In this uncompromisingly radical Pluto book entitled Energy Revolutions, with the graphic subtitle Profiteering versus democracy, Dr David Toke argues that the energy crisis is an inevitable result of an industry run by and for corporate profit. He says ‘energy policy was never meant to favour sustainability or energy security – for decades, it has been shaped by corporate interests while hampering renewable alternatives. Now we suffer the cascading consequences’. He says there is an urgent need to radically increase state intervention, including public ownership, and deploy ‘energy democracy’ for the public interest.
However, he is not against market competition as such- it can speed change and help reduce costs. Thus, in his account of the early days of renewables, he says that, as a result of the adoption of Feed In Tariffs in the late 2000’s in Germany and elsewhere, markets were created that ‘meant that the wind and solar industries grew quickly. The costs of renewable energy plummeted, and today renewable energy is much cheaper than either fossil fuels or nuclear power. If things had been left as the anti-renewable incentive campaigners wanted, then of course the renewables industry would never have taken off. The world would be in a parlous position in terms of surviving the fossil fuel price spirals that we see in cycles (in both oil & natural gas price crises). Our ability to deal with the climate crisis would be almost destroyed’.
Toke though says that when markets are used to create monopolies, in pursuit of corporate profits and control, things go seriously awry- as we saw in 2022 and subsequently, with record profits being made by oil and gas companies. With energy prices escalating, Exxon made $55 bn, Shell $40 bn, Chevron $36.5 bn and Equinor $55 bn. Wind-fall taxes can claw back a tiny bit of this profiteering, but it is insignificant when you realise that, as Toke quotes an economist as saying ‘the oil and gas industry has delivered $2.8bn (£2.3bn) a day in pure profit for the last 50 years’. What’s needed is system change.
That of course is the familiar call of most radicals. Toke says, at present ‘the wealthy, who own the shares, get richer at the expense of ordinary people.’ In response, he says, while we can’t simply nationalise oil to solve this problem, since the compensation required would be huge, we can change the way the market works. Crucially, he says, ‘as the renewable energy revolution gathers pace, we need state intervention to ensure that the benefits of lower-cost green energy supplies go to the consumer & not the energy corporations’. In particular, ‘we need to extend government intervention & elements of state ownership of the retail energy supply sector to ensure that the consumer, not the big corporations, benefits from cheap renewable energy.’
The focus on ‘retail supply’ is linked to a proposed decentral shift away from seeing consumers as passive to one in which consumers may also be energy producers (via PV) and/or may also take an active role in managing their energy use (via DSM). Toke also sees them playing more of a role in shaping the system via an expansion of democratic participation, enabled by local energy co-ops, municipal projects & nationalisation of some of the energy systems. He says that public ownership ‘has an important role in delivering services in parts of energy systems where competition is itself either impossible or inefficient. It may be especially relevant to the retail electricity supply sector’. He adds ‘bringing in retail energy supply into public ownership should be cheap for the state to achieve since the companies involved have few tangible assets.’ But, he also looks to boosting competition ‘by the establishment of state companies to develop renewable energy alongside existing private companies’.
Some of this it may sound utopian or even naive, but Toke reminds us that the ‘alternative energy’ activists in the 1970s and 1980s ‘were seen as fringe oddballs by the energy mainstream. Today their vital role in developing niche renewable energy technologies and markets is airbrushed out of history since it contradicts the idea that big capitalism solves the big problems.’ Well yes, and now we live in a world in which renewables will soon dominate - supplying up to 100% of all global energy by 2050. However, as Toke says, it has to be done right. He provides us with, if not a blueprint of what to do, then at least a rough guide to the key political issues, with some very good insights on the situation in the UK, EU and USA. For example, it is amazing how expensive PV cells are in the US and how far France is behind on renewables due to its obsession with, now failing, nuclear.
In terms of technology choice, Toke backs most renewables strongly, though not all biomass, and seems convinced that domestic heat pumps are the best bet for using green power for home heating- whereas he says that green hydrogen, produced using renewable power, ‘needs to be used only for essential purposes, for example for storing renewable energy or for some industrial purposes for which electricity is not desirable. It should not be squandered in the provision of heating or cooling services’.
That’s now a common view: electric powered heat pumps are seen as much more efficient. Even if it does seem odd to abandon gas boilers and the existing gas pipeline system, which some wanted to repurpose for zero carbon green hydrogen use. Of course, some wanted to use fossil-derived blue hydrogen, a very different and very dire thing. But Toke notes that ‘the German coalition was divided when it came to debating a heating law about phasing out gas boilers in existing buildings. As part of a compromise, municipal authorities have been given the task of making plans for heat networks to be powered by large-scale heat pumps’. Well yes, as Toke admits, large heat pumps are more efficient. Although, dare I say, Combined Heat and Power plants, feeding heat nets and heat stores, can be even better and can help with grid balancing.
We can of course debate the pros and cons of each option and Toke takes us through some of the issues including, inevitably, nuclear, which he is clearly not fond of- not least since it is expensive and inflexible. Although his assertion that ‘once the current spurt of labour-intensive industrialism peters out in China, their drive in building nuclear power will fade, leaving nuclear in decline’, is maybe a bit too optimistic. Overall through, pronouncements like this aside, this is a good book if you want to get to grips with some of the key political and economic issues facing renewable energy and green politics- in a fast changing world.
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