The government’s spending watchdog has questioned whether the early contracts awarded to eight renewable energy projects, collectively worth £16.6 billion, have overpaid energy firms at the expense of the taxpayer.
In April, the government stepped in to offer contracts to the projects – five offshore wind farms, one biomass combined heat and power plant and two coal plants set to be converted into biomass plants – in order to fill an investment gap.
It is anticipated that by 2020, the projects will provide up to £12 billion of private sector investment and generate around 4% of Britain’s energy mix, providing an important boost in the government’s decarbonisation efforts.
However, the National Audit Office (NAO) has suggested that because the money was committed without price competition, the government has failed to secure value for money.
“The investments supported should contribute towards the UK’s achieving its renewable energy target in 2020, but it is not clear that awarding fewer early contracts would have put the achievement of that target at risk”, said Amyas Morse, head of the National Audit Office.
“As the contracts for difference regime has the potential to secure better value for consumers through price competition, committing so much of the available funding through early contracts, without competition, has limited the Department of Energy and Climate Change’s (DECC) opportunity to secure better value for money.
At the heart of the debate is the government’s new contracts for difference (CfD) scheme, due to be launched later this year. CfDs offer a guarantee to generators of an agreed price for electricity. If the market price for electricity falls lower than the agreed “strike price”, then generators are subsidised. If it rises above it, generators pay back the difference.
Generators will have to compete for these contracts, securing a good deal for consumers.
For renewable energy projects further along in their development and awaiting investment, the government launched an early form of CfDs – the controversial contracts offered to the eight new projects – with strike prices set without competition from other developers.
“The scale of early contracts for renewables, awarded without competition, may have increased costs to consumers. The department proceeded […] despite acknowledging that competitive pricing might reveal subsequently that its administratively set strike prices in some cases were too high”, the NAO said in a statement.
The NAO’s report adds that it is not certain that the whole £16.6 billion worth of support was needed so soon in order to meet the nation’s renewable energy target.
However, a DECC spokesperson said the deals “have reassured those we need to invest in our energy security”.
They added, “Without that investment, projects would have been unable to go ahead or been significantly delayed, putting our future energy security at risk.”
RenewableUK, the trade body for the UK’s wind, wave and tidal energy industries, has also praised the impact of the CfDs, saying they gave developers the confidence to go ahead with major green energy infrastructure projects at a crucial time.
“Overall, the process has helped to stimulate commitments to the UK by manufacturers such as Siemens which will be creating 1,000 jobs in offshore wind in East Yorkshire”, said RenewableUK’s deputy chief executive Maf Smith.
“More than 13,000 people in the UK already owe their livelihood to the offshore wind sector, which has the potential to employ nearly 45,000 by 2023.
“These five offshore wind projects, with a combined capacity of over 3,000 megawatts, will help to provide energy security for the UK by powering more than 2 million homes”.
Photo: Martin Pettitt via Flickr
7 New Technologies That Could Radically Change Our Energy Consumption
Most of our focus on technological development to lessen our environmental impact has been focused on cleaner, more efficient methods of generating electricity. The cost of solar energy production, for example, is slated to fall more than 75 percent between 2010 and 2020.
This is a massive step forward, and it’s good that engineers and researchers are working for even more advancements in this area. But what about technologies that reduce the amount of energy we demand in the first place?
Though it doesn’t get as much attention in the press, we’re making tremendous progress in this area, too.
New Technologies to Watch
These are some of the top emerging technologies that have the power to reduce our energy demands:
- Self-driving cars. Self-driving cars are still in development, but they’re already being hailed as potential ways to eliminate a number of problems on the road, including the epidemic of distracted driving ironically driven by other new technologies. However, even autonomous vehicle proponents often miss the tremendous energy savings that self-driving cars could have on the world. With a fleet of autonomous vehicles at our beck and call, consumers will spend less time driving themselves and more time carpooling, dramatically reducing overall fuel consumption once it’s fully adopted.
- Magnetocaloric tech. The magnetocaloric effect isn’t exactly new—it was actually discovered in 1881—but it’s only recently being studied and applied to commercial appliances. Essentially, this technology relies on changing magnetic fields to produce a cooling effect, which could be used in refrigerators and air conditioners to significantly reduce the amount of electricity required.
- New types of insulation. Insulation is the best asset we have to keep our homes thermoregulated; they keep cold or warm air in (depending on the season) and keep warm or cold air out (again, depending on the season). New insulation technology has the power to improve this efficiency many times over, decreasing our need for heating and cooling entirely. For example, some new automated sealing technologies can seal gaps between 0.5 inches wide and the width of a human hair.
- Better lights. Fluorescent bulbs were a dramatic improvement over incandescent bulbs, and LEDs were a dramatic improvement over fluorescent bulbs—but the improvements may not end there. Scientists are currently researching even better types of light bulbs, and more efficient applications of LEDs while they’re at it.
- Better heat pumps. Heat pumps are built to transfer heat from one location to another, and can be used to efficiently manage temperatures—keeping homes warm while requiring less energy expenditure. For example, some heat pumps are built for residential heating and cooling, while others are being used to make more efficient appliances, like dryers.
- The internet of things. The internet of things and “smart” devices is another development that can significantly reduce our energy demands. For example, “smart” windows may be able to respond dynamically to changing light conditions to heat or cool the house more efficiently, and “smart” refrigerators may be able to respond dynamically to new conditions. There are several reasons for this improvement. First, smart devices automate things, so it’s easier to control your energy consumption. Second, they track your consumption patterns, so it’s easier to conceptualize your impact. Third, they’re often designed with efficiency in mind from the beginning, reducing energy demands, even without the high-tech interfaces.
- Machine learning. Machine learning and artificial intelligence (AI) technologies have the power to improve almost every other item on this list. By studying consumer patterns and recommending new strategies, or automatically controlling certain features, machine learning algorithms have the power to fundamentally change how we use energy in our homes and businesses.
Making the Investment
All technologies need time, money, and consumer acceptance to be developed. Fortunately, a growing number of consumers are becoming enthusiastic about finding new ways to reduce their energy consumption and overall environmental impact. As long as we keep making the investment, our tools to create cleaner energy and demand less energy in the first place should have a massive positive effect on our environment—and even our daily lives.
Responsible Energy Investments Could Solve Retirement Funding Crisis
Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.
Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long your retirement savings will last?”
Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.
Tip #1: Focus & Determination
Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.
Tip #2: Minimize Spending
One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!
Tip #3: Visualize Your Goal
You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.
Investing in Clean Energy
One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.
With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.
The Future of Green Biz
As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.
Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.
In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!
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