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.

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.