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Tag Archives: government policy

BEIS is optimistic about UK energy future

By Dave Elliott

The revised projections for energy up to 2035 from the UK Department of Business, Energy and Industrial Strategy (BEIS) are generally very optimistic. It expects low-carbon sources of electricity to supply 68% of UK power generation by 2020, 70% by 2025, 76% by 2030 and 86% by 2035. That of course includes nuclear, and assumes that the proposed new reactor projects will go ahead, although BEIS now expects one less plant will be in place by 2030 than originally hoped, so nuclear only reaches 13GW in all by 2035. And it is now also pessimistic about Carbon Capture and Storage (CCS); there is only 1GW in use in its scenario even by 2035. But it is very optimistic about renewables – it sees them expanding rapidly to 45GW by 2035, up from the 36GW projection in 2016. Let’s hope they are right! (more…)

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EU Renewables Policy: mixed reactions

By Dave Elliott

The European Union’s renewable energy policy is one of the most ambitious attempts to facilitate a transition towards a more sustainable energy system. A new book, ‘A Guide to EU Renewable Energy Policy’, edited by Israel Solorio and Helge Jörgens and published by Edward Elgar, provides a comprehensive guide to the policy, its implementation and reactions, with contributions from a range of key academics – 24 in all.

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Industrial strategy: greening industry

By Dave Elliott

Following on from an earlier Green paper and its Clean Growth Strategy, the UK government has now produced a White Paper on Industrial Strategy. Although examples are provided of specific infrastructure projects and opportunities, it’s mostly couched in very general policy terms, identifying four ‘Grand Challenges’. It says we must put the UK at the forefront of the artificial intelligence and data revolution; maximise the advantages for UK industry from the global shift to clean growth; become a world leader in shaping the future of mobility; and harness the power of innovation to help meet the needs of an ageing society’.  (more…)

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Green energy levy freeze

By Dave Elliott

The UK’s Autumn Budget may have backed Electric Vehicles, but it wasn’t too helpful in terms of providing extra support for the green electricity they ought to use, if we want carbon emissions to be reduced. Tucked away in the Budget details was a plan for replacing the Levy Control Framework, which caps spending on green energy projects, with a new ‘Control of Carbon Levies’ system.  It will cover the Renewables Obligation (RO), Feed-in Tariffs (FiTs) and the Contracts for Difference (CfD) systems as before, but the bad news is that, to keep future costs down, on the basis of current forecasts, there will be no new low carbon electricity levies until 2025’.

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Whatever happened to wave power?

By Dave Elliott

‘The average rated capacity of wave energy devices over the past three years (2015-2017) was 70% lower than (in) the period between 2000 and 2014. In contrast tidal stream saw a 124% increase in the average rated capacity during the same period’. So says a report from Imperial College London and Strathclyde University, looking at what went wrong with the UK wave energy programme.

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Energy transitions in the UK

By Dave Elliott

The UK energy transition is progressing quite well on the electricity side, despite on-shore wind being constrained, but less progress has been made on green heat. A new Energy Research Partnership report on decarbonising heat, Transition to low-carbon heat’, looks at the technical, social, financial and governance aspects and highlights the key actions that need to be taken now and in the next few years. ERP says that ‘supplying natural gas or oil directly into homes will need to be replaced by a decarbonised gas or by electric heating or heat network. But it is not a simple choice: each option has challenges that could limit their deployment. A combination of options is likely to be required; no one option may not dominate, as natural gas currently does. Demand reduction will be an essential part of a cost-effective transition’.

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The Helm energy cost review

By Dave Elliott

In his wide-ranging review of energy costs for the UK government, Dieter Helm says ‘the cost of energy is too high, and higher than necessary to meet the Climate Change Act (CCA) target and the carbon budgets. Households and businesses have not fully benefited from the falling costs of gas and coal, the rapidly falling costs of renewables, or from the efficiency gains to network and supply costs which come from smart technologies. Prices should be falling, and they should go on falling into the medium and longer terms’.  And he sets out his ideas for enabling that to happen.                   (more…)

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The UK’s new Clean Growth Strategy

By Dave Elliott

Given the uncertainties about Brexit – when where, how, why and even if – there had been a striking lack of government policy activity in the energy field over the last few months. Many key issues seemed to be pushed into the future while we waited for the much delayed new Carbon plan and the Helm Price review. But the government has now finally come up with its new Clean Growth Strategy, as well as a (re) commitment (announced at the Tory party Conference) to a temporary energy price cap, though that may not start up until next year. (more…)

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Offshore wind breaks through

By Dave Elliott

It’s unusual but things do occasionally change in the UK. We had been quietly awaiting the government’s much delayed Carbon Plan but then came an unexpected shock, a dramatic fall in offshore wind prices emerging from the new round of the Contract for Difference (CfD) auction process. Hornsea Project 1, now being built, had got a CfD strike price of £140/MWh in the first full CfD round in 2014. But in this second one, Dong’s huge 1.3 MW Hornsea Project 2 won a contract at £57.5/MWh for a 2021/22 start up – 60% less. So did another offshore large wind project, in Scotland, for a 2022/23 start up, while a third one got through at £74.5/MWh. That’s still way below the index-linked £92.5/MWh allocated to the Hinkley nuclear project, which won’t start up until years after these projects, if it ever does.

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UK – not a lost cause

By Dave Elliott

Some see the current UK government’s energy policy as doomed – trapped in a commitment to old technology like nuclear power, leavened only by continued support for offshore wind. For example, the FT ran this analysis: ‘Nobody outside the industry now thinks the future of electricity generation is nuclear fission. The cost of building the plants to comply with safety and antiterrorism standards is rising all the time, fears of a runaway price for oil and gas now look silly, while advances in wind and solar technology are destroying those projections of ever-dearer energy … The UK’s energy market is in an unholy mess, with attention distracted by the vacuous debate about switching electricity suppliers. The real costs lie with the “green initiatives” at the other end of the wires. Scrapping Hinkley Point would not solve all of them, but it would be a start. Perhaps best to wait until after June 8 for another U-turn from Mrs May, though.’  FT 26th May

Well, the June election came and went and that didn’t really resolve much in the energy sector or, arguably, elsewhere. However, while Labour may not have won enough seats to overturn the Conservatives, it did very well, and it is likely to play a significant role in the future, given the hung parliament. What might it do?

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