Britain, Climate Change, Energy, Government, Science

The UK’s energy dilemma

UK ENERGY NEEDS

Intro: Britain is facing a pressing problem in coping with its complex energy demands

DELAYS to the construction of the controversial Hinkley point raises a number of important questions on how the UK might meet its future energy needs. Pressingly, as the UK searches for options in how its future baseload power can be met without heavily polluting the environment, a solution in bridging the energy-gap will soon be required.

Britain is facing a pressing problem in coping with its complex energy demands. It needs to provide extra energy to meet rising demands for power in the future but at a reasonable cost – while also reducing carbon emissions by considerable levels in order to meet its climate change commitments. This will not be an easy combination to achieve. Hinkley Point, however, was considered by many experts to be a crucial determinant in reaching these goals.

Equipped with a massive 3.2bn watt capacity, Hinkley Point C has capacity in providing 7% of the nation’s electricity if completed. That would help to generate the power that would keep the nation working while renewable energy sources, mainly wind turbines, would provide the rest of the electricity needed by domestic households and firms. As one spokesperson from the Grantham Research Institute said: ‘You have to have some baseload source to provide power when it is utterly calm and renewables are not providing energy . . . Gas and coal plants – which can also supply that baseload – will no longer be viable in the future because of their carbon emissions (which cause global warming). You are then left with nuclear.’

This dilemma exposes a major drawback that affects renewable energy. Wind and solar plants are intermittent power supplies. They often provide power when it is not needed but fail to provide it when it is most needed. Until a method of storing energy on an industrial scale is developed, this drawback will continue to impede its deployment across the country. Research into ways to store energy on a large scale is now being pursued across the globe but may take decades. Other game-changing energy projects are also being worked on.

One of the most important of these future developments is fusion power (see annotation below).  This aims to recreate the process that provides the Sun with its energy. Nuclei of hydrogen atoms are fused together at colossal temperature inside huge reactors to create helium nuclei. The process also creates vast amounts of excess energy but with little pollution or radioactive contamination. Nonetheless, current devices – in particular, the international ITER fusion reactor, being built as a collaborative programme in France with British involvement – are years behind schedule and vastly over budget. Few experts believe fusion will get us out of our current energy problem.

Alternatively, we could continue to utilise carbon capture and storage (CCS), a process which uses fossil fuel plants which takes their carbon dioxide emissions, liquefies them and pumps them underground into porous rocks. Furthermore, Britain has huge, empty North Sea oil fields which many geologists and energy experts believe would be ideal for storing liquefied carbon dioxide. Several test projects were set up in recent years, with the government pledging to provide funding of up to £1bn. In November last year, though, it abruptly cancelled the programme, halting work on all major CCS projects. As devastating that announcement was to those engaged in development work, such technology is critical for the UK’s economic, industrial and climate policies.

Annotation:

Fusion.gif

A fusion reaction involves the combining (or fusing) of two or more atoms to make one single atom. Fusion reactions are the ones which power our stars. In a simple fusion reaction shown, two isotopes of hydrogen combine to form one atom of helium.

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Britain, Economic, Energy, Environment, Government, Politics, Scotland

The development of hydro-electric power in the Scottish Highlands was a revolution…

A SECOND REVOLUTION?

Intro: An investment appraisal and feasibility study is currently underway between the Scottish Government and Scottish Power for a new development of hydro-electric storage at Cruachan, beside Loch Awe

The development of hydro-electric power in the Scottish Highlands was seen as a revolution. It provided for a big leap in living standards, not just because residents in northern Scotland could have a reliable and dependable supply of electricity to light and heat their homes, but also because it became an engine of growth for industry and commerce.

The First Minister in Scotland, Alex Salmond, has announced a second expansion of hydro power. In conjunction with a feasibility study being carried out by Scottish Power, a major utility company, the aims are to more than double the current generation of electricity. Some suggest this could amount to a second revolution.

The technical feasibility is investigating the costs involved in doubling the generating capacity of Scottish Power’s Cruachan pumped storage plant located beside Loch Awe.

In principle, an expansion of pumped storage would be hugely beneficial, because it is regarded as the only reliable means of storing wind energy – which gets generated at times when there is no demand for it. Increasing the storage capacity would help to make wind a far more reliable source of energy supply, and also by reducing carbon emissions.

However, we should not dismiss the fact that this is a feasibility study that will take up to two years to complete. The associated costs and employment creation potential of the project are, at this early stage, a rough guesstimate. It may turn out that the Cruachan expansion plans, like Scottish Power’s schemes for carbon capture and storage at Longannet, and its proposals for the Argyll Array offshore wind farm, are too technically difficult or too costly for it to go ahead.

For it to work (effectively) as a 1,000 megawatt storage battery for wind power, there is the additional problem that the reservoir halfway up Ben Cruachan will have to be increased in size quite dramatically. The obstacles in overcoming resistance from environmental campaigners should not be overlooked, either.

The Scottish Government appears to regard the project as one that is more likely than not to come to fruition. But, notwithstanding whether the project ever goes ahead or not, this will become an investment decision that will serve a valuable political purpose. That decision is to be made after the referendum for Scottish independence in September.

In this context, energy is a problematic issue for Mr Salmond. Expansion of Scottish renewables – which, undoubtedly, the Scottish Government will see as a major source for employment as well as cutting the country’s carbon footprint – is largely dependent on a subsidy which is mostly financed by energy consumers in England and Wales.

Implicit in the First Minister’s arguments is that, such will be England’s needs, the people and businesses south of the Border will be willing to continue paying their ‘foreign’ neighbour the subsidy in maintaining continuity of supply. That’s a difficult assumption to make and certainly holds no guarantee.

History may be tempted to record that if the hydro revolution being envisaged fails to materialise, Mr Salmond has cleverly waved a diversionary red flag for political purposes. We can only hope, though, that the project investment at Cruachan gets the green light.

Under an independent Scotland, energy policy would be under the direct control of the Scottish Government.

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Britain, Energy, Environment, Government, Politics, Society

Concern over energy firms refusing to pass on price cuts…

ENERGY BILLS

Intro: Millions of energy consumers on fixed deals will lose out

Millions of energy consumers with fixed price energy tariffs will not get a £50 reduction in utility bills as promised by David Cameron and George Osborne. A pledge was given this week in the Autumn Statement that electricity bills would be cut following the decision by the government to roll back some green levies.

The energy giant E.ON has announced that more than one million of its customers will get a reduction of only £12 – or 23p a week.

EDF is taking the same line with its one million fixed rate customers, who include many pensioners and families. Npower, SSE and Scottish Power may follow suit.

The Prime Minister, Chancellor George Osborne and Energy Secretary Ed Davey have made repeated pledges in their efforts to protect customers by rolling back environmental charges.

Mr Osborne said this week: ‘There’s going to be an average of £50 off people’s bills … We are absolutely insistent that this is going to be brought in.’

The smaller reduction of £12 covers the Government’s decision to switch funding of the Warm Homes Discount – a subsidy for poorer families – from energy bills to general taxation. The rest of the decrease was expected to come from changes to the Energy Companies’ Obligation Scheme, a levy applied to all bills to raise money for energy-saving measures for poorer households.

However, the element of the reduction is not being passed on to customers on fixed tariff deals by some companies.

In contrast, British Gas, the largest of the ‘big six’ suppliers, announced that all tariffs and payment methods will get a reduction of £53 from January 1.

A spokesperson for Consumer Futures, a campaign group, said: ‘The message has been that people were going to save £50 on their energy bill, but it seems a fair chunk of people will not get that. This sort of behaviour is not going to do anything to reassure customers … People feel confused and angry about their energy bills. This latest development just adds insult to injury.’

The spokesperson added: ‘I think in the current climate, bearing in mind how people are struggling, the right thing to do would be to apply the full reduction across the board. That is the expectation that the Government has created.’

Following the Autumn Statement, E.ON immediately announced a price rise of almost £60 a year for customers on standard tariffs. The changes will take effect from January 18.

The provider says that cutting the bills of fixed price customers by only £12 was justified because many of these people were already on relatively good price deals and tariffs.

EDF took a similar line and said its short-term fixed deal is some £90 a year cheaper than its new standard prices.

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