German companies strengthen their cooperation with Russian gas suppliers. OSW Commentary No. 64, 2011-10-24

Germany’s decision to give up the use of nuclear energy will force it to find a conventional low-carbon energy source as a replacement; in the short term, in addition to coal, this is likely to be gas. Due to their continued high debt and the losses associated with the end of atomic power, German companies will not be able to spend large funds on investing in conventional energy. First of all, they will aim to raise capital and repay their debts. The money for this will come from selling off their less profitable assets; this will include sales on the gas market. This will create opportunities for natural gas exporters and extraction companies such as Gazprom to buy back some of the German companies’ assets (electricity companies, for example). The German companies will probably continue to seek to recover the costs incurred in the investment projects already underway, such as Nord Stream, the importance of which will grow after Russian gas imports increase. At the same time, because of their debts, the German companies will seek to minimise their investment costs by selling some shares on the conventional energy market, to Russian corporations among others; the latter would thus be able to increase their stake in the gas market in both Western (Germany, Great Britain, the Benelux countries) and Central Europe (Poland, the Czech Republic). It is possible that while establishing the details of cooperation between the Russian and German companies, Russia will try to put pressure on Germany to give up competing projects such as Nabucco. However, a well-diversified German energy market should be able to defend itself against attempts to increase German dependence on Russian gas supplies and the dictates of high prices.

Key Issues and Developments in Farmland Sales Markets in the EU Member States and Candidate Countries. Factor Markets Working Paper No. 12, February 2012

This paper describes recent developments in sales markets of agricultural land in selected member states of the European Union and its candidate countries. Analysis focuses on the importance of the sales market for agricultural land, the average size of transacted plots, and the evolution and magnitude of the land sales prices. The share of agricultural land sold on the market is relatively stable in most of the old member states, with the exception of Finland, the Netherlands and the UK, where a more dynamic market is observed. For the new member states, the sales market for agricultural land is strongly affected by public sales under the ongoing land privatisation programmes, while strong variation prevails in the private sales market. Substantial differences are also observed in both the average size of the transacted plots and the sales prices. For the latter, price regulations partially explain the heterogeneity in the evolution of sales prices.

Sales Market Regulations for Agricultural Land in EU Member States and Candidate Countries. Factor Markets Working Paper No. 14, February 2012

All agricultural markets are subjected to institutional regulations that – in one way or another –affect the functioning of these markets, and this is no different for the agricultural land market in the EU. In this paper, we describe the existing regulations in the sales markets for agricultural land in selected EU member states and candidate countries. The analysis focuses on three types of sales market regulations and institutions: quantity regulations, price regulations and transaction costs. The differences in the regulatory framework between land acquisition and ownership by domestic and foreign investors are analysed, as well as the taxes associated with land sales and ownership, zoning regulations and market imperfections.

Outlook for Electricity and Renewable Energy in Southern and Eastern Mediterranean Countries. MEDPRO Technical Report No. 16/October 2012

The aim of this report is to elaborate the MEDPRO Energy Reference Scenario for electricity demand and power generation (by energy source) in the southern and eastern part of the Mediterranean (MED- 11 countries) up to 2030. The report assesses  the prospects for the implementation of renewable energy in the MED-11 countries over the next decades. The development of renewable energy is a cornerstone of the MED-11 countries’ efforts to improve security of supply and reduce CO2 emissions;  the prospects for regional renewable-energy plans (the Mediterranean Solar Plan, DESERTEC and Medgrid); and  the development of electricity interconnections in MED-11 countries and the possible integration of Mediterranean electricity and renewable markets (both south–south and south–north).