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Tag Archives: government policy

Election promises on energy

By Dave Elliott

In the UK general election run up, with consumer power costs rising provocatively, there had been talk of a cap on energy prices, and, in its election Manifesto, although specifics were absent, the Conservative party certainly focused on economics. It said Our ambition is that the UK should have the lowest energy costs in Europe, both for households and businesses’ and it would aim for ‘competitive and affordable energy costs following a new independent review into the cost of energy’. (more…)

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UK Industrial Strategy – the energy dimension

By Dave Elliott

The government’s new long-term Industrial Strategy’ green paper is about growth, exports, competition and the development of new technology, to be achieved by upgrading skills and infrastructure, improving supply chains and increasing investment in research and innovation – with £4.7 bn by 2020-21 in R&D funding. The new Industrial Strategy Challenge Fund could support smart and clean energy technologies, such as storage and demand-response grid technologies. Nuclear also gets a mention – SMRs and even fusion. That’s along with robotics/artificial intelligence, biotech, digital technologies and 5G mobile networks and the like.

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Capacity market mess

By Dave Elliott

The UK’s new Capacity Market auction process aims to ensure that there is enough capacity to meet demand by contracting with suppliers to be available when needed. However, it has failed to deliver any new gas projects, as well as failing to back much in the way of demand-side balancing – just 456MW. As with the first round, which gave contracts for 2018-19, it’s ended up mainly just backing old gas, coal and nuclear plants – with £1bn in contracts for 46GW overall for 2019-20. Most only get 1 year contracts, but the 650MW of new small diesel sets have 15 year contracts, and in all £155m. The 220MW of existing diesel get £93m. So much for clean energy!

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After Hinkley

By Dave Elliott

Battles continue over the economic viability of the proposed £18bn Hinkley nuclear project, with EDF still saying it can go ahead, despite the resignation of two key senior executives, opposition from the French trade unions and even doubts now emerging from the French Government. Energy minister Ségolène Royal said: ‘This project must offer further proof that it is well-founded and offer a guarantee that the investment in this project will not dry up investments that must be made in renewable energies.’  It is interesting then that EDF’s recent R&D Paper ‘Technical and Economic Analysis of the European Electricity System with 60% RES’, by Alain Burtin and Vera Silva, looks at an EU future dominated by renewables, with nuclear only playing a moderate role, 90GW total.

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The RHI to be ‘reformed and refocused’

By Dave Elliott

The UK’s Renewable Heat Incentive (RHI) was introduced to support households, businesses, public bodies and charities in moving from conventional forms of heating to renewable, low carbon sources of heat. It has escaped cuts so far, indeed it is set to expand, but the government wants to restructure it to keep energy costs down for consumers and get better value for money. It expects spending on the RHI to rise from £430m in 2015/16 to £1.15bn in 2020/21, but says it wants to promote wider access and make project more affordable, ‘by firmly controlling costs’.

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UK Energy and the EU: integration or isolation

By Dave Elliott

The UK may be island based but, as renewables expand, it will need more grid links to the continent for balancing and trade. It may have a net surplus and so could do very well selling it over supergrid interconnector links to EU countries less well endowed with renewables. The UK’s National Infrastructure Commission (NIC), which seems to be taking a leading role in energy system planning, said in its recent report ‘Smart Power’, that interconnection, along with storage and demand flexibility ‘could save consumers up to £8 billion a year by 2030, help the UK meet its 2050 carbon targets, and secure the UK’s energy supply for generations’.         

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UK has the best energy market system

By Dave Elliott

The UK government’s response to an EU consultation on energy market design was pretty forthright: we had it right. The UK competitive market CfD system, buttressed by the new Capacity Market, was the best approach and would lead to a low cost, low carbon future. With support for some renewables being cut and the prospects for the £24bn Hinkley nuclear project looking very uncertain, doubts persist as to whether this approach would in fact deliver sufficient low carbon energy to meet the UK carbon reduction targets. But, in its EU response, the government remained very upbeat. (more…)

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Go slow on renewables

By Dave Elliott

‘Moving too quickly to zero carbon energy risks driving the bills of hardworking people too high’. That, from Energy Secretary Amber Rudd, in a DECC Blog on August 11th , seems to be the view underlying the government’s renewable energy support cutbacks. In her speech to the Conservative Party Conference in October she said that ‘as we have already shown, we will be tough on subsidies’, but insisted that the policy was fair since it simply was aimed at ‘getting the balance right between supporting new, low carbon generation and protecting bill payers’: http://www.businessgreen.com/bg/news/2429010/rudd-hails-potential-for-uk-to-become-home-for-energy-innovation

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More changes in Germany

By Dave Elliott

Germany  is pushing rapidly ahead with renewables, aiming to get 80% of its electricity from them by 2050.  The nation briefly obtained 78% of its electricity from renewables in the summer. But that was obviously a one-off event. Even so, averaged annually, it’s over 30%: http://energytransition.de/2015/07/renewables-covered-78percent-of-german-electricity/

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UK renewables: will anything survive?

By Dave Elliott

The UK Department of Energy and Climate Change (DECC) seems to be on a mission to cut back support for renewables across the board – so as to save money. The scale and pace of change is stunning. Will anything be left? (more…)

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