Tackling the energy crisis: 8 considerations on how Europe can get through this winter
We advise against hurrying into reform along the so-called Greek proposal, consisting of a new price-setting mechanism for renewables, hydropower and nuclear electricity. Unlike fossil fuel prices, it is extremely difficult to determine the price for renewable energy: once launched, renewable energy plants (e.g. wind farms) have hardly any operating costs. The coupling with other energy prices has become a proven system of pricing at levels above marginal cost.
Read More