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131. Bulgaria Energy Sector

Author:
Boyko Nitzov, Ruslan Stefanov, Valentina Nikolova, and Dobromir Hristov
Publication Date:
04-2010
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Energy security in Central-Eastern Europe and the Black Sea region is fraught with risks. By virtue of its geography, Bulgaria finds itself in a difficult nexus, drawn into Eurasia's contentious energy geopolitics and as a European Union member, involved in the Union's fragmented energy policy and complex regulatory, energy efficiency and climate change objectives. That position is challenging, but it also presents decision-makers in Sofia with opportunities.
Topic:
Economics, Energy Policy, and Reform
Political Geography:
Europe, Central Asia, and Bulgaria

132. Central Europe and the Geopolitics of Energy

Author:
Franklin D. Kramer, John R. Lyman, and Mihaela Carstei
Publication Date:
12-2010
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Energy security presents quintessential geopolitical challenges. In Central Europe, achieving energy security can be a critical element for a continent seeking to resolve vestigial Cold War complexities with Russia and toward meeting 21st century challenges including balanced economic development, energy diversity and climate change. Central Europe, utilizing both European Union support and Western European national assistance and enhanced by United States technical assistance, can take five key steps that will go far toward resolving energy security challenges and help to reframe the geopolitics of the continent.
Topic:
Security, Economics, Energy Policy, Oil, and Natural Resources
Political Geography:
Russia, United States, and Europe

133. Managing the Challenge of Russian Energy Policies

Author:
Keith C. Smith
Publication Date:
12-2010
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Following the breakup of the Soviet Union and the Warsaw Pact, the leaders of Russia, including then-President Boris Yeltsin, searched for new methods of continuing to exert influence over the former Soviet-controlled region. The Kremlin at first used an energy blockade to the Baltic States in 1990 in an attempt to prevent their breakaway from the Soviet Union. After that failed, it then focused on the growing opposition in the former republics of the Soviet Union and in East Central Europe to its foreign and economic policies, and in particular on demands that Russian military forces withdraw from the newly independent states. The Kremlin leadership quickly recognized that short of military action, its major foreign policy tool was the denial or threat of denial of access to Russia's vast oil and gas resources. The economies of East European and Central Asian countries, and especially their rail and pipeline infrastructures, had been hardwired by Soviet leaders to assure total dependency on Moscow for their raw materials, including oil, gas, coal, and nuclear fuel.
Topic:
Cold War, Economics, Emerging Markets, Energy Policy, and Oil
Political Geography:
Russia, Europe, Central Asia, and Soviet Union

134. Confronting the American Divide on Carbon Emissions Regulation

Author:
David Wheeler
Publication Date:
12-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The failure of carbon regulation in the U.S. Congress has undermined international negotiations to reduce carbon emissions. The global stalemate has, in turn, increased the likelihood that vulnerable developing countries will be severely damaged by climate change. This paper asks why the tragic American impasse has occurred, while the EU has succeeded in implementing carbon regulation. Both cases have involved negotiations between relatively rich “Green” regions and relatively poor “Brown” (carbon-intensive) regions, with success contingent on two factors: the interregional disparity in carbon intensity, which proxies the extra mitigation cost burden for the Brown region, and the compensating incentives provided by the Green region. The European negotiation has succeeded because the interregional disparity in carbon intensity is relatively small, and the compensating incentive (EU membership for the Brown region) has been huge. In contrast, the U.S. negotiation has repeatedly failed because the interregional disparity in carbon intensity is huge, and the compensating incentives have been modest at best. The unsettling implication is that an EU-style arrangement is infeasible in the United States, so the Green states will have to find another path to serious carbon mitigation. One option is mitigation within their own boundaries, through clean technology subsidies or emissions regulation. The Green states have undertaken such measures, but potential free-riding by the Brown states and international competitors seems likely to limit this approach, and it would address only the modest Green-state portion of U.S. carbon emissions in any case. The second option is mobilization of the Green states' enormous market power through a carbon added tax (CAT). Rather than taxing carbon emissions at their points of production, a CAT taxes the carbon embodied in products at their points of consumption. For Green states, a CAT has four major advantages: It can be implemented unilaterally, state-by-state; it encourages clean production everywhere, by taxing carbon from all sources equally; it creates a market advantage for local producers, by taxing transport-related carbon emissions; and it offers fiscal flexibility, since it can either offset existing taxes or raise additional revenue.
Topic:
Climate Change, Energy Policy, Environment, and Politics
Political Geography:
United States and Europe

135. Consumer Valuation of Energy Supply Security: An Analysis of Survey Results in Three EU Countries

Author:
Wan-Jung Chou, Alistair Hunt, Anil Markandya, Andrea Bigano, Roberta Pierfederici, and Stephane La Branche
Publication Date:
11-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
There is a decided movement in EU energy markets towards a deregulated framework. This framework, however, might lack the necessary incentive structure for generators to maintain high service reliability, thus increasing the risk of generation and transmission outages. Faced with such a challenge, it is crucial for policy-makers to envisage consumer valuation of service reliability in the future so that an acceptable combination of regulatory and economic tools can be applied to maintain adequate security of energy supply that is socially optimal and economically efficient.
Topic:
Security and Energy Policy
Political Geography:
Europe

136. Europe's Electricity Supply Security: Strengthening the Chain

Author:
Michele Benini
Publication Date:
11-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Efficient development of electricity transmission infrastructure is crucial to achieving EU targets for a secure, competitive and sustainable electricity supply. However, many uncertainties, such as future load demand, generation supply, electricity prices and increasing time requirements for the realisation of transmission infrastructures in member states, increase the risk that these targets will not be reached. Given the forecasted increase of distributed generation and the introduction of demand response techniques to control load, new decentralised network architectures must be defined to guarantee the system's efficient use and stability. Each link in the chain of electricity security of supply is crucial, from generation to transmission to distribution to demand.
Topic:
Security, Development, and Energy Policy
Political Geography:
Europe

137. Europe's Coal Supply Security: Obstacles to Carbon Capture, Transport and Storage

Author:
Christian von Hirschhausen, Clemens Haftendorn, Johannes Herold, Franziska Holz, Anne Neumann, and Sophia Rüster
Publication Date:
11-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Europe faces a paradox with respect to coal supply security. On the one hand, coal is a reliable fossil fuel, with ample reserves available from a large number of producers. Globally, coal use has risen at a rate of 4.9% annually in recent years (WCI, 2010). Yet on the other hand, Europe's climate policy objectives will not allow continued use unless this 'dirtiest' of all fossil fuels can be transformed into a 'clean' one, e.g. via new carbon capture, transport and storage (CCTS) technology. CCTS, however, this requires substantial technological advances for application in the medium and long term (MIT, 2007). The Intergovernmental Panel on Climate Change (IPCC, 2005) concludes that CCTS can contribute 15-55% of the cumulative emissions reduction effort through 2100, and assumes a major role in a portfolio of the low carbon technologies needed to mitigate climate change. According to the International Energy Agency (IEA, 2008), CCTS is "the most important single new technology for CO2 savings" in both power generation and industry. However, the IEA's 2009 'Blue Map' scenario also states that 100 carbon capture plants, a minimum of 10,000 km of pipelines and storage of 1.2 GtCO2 are required for CCTS to become a serious abatement technology by 2020. We are nowhere close to these and might never get there.
Topic:
Security and Energy Policy
Political Geography:
Europe

138. Security of Europe's Gas Supply: EU Vulnerability

Author:
Andrew Macintosh
Publication Date:
11-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Clearly the natural gas market is experiencing considerable change: a second Ukraine-Russia gas crisis, a collapse in the price of natural gas, a new European natural gas security of supply regulation and the mass production of natural gas from unconventional sources in the US as a result of technological advancements, which could yet have an impact on the EU. This Policy Brief is a summation of the European Union's vulnerability to natural gas supply security risks.
Topic:
Security and Energy Policy
Political Geography:
Russia, Europe, and Ukraine

139. CO2 Highways for Europe: Modelling a Carbon Capture, Transport and Storage Infrastructure for Europe

Author:
Johannes Herold, Roman Mendelevitch, Pao-Yu Oei, and Andreas Tissen
Publication Date:
11-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
We present a mixed integer, multi-period, cost-minimising model for a carbon capture, transport and storage (CCTS) network in Europe. The model incorpor ates endogenous decisions about carbon capture, pipeline and storage investments. The capture, flow and injection quantities are based on given costs, certificate prices, storage capacities and point source emissions. The results indicate that CCTS can theoretically contribute to the decarbonisation of Europe's energy and industrial sectors. This requires a CO2 certificate price rising to €55 per tCO2 in 2050, and sufficient CO2 storage capacity available for both on- and offshore sites. Yet CCTS deployment is highest in CO2-intensive industries where emissions cannot be avoided by fuel switching or alternative production processes. In all scenarios, the importance of the industrial sector as a first-mover to induce the deployment of CCTS is highlighted. By contrast, a decrease in available storage capacity or a more moderate increase in CO2 prices will significantly reduce the role of CCTS as a CO2 mitigation technology, especially in the energy sector. Furthermore, continued public resistance to onshore CO2 storage can only be overcome by constructing expensive offshore storage. Under this restriction, reaching the same levels of CCTS penetration would require a doubling of CO2 certificate prices.
Topic:
Climate Change, Energy Policy, Industrial Policy, and Science and Technology
Political Geography:
Europe

140. Carbon Capture, Transport and Storage in Europe: A problematic energy bridge to nowhere?

Author:
Christian von Hirschhausen, Johannes Herold, and Sophia Rüster
Publication Date:
11-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This paper summarises the findings of work package 5.3 of the SECURE project, with regard to the role of carbon capture, transport and storage (CCTS) for the future European supply security of coal. The real issue in European supply security with respect to coal is the absence of an economically and politically sustainable use of coal for electricity, liquefaction, gasification, etc. Whereas earlier papers delivered for work package 5.3 on the coal sector indicated that there are few risks to the European energy supply of (steam) coal, there is an implicit supply security threat, i.e. that coal will no longer be an essential element of European energy supply because the CCTS rollout will be delayed or not be carried out at all. This thesis is substantiated in this subsequent paper, with more technical details and some case study evidence.
Topic:
Security, Economics, and Energy Policy
Political Geography:
Europe