Who pays for de-carbonisation?

10 September 2013, 14:20 EEST

–Reduction of carbon emissions is critical for our wellbeing, but expensive for the consumer. We should minimize costs of the carbon curtailment by brave energy and climate policy, highlights Jussi Uskola, Fortum’s Chief Operative Analyst. He spoke on 9 September in the Baltic Wind Power 2013 Conference.

–Sweden has been able to increase share of renewable power generation almost equivalently to Germany at a fraction of cost to end users. This is an example on why efficient, market-based steering mechanisms need to be promoted. In the future, de-carbonisation can be even more efficient by letting carbon price alone steer the market, Uskola continues.

Soon also fossil fuel fired generation needs to be subsidised

Inefficient policies will lead to subvention not only for the intermittent renewable generation, but also for the existing, polluting fossil fuel-fired generation. This can result in ballooning costs and discourage consumers to contribute in emission reduction.

–In order for energy sector to act as efficiently as possible, the 2030 policy framework should be agreed about now. We should also remove national support schemes for renewables, as overlapping, often conflicting mechanisms just lead to sub-optimisation, and higher costs for all of us, Uskola concludes.