The expert forecasts reduction of coal share in the European energy balance
Yury Kvashnin, Head of Center for European Studies at IMEMO, believes that in the nearest future there will be a sharp decline in the share of coal in the European energy industry.
"The first thing that will happened very soon will be a very sharp decline in the share of coal in the electric power industry. This can be seen in various countries, it can be seen even in a country such as Greece, that has adopted a programme of complete rejection of (coal) lignite. It was used because it’s cheap," said Kvashnin during his speech at the online session of "Primakov Readings", organised by IMEMO, Interfax news agency with the support of the Global Energy Association.
Kvashnin answered a question from the Vice President of the Global Energy Association.
"There is an interesting trend in the energy market, the use of coal is becoming quite expensive in the conditions of falling oil prices. I think that in the next few years there will be a serious change in the energy balance towards a decrease in the share of coal and the development of other sources," said Kvashnin.
In his opinion, this may have positive consequences for Russia, because the demand for Russian oil is likely to continue. "The demand for Russian oil will be quite serious due to the declining share of coal in the energy balance. The same thing can be said about gas, but here the main challenge for Russia is the EU's policy on diversification of gas supplies," the expert added.
Kvashnin sees serious problems with financing of alternative energy sources, primarily wind and solar energy. "I have some doubts that most of the funds that are planned to be allocated within the framework of the New Generation EU fund will be spent on these needs. There is a high probability that these funds will be used for patching up the holes that the current coronavirus crisis has left in the European economy," said Kvashnin.