Renewable Energy: Delay in the U.K.
By Sara Nunnally
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The U.K. has been a safe harbor for the promotion of renewable energy, anything from wind power to ocean power, and even nuclear power.
The U.K. generates only 2% of its energy needs from renewable sources.
Several parliamentarians have called for incentives to spur renewable energy capacities in the U.K.
Renewable Energy: Delay in the U.K.
What would make an environmental group delay the promotion of a progressive energy policy?
The Renewable Energy Association (REA) in the U.K. is asking the government to delay a paper outlining the country’s energy goals… a paper that’s been delayed before. Interestingly, the U.K. has been a safe harbor for the promotion of renewable energy, anything from wind power to ocean power, and even nuclear power (for those, like me, who believe a renewable energy policy should include nuclear energy).
In a paper published in 2002, “Our Energy Future—Creating a Low Carbon Economy,” the U.K. outlined four key objectives:
- Cut carbon dioxide emissions,
- maintain reliable energy supplies,
- promote competitive energy markets
- and ensure homes are affordably heated.
One of the ways the U.K. set about achieving these goals is with a renewable portfolio standard. Great Britain calls it the Renewable Obligation, but thus far, the U.K. generates only 2% of its energy needs from renewable sources (not including nuclear), and only 1% of its transportation fuel needs from biofuels.
The U.K.’s REA says that’s not good enough, and has asked the government to take more time to look at the European Union’s energy targets in order to better incorporate them into U.K. energy policy.
The E.U. targets are committed to, “20% reduction in energy consumption and increased contributions from renewables to 20% of total energy and 10% of transport fuels by 2020.”
That’s a far cry from the U.K.’s current generation, and the REA asserts that the government’s paper on energy policy doesn’t do the E.U. targets justice. From the REA Chief Executive Philip Wolfe via Platts.com:
“Our government had the vision to push these ambitious energy targets through the European Union. But they just haven’t had time since then to credibly define the measures needed to meet them.”
Thus the call for a delay.
Several parliamentarians have called for incentives to spur renewable energy capacities in the U.K., something more like the German model where the government guarantees payment for electricity generated by solar power for 20 years at a premium price.
These are called Advanced Renewable Tariffs, and they’ve made Germany the largest solar manufacturing nation and market in the world.
Great Britain has a huge potential for wind energy and ocean energy, obviously. And with the work companies like OpenHydro Group, Lunar Energy, and Clipper Windpower (CRPWF.PK) have done in the area, I wouldn’t be surprised to see government help fall into these areas first.
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S.R. Nunnally is a commodities expert and technical analyst for Taipan Financial News. She is the editor of Material Profits, a monthly newsletter providing in-depth, cutting-edge research in the commodities sector. She is also the founder of Material Profits Wildcatter, employing an elite group of aggressive investment strategies.
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