October 1, 2022

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Energy, separation: what it is and how it works

Europe is going through complicated months trying to intervene in the energy market, not only for gas but also for the price of domestic electricity, particularly for industrial use. In recent weeks, thanks to the exacerbation energy crisis From the EU member states – look at the potential ban on the sale of electricity to Italy – the work to prevent electricity gas price hikes has led to two potential strategies. On the one hand, he asked for a lot Ceiling priceNo ceiling on the price of imported gas. This can be defined in temporary copy, so as to bring together more countries; The second option is that SeasonThis is it Season The price of gas is the price of energy in wholesale markets.

question for Season (In technical jargon “decoupling”) is not new and has been discussed by Europe for about a year as a solution to the rising prices of energy raw materials due to the post-Covid economic recovery.

However, the tool, although it has been in operation for decades (about 20 years), guarantees affordable power, as he also recalls Dealingwas a good way to decarbonize, but today it can be an obstacle to renewable energies.

There are many countries that have requested energy price market reform (chapter), including Italy, France, Spain, Romania, Greece and many other countries have agreed to the changes. These two camps, such as the one in the price cap sermon, are discussing today the feasibility of these two options that they want to be a solution to breaking the downward spiral. Dear Energy.

EU energy and strategy: what is separation?

The term “decoupling” refers to the separation of the price of electricity from the price of gas. It is a strategy that Europe has adopted over the past 20 years to decarbonize energy production.

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Separation is also used in the sense of an economy capable of growing without increasing environmental pressure, as economic growth has historically been directly linked to environmental degradation and overexploitation of resources. Thus, the energy transition has gone through decoupling carbon dioxide emissions from GDP growth, improving energy efficiency and raising the price of coal, preferring to get rid of it.

The European Union Energy Strategy: How does it work?

Specifically, how does class work? In Europe, the cost of electricity in the market is related to the cost of gas, that is, what is required to operate the stations. But at the moment, the price of gas has increased tenfold, and therefore electricity prices are rising accordingly.

The Season . will be allowed Edit the two values Selling the electricity produced at low prices and above all that is produced from other sources besides gas. But the problem is to rethink the price system in the short run. Many countries that have already requested reform of this mechanism conflict with the feasibility of the proposal. The European Commission has little time to explain the feasibility of this reform, to propose and compare all European countries on the energy issue and possible solutions.