December 16, 2022
NOW REPLACE VLAD WITH TAXES:
Is Europe's Energy Crisis Actually A Boon? (Irina Slav, Dec 14, 2022, OilPrice)
[S]ome believe that not only is the worst over for Europe but that the crisis actually did the EU a favor. That favor took the form of accelerating the buildout in renewables and the restart of hydrocarbon-fueled power plants.This take, which is certainly not very common right now, came from one investment manager, Per Lekander, who is managing partner at a firm called Clean Energy Transition LLP. Speaking to CNBC this week, Lekander said that Russia had, in fact, very little to do with Europe's crisis, and it could even be said Vladimir Putin did Europe a favor."This [the crisis] is the consequence of long term under investments in conventional, long term red tape in renewables and then these political closures of nuclear, coal, lignite, etcetera," Lekander told CNBC.He then went on to add that the measures that European countries took after Russia began responding to EU sanctions by reducing gas flows went a long way toward ensuring that the continent would survive this winter.Energy demand reduction was one of these measures, according to the financier, and returning to hydrocarbons for power generation was another. A third one was the planned reduction in red tape in wind and solar power system construction--obstacles that these two industries have been complaining about for years.It could be argued that this energy demand reduction that has allowed Europe to save on gas was a result of exorbitant prices rather than any voluntary change in energy consumption behavior patterns.
Driving up the cost of consumption works.
Posted by Orrin Judd at December 16, 2022 8:03 AM
