and freezer. After half a year my electricity use has more than halved! Last week the heater was replaced and all radiators upstairs have been fitted with thermostatic valves. I am fully aware not everyone has a spare 6500 euro to spend on this as I have, but you don’t have to do it all in one go. Also this year the Dutch government will come with some attractive finance plans to reduce the financial burden. In addition by starting this I  noticed I am more aware of the resources I use: less food and water for instance: my wife is a master in cooking lovely meals from the leftovers and we try to keep our stocks low. After all, we have 3 supermarkets on a walking distance!

As individuals we have little impact on global issues. But by making the right choices we can make a change. Look at your personal lifestyle, do what you can and use your vote wisely at the next EU elections.