The New World Energy Map

The new World Energy Map[1]

A conversation on clean energy, net-zero emissions and the energy trilemma

ByAlessandro Nanotti

The unprecedented events occurred in 2020 and 2021 will have a long-lived impact on global energy for years to come:

• Gas prices in Europeand the spot price for LNG in Asia reached sky-high prices: before 2021, the high point at the Title Transfer Facility (TTF) in the Netherlands was €35 per megawatt hour (MWh). Between August and December 2021, the closing price was above €35/MWh every day. For a brief moment, on December 21, prices topped €181/MWh (five times higher than the historical peak), with a direct spillover effect into electricity prices, further multiplied by rising CO2emission credits costs reaching almost 100€/tonne;
• Oil pricesreached levels seen last only in 2014 branching out to almost 100$/bbl allowing for a rebound of investments by IOCs;
• With oil prices expected to stay in the region of $70-$80/barrel and the cost of emission allowances going towards €100/tonne,electricity priceswill continue to be high. Gas and electricity markets are strongly correlated, and rising gas prices have resulted, in turn, in more expensive electricity and gas bills for households, with worrying…