The headline of this post is the title of a new book by David Buchan and Malcolm Keay. The subtitle is "Toward an Energy Union?". The general theme of the book is that the EU's reforms on energy related issues have so far been inadequate. They have been too optimistic about the consequences of market liberalization and have underestimated the costs that would be associated with cuts in emissions. The authors spend a fair amount of time on the issue of feed-in tariffs (FIT). These are the deals that member states are willing to offer alternative electricity generators, including for example homeowners who might simply have solar panels on their roof. The payments are determined by technology, and in essence by politics, so kilowatts are not treated as fungible. Though of course once it gets into the grid, a kilowatt is a kilowatt and is indifferent to where it came from. Feed-in tariffs have proven very popular. Every nation state that creates them finds that it ha...