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...
It’s the energy policy issue of the decade. Power bills have risen and renewables have expanded, so the link is obvious to the likes of Reform UK. But Energy Secretary Edward Miliband says the only way to cut bills is to push green technology. Well they do cost, but he says less overall than fossil fuel. As he noted, generation costs have already fallen ‘Strike prices for solar and onshore wind in our last auction, AR6, were nearly 50% cheaper than the levelised cost estimate to build and operate a new gas plant. Offshore wind, despite global cost pressures, was also cheaper than new gas.’ He admitted that there were other options but said ‘we won’t buy at any price and if specific technologies aren’t competitive, we will look elsewhere’. Well that’s not what seems to have happened with nuclear, judging by the rising cost of Hinkley and the total nuclear spend, with Jonathon Porritt claiming that the Energy Department spent 60% its £8.6bn 2024-2...