The EU power sector needs long-term price signals. CEPS Special Report No. 135/April 2016

By 2030, half of the EU’s electricity demand will be covered by renewables and will need to be accompanied by flexible conventional back-up resources. Due to the high upfront costs inherent to renewables and the progressively lower running times associated with back-up capacity, the cost of capital will have a proportionately greater impact on total costs than today. This report examines how electricity markets can be designed to provide long-term price signals, thereby reducing the cost of capital for these technologies and allowing for a more efficient transition. It finds that current market arrangements are unable to provide long-term price signals. To address this issue, we argue that a system for long-term contracts with a regulated counterparty could be implemented. A centralised system where capacity or energy or a combination of both is contracted, could be introduced for conventional and renewable capacity, based on a regional adequacy assessment and with a competitive bidding system in place to ensure cost-effectiveness. Member states face a number of legislative barriers while implementing these types of systems, however, which could be reduced by merging legislation and setting EU framework rules for the design of these contractual agreements.

Calcareous nannofossils in ODP Sites 135-840 and 135-841

Ocean Drilling Program Leg 135 drilled at two sites on the Tonga Ridge. Calcareous nannofossils recovered at Site 840 on the Tonga Ridge date the sedimentary sequence as late Pleistocene or Holocene (CN15) through late Miocene (CN9) in age. A hiatus occurs in the mid Pliocene. Site 841 in the Tonga Trench yielded a sedimentary sequence with nannofossils from middle Pleistocene Subzone CN14b through the middle or late Eocene Subzones CP14a-CP15b overlying a rhyolitic volcanic basement. Part of the Eocene interval contains the shallow-water nannofossil taxa Braarudosphaera, Micrantholithus, and Pemma. A major unconformity separates lower Oligocene Zone CP 16 from lower middle Miocene Zone CN4 strata.