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    EU Endorses German 28-Billion-Euro Renewable Energy Plan

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    Non-Hydropower Output In Australia To Hit 97.6twh In 2031

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    Central American Development Bank commits $800 million toward the fuel relief effort

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    Array Technologies increased revenue 35% to US$872.7 million in 2020

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    GE Renewable Energy connects the world’s most powerful hydro unit to the grid in Wudongde, China

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    Large-Scale Concerns In 2022 Fuelled By Rising Energy Costs

    Nuclear Fusion Is Renewable Energy Milestone- US Officials

    China Leads The Offshore Wind Assessment For HY1 22 By WHO

    Britain Fights Energy Crisis With Record Offshore Wind Power

    EU Endorses German 28-Billion-Euro Renewable Energy Plan

    EU Endorses German 28-Billion-Euro Renewable Energy Plan

    Non-Hydropower Output In Australia To Hit 97.6twh In 2031

    Non-Hydropower Output In Australia To Hit 97.6twh In 2031

    Blue Hydrogen To Be Employed In The EU For Next 5-10 Years

    Blue Hydrogen To Be Employed In The EU For Next 5-10 Years

    EU On Track To Exceed Its 750 GW Solar Energy Goal By 2030

    €2.5 Billion Carbon Capture Power Plant Approved In The UK

    Only 14% of Asian Bank Financing Goes To Renewable Energy

  • Market Moves
    Refiners Should Not Be Making Above Normal Profits- Biden

    Refiners Should Not Be Making Above Normal Profits- Biden

    Cluster of Businesses Want The EU To Improve Energy Security

    Cluster of Businesses Want The EU To Improve Energy Security

    Enel plans to expand power distribution business into US

    In A Move To Avert Blackouts Australia Halts Power Market

    Central American Development Bank commits $800 million toward the fuel relief effort

    Central American Development Bank commits $800 million toward the fuel relief effort

    A New 500-MW Supercritical Coal-Fired Power Plant Going into Operationa in Philippines

    EU Reduces Plans of Fossil-Fueled Electricity By One-Third

    BP to invest up to £18 billion in UK energy system by 2030

    Array Technologies increased revenue 35% to US$872.7 million in 2020

    Array Technologies increased revenue 35% to US$872.7 million in 2020

    Nordex Group: half-year sales rise to EUR 2 billion, earnings impacted by COVID-19

    Nordex Group: half-year sales rise to EUR 2 billion, earnings impacted by COVID-19

    GE Renewable Energy connects the world's most powerful hydro unit to the grid in Wudongde, China

    GE Renewable Energy connects the world’s most powerful hydro unit to the grid in Wudongde, China

  • Press Statements
    Atlas and Hitachi to develop energy storage systems for renewable projects

    Nine New Countries Sign Up for Global Offshore Wind Alliance at COP27 in Sharm El-Sheikh

    SolarDuck to build 5MW floating solar demonstrator integrated with offshore wind farm

    United Kingdom Onshore Wind Generation Has Now Reached 37GW

    ABO Wind connects first wind farm in Poland

    By 2040, Floating Offshore Wind To Add 67K Total Jobs In UK

    Europe’s latest wind offshore auction mainly using non-price criteria is a success

    Italy's Innovatec targets EUR 100m in revenue from new solar business

    Italy’s Innovatec targets EUR 100m in revenue from new solar business

    Intersolar Europe 2022: Solar Energy in Germany Takes Center Stage

    Intersolar Europe 2022: Solar Energy in Germany Takes Center Stage

    Protermosolar adds value to the Spanish concentrated solar power industry in China

    SPI Energy Develops Utility Scale Solar Project in Maryland

    Lightsource BP pioneers UK's first night-time solar service

    Altus Power and Heliene Establish Strategic Partnership to Support U.S. Solar Module Manufacturing

    EDP signs a Build & Transfer Agreement for a 200 MWac solar project in the U.S.

    I&M is Powering the Next Tomorrow with Plans to Add More than 2,000 MW of Solar

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Large-Scale Concerns In 2022 Fuelled By Rising Energy Costs

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Early in 2022, economies all around the world gradually started to return to some degree of normality after nearly two years of rolling pandemic lockdowns.

In actuality, the return to normalcy occurred more quickly than many anticipated, which put additional strain on the frail supply systems that were still recuperating from the pandemic’s peak.

As a result, after falling in 2020 and 2021 due to decreasing demand, energy costs started to rise once more. A barrel of Brent crude cost $100 in mid-February after beginning the year below $80; it then began to decline for what would turn out to be a brief respite.

That’s because there was a growing worry that Russia’s growing hostility toward its western neighbour was more than just sabre-rattling simmering below the surface of a global economy emerging from COVID.

And this is what happened.

The invasion of Ukraine by Russia affected the energy markets almost immediately.

On February 23, the price of Brent crude was slightly under $100 per barrel. A week later, it had risen to $118 per barrel. By March 8th, the price had risen to more than $133 per barrel. In the meantime, the price of natural gas increased from about €88 per megawatt hour on February 23 to €165 a week later and €227 on March 7.

That had an immediate impact on both businesses and customers.

Motor fuel costs, which had been averaging between €1.67 and 1.77 per litre in February, shot up to €2 in the first few days of March.

The country’s utilities started raising their own rates in March despite numerous price rises in 2021. Some by nearly 30%. Governments rushed to address the issue as comparable price increases spread across Europe and the rest of the world.

The initial response in Ireland was a reduction in excise taxes and a household energy refund of €200. That ultimately turned out to be nothing more than an introductory move, as the initial price shock developed into a full-fledged crisis. Oil prices were inflated over a substantial stretch of the year, even though they never quite reached the highs witnessed in early March.

While this was happening, gas prices kept rising well into the second half of the year. That was partly caused by how Europe reacted to Russia’s invasion.

Germany moved quickly to revoke certification for the Nord Stream 2 pipeline, which had previously been expected to increase the flow (and lower the price) of Russian energy to western Europe. As well as promising to wean themselves off of Russian energy as soon as feasible, EU leaders refrained from punishing or even outlawing it. But in the end, it was Russia that increased the pressure by choosing to cut back on the supply it was sending through the initial Nord Stream pipeline.

Its supply to Europe had decreased by 75% by June. The pipeline was shut down fully in August after a 10-day closure in July. Russia conditioned the restoration of supply on the lifting of the EU’s economic sanctions placed on other facets of its economy. The timing of the action, however, raised concerns that Europe may experience energy shortages once winter arrived.

By the end of August, wholesale gas had increased by 467% from its pre-war level, reaching over €340 per megawatt hour.

For Irish users, it also meant additional price rises.

The Central Statistics Office reports that consumer electricity costs were 63.5% higher in November compared to the same month last year. Gas prices increased by over 89%.

And as a result of requests for the government to take more action in response to the price hike, the Budget 2023 was finally packaged as a “cost of living” package.

It also extended the fuel excise decrease and provided consumers with further energy refunds. The Temporary Business Energy Support Scheme provided assistance to firms in the interim.

However, rather than completely removing the impact of increasing costs, these measures merely served to cushion it. Additionally, it was unable to stop the economy as a whole from becoming infected. Imports increased in cost as energy prices rose. Farms had to spend more money on animal transportation and feeding. Producing items resulted in increasing costs for manufacturers. It costs more to heat and light offices.

All of this was finally passed on to the customers. Rapidly increasing consumer prices added to the pressure as central banks acted quickly to try to control inflation. In a matter of months, starting in July, the European Central Bank increased interest rates from 0% to 2%, increasing the cost of borrowing for businesses and individuals.

The combination of all of these factors increased the upward pressure on wages that was already being felt in many industries, raising further cost concerns for some businesses.

However, there might be hope at the end of this extremely challenging road. Oil prices have fallen back to their pre-war levels after rising again in June as demand for fuels like gasoline and diesel fell as a result of the anticipation of a worldwide recession.

A concerted effort to replenish Europe’s gas storage capacity, together with a winter that has been milder than anticipated thus far, has allayed concerns about blackouts in the area. As a result, the price of gas has also plummeted, eliminating the majority of the gains it made during the war.

Consumers have not yet experienced that, and making projections is a risky endeavor. There is some optimism, nonetheless, that this may enable energy companies to at least start to reverse some of their excessive price rises in early 2023.

However, the decline in wholesale prices must continue in order for that to happen, and the cold snap that hit Europe at the tail end of this year may prevent that. Even though winter 2023 is a year away, the difficulty of replenishing Europe’s gas reserves will continue to put pressure on demand as the continent approaches the spring and summer.

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