Archive for April, 2010

Liberal Democrats Target a Zero-Carbon Britain by 2050

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Nick CleggAs the UK edges closer to the General Election, the three main political parties – Labour, Conservatives and Liberal Democrats – are doing their utmost to persuade voters that they have what it takes to drive the nation forward.

Numerous issues have been discussed thus far, with the economy receiving the most attention, which is perfectly understandable in light of the recession. One important issue that has, at least until recently, received only minimal coverage by the three main political parties is arguably one that ought to be their main priority: the environment.

Unusually, the Labour and Conservative parties have been mostly quiet on this issue; although, the Tories did confirm earlier in the month that they would replace the Renewable Obligation Scheme with extended feed-in tariffs – a proposal that was met with little enthusiasm in the renewable energy sector.

Labour are likely to continue with their existing renewable energy targets if they manage to secure another term in power, albeit with some adjustments. Nevertheless, the Labour and Conservative parties are yet to outline a sufficiently ambitious green energy strategy that is capable of forcing significant change. The Liberal Democrats, on the other hand, aim to make Britain a zero-carbon nation by 2050.

By 2020, the Liberal Democrats aim to cut carbon emissions by 42 per cent, whereas Labour would be likely to continue towards the statutory target of 34 per cent. The Liberal Democrats believe that a zero-carbon future is possible for Britain with a 90 per cent reduction in carbon emissions by 2050 coupled with emissions trading.

These figures are relative to carbon emissions as they were in the early 1990s, so it is important to note that zero-carbon does not necessarily mean no carbon emissions at all but instead relates to past levels.

As part of Liberal Democrat green policy, existing UK woodland would be doubled by 2050 – this alone would reduce carbon emissions by around 16 megatonnes. The Lib Dems also pledge to increase the use of carbon capture and storage (CCS) technology and would introduce loans of up to £10,000 for homeowners wishing to improve the energy efficiency of their homes.

Could Human Waste Replace Traditional Central Heating Fuel?

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According to UK Government targets, the nation must ensure that 15 per cent of the energy it produces is derived from renewable sources by 2020; however, altering the way in which energy is produced for millions of people can take far longer than 10 years. Furthermore, the UK’s six largest energy companies cannot be relied upon to stimulate change; on the contrary, the energy producers would rather continue to operate in a high-carbon, high-profit market. Aside from changeable government policy, a greener future can be made possible by the group most affected by climate change: the public.

People in Britain can already make changes to improve the health of the planet and its atmosphere. Recycling initiatives are in force throughout much of the UK, whilst new regulations require more energy efficient homes with improved central heating systems. The UK Government’s Boiler Scrappage Scheme, which is no longer available, was one of many incentives offered to the public to improve domestic energy efficiency; homeowners can also avail of potentially lucrative feed-in tariffs on renewable energy installations such as rooftop solar panels and wind turbines. Whilst the idea of generating clean energy from solar cell installations or geothermal pipes is appealing on a number of levels, one of the more effective ways of saving the planet is literally being flushed down the pan.

According to the Department for Environment, Food and Rural Affairs, the UK produces 1.73 million tonnes of sewage sludge each year that could be used to produce biogas. In short, the human waste that is flushed down the toilet every day could be used to produce fuel to help power the nation. This summer, British Gas is teaming up with Thames Water and Scotia Gas Networks to implement the nation’s first network of biomethane gas derived from faecal matter in Didcot, Oxfordshire. Anaerobic digesters are used to create biogas from faeces before turning it into biomethane, which would then be piped to household central heating systems and gas appliances. The entire process from flush to finish is expected to take around 23 days and, if the project proves successful, more people in the UK could find themselves helping to generate clean energy from a decidedly unclean source.

Conservatives Outline Controversial Plans for Renewable Energy Market Reform

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ConservatoriesMore than ever, it seems, the world is changing. Consumer greed is slowly being phased out in favour of a more thrifty outlook on spending; fossil fuel supplies are on the decline as numerous experts suggest peak oil is just around the corner; there is an ever-expanding hole in the Earth’s ozone layer; and, ultimately, at least according to climate experts, the world is heading for some kind of apocalyptic finale featuring earthquakes, super-storms, droughts, floods, volcanic eruptions and killer tsunamis.

There may even be cataclysmic asteroid impacts. Perhaps of more immediate concern, however, is the prospect of Britain having either a Labour Government that aims to continue on its rather unambitious path to save the planet or a Tory Government that would risk years of delays in order to follow their own green brick road.

Ahead of the UK General Election in May, the Conservative party has announced that, if it were to be elected by the good citizens of the UK, it would phase out the Labour Government’s existing Renewable Obligation Scheme. The leading energy companies and renewable energy watchdogs have been stumped by such a move as, whilst ditching the Renewable Obligation Scheme in favour of a potentially more beneficial programme is hardly undesirable, the Tories are likely to delay existing renewable energy projects in the process, which would almost certainly damage the UK’s ability to meet its carbon emissions targets. Furthermore, the existing Renewable Obligation Scheme, which the Conservatives wish to replace with extended feed-in tariffs, have already proven successful in Britain’s push for a cleaner future.

A spokesperson for RenewableUK, said: “The Renewable Obligation (RO) continues to be extremely successful in attracting investment to the whole of the renewable electricity sector, but particularly for wind developments. The RO has brought nearly 20,000MW of onshore wind projects into the planning system and made the UK the world’s leading market for offshore wind development”. The spokesperson concluded: “This success should not be endangered through over-hasty policy making, nor should decisions on this vital topic be undertaken without fully understanding the needs of the industry”.

Scottish Power Takes the Lead in Reducing Domestic Gas Prices

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EnergyIn recent weeks, British Gas, E.ON, Npower and Scottish & Southern Energy announced price cuts for domestic gas consumers. Ordinarily, price cuts would be welcomed by customers; however, discontent has been fomented by various consumer watchdogs who claim that the leading energy companies have failed to pass wholesale fuel savings on to customers in good time.

Furthermore, it has been argued in some quarters that the cuts by British Gas, E.ON, Npower and Scottish & Southern Energy, which range from 6-7%, are not substantial enough and that the organisations have acted in an anti-competitive way by offering customers similar price cuts. This week, Scottish Power and EDF Energy have changed the game to a certain extent by offering the highest and lowest price cuts respectively.

EDF Energy was the first to announce that it would cut its prices for domestic gas customers – albeit only by 4%, which amounts to a saving of just £30 per year on average. Hours after EDF Energy showed its hand, Scottish Power raised the stakes considerably by announcing that it would reduce its gas prices by a relatively enormous 8%, which is the equivalent of a £66 saving on the average annual gas bill.

Whilst many of Scottish Power’s 1.6 million gas customers are likely to be pleased by an 8% price drop, EDF Energy’s customers will no doubt feel somewhat aggrieved; however, it is quite possible that EDF Energy will announce a more substantial price cut over the coming months, as the leading energy companies usually follow each other in this respect, which is an obvious cause for concern in what ought to be a free and competitive market.

Director of energyhelpline.com, Mark Todd, said: “Although any cut is welcome, this is a token gesture by EDF and hardly worth the wait”. Confused.com‘s Gareth Kloet added: “Energy suppliers are acting like a pack by all cutting around the same amount, despite the fact that energy regulator Ofgem recently concluded they are making profits amounting to around £105 a year per energy customer”.

E.ON Eyes Future Green Markets Despite Political Issues

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The forthcoming UK General Election will almost certainly result in either a Conservative or Labour government or, as many experts are predicting, a hung parliament, which could give rise to a coalition power.

Whatever the outcome of this year’s election, the future government will need to take very seriously the issue of energy market reform. The provision of energy in Britain has changed substantially since National Power and Powergen were liberated from state ownership in early 1990; during the next 20 or 30 years, it is anticipated that the energy market will experience even greater changes; the big six energy companies of today, which include British Gas Energy, EDF and E.ON, must adapt to change if they are to survive the coming decades, which will be dominated by green energy initiatives.

E.ON’s SolarSaver product, which comprises rooftop solar panels that cost around £11,000 each but can generate profit for around 13 years (after 12 years to recover costs) in conjunction with the Government’s feed-in tariff, is one of the first low-carbon products to make use of existing green energy schemes in a market that is still heavily dominated by high-carbon production. Notwithstanding this, E.ON believes that low-carbon products will sooner or later take over the energy market and that early movers in the sector could enjoy considerable success in the future as energy needs move away from high-carbon products.

Chief Executive of E.ON UK, Dr Paul Golby, stressed that energy companies in the future will continue to be dominated by three issues that are key today: keeping Britain’s lights on, reducing carbon emissions in the process and lowering domestic energy bills; however, for this to be possible, low-carbon production would need to be made more affordable. In reference to products such as SolarSaver, Dr Golby commented: “I’m a firm believer in free markets. We’re not trying to build Soviet power stations. But we do need a new framework. I’ve spent billions on building big power stations. Why shouldn’t I spend money on little ones? There is a business model there. We’ve just got to work on it”.

E.ON’s Central Heating Care to Include Roadside Assistance?

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E.ON Central Heating CareThere are plenty of improbable partnerships in existence that somehow work: peanut butter and jam (or jelly, for those across the pond); Carla Bruni and Nicolas Sarkozy; and Tom and Jerry to name but a few. Last week, E.ON added another mismatched marriage to the list by announcing that customers of its Central Heating Care (CHC) plan will receive complimentary RAC Roadside Breakdown Cover. There are obviously few similarities between central heating cover and car breakdown insurance, but E.ON and the RAC have nevertheless chosen to team up to offer customers what is thought to be an entirely unique deal.

E.ON’s comprehensive Central Heating Care packages cost from as little as £16 per month and include a variety of features designed to maintain a healthy and efficient central heating system. These features include: an annual service, safety checks, unlimited call-outs and a 24-hour helpline. CHC products cover plumbing, drains and electrics in addition to boilers, radiators, controls and hot water tanks. The complimentary RAC Roadside Breakdown Cover is worth more than £50 and customers in receipt of this service will receive a further 30 per cent discount on upgrades to higher levels of RAC cover.

Managing Director of E.ON’s Property Services business, Adrian Harvey, said: “It can be just as frustrating if your boiler breaks down as if you’re left on the roadside waiting for help. So, when you take out our Central Heating Care not only can you get 24-hour assistance with everything from a broken boiler to blocked drains and faulty wiring, you’ll also receive complimentary RAC Breakdown Cover making sure you’re completely covered home and away”. Mr Harvey added: “Like a well tuned car, a well-maintained heating system runs more efficiently and cuts running costs and carbon emissions”.

Senior RAC Sales and Marketing Manager, Gavin Talbot, commented: “The partnership between E.ON and RAC is the first step in building a reputable service for customers that ensures they are covered in the home and also on the road. By covering them both ‘home and away’ they can rely on two well established companies and brands to come to their aid when they need it the most”.

SolarSaver Scheme from E.ON Aims to Help Green Customers

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Solar Roof Panels One of Britain’s leading energy companies, E.ON, has this week launched its SolarSaver scheme, which is designed to give “complete peace of mind to customers looking to save on their energy bills and reduce their impact on the environment” according to E.ON’s website.

Although the use of renewable energy devices such as wind turbines and solar panels in domestic installations has attracted criticism from those who argue they offer little return on investment for consumers, the SolarSaver scheme aims to enable homeowners to break even on their initial solar panel investment within 12 years.

As the SolarSaver scheme ties in with the UK Government’s 25-year-long Feed-in-Tariff, which was implemented only recently to fix the price of domestic green energy production sold back to the National Grid, the 12-year break even point would theoretically allow homeowners to reap the benefits of 13 years of profit. Total savings for customers participating in E.ON’s SolarSaver scheme are expected to be in the region of £24,000 over the 25-year term, which represents excellent value for money for homeowners who can also do their bit to reduce global warming.

E.ON’s Phil Gilbert said: “We’ve all got a role to play in bringing down our carbon footprint and we’re helping our customers do that. With the long term benefit provided by the new Feed-in-Tariff they’ll even make money back. This will be the first of many exciting new propositions we’ll have for our customers, giving them the power to produce their own heat and electricity from lower carbon sources”.

Mr Gilbert continued: “SolarSaver will give customers the level of service you’d expect from one of the UK’s leading energy companies; from initial consultation to survey and installation – assessing homes for suitability, helping with planning applications and identifying grants or funding to which customers may be entitled”. Solar panels comprise photovoltaic cells or Solar PV panels that convert the sun’s light into solar electricity, which can then be used to power homes or it can be sold to the National Grid for profit. A typical 2.1kW system would cost a homeowner more than £11,000 and could generate approximately 1,600kWh electricity every year.

Energy and Climate Change Committee Predicts Fuel Poverty Failure

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The Energy and Climate Change Committee last week warned that the UK Government is failing to meet its own targets on reducing fuel poverty.

The government had aimed to substantially reduce fuel poverty by 2010 and eliminate it entirely by 2016; however, with the average central heating bill hitting a record high last winter, the issue of fuel poverty has, if anything, worsened significantly. The official definition of fuel poverty is any household that spends 10% or more of its income on domestic energy bills, which describes approximately 2.8 million households in England alone; furthermore, an additional 2.4 million households are likely to be classified as suffering from fuel poverty by 2016 if energy bills rise as expected. The majority of the 2.8 million households in England that are already considered to be experiencing fuel poverty are classed as vulnerable because they comprise children, the disabled or the elderly.

Acting Chairman of the Energy and Climate Change Committee, Paddy Tipping, said: “One of the reasons tackling fuel poverty is so difficult is that the government does not have a clear idea about who the fuel poor are”. Mr Tipping’s comments echo the widely held belief that the UK Government’s definition of fuel poverty does not accurately cover the extent of the problem, which is fundamentally caused by high fuel costs in a struggling economy. Fuel poverty has also been affected by the unseasonably cold winter, which was Britain’s worst in several decades, whilst energy companies have been criticised for failing to pass on wholesale fuel savings to customers when it mattered the most; indeed, the so-called ‘big six’ energy companies have only recently lowered gas prices.

Ensuring that homes are properly insulated and that central heating systems are maintained and kept at a reasonable temperature are pivotal in reducing fuel poverty, ministers have argued. Energy and Climate Change minister, David Kidney, said: “as part of the energy bill currently before parliament, we’ll be requiring energy companies to double their collective spend to £300m a year by 2013 on social price support, helping more of their most vulnerable customers with their energy bills”.