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(UK) This government's energy policies are a timebomb
Barry Gardiner MP is special envoy for climate change and the environment to the leader of the oppositionThis government's energy policies are a timebomb
When the energy crisis comes around 2018, remember George Osborne and co, and how they misread the markets
Sometime in 2018 or shortly thereafter, the UK will experience a crisis. Electricity supply will not be enough to meet demand. When this happens, people will look back to 2012 and the disastrous policy decisions taken by the UK.
The first is the publication of the draft bill on electricity market reform. The second is the imminent decision to cut potentially as much as 25% from onshore windfarm subsidies.
What has become clear is that the government cannot rely on the market to supply the £110bn of investment in generating capacity that will be required to replace the old nuclear and coal power stations, which are likely to be turned off after 2017. What should perhaps cause the most surprise is that it is George Osborne and the Treasury who have so singularly failed to understand the logic of the markets.
...
In the words of one senior city analyst: "The government's policy is based on a lie." He is too generous. It is based upon three. The government wants to tell people that their electricity will become cheaper. It will not. The government wants people to believe that new nuclear can be built without government subsidy. It cannot. The government wants to persuade people that it is neutral as between technologies. It is not.
There are five main risks ....
When the energy crisis comes around 2018, remember George Osborne and co, and how they misread the markets
Sometime in 2018 or shortly thereafter, the UK will experience a crisis. Electricity supply will not be enough to meet demand. When this happens, people will look back to 2012 and the disastrous policy decisions taken by the UK.
The first is the publication of the draft bill on electricity market reform. The second is the imminent decision to cut potentially as much as 25% from onshore windfarm subsidies.
What has become clear is that the government cannot rely on the market to supply the £110bn of investment in generating capacity that will be required to replace the old nuclear and coal power stations, which are likely to be turned off after 2017. What should perhaps cause the most surprise is that it is George Osborne and the Treasury who have so singularly failed to understand the logic of the markets.
...
In the words of one senior city analyst: "The government's policy is based on a lie." He is too generous. It is based upon three. The government wants to tell people that their electricity will become cheaper. It will not. The government wants people to believe that new nuclear can be built without government subsidy. It cannot. The government wants to persuade people that it is neutral as between technologies. It is not.
There are five main risks ....
http://www.guardian.co.uk/environment/blog/2012/jul/12/osborne-government-energy-policies?intcmp=122
