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Energy Secretary Chris Huhne today announced the reform of the UK electricity market.
Huhne says the reforms are necessary to deal with increased electricity demand, ageing power stations and the need for low carbon energy sources in order to meet climate change challenges. The changes are likely to mean new feed in tariffs for larger scale low carbon technologies.
The government believes that all low carbon electricity generation needs support to capture its benefits to our climate and to ensure security of supply. The department of energy and climate change want the true costs of unabated fossil fuels and the benefits of low carbon electricity to be captured in policy.
Read: UK Electricity Reform to introduce new Feed in TariffMinister for Energy Charles Hendrey has defended onshore wind energy at a Westminster debate this week saying that the renewable energy technology is essential if we are to move to a low carbon economy.
Several Conservative MP’s – primarily Chris Heaton – Harris attacked wind energy as not being right for the UK at the debate held yesterday. Heaton – Harris claimed that onshore wind energy diverts valuable resources from “other renewables that do work and that people like”.
Hendry said the Government expects onshore wind energy to increase over the years ahead. “We recognise, of course, that wind is intermittent…. back-up is required, including from gas, coal or biomass. It could also be done through storage-pump storage and hydrogen or battery technologies are coming through at an impressive rate. That will start to move the technology on from working only when the wind blows to allowing electricity to be available when people need it” said the Minister.
Read: Conservative MP Defends Onshore Wind EnergyUK electricity regulator Ofgem has announced that Britain needs rewiring to the tune of £32 billion.
The regulator says an even greater investment of £200 billion is required over the next ten years to secure sustainable energy supplies for consumers and move to a low carbon economy.
According to Ofgem new sources of electricity generation, whether large-scale wind energy, gas or nuclear plans or small scale renewables and home-based microgeneration, will require not only a step change in investement, but smarter networks to make sure Britain is rewired to meet future challenges. Moves towards electrification of transport and heat will further increase the need for smart grids.
Read: £32 Billion needed to Rewire BritainA recent wind turbine proposal for the city of Oxford has sparked up the debate about where it is appropriate to locate wind turbines.
The proposal between Cowley works and Horsepath was announced last week by Oxford City Council and renewable energy developer Partnership for Renewables.
Oxford City Council say the site is capable of hosting a single commercial wind turbine. Local Councillor John Tanner said: “Wind turbines are a beautiful way of helping to tackle climate change with renewable energy. This Horspath site is a first for Oxford and a practical contribution to creating a low carbon city.
Read: Oxford Proposes City Wind TurbineUK Government ministers are telling the public that nuclear energy is essential to meet our low carbon electricity requirements over the coming years. When ministers announced that nuclear energy was to be part of the UK’s energy future several years ago they also said that the taxpayer will not subsidise new reactors.
The tabloids a few weeks ago contained numerous articles about the cost of renewable energy. The media has this week started to realise the greater financial implications of nuclear energy.
In order to build nuclear reacters companies need to be confident enough to invest the tens of billions of pounds required. Some utilities are now saying that the economics do not stack up and the next generation of nuclear power stations will not be built unless the Government provides direct financial assistance.
Read: How will UK Nuclear Energy be Funded?The new UK Low Carbon Strategy released this week shows offshore wind and marine energy are the UK Governments’ favoured renewable energy technologies when it comes to financial support.
The Low Carbon Industrial Strategy is the UK Government’s first Low Carbon Strategy document. The document includes details of how the UK budget is to be allocated to renewable energy. £405 million (US $668m) has been allocated to renewable energy technologies with offshore wind and wave & tidal energy being the technologies set to see the biggest incentives.
The Government wants to spend £120 (US $198) million on offshore wind energy manufacturing together with investment in the development of – not yet commercially viable offshore wind technologies e.g. floating turbines by supporting demonstration trials. Testing facilities are envisaged in UK hostile waters . The low carbon strategy was released in conjunction with The UK Renewable Energy Strategy.
Read: UK Low Carbon Strategy ReleasedPeter Mandelson, Secretary of State for Business, Innovation and Skills, named the South West as the UK’s first Low Carbon Economic Area at the launch of the Government’s Low Carbon Industrial Strategy in London earlier this week. The news comes despite the South West having the poorest record of renewable energy delivery against targets.
Stephen Peacock, Director at the South West Regional Development Agency said: “This is about a new industry and new jobs, and the South West’s critical role in building a greener global economy. Being identified as the UK’s first Low Carbon Economic Area is a tremendous accolade and recognition of our commitment to develop this unprecedented economic opportunity. We want to forge a new industry from the seas around our shores and today’s announcements cement our position as a global leader in wave and tidal technologies”.
The South West Regional Development Agency’s (RDA) renewable baby is The Wave Hub. The South West RDA wants the hub to be the UK’s first offshore facility with the ability to demonstrate the operation of wave energy generation devices.
Read: South West England Pushes Wave Energy