Energy crisis: UK fracks back, France fast-tracks offshore wind, Sweden lets off steam

The Empire fracks back

The UK’s new business and energy secretary Jacob Rees-Mogg has fulfilled expectations of his approach to the crucial portfolio by this week lifting the 2019 moratorium on shale gas production in England, and flagging a new oil and gas licensing round.

“In light of Putin’s illegal invasion of Ukraine and weaponisation of energy, strengthening our energy security is an absolute priority, and – as the Prime Minister said – we are going to ensure the UK is a net energy exporter by 2040,” Rees-Mogg said in a statement on Thursday.

“To get there we will need to explore all avenues available to us through solar, wind, oil and gas production – so it’s right that we’ve lifted the pause to realise any potential sources of domestic gas.”

The decision has received a good deal of public and political criticism – although Rees-Mogg rather sensationally claimed in parliament this week that opposition to fracking in England is being curried up by Putin.

Scientists and economists presumably not on Putin’s payroll argue that fracking will not ease the energy crisis or bring down heating bills, but will compromise climate targets and cause other kinds of environmental damage.

Macron launches France’s first offshore wind farm, hits accelerator on renewables

Meanwhile, on the other side of the Channel, French President Emmanuel Macron has called for a “massive acceleration” of renewables development in France, including offshore wind farms and solar power.

Macron aims to do this through new measures that will reduce the time it takes to build and commission offshore wind farms, from 10-12 years now to about six years, and for solar farms from six years to three years.

A new bill will also aim to deliver connections to the grid for new renewable energy projects as soon as they are ready to start generating — getting rid of the current delay of up to three years.

“We need a massive acceleration,” Macron said following a boat ride to inaugurate France’s first offshore wind farm off its Atlantic coast.

“I want us to go at least twice as fast for renewable energy projects. … “our neighbors often managed to do more, better and, above all, faster.”

The 480MW Saint-Nazaire offshore wind farm – or Parc éolien en mer du Banc de Guérande – is located between 12km and 20km off the coast of the Guérande peninsula and features GE Haliade 150-6 MW turbines.

The project – the first of its kind for France – is owned and developed by Eolien Maritime France (EMF), a consortium of EDF Renouvelables, Enbridge, and Canada Pension Plan Investment Board.

Construction is underway on another two French offshore wind farms, the Saint-Brieuc and Fécamp projects.

EU proposes emergency handbrake for energy market

EU regulator the European Securities and Markets Authority (ESMA) has proposed the introduction of an emergency brake on gas and power derivatives, to smooth the functioning of the energy market.

The ESMA says the measure would only be put in place for a limited period of time and triggered in exceptional circumstances, such as extreme spikes in volatility, which can lead to disorderly trading conditions.

“It …seems reasonable to consider the implementation of a new type of trading suspension mechanism on a temporary basis and only for energy derivatives markets,” ESMA said in a statement.

Hey, it worked for Australia’s NEM! Or did it…

Germany nationalises gas giant

The German government will take over 99 per cent of the shares of the country’s largest gas supplier, Uniper, replacing Finnish company Fortum as the majority owner, in a roughly €500 million transaction, Clean Energy Wire reports.

Economy minister Robert Habeck says the move, which provides some €8 billion in additional capital to Uniper, will stabilise the company that covers about 40 per cent of Germany’s gas supply.

“This means Uniper will belong to the German state,” Habeck said, adding that legally completing the takeover would take roughly three months.

The minister also noted that gas levy Germany plans to impose on gas customers to save struggling importers and avoid a market collapse will go forward as planned – although it remains unclear whether Uniper will still be eligible to benefit from it.

Sweden lets off steam ahead of tough winter

News out of Sweden this week suggests that the global energy crisis has had the drastic impact of saunas being switched off in many cities, in a bid to lower consumption and reduce costs in the coming winter.

According to reports, Malmo Mayor Katrin Stjernfeldt Jammeh said: “We have very energy-intensive leisure centers with saunas, with heated swimming pools for example, that’s the kind of thing we’re looking at to see if we need to close down temporarily or turn down.”

Government authorities in 200 Swedish municipalities were also asked by the government to reduce their energy consumption before winter months.