Scottish Government publishes Electricity Generation Policy Statement

Posted on March 9, 2012 by admin

This week the Scottish Government launched the latest draft of its Electricity Generation Policy Statement which aims to outline how the ambitious 100% renewable energy target for 2020 will be achieved. The document contains a large amount of information including a projected breakdown of Scotland’s future energy mix, outlined aims for the countries energy network in 2020, carbon reduction targets, energy efficiency measures, planned grid connections with other countries, and the expected economic benefits in terms of investment levels and job creation. The complete document can be found here. Scottish Energy Minister, Fergus Ewing stated:

“This report shows that the Scottish Government’s target to generate the equivalent of 100 per cent of our electricity needs from renewables, as well as more from other sources, is achievable.

“We know there is doubt and scepticism about our 100 per cent renewables target, and the financial and engineering challenges required to meet it.

“But we will meet these challenges. I want to debate, engage and co-operate with every knowledgeable, interested and concerned party to ensure we achieve our goals.

“We know our target is technically achievable. Scotland already leads the world in renewable energy, and we have the natural resources and the expertise to achieve so much more.

“The prize at stake for the people of Scotland is huge, in terms of jobs, economic opportunities and lower electricity bills for all.”

The Electricity Generation Policy Statement initially outlines what the government hopes to achieve, long term, with the countries energy network.

It states that Scotland’s generation mix should deliver; a secure electricity supply, at an affordable cost to consumers, which can achieve large scale de-carbonisation by 2030, and brings the greatest possible economic benefit to Scotland.

A number of individual targets have been set with these aims in mind. For example, total Scottish energy consumption should be lowered by 12% by 2020. Energy efficiency is internationally regarded as one of the most affordable ways in which energy demand and carbon emissions can be reduced and controlled. Steps are already being taken to meet this target; there was a 7.4% drop in year on year energy demand from 2008 to 2009.

No new nuclear power plants are to be constructed in Scotland although extending the lifespan of the countries two existing nuclear plants for a further 5 years is being considered. Such a move would serve to ease the transition to a grid more heavily reliant upon renewables.

Carbon Capture and Storage technology is expected to play an important role. Allowing baseload power to be maintained whilst still reducing carbon emissions. A minimum of 2.5 GW of thermal generation fitted with CCS technology is expected to be operational by 2020. CCS technology, if successfully demonstrated at commercial scale, could create up to 5,000 jobs and be worth £3.5 billion to the Scottish economy.

14-16 Gigawatts of renewable capacity will be required to achieve the 100% renewable target by 2020. Currently there are 12 Gigawatts of renewable capacity in various stages of planning, development and deployment. This figure includes 3 Gigawatts of mainly onshore wind projects currently consented or in construction. Whilst it should be remembered that not all of the 12 Gigawatts worth of projects will make it to construction it demonstrates the interest the Scottish renewables sector is already attracting from investors.

To achieve the 2020 target installed renewable generation capacity will have to almost double over the next ten years.Wind (both onshore and offshore) will play a major part in this expansion. 13 Gigawatts of wind energy is expected to be installed by 2020. This will mean that wind power will be providing around 55% of Scotland’s electricity output by this time. The Policy Statement identifies this target as a “major challenge” but argues that it is “consistent” with the projections made in a variety of different reports. Given Scotland’s huge potential for wind energy, strong backing from both the UK and Scottish Goverment’s, and the falling costs of both onshore and offshore wind it seems an achievable, if ambitious, target.

The Scottish Government has outlined a number of economic benefits that a strong and committed drive for increased renewable generation can bring. Firstly, it will serve to insulate consumers from the rising international prices of fossil fuels. The Policy Statement states that from 2013 increased renewable energy capacity will begin to halt the ever increasing cost to consumers from their energy bills.

Secondly, over the next ten years the renewable energy industry alone could be providing up to 40,000 jobs and £30 billion worth of investments into the Scottish economy. This is not including the economic benefits of CCS and increased usage of energy storage technologies. Additionally, the Scottish Government has targeted that 500MW should be owned by local communities by 2020. This level of communal ownership would see up £2.4 billion in Feed in-Tariff revenues over the next 20 years being held by local communities.

Thirdly, the necessary investment in and upgrading of Scotland’s electricity grid would pump £7 billion into the country’s economy and create 1,500 new jobs. The benefits of such investment are already being seen with both ScottishPower and Scottish and Southern Energy (SSE) announcing the creation of new training and apprenticeship schemes.

Reactions to the publication of the Electricity Generation Policy Statement have been largely positive.

Ian Marchant, Chief Executive of SSE commented:

“SSE welcomes the Scottish Government’s electricity generation policy statement. With energy supply now a global issue, it is vital that the policy objectives adopted at Scottish, UK and EU level are consistent. With its focus on energy security, affordability and de-carbonisation, this policy statement underlines the extent to which policy objectives are consistent, and it is very encouraging that this should be the case.”

Keith Anderson, ScottishPower’s Chief Corporate Officer and CEO of ScottishPower Renewables remarked:

“ScottishPower supports the commitment to increase low carbon electricity generation in Scotland and we welcome the clarity outlined in the Scottish Government’s policy statement. We are making significant investments in large scale renewable energy projects including new wind, wave and tidal power. This investment is critical in order to help Scotland achieve its renewable energy targets and will be a catalyst for economic growth and job creation.”

Alison Kay, Commercial Director for National Grid observed:

“Scotland already has the highest proportion of clean power generation across Great Britain, which plays a vital role in keeping the lights on and meeting demand. The future energy mix is uncertain and this statement sets out a clear vision for the future of energy in Scotland. It will further enable National Grid and other industry participants to effectively plan the networks of the future.”

The 2020 target is described in the Policy Statement as “both a statement of intent and a rallying call”. It has been demonstrated to be both feasible and achievable, with wind energy playing a massive part. It is hoped that the outlining of a long term plan to help achieve the 100% aim will provide investors with confidence.

Government Launches Green Deal

Posted on November 25, 2011 by admin

The Government’s new Green Deal has been launched this week.

The scheme aims to reduce fuel poverty by making energy efficiency measures such as insulation more affordable to householders. This will be achieved by allowing people to take out loans of up to £10,000 to make their homes more energy efficient. The loans will be paid back over a 25 year period through ‘small additions’ to household energy bills. These loan repayments are intended to be lower than the amount of money that has been saved on energy; this has been referred to as the Green Deal‘s ‘golden rule’. The Green Deal is intended to be taken up by up to 14 million homes. The government estimates that the Green Deal could lead to the creation of 65,000 jobs.The Green Deal may also offer households that take up the scheme £150 cash-back. Estimates place savings on energy bills at around £94 annually by 2020. It was also announced that Energy companies must contribute £1.4 billion to the scheme annually until 2020.

At the launch of the Green Deal Chris Huhne stated:

“The Green Deal is about putting energy consumers back in control of their bills and banishing Britain’s draughty homes to the history books. By stimulating billions of pounds of private sector investment, the Green Deal will revolutionise the way that we keep our homes warm, making them cosier, more efficient – and all at no upfront cost.

“The Green Deal is also a massive business opportunity for firms up and down Britain, helping to power the economy and creating jobs. From one-man bands and local authorities, to the big supermarket and DIY stores, we want as many providers getting involved as possible because that’s what will give consumers the best deal.

“I want to insulate Britain’s homes not just from the cold weather, but also from the chill winds of global fossil fuel prices. It’s these that are pushing up consumer energy prices, and it’s why our balanced package of policies aimed at achieving energy savings and shifting to more home grown alternatives is the right one for the economy and all of us who pay energy bills.

“There are certainly costs to replacing our ageing energy infrastructure with modern clean power stations, and we take very seriously any impact of our policies on what consumers and businesses pay. we’ve repeatedly taken steps to reduce this – by removing some planned levies on bills and making others more cost effective and within budget.

“But a crucial – and too often ignored -priority of our whole strategy is to reduce the amount of energy we use in our homes.”

Initial reactions to the launch of the Green Deal have been somewhat mixed.

Brian Berry, director of external affairs at the Federation of Master Builders released the following statement:

“With rising energy prices the market for retrofit work is certainly there and is worth at least £3.5 billion every year, but consumers will need to be convinced that the Green Deal makes financial sense to them. It’s pleasing therefore to see the proposed cash back incentive in the consultation, but a reduced rate of VAT for Green Deal approved measures is needed in addition to boost demand and create much needed jobs in the building industry.”

Richard Lloyd, executive director at the consumer group Which?:

“It’s difficult to see how hard-pressed homeowners will have confidence in how the ‘green deal’ might work for them if the suggested savings are initially based on averages rather than on their personal energy use.

“The ‘golden rule’ was supposed to reassure people that green deal repayments would not exceed the savings made on energy bills. But if this is based on average figures then it could be meaningless for many.

“The government estimates that average household energy bills will be 7% lower than they would have been by 2020 because of new energy and climate policies. But this is based on the big assumption that schemes like the Green Deal will appeal to consumers. If take-up is lower than expected, energy bills will be pushed up even further.

Steps have already been taken to reassure those that have raised concerns about the Green Deal.

The treasury announced shortly after the scheme was launched that £200 million had been set aside to fund incentives to those who take up the scheme in it’s early stage. Although it has yet to be determined quite what form these incentives will take, further cash-back offers, discounts on council tax and cuts to stamp duty have all been suggested.

Chief Secretary to the Treasury Danny Alexander said:

“I can announce today that as part of the Autumn Statement we will provide £200m of funding for new and additional support to enable a special time-limited ‘introductory offer’ for the Green Deal.

“An offer that could save early adopters hundreds of pounds.

“A fund to get the Green Deal off to a flying start.

“One that will work with the Green Deal mechanism and the ECO to motivate thousands of more consumers to take up energy efficiency measures, over the next two years.”

The almost immediate announcement of this incentive fund indicates the strength of will within the government to make the Green Deal a success.

Scottish Businesses missing out on Feed-in-Tariff

Posted on October 14, 2011 by admin

A survey recently carried out by Scottish Renewables has revealed that the nation’s businesses are missing out on much needed revenue and profits because of a lack of investment in renewable energy technologies and a lack of understanding of the Feed-in-Tariff.

Scottish Renewables compiled a record of all the registrations made for Feed-in-Tariffs over the last year. They found that 95% of all registrations were made by homeowners. In comparison just 3.6% of registrations were made by businesses.

A further breakdown of the figures revealed that on average there were 326 domestic Feed-in-Tariff registrations per month as opposed to just 3 registrations a month for commercial and industrial installations. The specific breakdown for wind turbines were slightly more evenly balanced; 27 domestic turbine registrations a month and 8 a month for industrial and commercial purposes. This would suggest that the benefits of a wind turbine is more apparent to those businesses that have the opportunity (in terms of available land etc) than other forms of renewable generation.

Feed-in-tariffs work as follows.

The owner of a renewable energy generator is paid for every unit of electricity that they are producing. There are two seperate tariffs; the Generation Tariff is a set rate which is paid for every unit of electricity generated, even if the owner uses it to power their own home or business, the Export tariff is a set rate which is paid for every unit that is exported into the National Grid. Feed-in-tariffs are set at a fixed rate from the time at which a generator is operational and connected to the National Grid for a period of twenty years.

Daniel Borieswitz, Policy Manager at Scottish Renewables released the following statement:

“Scottish businesses are missing out on a huge opportunity to not only to produce their own electricity but also receive up to 8% return on their investment by installing renewable technologies.

“It is clear that the public are already very much on board with the Feed-in-Tariff with domestic installations accounting for 17MW of installed capacity in the last year, but we need to encourage companies to take full advantage of these payments offered by the government especially if they are to meet their own carbon and environmental targets.

“With the Renewable Heat Incentive expected soon this is an ideal time for businesses to think seriously about how they can harness the natural resources on their doorsteps to power their companies.”

It is very much true that the Feed-in-Tariff offers a unique opportunity in these economically uncertain times for businesses to access a steady revenue stream and a substantial return on their investments. Businesses such as golf clubs, supermarkets, industrial estates and all manner of rural companies are being presented with a huge opportunity. A company such as ours with experience of both the planning process and working with such businesses can help to capitalize on this situation.

ScottishPower to create 1500 jobs to modernise grid

Posted on August 19, 2011 by admin

ScottishPower announced this week that in the next ten years they intend to invest £3 billion in modernising the National Grid. Not only will this help Scotland substantially in achieving the ambitious 100% renewable energy target for 2020 but it will create around 1500 new jobs in the sector.

The company needs the new staff for several reasons. Firstly there are a number of infrastructure overhauls that need to be carried out to improve the currently antiquated National Grid. Currently there are renewable energy projects across the country which are being constrained by the inadequate level of access the current Grid offers. To combat this ScottishPower intends to upgrade around 500 miles of overhead power lines, upgrade almost a fifth of their substation equipment and almost treble the current capacity of grid links with England to a level of 6.6 gigawatts. ScottishPower has stated that they intend to connect 11 gigawatts of renewable energy to the grid during this 10 year period; an amount four times as much as generated by Longannet Power Station. The planned increase of link capacity to England would be a huge enabler for Scotland’s ambitious renewable energy targets. It would allow for a far larger scale of energy exportation than is currently possible. This is important not only because of the benefits to the Scottish economy that selling large amounts of electricity to England would bring but also because of the energy exchange it would allow. England has taken a different approach to the problem of energy generation, with nuclear power expected to play a big part in meeting English energy needs in the future. 6.6 gigawatts worth of grid links would allow Scotland not only to export energy at times of excess capacity but would allow for importation of nuclear power at peak times if demand were to outstrip supply.

Secondly, research carried out by ScottishPower indicates that 4 out of 5 energy industry employees are due to retire over the next 15 years. As a result of this a new generation of employees; a large number of apprentices and graduates are needed in the industry. The first wave will be recruited over the next three or four years as 200 graduate and apprentice positions are expected to become available.

Investment in the gird is expected to save the Scottish taxpayer a significant amount of money over the next twenty years. Constraint payments (payments made to electricity generators who turn off at times of excess supply as compensation) would increasingly become an issue if large amounts of electricity generation capacity were added to the current grid system, indeed without investment it is estimated that constraint payments would increase to £16 billion by 2030. Savings to the taxpayer are estimated as a result of increased capacity is estimated at £1.6 billion by 2021 and £11 billion by 2030.

ScottishPower chief executive Frank Mitchell released the following statement:

“Massive investment is required to ensure that Scotland’s electricity network is fit for the 21^st century.

“It is important that we have a modern and robust network to support our renewable energy ambitions and to provide reliability for those who generate electricity and the homes and businesses that rely on it.

“It is no secret that our industry has an ageing workforce, and we need to encourage new blood in to the fold.”

Scottish First Minister Alex Salmond commented on the news:

“ScottishPower’s plans to upgrade transmission will ensure the grid is capable of carrying increasing supplies of clean green energy generated to domestic and European markets

“With plans to harness up to 10 gigawatts of offshore capacity in Scottish waters by 2020, alongside other renewable sources, it will be essential that generators can distribute power to where it is needed.

“These plans will create hundreds of new jobs and underline the company’s commitment to Scotland, as we work together to pursue a low carbon future for these islands and Europe.”

Other industry figures also released their reactions to the news, with some more overwhelmingly positive than others. Neil Stuart, chief executive officer of Scottish Renewables: “This announcement from ScottishPower is not only good news in terms of creating jobs and investment but is also a clear sign that barriers faced by some developers in connecting to the grid will be lifted.”

Norman Kerr, director of Energy Action Scotland: “There are already a number of hidden charges on energy users’ bills and if any further collection of monies to fund this type of work is required, it must be made very transparent.

“This kind of investment has surely been paid by consumers already through the profits made by the fuel companies over the last few years.”

The announcement of these plans, following as it does in quick succession the launch of the Scottish Government’s Renewable Roadmap 2020 and the forthcoming Agri-Renewables Strategy sends a clear sign to investors and developers that Scotland is committed to the development of renewable energy and that industry, government and business are pulling in the same direction. Welcome and encouraging news for sure.

The Scotland on Sunday and Us.

Posted on July 18, 2011 by admin

Another article appeared in the national press on our work this week. The article, appearing in the Scotland on Sunday, not only outlined the history of Intelligent Land Investments as a company but also underlined the long term benefits we are hoping to bring to farmers and landowners up and down the country. As our Chief Executive Officer Mark Wilson said: “The Scottish Government’s feed-in tariff has revolutionised how much farmers and landowners can make through wind power. They could get up to £30,000 a year, guaranteed for the next 20 years.”

The guaranteed nature of this sum could be hugely important for Scottish Agriculture. A number of the farmers we work with have indicated to us that they intend to re-invest the money generated from the turbines into their existing farm business. The hiring of new staff and the purchasing of new agricultural machinery are things that can not only support fragile local economies in tough times but also increase yields. It has recently been announced that food and drink are now Scotland’s biggest exports so our turbines could perhaps benefit the Scottish economy at both the micro and macro level. Equally as important, of course, is the piece of mind that a guaranteed income can provide for those working in a difficult industry.

The comments, or rather comment, section is also worth a read due to the interesting, if untrue, conspiracy theory outlined by one reader.

The article can be found here. All thanks to Peter Ranscombe.

Electricity Market Reform White Paper – Reactions

Posted on July 15, 2011 by admin

Secretary of State for Energy and Climate Change Chris Huhne unveiled a new white paper, titled Electricity Market Reform (EMR), this week. The paper outlined the Westminster Parliaments plans for the much delayed and even more necessary reforms and infrastructure investments in the UK Energy Grid. It outlined the technologies earmarked as being cost-effective and high in potential both now and post 2020. These technologies are onshore wind, offshore wind, marine energy, biomass electricity, biomass heat and ground and air source heat pumps. As well as this there was also a big role given to nuclear power with some declaring some of the reforms as nothing more than hidden subsidies for the industry. The white paper is also notable for its shift in rhetoric. Previously the Department of Energy and Climate Change had spoken of achieving Government targets for carbon emission reduction but with energy bills steadily rising and public disquiet on the issue increasing the talk had shifted to “keeping the lights on”.

Huhne at the paper’s unveiling said: “The idea that somehow we’ve been massively investing in renewables is absolute nonsense. We are catching up from a very low base. We’ve had 25 years of dithering on energy investment. We’ve got to stop dithering, because decision time is coming. You can have investment or you can have blackouts.”

The EMR paper predicted at least a four-fold increase in renewable energy consumption by 2020. Huhne spoke of why this was vital: “Growth on that kind of scale will be challenging, but will be necessary if we are to make the UK more energy secure, help protect consumers from fossil fuel price fluctuations, drive investment in new jobs and businesses, and keep us on track to meet our carbon reduction objectives for the coming decades.

“It will require industry to carry on making the case for renewables and Government and the Developed Administrations to break through the barriers that are stopping new schemes being built.”

Energy Minister Charles Hendry told journalists that the government expected the technologies outlined in the EMR paper to achieve 90% of their target with other technologies, such as solar, having a “marginal role”.

Reaction to the paper was as could be expected, from the large number of different interests involved, mixed. Scottish Renewables chief executive Niall Stuart issued the following statement: “The statement confirms that renewables are a major part of our future energy mix and the sector will be a significant driver of investment and employment over the coming decades as we replace ageing and polluting power stations with cleaner alternatives.

“Nobody should underestimate the importance of these reforms, which will make or break progress towards the UK’s and Scotland’s renewable energy and climate change targets.

“There is still a huge amount of detail to be developed, but this broad package of measures should allow us to meet the twin aims of increasing investment in renewables and minimising energy costs for consumers.

“Despite recent media reports, these reforms will actually mean reduced financial support for renewable electricity in exchange for long term certainty over revenues, with generators potentially having to pay back income if market prices reach a certain level.

“As the Secretary of State highlighted, the growth of renewables will not just clean upo our energy supply, it will also protect consumers form price rises due to the massive and growing volatility in international gas markets, meaning lower bills for consumers over the longer term.

“We will be working with DECC to ensure that the reforms are implemented in a way that supports Scotland’s ambitious 100 per cent renewable electricity target, and encourages investment in our key sectors such as our world-leading wave and tidal industry as it seeks to develop the first commercial wave and tidal farms between now and 2020.

“Scotland can lead the the UK’s efforts to cut emissions from the power sector and increase renewables, but only with the right support from Government. Massive growth in offshore wind will bring particular opportunities for Scotland’s existing offshore engineering sector and emerging offshore wind supply chain.

“But it is not just about investment in generation – ministers must also ensure that we get the necessary investment in new grid connections, onshore and offshore, to ensure that we can get power from where it is generated to where it will be going.”

5 of the ‘Big 6′ Energy Companies that dominate the UK’s Energy Market were also quick to release statements.

British Gas parent firm Centrica Energy managing director Mark Hanafin had this to say: “There remains much detail to resolve so that investors can have confidence that the tax and regulatory environment makes the UK energy sector a good place to invest.

“These measures come at a cost and it is vital that all of us – Government, regulators and the industry – are open and transparent with the public about the impact of these changes.”

David Cockshott, Director of Industrial and Commercial Markets for Npower commented: “We found many major energy users in the UK are concerned about the legislation outlined in the EMR and the impact it will have on their operations in the UK.

“While the EMR white paper provides some clarity on the future of the UK energy market, it may not provide the reassurance intensive energy users are seeking.

“Our experience with talking to industry about the EMR suggests that they will be eagerly awaiting further detail on each of the EMR proposals so they can start to make key low carbon investment decisions.”

EDF Energy chief executive Vincent de Rivaz: “It encourages investment in generation which is both low carbon and not dependent on fossil fuel prices.

“Trust is the essence of a healthy market, therefore it is important to continue to have a dialogue about energy costs.

“Consumer bodies, the regulator, industry and Government need to work together to build understanding. Renewing Britain’s ageing energy infrastructure will have a cost. Electricity Market Reform means that cost will be kept to a minimum.”

Ian Merchant, Scottish and Southern Energy chief executive stated: ” Any changes to the electricity market arrangements have to be carefully thought through, in a way which avoids unintended consequences and is supportive of the investment that is needed now and in the next few years.

“It is on this basis that we will ultimately judge the white paper as a whole and to ensure this is achieved we will continue to work with the UK Government and other bodies.”

E. ON chief executive Dr Paul Golby: “We cannot be complacent, it’s important this is driven froward to ensure a cleaner energy future for everyone.

“And, while the onus on the energy companies is to produce, transport and supply energy as efficiently as possible, we must also remember that this is not just about companies like E. ON and the Government, this is also about helping our customers who have a vital role to play in all of this.

“By becoming more energy fit – by insulating their homes, moderating their energy usage and by generating their own power – our customers can do their bit to reduce both their bills and also their carbon emissions, dual aims that we can all get behind.”

Scottish First Minister Alex Salmond, long an advocate of renewable energy issued the following statement: “Electricity Market Reform can help realise Scotland’s huge potential for clean energy generation and ensure security of supply across these islands.

“The UK White Paper makes clear that household electricity bills will rise over the coming decades and that increases are likely to be 25% higher if the market is not reformed. Investment in low carbon energy generation that harnesses our own natural resources will reduce both our reliance on fossil fuels and exposure to volatile global prices.

“Scotland is leading the development of renewable energy generation and carbon capture and storage (CCS) technologies. EMR provides an opportunity to accelerate that, to help tackle climate change, to deliver greater energy security and to help limit rises that consumers are expected to face in the coming decades. The multi-billion pound investments required will create tens of thousands of jobs, leading to the re-industrialisation of Scotland as we drive forwards the renewables revolution and development of CCS.

“While we support the principles underpinning EMR we have concerns about some of the detailed proposals. For example the move from the Renewable Obligation certificate regime to a Contract for Difference (CfD) mechanism must not create an investment hiatus, given the considerable progress already made and our ambitious plans up to 2020.

“We are also fundamentally opposed to the support for new nuclear plants because every pound spent subsidising this expensive and unpredictable technology of the last century is one pound less available for investment in future growth of renewable generation. The EMR side steps the fact that the future costs of nuclear remain unquantifiable. An energy policy that relies on nuclear is an energy policy with a black hole at its heart.

“While newer renewable sources such as offshore wind have relatively high capital costs to begin with, theses will continue to reduce and be fuelled by nature indefinitely with no dirty clean up costs. Given the windfall that nuclear generators are likely to receive under the Carbon Floor Price mechanism, there should be no additional subsidy for nuclear through the proposed CfD.

“The White Paper also pays insufficient attention to initiatives to protect consumers’ interests and I’ve stressed to (UK Secretary of State for Energy and Climate Change) Chris Huhne that this is an area that must be strengthened. EMR must support consumers by making the network smarter and more responsive, through better demand side response, storage and interconnection. A more flexible and adaptive grid can provide both energy suppliers and households with better information on energy use and cost, alongside support for energy efficiency.

“Recent investments in Scotland’s offshore renewables sector from leading companies including Mitsubishi, Gamesa, Doosan, ABB and Alstom, are testament to our great natural and human resources and supportive environment for renewable energy investment and job creation. At the same time, Longannet remains the lead candidate for the UK’s first CCS demonstration project and Scotland also has an excellent base in science and engineering to ensure that we exploit the immense potential of CCS.

“We will continue working with DECC to ensure that a coherent, effective and seamless package of reforms are delivered which will fully reflect the respective powers of the Scottish and UK Parliament. In doing so, we remain committed to maintaining Scotland’s position as ‘destination of choice’ for investment in the development, deployment and generation of clean energy.

“Scotland is estimated to have as much of a quarter of Europe’s wind and tidal power resource and around one tenth of it’s potential wave energy capacity, as well as a wealth of expertise in offshore engineering, which can position us as a massive exporter of clean energy. The UK Renewables Roadmap includes Scotland’s target for renewables to generate the equivalent of 100 per cent of annual electricity demand by 2020…

“The Roadmap recognises the huge contribution that Scotland can make to the achievement of UK and European green energy targets and this must be reflected in the final reforms to the electricity market which follow the consultation on today’s White Paper. At the same time, in order to fully harness Scotland’s massive renewables resource, fundamental change to the transmission charging regime is also required to end the discrimination against generation in those areas of Scotland with the greatest resource and to deliver the low carbon objectives of both the Scottish and UK Governments.”

Perhaps it is best to let Chris Huhne have the last word: “None of these challenges can be met for free. We will have to pay for secure, reliable, clean electricity generation including nuclear, renewable energy, and carbon capture and storage. Increases in wholesale costs and the carbon price are likely to lead to higher bills in the future, even without factoring in the huge investment needed in new infrastructure.

“So it is vital we put in place market arrangements that deliver the investment as cost-effectively as possible. The current electricity market is simply not up to the job.”

The cost of bioenergy: food or fuel

Posted on June 24, 2011 by admin

The price of food is soaring. Despite deforestation and improvements in fertilization, irrigation and other farming practices the price of feeding oneself continues to rise. A number of reasons have been offered for this: the rise in the global population, large shifts to a western diet – heavy meat consumption (which is far more intensive to produce due to the need for animal feed etc), extreme weather, misguided government policy, panic buying by importers, speculation on the financial markets, pro-longed under-investment in the agricultural sector. All, undoubtedly play their part. But, so does the shift to renewable energy supplies. Biofuels are in increasing demand, which means more land that could be used to grow food is being devoted to them.

This year it is estimated that 40% of the United State’s corn crop will go into car engines after it is turned to ethanol. Considering that the US is the worlds largest producer and exporter of corn this is huge amount of produce that is being lost to the food markets. The, subsidized, production of biofuel from corn is increasing rapidly. Ten years ago only 7% of the corn crop was being used to make biofuels. The rapid increase in biofuel production and consumption has had a direct impact on the price of the weekly food shop.

This rapid increase is also being seen in the United Kingdom. 18% of biofuels used in the UK are being produced from corn and wheat. Two staple foods, particularly in the developing world. Just over a year ago hardly any of these types of biofuel were being used in the UK and just over a year ago the cost of food was far cheaper.

The International Monetary Fund observed in 2008 that biofuels accounted for 1.5% of the global liquid fuel supply for the year but also nearly half of the increase in food crop consumption. It is is important to understand where the majority of these crops are being produced; the developing world. Increasing amounts of arable land in areas such as Africa are being turned over to biofuels; which are invariably being produced for export to the developed world, frequently by multinational corporations from the developed world. Less food being planted leads to an increase in food imports and an increase in the global market prices for foodstuffs.

Increased prices for food and an increase in the demand for biofuels are occurring at the same time. The European Union has set a target for 10% of transport fuels to be biofuels by 2020 whilst the World Bank has estimated that between June and December 2010 an additional 44 million people fell below the poverty line because of food price rises. The World Bank President Robert Zoellick has called for the world to “put food first”. It is clear that biofuels cannot be relied upon as a large scale fuel source in the future. Increased demand will lead to increased prices for both biofuels and food.

However, this is a problem that is beginning to be acknowledged by the governments of the world. The Global Bioenergy Partnership has been formed by the G8 Countries, 5 emerging economies and 13 International organisations and has agreed guidelines for the production of biofuel that doesn’t affect food prices or contribute to climate change. The formation of such an organisation indicates that currently the biofuel industry is unsustainable.

It is clear that the biofuels currently being produced and consumed are having a negative impact on the price of food. Because of this it would be a mistake to rely on them as a source of energy. Other renewable sources, such as wind or solar do not come with such a heavy price.

Energy efficiency improvements can reduce your household bills

Posted on May 27, 2011 by admin

Do you have concerns about your energy efficiency?

People are becoming increasingly concerned with rising energy costs. As the cost of fossil fuel imports continues to rise and continues to be passed on to the consumer more people are looking to find ways in which they can increase their energy efficiency and reduce the strain on their wallets. According to research the UK wastes £6 million worth of energy a year. For every £3 the average household spends on energy £1 is wasted. There is a wealth of hints, tips and guides online that exist to help the consumer to achieve energy efficiency and reduce their bills.

Simple ways to improve your energy efficiency.

Firstly, one of the biggest savings one can make is to simply switch energy supplier: on average people save £150 a year at a stroke simply by switching supplier and obtaining an improved deal.

Secondly there are a number of simple things that can be done to further reduce your heating bill. Turning your thermostat down by a single degree can knock 10% off of your annual heating bill. Draw your curtains at dusk to prevent heat escaping through your windows. If you go on a winter holiday, put your thermostat down to a low setting; this will mean that your home is protected from freezing at a minimum cost. Walls and roofs in homes absorb nearly 50% of heat; look into fitting your home with loft and cavity wall insulation for significant long term savings. Additionally, putting an insulating jacket over your hot water tank can save you up to £15 a year, a small saving but they all add up. Did you know that a dripping hot tap can, over the course of a single, day fill a bath? This sort of waste is both pushing up home energy bills and very easily solved. Ensure that all taps are not leaking.

Thirdly, your electricity bill can be simply, quickly and effectively reduced by adhering to some of this simple advice. Always turn the lights off when you leave a room. Replace your bulbs with energy efficient ones. This can reduce your bill by around £25 a year. These can last up to ten times as long as ordinary bulbs and over the course of their lifetime can save you up to £45. It is also worthwhile to make sure that your appliances are turned off rather than on standby when they are not in use and to not have any laptops and mobile phones on charge unnecessarily. This will save you around £40 a year. Lastly, your kettle, only boiling the amount of water you need at the time will not only save you around £30 a year but also mean that your cup of tea is ready that bit quicker!

Fourthly, there are also savings to be made in the use of your white goods. Avoid putting hot food in your fridge and freezer as they have to work harder, using more energy, to cool them. Defrost your freezer regularly to improve energy efficiency. Washing clothes at 30 degrees can also result in large savings. Crucially, you can squeeze savings from your washing machine, tumble dryer, and dishwasher by waiting until they have a full load before using them. One full load uses less energy than two half load.

Of course, there are many more ways to improve your energy efficiency and reduce your electricity and heating bills. If you have any top tips that you wish to share then please feel free to leave a comment.