Montel Magazine 4 2021 - Nordic power spat - Page 6

First word

Crisis , conflict and certification

The energy price crisis shows little signs of abating , with uncertainty about the timing of the start of Nord Stream 2 gas flows from Russia to Germany and an escalation of tensions between Moscow and Kiev clouding the outlook .
Gas and coal supplies in Europe remain tight as the winter demand season for heating kicks off . Carbon prices continue to scale new peaks , with some analysts setting EUR 100 / t in their cross hairs .
In Germany , the EU ’ s largest energy market , the nation ’ s first tripartite coalition on a federal level comes to power with bold plans for climate and energy policy , ending 16 years of conservative rule under Angela Merkel . The so-called trafficlight coalition plans to roll out more renewables , in particular rooftop solar . Are the proposals achievable and what are the hurdles Berlin needs to overcome to cover 80 % of power demand with green energy ?
This issue shines a light on Germany ’ s new government and how , among other things , it handles the current bureaucratic mess that is the Nord Stream 2 certification process . What are the implications of the German regulator ’ s decision to suspend the pipeline ’ s permit , and could a Green party controlled energy ministry – largely opposed to the pipeline – further delay the authorisation procedure ?
Russia also appears to be putting a stop to coal exports to Ukraine . We investigate Moscow ’ s energy squeeze amid the ongoing conflict between the two nations and the implications for coal and gas prices in the region and beyond .
Meanwhile , the spike in gas prices in recent months has spurred some countries to speed up their plan to move households off the fossil fuel and encourage the use of hydrogen , biogas and renewable alternatives .
Finally , cracks may be appearing in the view of the Nordic region as the epitome of a wellfunctioning , transparent and efficient power market . In November , Swedish TSO Svenska Kraftnat came under increased pressure from its neighbours to stop curbing cross border capacity to tackle internal grid congestions . We investigate the row and what it could mean for power flows in this part of northern Europe .
We will be back for the first issue of 2022 in February .
Richard Sverrisson Editor in Chief
8 Montel Magazine 4 – 2021