Reviewing Europe’s transition from a gas market to renewables

Abstract

Not only this chapter focuses on the European gas market, but it is also an overview/summary of trends and innovations that have started in Europe and helped shape renewable energy-trends that can indeed influence various parts of the Global Energy Market. Much of this has been done within the confines of the Global Energy Village, an annual storage event conducted by EnergyWise. An event brings together the best minds so that new trends and innovations can be explained and compared and thereby scenarios developed. Key issues include Europe’s diminished gas production and its increased dependency on gas imports, in particular from Russia. While gas imports will probably stay long term at their current level, long-term this can change. There is a question whether Gazprom can finance its Yamal’s assets to ensure a continued supply of gas to Europe. And Europeans are increasingly turning to renewable fuels. How this will play out remains to be seen. Europe’s energy politics is in the short-to-medium term a muddle. The rise of shale gas in the USA has given a sharp rise to coal imports to Europe. CO2 emission trading prices are too low; hence, they are irrelevant. Continuous subsidies for green energy continue to distort the marketplace. And in Germany ‘brown coal’ continues to be popular as an industrial fuel. Also an analysis is given of the oil and gas industry. The basic tenant of a hydrocarbon base, known in the industry as Reserve Replacement Ratio (RRR), is critically examined. Instead, it is argued that the industry should introduce an ‘Energy Unit’, based on renewables, and be CO2 neutral. This can be the basis of a new Energy Road Map.