Connect with us

Energy

The Pricing, Delivering Infrastructure And Enabling Of UK Climate Action Re-Evaluated By Oxburgh Report

Published

on

The Pricing, Delivering Infrastructure And Enabling Of UK Climate Action Re-Evaluated By Oxburgh Report

A parliamentary group led by Lord Oxburgh has released a highly anticipated report on Carbon Capture and Storage (CCS) which has been welcomed by SCCS.

The report describes a six-point plan for delivering CCS in the UK, a technology that is essential to meeting the carbon targets envisaged by the Paris Agreement on tackling climate change. With the US and China having now ratified this pledge, there is pressure on the UK Government to follow suit and swiftly reaffirm its leadership in low-carbon ambitions.

These ambitions were badly dented last November when the UK Treasury abruptly pulled funding for the long-running CCS Commercialisation Programme. The cost of delivery was given as the reason, incorrectly cited as being £180 per MW hour of electricity. But today’s report shows that CCS technology can be delivered at just £85/MWh over a 15-year period; a lower cost and faster delivery than nuclear power and comparing favourably to many renewable energy options.

If the UK’s CCS competition was considered an inefficient and costly way to deliver the technology, then the Oxburgh report sets out a new approach, which can bring huge financial savings and employment benefits and give UK industry a brighter future. The report concludes that CCS is essential for the UK to decarbonise its economy, not just power generation but also industry, heat and transport.

The report recommends the creation of a CCS Delivery Company, which will manage construction and risk for the first projects, similar to the successful delivery of the 2012 Olympics or the current Crossrail project. This would create transport and storage infrastructure, which can be privatised when properly established, and could cut the cost of meeting the UK’s climate targets by billions each year.

Prof Stuart Haszeldine, SCCS Director and report co-author, said:

“What has been missing until now is the method for making CCS happen. The Oxburgh report sets out six clear actions, including the establishment of a CCS Delivery Company and linking CCS Certificates for CO2 storage to contracts which incentivise CO2 capture from heavy industry.

“Through a delivery company, with regulated and reliable profits, the government can attract investors to provide the necessary infrastructure, and there are sites in the UK’s industrial heartlands, such as Grangemouth, Teesside and Mersey, where CO2 resulting from industrial processes could be easily captured and transported by existing pipelines or shipping to offshore storage sites. These are the natural places to grow the first small CCS start-ups.

Once operating, a CCS system has value for other emitters and can be added to incrementally. The infrastructure itself has bankable value.

 

“Once operating, a CCS system has value for other emitters and can be added to incrementally. The infrastructure itself has bankable value. Such networks are well understood by financiers in the UK and are regulated to reset prices at three to six-year intervals, providing a reliable financial return prized by investors.

“With offshore pipelines already being decommissioned, actions that maintain infrastructure are needed immediately. Some pipelines can be taken into temporary public ownership while new CCS organisations are created. Using these, we could begin storing CO2 commercially by the early 2020s.

“Initial government support is necessary for low-carbon technology, such as CCS, to gain a foothold. Compare the subsidies that have enabled growth in the renewables sector. But we believe that initial investment need not be large. Just £300 million is enough for engineering design studies, which would unlock the investment needed to build a project. Once established, the CO2 networks can be privatised and government investment recovered.

“A new CCS Obligation system will create a market for CO2 storage and ensure a long-term trajectory for decarbonising the UK economy. Trading CO2 certificates linked to power or industry would not achieve the required reductions fast enough or have any longevity. By mandating a quantity of CO2 to be stored each year, this creates a predictable and controllable pathway to ‘net-zero’ carbon by mid-century, which business can rely on.”

 

Energy

Are the UK Governments Plans for the Energy Sector Smart?

Published

on

The revolution in the energy sector marches on, wind turbines and solar panels are harnessing more renewable energy than ever before – so where is it all leading?

The UK government have recently announced plans to modernise the way we produce, store and use electricity. And, if realised, the plans could be just the thing to bring the energy sector in line with 21st century technology and ideologies.

Central to the plans is an initiative that will see smart meters installed in homes and businesses the length and breadth of the country – and their aim? To create an environment where electricity can be managed more efficiently.

The news has prompted some speculation about how energy suppliers will react and many are predicting a price war. This could benefit consumers of electricity and investors, many of whom may be looking to make a profit by trading energy company shares online using platforms such as Oanda – but the potential for good news doesn’t end there.

Introducing New Technology

The plan, titled Smart Systems and Flexibility is being rolled out in the hope that it will have a positive impact in three core areas.

  • To offer consumers greater control by making smart meters available for all homes and businesses by 2020. Energy users will be able to monitor, control and record the amount of energy they use.
  • Incentivise energy suppliers to change the manner in which they buy electricity, to offer more smart tariffs and more off-peak periods for energy consumption.
  • Introduce new standards for electrical appliances – it is hoped that the new wave of appliances will recognise when electricity is at its cheapest and at its most expensive and respond accordingly.

How the Plans Will Affect Solar Energy

Around 7 million houses in the UK have solar panels and the government say that their plan will benefit them as they will be able to store electricity on batteries. The stored energy can then be used by the household and excess energy can be exported to the national grid – in this instance lower tariffs or even payment for the excess energy will bring down annual costs significantly.

The rate of return on energy exported to the national grid is currently between 6% and 10%, but there are many variables to take into account, such as, the cost of battery storage and light levels. Still, those with state-of-the-art solar electricity systems could end up with an annual profit after selling their excess energy.

The Internet of Things

Much of what the plans set out to achieve are linked to the now ubiquitous “internet of things” – where, for example, appliances and heating systems are connected to the internet in order to make them function more smartly.

Companies like Hive have already made great inroads into this type of technology, but the road that the government plans are heading down, will, potentially, go much further -blockchain technology looms and has already proved to be a game changer in the world of currency.

Blockchain Technology

It has already been suggested that the peer to peer selling of energy and exporting it to the national grid may eventually be done using blockchain technology.

“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”

Don and Alex Tapscott, Blockchain Revolution (2016)

The upshot of the government’s plans for the revolution of the energy sector, is that technology will play an indelible role in making it more efficient, more flexible and ultimately more sustainable.

Continue Reading

Energy

4 Case Studies on the Benefits of Solar Energy

Published

on

By

Demand for solar energy is growing at a surprising rate. New figures from SolarPower Europe show that solar energy production has risen 50% since the summer of 2016.

However, many people are still skeptical of the benefits of solar energy.Does it actually make a significant reduction in our carbon footprint? Is it actually cost-effective for the company over the long-run?

A number of case studies have been conducted, which indicate solar energy can be enormously beneficial. Here are some of the most compelling studies on the subject.

1.     Boulder Nissan

When you think of companies that leverage solar power, car dealerships probably aren’t the first ones that come to mind. However, Boulder Nissan is highly committed to promoting green energy. They worked with Independent Power Systems to setup a number of solar cells. Here were the results:

  • Boulder Nissan has reduced coal generated electricity by 65%.
  • They are on track to run on 100% renewable energy within the next 13 years.
  • Boulder Nissan reduced CO2 emissions by 416,000 lbs. within the first year after installing their solar panels.

This is one of the most impressive solar energy case studies a small business has published in recent years. It shows that even small companies in rural communities can make a major difference by adapting solar energy.

2.     Valley Electric Association

In 2015, the Valley Electric Association (VEA) created an 80-acre solar garden. Before retiring from the legislature, U.S. Senate Minority Leader Harry Reid praised the new project as a way to make the state more energy dependent and reduce our carbon footprint.

“This facility will provide its customers with the opportunity to purchase 100 percent of their electricity from clean energy produced in Nevada,” Reid told reporters with the Pahrump Valley Times. “That’s a step forward for the Silver State, but it also proves that utilities can work with customers to provide clean renewable energy that they demand.”

The solar energy that VEA produced was drastically higher than anyone would have predicted. SolarWorld estimates that the solar garden created 32,680,000 kwh every year, which was enough to power nearly 4,000 homes.

This was a major undertaking for a purple state, which may inspire their peers throughout the Midwest to develop solar gardens of their own. It will reduce dependency on the electric grid, which is a problem for many remote states in the central part of the country.

3.     Las Vegas Casinos

A number of Las Vegas casinos have started investing in solar panels over the last couple of years. The Guardian reports that many of these casinos have cut costs considerably. Some of them are even selling the energy back to the grid.

“It’s no accident that we put the array on top of a conference center. This is good business for us,” Cindy Ortega, chief sustainability officer at MGM Resorts told Guardian reporters. “We are looking at leaving the power system, and one of the reasons for that is we can procure more renewable energy on the open market.”

There have been many benefits for casinos using solar energy. They are some of the most energy-intensive institutions in the world, so this has helped them become much more cost-effective. It also helps minimize disruptions to their customers learning online keno strategies in the event of any problems with the electric grid.

4.     Boston College

Boston College has been committed to many green initiatives over the years. A group of researchers experimented with solar cells on different parts of the campus to see where they could produce the most electricity. They discovered that the best locationwas at St. Clement’sHall. The solar cells there dramatically. It would also reduce CO2 emissions by 521,702 lbs. a year and be enough to save 10,869 trees.

Boston College is exploring new ways to expand their usage of solar cells. They may be able to invest in more effective solar panels that can generate far more solar energy.

Continue Reading
Advertisement

Facebook

Trending