Europe Risks Energy Crisis From Green Subsidies, CEOs Say
How can we dream of an industrial renaissance with such a differential? Enel SpA (ENEL) Chief Executive Officer Fulvio Conti called for an end to Robin Hood taxes and aid. Id rather see the Sheriff of Nottingham for most of the legislation. Lets restore normal and eliminate state intervention and subsidies. The EU started a debate in March on a new set of climate and energy rules as the 28-nation bloc seeks to ensure security of supply and cut greenhouse gases. A framework for the decade to 2030 is needed to give investors legal certainty, spur innovation and prepare for a global climate deal, the European Commission said in a consultation paper at the time. At the same time, the EU is considering options to overhaul the 53 billion-euro ($72 billion) carbon market after emission-permit prices slumped to a low of 2.46 euros in April amid a record glut of permits. In addition to broader reforms in coming years, the emissions-trading system needs a short-term fix, GDF CEO Gerard Mestrallet said. Without a carbon signal, we will not have any visibility, and we will not be in a position to invest. Carbon Collapse The collapse of the carbon price has made coal, the dirtiest source of power, also one of the cheapest. The switch to coal and requirements to buy renewable power have sapped the profitability of natural-gas-fired plants, leading to the widespread shutdown of combined-cycle gas turbine plants, which are among the cleanest. Fifty-one gigawatts of the blocs electricity capacity is mothballed, equivalent to the combined capacity of Belgium , the Czech Republic and Portugal , the utilities said in a brochure given to reporters today. Energy consumers should be billed only for energy, said EON CEO Johannes Teyssen who also is president of the Eurelectric industry lobby. At present European consumers help pay for subsidies to promote renewable-power generation through larger energy bills. Bigger Bills More than 50 percent of the bill European consumers are paying today has nothing to do with power generation and networks, and thats because of political decisions, said Iberdrolas Ignacio Galan. That has already created a lot of distortions. Energy bills rose 17 percent in four years for domestic consumers and 21 percent for industrial consumers, the utilities said today in the brochure. European Union leaders in May urged faster integration of the blocs power and gas markets as a way to lower costs after the U.S. shale-gas revolution widened the EUs cost gap with its largest trading partner.
Meanwhile, Italy’s coast guard says many of the 200 migrants aboard a boat that capsized off Lampedusa have survived and helicopters are taking the injured to the Sicilian island. Coast guard spokesman Marco Di Milla says “a good number” of the estimated 200 people have been rescued. He says the coast guard received a satellite phone call from the boat and was able to locate it based on the satellite coordinates. A Maltese armed forces statement says that since the boat was in Maltese search and rescue waters, a Maltese aircraft was sent up and reported that the boat had capsized and that “numerous” people were in the water. The aircraft dropped a life raft and a patrol boat soon arrived at the scene. ALSO THIS WEEK: Italy detains suspected boat captain as death toll hits 275 Egypt’s state news agency says the coast guard received a call for help Friday from a boat carrying the migrants and naval forces went out to the rescue. It said the survivors were 72 Palestinians, 40 Syrians, and four Egyptians. The nationalities of those who drowned were not immediately available. Officials said rescue efforts continued. At least 70,000 Syrians are registered in Egypt as refugees. Many non-registered, including thousands of Palestinians who also fled the war in Syria, use the country as a stop before making the perilous sea trip to Europe. Thousands of Egyptians also make the sea journey to flee poverty and high unemployment. SHARE 83 CONNECT 38 TWEET 8 COMMENTEMAILMORE Copyright 2013 The Associated Press.