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Carbon Brief @carbonbrief.org · 20/05/2025

NEW – Factcheck: Why expensive gas – not net-zero – is keeping UK electricity prices so high | @drsimevans.carbonbrief.org‬ @mollylempriere.carbonbrief.org‬ w/ comment from @dharavyas.bsky.social‬ Prof Robert Gross, Paul Drummond, Frank S. Aaskov Read here: buff.ly/DWsC3sZ

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Leo Hickman @leohickman.carbonbrief.org · 15/05/2025

Quite possibly the biggest climate story of the year (especially when we look back on this in a few years' time) For the first time on record, China's emissions are falling due to clean energy growth, not slow power demand...

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Justin Guay @guayjg.bsky.social · 07/05/2025

Kind of mind blowing that Spain has the lowest ratio of grid to clean energy investment in Europe If you're looking for something to (constructively) blame post power outage under investment in a grid capable of managing a transition is it 👇

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Bruegel @bruegel.org · 02/05/2025

⚖️ Policymakers need to allocate electricity system costs equitably based on four principles 🖋️ By @cheussaff.bsky.social @ejueng.bsky.social @tagliapietra.bsky.social and @gzachmann.bsky.social 🔗 Read the Policy Brief here: buff.ly/NYTxvCs #EconSky

buff.ly

Who should be charged? Principles for fair allocation of electricity system costs

This Policy Brief sets out four principles for pricing electricity fairly

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Bruegel @bruegel.org · 24/04/2025

🔌 Who should be charged? Principles for fair allocation of electricity system costs ⚖️ In this Policy Brief, @cheussaff.bsky.social @ejueng.bsky.social @tagliapietra.bsky.social and @gzachmann.bsky.social set out four principles for fair pricing. 🔗 Read the paper here: buff.ly/NYTxvCs #EconSky

buff.ly

Who should be charged? Principles for fair allocation of electricity system costs

This Policy Brief sets out four principles for pricing electricity fairly

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Conall Heussaff @cheussaff.bsky.social · 24/04/2025

Thoroughly enjoyed speaking about mega electricity network investments on @bruegel.bsky.social's podcast, with @gzachmann.bsky.social & @rebeccawire.bsky.social. We talk investment targets vs. needs, the role of EU planning, and overcoming distributional challenges. www.bruegel.org/podcast/wire...

bruegel.org

Wired for the future: building Europe’s next-gen electricity grid

How smarter planning, better funding and political trust can supercharge the EU’s energy transition

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Conall Heussaff @cheussaff.bsky.social · 01/04/2025

... it's also likely that, due to poor competition in retail markets, suppliers in many European countries use their market power to keep final prices high after wholesale price spikes. more consumer switching would in theory remove this ability to unduly profit

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Conall Heussaff @cheussaff.bsky.social · 01/04/2025

typically there's a lag between wholesale and retail prices because the suppliers have a forward position based on long-term contracts signed months/years ago. I think of the lag as the time it takes for suppliers to adjust their consumer pricing based on their expectation of future prices...

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Conall Heussaff @cheussaff.bsky.social · 28/03/2025

Europe: Weak on gas (and getting weaker), strong on electricity (and getting stronger). Source: www.acer.europa.eu/monitoring/M...

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Conall Heussaff @cheussaff.bsky.social · 06/03/2025

Tracking European and US investments in clean tech is surely going to become even more interesting in coming years. Will US investments tick down, and EU catch up?

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Conall Heussaff @cheussaff.bsky.social · 27/02/2025

We've reached the point where deploying renewables alone isn't enough. Grids, storage, and demand flexibility must be equally prioritised to advance electricity decarbonisation. www.ft.com/content/7939...

ft.com

Green energy gets switched off as power systems fail to keep up

Wind and solar generators stop production at rising rates as grids and battery storage lags

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Conall Heussaff @cheussaff.bsky.social · 25/02/2025

Europe's short-term options for reducing electricity prices are all redistribution: shift between consumers, reduce taxation, or subsidise power. Until we structurally reduce costs, such trade-offs are inescapable. Thanks to @euractiv.com for the quotes below 👇 www.euractiv.com/section/eet/...

euractiv.com

EU's Clean Industry Deal faces race against time - Euractiv

Plan should break the link with gas to renew industry and speed green energy, experts say

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Conall Heussaff @cheussaff.bsky.social · 21/02/2025

Dependence on expensive liquified natural gas (LNG) is part of the problem for European industry. Decarbonisation is not only about climate action. Reducing fossil fuel dependence means economic security and energy affordability, too. Thanks to DW for quoting me here: www.dw.com/en/is-german...

dw.com

Is Germany's industrial economic model in danger? – DW – 02/19/2025

The German economy is a cause for great concern as voters go to the polls to elect a new government. Has the country miscalculated on its business model, where it gets energy, Chinese competition and ...

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Georg Zachmann @gzachmann.bsky.social · 20/02/2025

Here @iriepin.bsky.social, @nworbmot.bsky.social, V.Zavala, and I explore how hyperscale data centres can lower costs&emissions by transporting data instead of energy. Optimised data centre usage across time & location can ease grid expansion needs & stabilise prices. www.bruegel.org/first-glance...

bruegel.org

How data centres can chase renewable energy across Europe

Harnessing the flexibility offered by data centres depending on renewable energy availability could cut costs and emissions

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Ben McWilliams @bmcwilliams.bsky.social · 20/02/2025

🆕 The EU needs to address its energy information problem. Information is not available at the level of granularity, reliability and consistency needed for informed decision-making. With @gzachmann.bsky.social @tagliapietra.bsky.social @bruegel.bsky.social 1/3 www.bruegel.org/policy-brief...

bruegel.org

Europe’s energy information problem

This Policy Brief makes recommendations on how the European energy information problem can be addressed

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Conall Heussaff @cheussaff.bsky.social · 19/02/2025

🚨 Exceptionally important paper. Accessible, accurate, and timely data is needed to make informed energy policy decisions. From my colleagues @bmcwilliams.bsky.social, @gzachmann.bsky.social, and @tagliapietra.bsky.social. www.bruegel.org/policy-brief...

bruegel.org

Europe’s energy information problem

This Policy Brief makes recommendations on how the European energy information problem can be addressed

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

The challenge isn’t just spending more on grids—it’s also about spending smarter. Independent planning, innovative regulation, and fair cost distribution will determine if Europe efficiently delivers an grid ready for net-zero. Full policy brief: www.bruegel.org/policy-brief...

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

Fair cost recovery ⚖️ Electricity affordability is required to ensure public support. National funds could smooth cost recovery over time. However, common EU rules should be applied to avoid preferential treatment for national industries. See figure for a sketch of how such state funds could work.

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

Cross-border transmission 🔗 More interconnection = better renewable integration + lower costs, BUT, the people paying aren’t always the ones benefiting. Expanding EU funding to address cross-border distributional issues could speed up strategic project deployment.

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

Regulation 📜 Network regulation should encourage network companies to invest in the most efficient solutions. Current regulatory approaches may favour traditional capital expenditure, potentially missing innovative operational solutions.

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

Independent planning 📊 Proper investment needs assessment is a prerequisite for efficient spending. Local and national level planning should be complemented by independent pan-EU assessments. First-best solution would be for an EU Independent System Operator (ISO) to perform such assessments.

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

Network layers 🔌 The majority of grid investment will happen at the distribution layer, although transmission, offshore and cross-border are still significant. Appropriate financing sources and cost recovery approaches depend on the network type.

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

Investment needs and current levels 💰 While huge grid investment over a sustained period is required, tens of billions of euros are flowing into electricity transmission and distribution in the EU and neighbouring countries.

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Conall Heussaff @cheussaff.bsky.social · 18/02/2025

🚨 Europe needs massive investments in electricity grids—but money alone won’t be enough. Our new paper with @gzachmann.bsky.social for @bruegel.bsky.social discusses the bigger picture. Scroll on for our key points 🧵⬇️

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Tara Connolly @taraconnolly.bsky.social · 13/02/2025

An eye-opening stat from the recent @bruegel.bsky.social report on European grids. The value of the French DSO's assets are over three times those of the French TSO 🤯 Great work by @cheussaff.bsky.social. www.bruegel.org/policy-brief...

A screenshot from the report reading:

"The transmission grids of most neighbouring European countries are interconnected. There are 30 transmission system operators (TSOs) 4 in the EU and several thousand distribution system operators (DSOs). Electricity-distribution grids account for most electricity-grid infrastructure and this is reflected in asset values. For example, the grid operated by the largest French DSO, ENEDIS, is worth €54 billion, while the asset base of French TSO RTE is €17 billion (S&P Global Ratings, 2024). The returns earned by TSOs and DSOs and their investment incentives are determined by national regulators, with each EU country taking a distinct regulatory approach. "

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Reposted by Conall Heussaff

Adrian Hiel @adrianhiel.bsky.social · 12/02/2025

DYK #EnergySky? Germany has 873 mostly city-owned DSOs? Spain is next at 365 mostly private DSOs. Poland has 185 mostly public (national) DSOs. From a great report on EU grid investment by @cheussaff.bsky.social and @gzachmann.bsky.social at @bruegel.bsky.social www.bruegel.org/policy-brief...

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Conall Heussaff @cheussaff.bsky.social · 12/02/2025

🆕 Policy Brief @bruegel.bsky.social with @gzachmann.bsky.social on upgrading Europe's grid. A few key messages: - big share of investment needs at distribution level - cost recovery of investments is as challenging as financing - EU funds should further accelerate cross border inter connections

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Jacob Edenhofer @jacobedenhofer.bsky.social · 28/01/2025

The anti-climate backlash seems to be in full swing. The EU (and its member states) are poorly prepared because the EU ETS2, the linchpin of the Green Deal (in terms of emissions reduction potential), covers sectors (transport and buildings) with visible and www.politico.eu/article/lets...

politico.eu

Let’s kill the Green Deal together, far-right leader urges EU’s conservatives

Jordan Bardella thinks he can convince the European People’s Party to suspend EU climate legislation.

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Conall Heussaff @cheussaff.bsky.social · 11/02/2025

ETS 2 – carbon pricing for transport and buildings – is critical for EU climate policy, but it must be carefully managed to protect vulnerable citizens and maintain support for the transition. Glad to be quoted in Correctiv's reporting on this important issue: correctiv.org/en/europe/20...

correctiv.org

EU states not prepared for new carbon pricing

Member states are not adequately preparing for the CO2-pricing on heating fuels. MEP calls for "serious discussion" about social measures.

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Conall Heussaff @cheussaff.bsky.social · 04/02/2025

ENTSO-E's Infrastructure Gaps Report for the TYNDP 2024 makes the strong case that for every euro invested in the electricity grid, nearly two euro will saved in system costs, in addition to GDP, employment and tax revenue gains. Can grids pay for themselves? www.entsoe.eu/outlooks/tyn...

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Georg Zachmann @gzachmann.bsky.social · 03/02/2025

Infrastructure Gaps Report by the European electricity system operators Sees regionally very differentiated add'l needs by 2030, eg: strong add: FR-UK & SWE-FIN limited add: ES-FR, CEE/SEE no add: POL-LIT; UA/MD eepublicdownloads.blob.core.windows.net/public-cdn-c... h/t @cheussaff.bsky.social

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Conall Heussaff @cheussaff.bsky.social · 12/12/2024

Fully agree that CfDs will be a net cost for the state in the long run, but overall consumer costs should reduce (because CfD strike prices are lower than today's spot prices), so subsidy still gives the wrong idea. Suspect it's a terminology hangover from when renewables weren't competitive

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Simone Tagliapietra @tagliapietra.bsky.social · 12/12/2024

Save the date 🗓️ How will the Clean Industrial Deal support EU industries? Ahead of the launch of the initiative in February, we will discuss this topical question with EVP Teresa Ribera on January 16 at 13:00-14:30 at @bruegel.bsky.social www.bruegel.org/event/clean-...

bruegel.org

Clean Industrial Deal: a conversation with EVP Teresa Ribera

How will the Clean Industrial Deal support EU industries?

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Conall Heussaff @cheussaff.bsky.social · 12/12/2024

I'm also not convinced that CfDs are really a "subsidy". Competitively auctioned and can be a source of revenue for the state under certain conditions - doesn't sound much like a subsidy. I prefer to call them supports

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Conall Heussaff @cheussaff.bsky.social · 12/12/2024

Excellent list of European energy experts that I am humbled to be included on ⤵️

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Conall Heussaff @cheussaff.bsky.social · 11/12/2024

I enjoyed moderating a great discussion today at the Ariadne project events in Brussels, on the sectoral transformations need to hit our ambitious 90% 2040 target, with @rpietzcker.bsky.social, Jozefien Vanbecelaere and @ctrasi.bsky.social. Indeed, I do love S-curves

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Conall Heussaff @cheussaff.bsky.social · 11/12/2024

The green transition implies less variable energy costs (less fossil fuel burn) and more fixed costs (the capital costs of renewables and the grid). Allocating these fixed costs fairly is a new challenge as they are mainly mediated through the state, not markets (see taxes and levies below).

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Bruegel @bruegel.org · 10/12/2024

🔋 How can Europe cut energy costs while maintaining competitiveness in its decarbonisation efforts? 🔗 Read @cheussaff.bsky.social's Policy brief: buff.ly/3ZliQoT #econsky

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

The right policy choices can bend down energy costs. Decarbonising isn't just about climate—with Europe dependent on expensive fossil fuel imports, it’s about competitiveness and cost of living too. Full policy brief here: www.bruegel.org/policy-brief...

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

4️⃣ Thinking long-term (2030+), deeper integration of Europe's electricity systems through cross-border interconnections (think supergrid) can leverage renewable potential across the continent (offshore wind in the North Sea and solar in the south), making full use of Europe's indigenous resources.

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

3️⃣ In the medium to long-term (to 2030), coordinating energy system investments, especially in renewable and backup capacity, can avoid overbuilding and harness positive spill overs, leading to lower overall costs for European consumers.

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

2️⃣ In the medium-term (next few years), activating consumers to respond flexibly to changing system conditions can reduce prices and the investment needs in technologies like grids and storage. Creating the right financial incentives while informing and engaging consumers is essential.

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

📉 The energy transition will shift final bill cost components. Near-zero-marginal-cost renewables will lower energy costs, but investments in grids, renewables and backup capacity will raise fixed costs via network charges and levies. Policy choices will determine how far costs fall in the future.

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

1️⃣ In the short-term, cost allocation across consumers can be changed even if overall system costs are not reduced. ⚖️ The challenge is to balance industrial competitiveness with cost of living. Households already pay more per unit than industry—can we afford to shift the scales even further?

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

💶 Final energy bills include four parts: energy costs, involving short-term wholesale market supply costs like fuel and carbon, network costs, covering grid investment and maintenance, consumption taxes, and levies & charges that support renewables and backup capacity.

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Conall Heussaff @cheussaff.bsky.social · 09/12/2024

💡 Europe's energy challenge: 98% of natural gas is imported—much as LNG—costing 5x more than domestic US gas. This dependency drives high electricity prices, with fossil fuels still central to the power mix. To make energy affordable, Europe must decarbonise. Here's four ways to reduce prices: 🧵

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Conall Heussaff @cheussaff.bsky.social · 05/12/2024

Thanks for the feedback, Adrian. By medium-term, I meant that the changes could be delivered within the next 2-to-5 years. With flexibility, its about adding to and accelerating existing policies/trends (like the availability of dynamic tariffs highlighted by RAP recently). Hope that's clearer.

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Bruegel @bruegel.org · 05/12/2024

🔌 Energy prices are higher in the European Union than in most other industrialised economies, presenting a fundamental competitiveness challenge Read the latest Policy brief by @cheussaff.bsky.social here: buff.ly/3ZliQoT

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