Page 15 - FSUOGM Week 42 2021

FSUOGM POLICY FSUOGM

EC vows to investigate possible antitrust

behaviour on energy market

EUROPE THE European Commission plans to “investi- development of energy storage, including batter-
gate possible anti-competitive behaviour in the ies and hydrogen.
The EC did not say who energy market” as part of a set of measures in “Investments in renewable energy and energy
the alleged offenders response to the spike in gas and power prices, it efficiency will not only reduce dependence on
were. said on October 13. imported fossil fuels, but also provide more
The EC did not say who the alleged offend- affordable wholesale energy prices that are more
ers were, although its announcement comes a resilient to global supply constraints,” the Com-
few days less than a month after a group of EU mission said. “The clean energy transition is the
lawmakers hailing mainly from Poland and the best insurance against price shocks like this in
Baltic States asked the Commission to investigate the future, and needs to be accelerated, also for
Russia’s Gazprom for alleged manipulation. The the sake of the climate.”
company has been criticised for exacerbating Despite this call for a fast-tracked energy
the energy supply crunch by withholding some transition, Europe’s increased reliance on wind
gas from the market. It is understood to be com- power capacity was a factor in causing shortages.
plying with its contractual obligations but is not Wind output has been weak across Europe over
selling gas on the spot market. this summer. Batteries and hydrogen can be used
EC President Ursula von der Leyen on Octo- to store solar and wind power when generation
ber 5 blamed the crisis on supply not rising rates are high and then release that energy to the
accordingly with demand, adding she was “very grid when they are low. But these technologies
grateful that Norway is stepping up its supply, but are years away from making a meaningful con-
this does not seem to be the case, for example, tribution to energy storage.
in Russia.” In the meantime, a further growth in renew-
The EC published on October 13 a “toolbox” ables could leave Europe even more exposed to
of initiatives to help shield consumers and busi- energy shortages in the future, unless reliable
nesses from the energy price spike. Short-term base-load capacity is also added. A number of
measures include emergency income support EU member states are looking to close down
to households, state aid for companies and tar- base-load coal capacity, including Germany,
geted tax cuts. Longer term, the commission also which also wants to end the use of nuclear
called for a revision of gas storage regulations to power. But there is not expected to be a cor-
ensure that the bloc has enough supply in stock, responding increase in natural gas base-load
an increase in investment in renewables and the capacity.™

Week 42 20•October•2021 www. NEWSBASE .com P15