A letter from the CBI and report published today by the Institute of Mechanical Engineers in The Times details an electricity supply crisis in UK. Government energy policy criticised as holding back crucial investment. The Times reported that the CBI also seeks policy stability, an extension of Levy Control Framework, and a Carbon Price Support mechanism beyond 2020. REA argues that solar, wind, and other renewables with energy storage technologies are cheaper than the gas and nuclear path set by the government.
Responding to an article in The Times today discussing the United Kingdom’s urgent power crisis, the REA stated that the most cost effective renewables, combined with energy storage should be given a level playing field to best compete.
Low gas and wholesale electricity prices are not incentivising new energy investment at a time where it is critically needed. This may result in 2016 being the year where the government subsidises nuclear, gas, and diesel but stifles the most cost-effective renewables such as solar, biomass, and wind. The government introduced 13 major policy changes since the general election that have slowed the growth of the renewable economy.
A joint KPMG and REA report released last Wednesday at the REA’s energy storage conference in London outlined that energy storage technologies are declining rapidly in cost and are economic in many situations at grid scale right now and by 2017 in they will be economic in domestic instalments with solar PV.
The costs of solar PV have come down tremendously in the past five years, to the point where it is clearly competitive with new nuclear and gas infrastructure. Already solar PV receives less government support than other technologies- over 50MW solar PV installations under the Contracts for Difference (CfD) scheme are supported at £79.00 per MWh for 15 years, compared to the Hinkley Point C reactor at £92.50 for 35 years (based on 2011 prices). Costs for solar PV are continuing to fall.
Large solar deployments can be installed in 6 weeks compared to the anticipated 9 years for Hinkley Point C and 3-4 years for new CCGT gas plants.
James Court, Head of Policy and External Affairs at the Renewable Energy Association said:
“This crisis is the clear product of a lack of vision in energy policy. Technologies are here now that can supply this country’s power needs in a low-carbon, low cost way and can be rapidly deployed, including solar PV, wind, and energy storage.
Gas and wholesale electricity prices are too low to incentivise new building and we may find ourselves in a situation this year where the government is subsidising nuclear, gas, and diesel while actively creates barriers to the deployment of the most cost effective renewables.
We’re advocating for a level playing field. A recent REA/KPMG report outlined that a more decentralised energy system will lower costs to consumers and increase our energy security.
Like our Facebook Page
Eco-Friendly Decisions That Will Enhance Your Quality of Life
List of Fantastic Places for Green Consumers to Settle in South Carolina
6 Amazing Eco-Friendly Bedroom Design Ideas for Sustainable Homeowners
5 Great Ways to be a More Environmentally-Friendly Cannabis User
Amazing Approaches to Cycling for Promoting a Greener Lifestyle
Understanding The True Environmental Impact of Dentistry
Incredibly Important Benefits of Effective Ethically Made Anti-Virus Face Masks
Best Natural and Eco-Friendly Ways to Treat Dog Ailments
Green Entrepreneurs Find Creative Ways to Balance Ethical Goals with their Retirement Objectives
The Surprising Environmental Benefits of Using an Organic Mattress
From Store to Door with Minimal Impact: How Companies Are Eco-Friendly Innovators
A Guide to Investing In Renewable Energy Stocks in 2021
Creative Ideas to Practice Eco-friendlier Consumerism
Hawkers Launch a Truly Innovative Eco-Friendly Sunglass Line
Everything You Need to Know Before You Start Using Renewable Energy in 2021
The Curtis Institute of Music Makes Facilities More Energy Efficient
What Can Ecotourists Learn from Visiting Chernobyl?
5 Essentials for Promising Eco-Friendly Businesses to Thrive in a New Economy
Charity Organizations Who Are Taking Steps to Become More Environmentally Friendly
Mastering the Art of Trading Bitcoins Profitably and Sustainably
- Editors Choice12 months ago
10 Green Companies With Amazing Environmental Initiatives
- Features12 months ago
5 Sustainable Home Improvement Ideas To Improve Your Home’s Value
- Energy12 months ago
10 Amazing Energy Saving Hacks for Spring
- Invest11 months ago
4 Super Simple Solutions To Create The Perfect Eco-Friendly Home