Authors
Mark C. Lewis
Following the European Commission’s rejection of Germany’s 4 14/4 10 rules Deutsche Bank considers gas as the new entrant of choice at €50/MWh. The country’s only viable energy policy is to make clean coal competitive with gas via subsidies funded from windfall taxes on nuclear extensions. The forecast is for strong support for power prices. Germany can lead the world in carbon capture and storage (CCS) but can only reduce CO2 emissions and bolster security of supply by extending its nuclear plants’ operating lives and subsidising CCS plants with taxes on these extensions. The bank estimates that CCS is viable at €64/MWh.