UK's Renewable Energy Strategy in confusion.
The Government's ambition for Britain to become a global leader in renewable energy suffered a major setback last night when Iberdrola Renewables, the world’s biggest investor in wind power announced that it was slashing its british investment programme.
Xabier Viteri, chief of Iberdrola Renewables, whose Spanish parent owns ScottishPower, blamed the economic crisis for the move but added that problems in Britain could force his company to consider investing elsewhere.The announcement comes less than two months after ministers backed a string of huge gas-fired power stations, prompting concern that the Government cannot fulfil its promise of a green energy revolution.
Last week Shell stopped building wind and solar power stations worldwide. Pelamis, a leading wave power pioneer, has owned up to technical as well as financial problems. And since last November BP has cutting back on its commitments to wind and other renewables schemes, including a £3 billion project for 341 turbines in the Thames Estuary, and questions have been raised over the future of npower’s £2.2 billion Gwint y Mor farm off the Welsh coast.
Iberdrola Renewables’ decision to cut its investment in Britain by more than 40%, or £300 million — enough to build a wind farm powering 200,000 homes — is the latest obstacle to Gordon Brown’s target of generating 35 % of the country’s electricity from renewable sources by 2020. Lifting it to that level from the current 5% would cost an estimated £100 billion. But wind energy investments have collapsed as funding dries up in the credit crunch and the price of oil, gas and coal has fallen. Delays obtaining access to the national grid and planning permission have compounded the industry’s woes.
“We are way off the pace,” Jonathon Porritt, the head of the Sustainable Development Commission, said. “The UK has talked about this for years, but the Government now has very little time to get this together. People just do not consider the UK to be a good place to invest in renewables.” Duncan Ayling, of the British Wind Energy Association, said: “We need strategic leadership from the highest levels . . . We are only going to do this if the Government is brave enough to tackle these problems head on.” He called for the formation of a Cabinet-level sub-committee to lead the industry’s development.
Despite Gordon Brown’s ambitious talk of a renewables revolution, progress has been slow in Britain, which remains a relative backwater in terms of renewable energy investment.
Iberdrola now operates 9 gigawatts of renewable energy worldwide. Most of its projects are in Spain and America where subsidies, ample land and lax planning systems make investing in large-scale wind projects commercially attractive. On some days Spain generates 30% of its electricity from wind. In Britain financing problems have been amplified by a series of domestic troubles that have led to delays — in particular securing planning permission and access to grid connections.
The Government’s solution has been to place greater emphasis on offshore wind projects. However, these are much more expensive to build and the technology is relatively unproven on a commercial scale.
The Crown Estate, which owns Britain’s seabed, has opened up its waters to the development of huge wind projects but there are doubts about how many of these will be built without fresh subsidies.
The Government remains hesitant to pass draconian legislation that risks forcing up consumers’ energy bills. The outlay to build renewable energy schemes is far higher than dirtier coal or gas-fired power stations.
A spokesman for the Department for Energy and Climate Change said: “We take very seriously the concerns that some developers have had for some wind developments and we are looking to see if there is any further action that we could take in response.”
The latest announcement will come as an embarrassment to Ed Miliband, the Energy Secretary, who this week described opposition to wind farms as “socially unacceptable . . . like not wearing your seatbelt or driving past a zebra crossing”.
Click here to make an online enquiry regarding our services.
or call 01603 864796 (during office hours)
-
Pilot Tidal Energy Scheme for North Wales Coast
Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.
The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.
The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.
Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.
The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.
-
Micro-generation forms key part of Government's vision.
Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.
The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.
The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.
Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.
“By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”
More information can be found on the Microgeneration Strategy consultation web page
-
Green policies could hit UK manufacturing hardest.
A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.
The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.
Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.
The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.
Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."
