Espoo, Finland, 2014-08-19 09:30 CEST (GLOBE NEWSWIRE) -- PRESS RELEASE 19 AUGUST 2014
The European climate and energy policies along with the European power markets are at a crossroads. Today's decisions have far-reaching effects not only for consumers and industry, but European competitiveness as a whole. Key issues for all Europeans alike are the supply, reliability, costs and climate impacts of energy. The Fortum Energy Review series highlights the key trends in the European power market and introduces each time a topical theme. First in the series, the today published review focuses on an European cost-efficient climate and energy policy approach. Key findings: • Share of electricity in the final energy consumption will continue to grow • Rapid growth in renewable power generation is driven by a variety of support mechanisms and declining technology costs. The EU 2020 targets are likely to be met, but at a high cost • The current European wholesale prices are too low to attract new investments in generation without subsidies. Adequacy of generation capacity is a concern. • European end-user prices have increased due to higher taxes, levies and networks costs • Renewable energy technologies are becoming commercially viable - transition towards a renewables-based energy system is possible with less subsidies if supported by a carbon price and market • The EU 2030 energy and climate policy should be based on a leading emission reduction target with an enforced Emissions Trading System (ETS) Fortum's President and CEO Tapio Kuula at the Energy Review launch event: "Renewable power generation has grown rapidly in Europe in the recent years, which is a welcome trend, but at the same time it is changing the power market in ways we were not able to imagine a few years ago. As European competitiveness is a key concern, a cost-efficient climate policy to minimise the price tag of decarbonisation for society is of utmost importance. Decisions on the 2030 climate targets and a structural reform of the ETS are urgently needed to boost the decarbonisation of society. In parallel, global efforts for pricing of carbon should be accelerated. The growing global concern over climate change must translate to action as climate change will not wait for better economic times." Fortum Corporation Corporate Communications Additional information: Esa Hyvärinen, Senior Vice President, Fortum Corporate Relations, tel. +358 40 826 2646 Simon-Erik Ollus, Chief Economist, Fortum Corporation, tel. +358 40 179 0166 Fortum Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2013, Fortum’s sales totalled EUR 6.1 billion and comparable operating profit was EUR 1.6 billion. We employ approximately 8,800 people. Fortum’s shares are traded on the NASDAQ OMX Helsinki. www.fortum.com
