Britain’s biggest energy companies will be handed a £7 billion windfall by Government plans to boost “green” power generation, analysts have said.
By James Kirkup, Political Correspondent
10:00PM BST 10 Jul 2011
Power companies who are already putting up household bills are set to benefit from measures to encourage the building of new nuclear power stations and windfarms, according to Credit Suisse.
Chris Huhne, the Energy Secretary, will tomorrow set out plans to encourage low-carbon energy generation techniques.
The Electricity Market Reform White Paper will offer financial incentives to low-carbon generators, guaranteeing them a fixed price for their power above the market price.
Those incentives will be funded by households though their power bills.
According to a Credit Suisse report, higher prices will bring in an extra £24 billion for power companies between 2013 and 2020. Their costs are only forecast to rise by £17 billion, giving a profit of £7 billion.
Companies’ profits will be determined by the level the carbon “floor price” is set at, something the bank said was subject to “uncertainty”.
With energy firms already increasing household bills sharply this year, ministers are sensitive to suggestions that their plans will add to consumers’ costs.
Mr Huhne yesterday insisted that the Government’s plans will mean a long-term reduction in household energy bills.
Some estimates suggest Government “green” energy measures could add £200 to the average household’s annual energy bill. Ofgem, the Government’s energy regulator, has said it expects prices to rise by at least 10 per cent.
Mr Huhne said that those estimates did not take account of other Government measures to reduce household energy consumption, such as encouraging insulation and
“What it doesn't do is take account of the impact of that energy saving. That's the effect on gas and electricity prices, but once you take the effect on bills you actually find that we're getting overall bill down in the long-run,” he told the BBC.
Ministers believe that their plans will mean that British power stations will stop burning coal to generate power within the next three years.
Mr Huhne insisted that such a shift away from fossil fuels was the only way to bring stability to household bills. Energy firms blame this year’s price rises on growing demand for energy from Asia and uncertainty in the Middle East.
Britain must generate more of its energy from other sources, Mr Huhne said. “If we want to get off the vulnerability which we've got to these world markets, we've got to move to low carbon sources.”
According to the University of Cambridge Energy Policy Research Group, the Coalition’s market reforms could increase household bills by 32 per cent by 2030 and “send UK electricity prices towards being the highest in the European Union.”
Mr Huhne strongly rejected the Cambridge estimates.
“These are extraordinarily rubbish calculations, which I'm very happy to sit down with our chief economist and go through.
Monday, 11 July 2011
Japanese firm looks to solar power from the moon
Relaxnews
Sunday, 10 July 2011
Given Japan's well-documented recent energy problems, new attention is being focused on a revolutionary plan to construct a belt of solar panels 400 km wide around the equator of the moon and send the energy that is generated back to Earth in the form of laser-guided microwaves.
The proposal was first dreamed up last year by Shimizu Corp., one of Japan's "Big Three" construction firms, and is being put forward as a potential future source of vast amounts of clean energy.
In recent years, Japan has increasingly relied on nuclear energy to power its homes and industry, but after the catastrophic March 11 earthquake and tsunami, which destroyed the Fukushima Dai-Ichi nuclear plant, the government and companies here have expressed their commitment to developing alternatives.
Named the Luna Ring, the scheme has the potential to provide enough energy to power the entire planet and Shimizu's scientists believe construction work could get under way as early as 2035.
Given sufficient funding - which Shimizu's experts are reluctant to precisely estimate - robots would exploit the moon's natural resources and produce the concrete, solar cells and other elements required for the project.
Construction facilities would stretch around the equator of Earth's nearest galactic neighbor to build the vast solar energy farm, with microwave transfer facilities located at intervals to ensure the constant provision of receivers on Earth.
Once completed, Shimzu estimates the solar cells would provide 17 billion tons of oil-equivalent energy.
Japan is already one of the leading producers of high-end solar panels, through companies such as Kyocera Corp., and even before March 11 had passed legislation to help cover the cost of installing solar panels on residential units. Those incentives are likely to be stepped up in the wake of the worst natural disaster in living memory in Japan and the ongoing problems at the Fukushima nuclear plant.
Solar power is also increasingly appealing to the Japanese public, who are equally keen to secure alternative sources of energy to nuclear power. Those include tapping into the potential of wind, wave and geothermal energy.
A video on the proposal can be seen at http://www.shimz.co.jp/english/theme/dream/lunaring-mv.html
JR
Sunday, 10 July 2011
Given Japan's well-documented recent energy problems, new attention is being focused on a revolutionary plan to construct a belt of solar panels 400 km wide around the equator of the moon and send the energy that is generated back to Earth in the form of laser-guided microwaves.
The proposal was first dreamed up last year by Shimizu Corp., one of Japan's "Big Three" construction firms, and is being put forward as a potential future source of vast amounts of clean energy.
In recent years, Japan has increasingly relied on nuclear energy to power its homes and industry, but after the catastrophic March 11 earthquake and tsunami, which destroyed the Fukushima Dai-Ichi nuclear plant, the government and companies here have expressed their commitment to developing alternatives.
Named the Luna Ring, the scheme has the potential to provide enough energy to power the entire planet and Shimizu's scientists believe construction work could get under way as early as 2035.
Given sufficient funding - which Shimizu's experts are reluctant to precisely estimate - robots would exploit the moon's natural resources and produce the concrete, solar cells and other elements required for the project.
Construction facilities would stretch around the equator of Earth's nearest galactic neighbor to build the vast solar energy farm, with microwave transfer facilities located at intervals to ensure the constant provision of receivers on Earth.
Once completed, Shimzu estimates the solar cells would provide 17 billion tons of oil-equivalent energy.
Japan is already one of the leading producers of high-end solar panels, through companies such as Kyocera Corp., and even before March 11 had passed legislation to help cover the cost of installing solar panels on residential units. Those incentives are likely to be stepped up in the wake of the worst natural disaster in living memory in Japan and the ongoing problems at the Fukushima nuclear plant.
Solar power is also increasingly appealing to the Japanese public, who are equally keen to secure alternative sources of energy to nuclear power. Those include tapping into the potential of wind, wave and geothermal energy.
A video on the proposal can be seen at http://www.shimz.co.jp/english/theme/dream/lunaring-mv.html
JR
Half of planned wind farms blown away by force of local protests
By Lewis Smith and David Prosser
Monday, 11 July 2011
Almost half of the wind farms planned for the UK countryside are rejected before they can get off the drawing board, new figures show.
The failure of developers to win support for wind projects is blamed on a hardening of attitudes within local authorities towards them, and the increasing influence of "nimbies" and anti-wind campaigners.
Figures obtained from the Department of Energy and Climate Change under freedom of information legislation reveal that in just five years the rejection rate for wind farm planning applications has risen from 29 per cent in 2005 to 48 per cent in 2010 in England and Wales. For other major developments, such as roads and supermarkets, 70 per cent are approved.
Developers are increasingly frustrated at what they see as local issues being given priority over national needs and are worried that the Localism Bill championed by Eric Pickles, the Local Government and Communities Secretary, will worsen the situation by handing communities greater rights to reject development schemes.
Jacqueline Harris, of the legal firm McGrigors, which obtained the latest figures, said there were growing concerns that developers were being denied a fair hearing, with issues such as the visual impact of wind turbines being given special precedence even when only a few houses are in sight of them. "There is little willingness to consider the benefits of renewable energy generation in context – the national interest is being overridden by local concerns," she said.
Nick Medic, of RenewableUK, the industry's trade association, said the figures raised important questions about how the Government's green growth agenda could be achieved. He added: "We often find there is a vociferous minority driving the planning process. That can't be right."
High refusal rates have raised concerns about the UK's ability to meet its 2020 renewable energy and greenhouse gas targets, which require a third of electricity to be from renewable sources.
A study last year estimated that nimby ("not in my back yard") and anti-wind campaigners will cost local communities £1.3bn in lost investment.
The rise in planning rejections comes despite a government survey showing that from 2006 to 2009 the proportion of people saying they would be unhappy living within three miles of a wind farm had fallen from 24 to 21 per cent.
Greg Clark, the Minister for Decentralisation, said: "We're putting reforms in place that will deliver an efficient planning system that still supports sustainable growth and green energy developments, but rightly gives communities a say in the planning of their local area."
TURBINES REJECTED
* A plan by RWE npower Renewables to build 18 125-metre-high turbines at Horkstow, North Lincolnshire, was thrown out in December after a fierce local campaign. Planning officers had recommended approval of the scheme. Campaigners declared their victory "a good day for the rural community". A revised plan has now been submitted.
* Community Windpower wanted 20 126-metre-tall turbines near Camelford, North Cornwall, but the plan was rejected in July 2010 after campaigners raised concerns about the effect on birds and described it as a desecration of the landscape. A revised application has now been submitted.
Monday, 11 July 2011
Almost half of the wind farms planned for the UK countryside are rejected before they can get off the drawing board, new figures show.
The failure of developers to win support for wind projects is blamed on a hardening of attitudes within local authorities towards them, and the increasing influence of "nimbies" and anti-wind campaigners.
Figures obtained from the Department of Energy and Climate Change under freedom of information legislation reveal that in just five years the rejection rate for wind farm planning applications has risen from 29 per cent in 2005 to 48 per cent in 2010 in England and Wales. For other major developments, such as roads and supermarkets, 70 per cent are approved.
Developers are increasingly frustrated at what they see as local issues being given priority over national needs and are worried that the Localism Bill championed by Eric Pickles, the Local Government and Communities Secretary, will worsen the situation by handing communities greater rights to reject development schemes.
Jacqueline Harris, of the legal firm McGrigors, which obtained the latest figures, said there were growing concerns that developers were being denied a fair hearing, with issues such as the visual impact of wind turbines being given special precedence even when only a few houses are in sight of them. "There is little willingness to consider the benefits of renewable energy generation in context – the national interest is being overridden by local concerns," she said.
Nick Medic, of RenewableUK, the industry's trade association, said the figures raised important questions about how the Government's green growth agenda could be achieved. He added: "We often find there is a vociferous minority driving the planning process. That can't be right."
High refusal rates have raised concerns about the UK's ability to meet its 2020 renewable energy and greenhouse gas targets, which require a third of electricity to be from renewable sources.
A study last year estimated that nimby ("not in my back yard") and anti-wind campaigners will cost local communities £1.3bn in lost investment.
The rise in planning rejections comes despite a government survey showing that from 2006 to 2009 the proportion of people saying they would be unhappy living within three miles of a wind farm had fallen from 24 to 21 per cent.
Greg Clark, the Minister for Decentralisation, said: "We're putting reforms in place that will deliver an efficient planning system that still supports sustainable growth and green energy developments, but rightly gives communities a say in the planning of their local area."
TURBINES REJECTED
* A plan by RWE npower Renewables to build 18 125-metre-high turbines at Horkstow, North Lincolnshire, was thrown out in December after a fierce local campaign. Planning officers had recommended approval of the scheme. Campaigners declared their victory "a good day for the rural community". A revised plan has now been submitted.
* Community Windpower wanted 20 126-metre-tall turbines near Camelford, North Cornwall, but the plan was rejected in July 2010 after campaigners raised concerns about the effect on birds and described it as a desecration of the landscape. A revised application has now been submitted.
Triodos offers shares in renewables firm
Green-minded individuals will be given the chance to become shareholders in Triodos Renewables, an independent UK energy company managed by Triodos bank
Rupert Jones
guardian.co.uk, Friday 8 July 2011 23.02 BST
Green-minded individuals keen to play their part in tackling climate change, but also looking for a decent return on their cash, may be interested in the launch of a public share issue aimed at raising up to £15m to invest in new renewable energy projects.
They are being given the chance to become shareholders in Triodos Renewables, an independent UK energy company managed by Bristol-based Triodos Bank which has more than 15 years hands on experience in the sector. This is its fourth public share offer – the last was in 2008.
The issue price has been set at £1.80 per share, and the minimum investment at £540, with the aim of bringing in retail investors to join the 4,000 existing shareholders. "Proceeds will be invested directly into building new wind power assets to expand the company's portfolio," says the firm. It adds that as well as offering people "a chance to make a real difference," there's potential for a decent return.
The prospectus states: "The group's long-term objective is to grow its portfolio of renewable energy operating projects and to deliver between 9% and 10% annualised returns on investment for shareholders."
Triodos Renewables now owns and operates seven sites around the UK that can generate enough renewable power for up to 24,500 homes.
But this is a long-term investment in a single share, with all the risks that entails. The prospectus lists a number of "risk factors". You may not get back the full amount invested, and it may be hard to sell the shares, though Triodos matches sellers with buyers. A less risky bet may be an ethical fund investing in lots of different companies.
Rupert Jones
guardian.co.uk, Friday 8 July 2011 23.02 BST
Green-minded individuals keen to play their part in tackling climate change, but also looking for a decent return on their cash, may be interested in the launch of a public share issue aimed at raising up to £15m to invest in new renewable energy projects.
They are being given the chance to become shareholders in Triodos Renewables, an independent UK energy company managed by Bristol-based Triodos Bank which has more than 15 years hands on experience in the sector. This is its fourth public share offer – the last was in 2008.
The issue price has been set at £1.80 per share, and the minimum investment at £540, with the aim of bringing in retail investors to join the 4,000 existing shareholders. "Proceeds will be invested directly into building new wind power assets to expand the company's portfolio," says the firm. It adds that as well as offering people "a chance to make a real difference," there's potential for a decent return.
The prospectus states: "The group's long-term objective is to grow its portfolio of renewable energy operating projects and to deliver between 9% and 10% annualised returns on investment for shareholders."
Triodos Renewables now owns and operates seven sites around the UK that can generate enough renewable power for up to 24,500 homes.
But this is a long-term investment in a single share, with all the risks that entails. The prospectus lists a number of "risk factors". You may not get back the full amount invested, and it may be hard to sell the shares, though Triodos matches sellers with buyers. A less risky bet may be an ethical fund investing in lots of different companies.
Energy market reform expected to lead to higher household fuel bills
• Chris Huhne rubbishes predictions of £500-a-year average rise by 2030
• Campaigners say proposals will plunge more families into fuel poverty
Terry Macalister
guardian.co.uk, Sunday 10 July 2011 17.41 BST
The government will reignite the row over soaring energy bills on Tuesday when it unveils a long-awaited electricity market reform package that will boost nuclear power but hit householders with another major increase in costs.
Ministers insist the planned shake-up will move the UK away from fossil fuels and the kind of market instability that led to the announcement last Friday of an increase of up to 18% in some British Gas bills.
Ofgem, the industry regulator, has previously estimated that the average household bill could rise by £500 annually by 2030, while Cambridge academics have claimed that Britain's energy costs could become the highest in Europe.
Chris Huhne, the energy and climate change secretary, on Sunday called the prediction "absolute nonsense", saying that it was based on "rubbish" calculations, which did not take into account the eventual savings that different energy sources would bring. "The reality is that we have some of the lowest energy prices [in Europe] and we can get them even lower," he told the BBC's Andrew Marr Show.
But campaigners against fuel poverty – defined as when more than 10% of household income is spent on heating – have already warned that the number of households facing such a situation in Britain could soon rise from 5.5m to more than 6m in the wake of the latest price rises. They also claim that government plans will make the problem worse.
National Energy Action said: "The energy market reform document ... is likely to indicate that further increases in energy prices are on the horizon to fund additional measures proposed by government."
The government's white paper will propose providing a fixed price above the market value for electricity generated from nuclear power and windfarms, via a floor on the carbon price from 2013.
There will also be further details on a carbon emissions performance standard, a hedging mechanism called "contracts for difference" and a "capacity mechanism" for ensuring utilities can be rewarded for keeping excess power on standby for when the wind does not blow.
The Department of Energy and Climate Change (DECC) is struggling to reconcile industry differences on some of these measures and there are fears that the process may be less advanced than many would want.
Tim Yeo, chairman of the energy select committee, told the Guardian that decisions were "urgently needed" but said that he feared there would be a lack of concrete initiatives. "The danger is that we are given more of a green [consultative] paper than a white paper and that would just promote uncertainty and leave us longer dependent on volatile gas imports," he said.
But the DECC said it was doing all it could to increase the UK's energy security while reducing CO2 emissions.
"The measures included in the EMR are cheaper than the cost of doing nothing, not replacing power stations and infrastructure. We believe annual household bills could increase by £200 by 2030, or even £160," said a DECC spokesman.
British Gas caused a storm on Friday by raising its electricity bills by an average of £18 and gas bills by £16 but other utilities are expected to follow suit as wholesale energy costs continue to soar.
• Campaigners say proposals will plunge more families into fuel poverty
Terry Macalister
guardian.co.uk, Sunday 10 July 2011 17.41 BST
The government will reignite the row over soaring energy bills on Tuesday when it unveils a long-awaited electricity market reform package that will boost nuclear power but hit householders with another major increase in costs.
Ministers insist the planned shake-up will move the UK away from fossil fuels and the kind of market instability that led to the announcement last Friday of an increase of up to 18% in some British Gas bills.
Ofgem, the industry regulator, has previously estimated that the average household bill could rise by £500 annually by 2030, while Cambridge academics have claimed that Britain's energy costs could become the highest in Europe.
Chris Huhne, the energy and climate change secretary, on Sunday called the prediction "absolute nonsense", saying that it was based on "rubbish" calculations, which did not take into account the eventual savings that different energy sources would bring. "The reality is that we have some of the lowest energy prices [in Europe] and we can get them even lower," he told the BBC's Andrew Marr Show.
But campaigners against fuel poverty – defined as when more than 10% of household income is spent on heating – have already warned that the number of households facing such a situation in Britain could soon rise from 5.5m to more than 6m in the wake of the latest price rises. They also claim that government plans will make the problem worse.
National Energy Action said: "The energy market reform document ... is likely to indicate that further increases in energy prices are on the horizon to fund additional measures proposed by government."
The government's white paper will propose providing a fixed price above the market value for electricity generated from nuclear power and windfarms, via a floor on the carbon price from 2013.
There will also be further details on a carbon emissions performance standard, a hedging mechanism called "contracts for difference" and a "capacity mechanism" for ensuring utilities can be rewarded for keeping excess power on standby for when the wind does not blow.
The Department of Energy and Climate Change (DECC) is struggling to reconcile industry differences on some of these measures and there are fears that the process may be less advanced than many would want.
Tim Yeo, chairman of the energy select committee, told the Guardian that decisions were "urgently needed" but said that he feared there would be a lack of concrete initiatives. "The danger is that we are given more of a green [consultative] paper than a white paper and that would just promote uncertainty and leave us longer dependent on volatile gas imports," he said.
But the DECC said it was doing all it could to increase the UK's energy security while reducing CO2 emissions.
"The measures included in the EMR are cheaper than the cost of doing nothing, not replacing power stations and infrastructure. We believe annual household bills could increase by £200 by 2030, or even £160," said a DECC spokesman.
British Gas caused a storm on Friday by raising its electricity bills by an average of £18 and gas bills by £16 but other utilities are expected to follow suit as wholesale energy costs continue to soar.
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