Oxford academic Prof. Sir Dieter Helm has attacked Ed Milband’s new energy policy as flawed, in a prominent article in the Times Comment section (8th Nov p.34-35). Far from being ‘nine times cheaper than gas’ as he says Miliband has claimed, Helm says that renewables are ‘intermittent, low-energy-density, small scale and geographically dispersed’, which means ‘lots of new transmission and distribution infrastructure, batteries and other long duration storage. And lots of back-up gas’. For example, he says, ‘we now need roughly 120GW of installed generation capacity to meet the same demand that 60GW met pre-renewables- twice the transmission lines and pylons and all the back-up batteries and storage too. All of these are additional costs’. He also says that, by contrast, far from being costly and volatile, as Miliband claims, fossil gas in now getting cheaper- including LNG from the USA. It’s certainly true that fossil gas is not as expensive as it was at o...
There may be political support problems ahead for UK green energy, as I noted in my last post. Reform UK and the Tories want to do away with the green subsides and the Net Zero policy. The Tony Blair Institute also seems to have some similar ideas – and has been pushing nuclear and fossil gas CCS instead. So does the new ‘ Britain Remade ’ report. And Net Zero Watch has called for the expansion of renewables to be halted. This is perhaps not surprising given that, over the past few years, the government has introduced quite a range of taxes, subsidies and surcharges aiming to promote renewables, most notably of late Feed in Tariffs, the Renewable Obligation and the CfD system. Some policies are more indirect, and are designed to increase the cost of using fossil fuels by setting a price for carbon emissions. But not everyone is keen on carbon trading, or on some of the mechanisms that have been introduced to support it. For example, the Centre for British Progress r...