Is renewable energy threatening traditional energy sources?

Rising renewables generation across Europe has made it increasingly difficult for conventional natural gas and coal-fired power plants to make a profit. Countries have responded to the problem in different ways, with some introducing capacity mechanisms to support conventional plants, and others slowing the rate at which renewables capacity is installed.

We look at the situation across Europe to see where renewables have the most impact on the power market and investment in new plants.

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Don’t bet your shirt in the output sweepstake

The Opec and IEA reports this week pretty much buried any remaining hopes of substantial market rebalancing this year.

Opec knocked some 200,000 b/d off the forecast fall in 2016 non-Opec production shrinkage. And ominously, it now sees non-Opec production rising next year compared with 2016, albeit by just 200,000 b/d. That’s despite two producers — Gabon and Indonesia — migrating from the non-Opec to the Opec camp. For all the pain of lower prices and prioritisation of market share, forecast non-Opec supply in 2017 is seen at just 400,000 b/d down on 2015.

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Another pipeline ensnared

What’s the biggest news in US energy infrastructure these days? Ask a 2nd grader.

As I sat with my 7-year-old in the elementary school cafeteria one morning this week, one of her friends ran up with some shocking news: ‘bad guys’ are trying to build a pipeline that will leak chemicals into a river that Native Americans own! And with that, the Dakota Access pipeline construction project joins a growing list of mainstream energy boogeymen.

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