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ETI Calls for More Emphasis on Carbon Capture and Storage and Bioenergy

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The Energy Technologies Institute (ETI) has called for greater emphasis on progressing carbon capture and storage (CCS) and building a UK bioenergy sector in the next 15 years if the UK is to meet its targets for decarbonising its energy system in the most cost effective way.

The call was made by Chief Executive Dr David Clarke who gave evidence to the Energy and Climate Change Select Committee’s inquiry into Setting the Fifth Carbon Budget yesterday (Wednesday 16 March).

Dr Clarke said: “We support the Committee on Climate Change’s recommendations and they are an important step on the pathway to 2050 but any delays in implementing key technologies will inevitably lead to cost increases.

“The 5th Carbon Budget recognises the significance of heat and transport as well as power generation but we need to get CCS back on track, we need to get nuclear moving and there needs to be more emphasis on bioenergy.”

He said that delays in implementing CCS or new nuclear would lead to extra efforts and costs being needed in early decarbonisation of the heat sector.

Long term policies and signals were also needed to encourage development of sustainably grown biomass crops in the UK.

“Short rotation forestry used for biomass has a growing time of at least 10 years so if we want a meaningful supply of UK sources crops by 2030 we need policy decisions soon that will encourage farmers to start planting ,” he said.

In its written response the ETI said it agrees with the Committee on Climate Change’s (CCC) advice on the level of the Fifth Carbon Budget and points out that its own analysis of the most cost effective pathway for a UK low carbon energy transition, points to a 2030 level of UK emissions very similar to that recommended by the CCC in its advice to the government.

However, the ETI’s own whole energy system analysis highlights some areas that might want to be considered to complement the advice suggested by the CCC.

These include:

  • A stronger emphasis on the importance of progress in CCS before 2030 – the CCC’s advice implies that the importance of CCS mainly relates to achieving the UK’s 2050 targets. ETI analysis also shows that it is a technology vitally important for minimising costs and risks associated with the UK’s decarbonisation pathway even in the period before 2030.  The success or failure to deploy CCS in the UK will have a fundamental influence on the decisions and costs around long-term infrastructure and energy system architecture, so ETI feels it is vital (and prudent) to achieve greater clarity on this before 2030.  ETI would advise the government that it should give priority and emphasis to promoting commercial scale deployment of CCS before 2030 as a cost reduction demonstration measure, as recommended in a recent submission to the Energy and Climate Change select committee.
  • A stronger emphasis on building a UK bioenergy sector in the period to 2030 – ETI analysis points to the importance of bioenergy as one of the two (alongside CCS) most important system-wide opportunities to reduce CO2 emissions cost-effectively.  ETI modelling highlights Bioenergy could provide up to 10% of the UK’s primary energy needs by 2050, with the majority of this sourced domestically thereby substantially reducing the costs of meeting carbon targets and significantly growing the agricultural bio-crop industry in the UK.  ETI would advise the government to give the development of the UK bioenergy sector a greater emphasis.
  • A measured approach to the decarbonisation of transport, particularly light transport pre-2030 – the ETI agrees with the CCC’s advice around the need to continue efficiency improvement in vehicles by shifting towards ultra-low emission (e.g. electric and plug in hybrid) vehicles.  ETI would caution that a rush to decarbonise transport, particularly light transport, could risk imposing significantly higher costs on UK consumers and businesses.

Details of the Energy and Climate Change Select Committee’s Inquiry can be found at http://www.parliament.uk/business/committees/committees-a-z/commons-select/energy-and-climate-change-committee/inquiries/parliament-2015/setting-fifth-carbon-budget/

 

The ETI response can be found at http://www.eti.co.uk/eti-submission-to-the-ecc-committee-inquiry-on-setting-the-5th-carbon-budget-2/

Energy

Responsible Energy Investments Could Solve Retirement Funding Crisis

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Energy Investments
Shutterstock / By Sergey Nivens | https://www.shutterstock.com/g/nivens

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 will my retirement savings 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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Energy

What Should We Make of The Clean Growth Strategy?

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Clean Growth Strategy for green energy
Shutterstock Licensed Photo - By sdecoret | https://www.shutterstock.com/g/sdecoret

It was hardly surprising the Clean Growth Strategy (CGS) was much anticipated by industry and environmentalists. After all, its publication was pushed back a couple of times. But with the document now in the public domain, and the Government having run a consultation on its content, what ultimately should we make of what’s perhaps one of the most important publications to come out of the Department for Business, Energy and the Industrial Strategy (BEIS) in the past 12 months?

The starting point, inevitably, is to decide what the document is and isn’t. It is, certainly, a lengthy and considered direction-setter – not just for the Government, but for business and industry, and indeed for consumers. While much of the content was favourably received in terms of highlighting ways to ensure clean growth, critics – not unjustifiably – suggested it was long on pages but short on detailed and finite policy commitments, accompanied by clear timeframes for action.

A Strategy, Instead of a Plan

But should we really be surprised? The answer, in all honesty, is probably not really. BEIS ministers had made no secret of the fact they would be publishing a ‘strategy’ as opposed to a ‘plan,’ and that gave every indication the CGS would set a direction of travel and be largely aspirational. The Government had consulted on its content, and will likely respond to the consultation during the course of 2018. And that’s when we might see more defined policy commitments and timeframes from action.

The second criticism one might level at the CGS is that indicated the use of ‘flexibilities’ to achieve targets set in the carbon budgets – essentially using past results to offset more recent failings to keep pace with emissions targets. Claire Perry has since appeared in front of the BEIS Select Committee and insisted she would be personally disappointed if the UK used flexibilities to fill the shortfall in meeting the fourth and fifth carbon budgets, but this is difficult ground for the Government. The Committee on Climate Change was critical of the proposed use of efficiencies, which would somewhat undermine ministers’ good intentions and commitment to clean growth – particularly set against November’s Budget, in which the Chancellor maintained the current carbon price floor (potentially giving a reprieve to coal) and introduced tax changes favourable to North Sea oil producers.

A 12 Month Green Energy Initiative with Real Teeth

But, there is much to appreciate and commend about the CGS. It fits into a 12-month narrative for BEIS ministers, in which they have clearly shown a commitment to clean growth, improving energy efficiency and cutting carbon emissions. Those 12 months have seen the launch of the Industrial Strategy – firstly in Green Paper form, which led to the launch of the Faraday Challenge, and then a White Paper in which clean growth was considered a ‘grand challenge’ for government. Throughout these publications – and indeed again with the CGS – the Government has shown itself to be an advocate of smart systems and demand response, including the development of battery technology.

Electrical Storage Development at Center of Broader Green Energy Push

While the Faraday Challenge is primarily focused on the development of batteries to support the proliferation of electric vehicles (which will support cuts to carbon emissions), it will also drive down technology costs, supporting the deployment of small and utility-scale storage that will fully harness the capability of renewables. Solar and wind made record contributions to UK electricity generation in 2017, and the development of storage capacity will help both reduce consumer costs and support decarbonisation.

The other thing the CGS showed us it that the Government is happy to be a disrupter in the energy market. The headline from the publication was the plans for legislation to empower Ofgem to cap the costs of Standard Variable Tariffs. This had been an aspiration of ministers for months, and there’s little doubt that driving down costs for consumers will be a trend within BEIS policy throughout 2018.

But the Government also seems happy to support disruption in the renewables market, as evidenced by the commitment (in the CGS) to more than half a billion pounds of investment in Pot 2 of Contracts for Difference (CfDs) – where the focus will be on emerging rather than established technologies.

This inevitably prompted ire from some within the industry, particularly proponents of solar, which is making an increasing contribution to the UK’s energy mix. But, again, we shouldn’t really be surprised. Since the subsidy cuts of 2015, ministers have given no indication or cause to think there will be public money afforded to solar development. Including solar within the CfD auction would have been a seismic shift in policy. And while ministers’ insistence in subsidy-free solar as the way forward has been shown to be based on a single project, we should expect that as costs continue to be driven down and solar makes record contributions to electricity generation, investment will follow – and there will ultimately be more subsidy-free solar farms, albeit perhaps not in 2018.

Meanwhile, by promoting emerging technologies like remote island wind, the Government appears to be favouring diversification and that it has a range of resources available to meet consumer demand. Perhaps more prescient than the decision to exclude established renewables from the CfD auction is the subsequent confirmation in the budget that Pot 2 of CfDs will be the last commitment of public money to renewable energy before 2025.

In short, we should view the CGS as a step in the right direction, albeit one the Government should be elaborating on in its consultation response. Its publication, coupled with the advancement this year of the Industrial Strategy indicates ministers are committed to the clean growth agenda. The question is now how the aspirations set out in the CGS – including the development of demand response capacity for the grid, and improving the energy efficiency of commercial and residential premises – will be realised.

It’s a step in the right direction. But, inevitably, there’s much more work to do.

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