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Exclusive interview:

Deutsche Bank: Main challenges of nuclear
decommissioning on the European Energy
landscape
Mark C. Lewis, Managing Director- Commodities Research, Deutsche Bank is
the Head of Energy Research. His research on Power, Gas and Emissions
Markets has been ranked Number 1 by the benchmark Energy Risk survey
of global commodities investors in 2011, 2010, 2009, and 2008. Read this
interview to get a snapshot of Europe’s evolving energy landscape and the
implications of a shift away from nuclear.
IQPC: How is the energy landscape evolving in Europe?
Mark C. Lewis: The EU energy landscape is being transformed
by the three pillars of EU energy policy, namely (i) the 2020
renewable-energy target, (ii) the greenhouse-gas emissionsreduction target, and (iii) the energy-efficiency target. The
impact of these policies will be felt in the increasing take-up of
renewable electricity generation, and by the reduction in the
role of CO2-intensive forms of power generation in the mix
such as coal and lignite. A complicating factor, though, is the
impact of Germany’s decision to close down all of its nuclearpower plants by 2022, as this will put added costs on the ability
of the EU to meet its renewable and CO2 targets.
IQPC: What are the implications of a shift away from nuclear?
Mark C. Lewis: The reduction of nuclear power in the EU energy mix over coming
years – dramatic in countries like Germany, but more gradual in countries like
France and the UK – will create a growing need for other sources of low-carbon
thermal power generation that can serve as a reliable back-up for renewable at
times of low wind and solar availability. This means first and foremost more gasfired power-generation capacity will need to be built in the EU in the future, with a
corresponding need for greater gas imports, which will increase the need for a longterm strategic vision on the EU’s security of supply. It will also likely lead to a
renewed interest in developing carbon-capture-and-storage technology for use in
coal-fired power stations.
IQPC: How will increased market volatility affect the energy market and
utilities?

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Deutsche Bank: Main Challenges of Nuclear Decommissioning on the European Energy Landscape

  • 1. Exclusive interview: Deutsche Bank: Main challenges of nuclear decommissioning on the European Energy landscape Mark C. Lewis, Managing Director- Commodities Research, Deutsche Bank is the Head of Energy Research. His research on Power, Gas and Emissions Markets has been ranked Number 1 by the benchmark Energy Risk survey of global commodities investors in 2011, 2010, 2009, and 2008. Read this interview to get a snapshot of Europe’s evolving energy landscape and the implications of a shift away from nuclear. IQPC: How is the energy landscape evolving in Europe? Mark C. Lewis: The EU energy landscape is being transformed by the three pillars of EU energy policy, namely (i) the 2020 renewable-energy target, (ii) the greenhouse-gas emissionsreduction target, and (iii) the energy-efficiency target. The impact of these policies will be felt in the increasing take-up of renewable electricity generation, and by the reduction in the role of CO2-intensive forms of power generation in the mix such as coal and lignite. A complicating factor, though, is the impact of Germany’s decision to close down all of its nuclearpower plants by 2022, as this will put added costs on the ability of the EU to meet its renewable and CO2 targets. IQPC: What are the implications of a shift away from nuclear? Mark C. Lewis: The reduction of nuclear power in the EU energy mix over coming years – dramatic in countries like Germany, but more gradual in countries like France and the UK – will create a growing need for other sources of low-carbon thermal power generation that can serve as a reliable back-up for renewable at times of low wind and solar availability. This means first and foremost more gasfired power-generation capacity will need to be built in the EU in the future, with a corresponding need for greater gas imports, which will increase the need for a longterm strategic vision on the EU’s security of supply. It will also likely lead to a renewed interest in developing carbon-capture-and-storage technology for use in coal-fired power stations. IQPC: How will increased market volatility affect the energy market and utilities?