As most of us will have noticed by now when it comes to fuel (energy) prices they can go up and down a little in the short-term, but the longer term trend is always (at least for hydro-carbons) upwards. This is unavoidable due to increasing demands for more energy (particularly from energy hungry India and China), a growing planetary population and the short term nature of our planet's hydro carbon fuel reserves. This trend is easy to plot (even in the short term) and the medium and long-term consequences of being dependent upon energy resources that you don't actually control is pretty self evident.
Primary energy is energy supplied without being transformed e.g. crude oil, natural gas, and coal. Around two thirds of UK primary energy demand is met from domestic production. Coal accounted for barely 4% of final energy consumption by fuel in 2010. Virtually all UK oil and gas production occurs under the seas surrounding the UK. UK oil production peaked in 1999, and gas production peaked in 2000. Since then the UK has moved from a position of self-sufficiency to one of increasing dependence on imported oil and gas.
By 2009, imported gas accounted for around 32% of the total gas used. 58% comes from Norway, 25% from liquefied natural gas (LNG) from various different countries, some 16% came from the Netherlands, and 2% came via the Belgian inter-connector pipeline. The increased reliance on imported oil and gas leaves the UK more open to supply risks associated with global supply constraints and price volatility. The UK Government plans to reduce the need for oil and gas imports, by pushing primary energy production, and by developing low-carbon alternatives such as electric vehicles, biofuels and fuel efficiency.
Sadly this is a case of better late than never, as the previous New Labour Westminster Government and the current Con Dem government should have been working with the devolved administrations in Wales, Scotland and Northern Ireland to develop an energy strategy to end these isles dependency on unstable overseas energy sources and dubious suppliers and lead to energy independence. In recent years, Vladimir Putin's periodic squeeze on gas exports to the Ukraine, through which 80 per cent of Russian gas exports to the EU flows, should have highlighted the real dangers of relying on imported energy from unreliable sources.
President Putin's Russia with full coffers and rode out the consequences of fluctuating oil prices and appears to have managed to avoid any real consequences of declining cash reserves and having its economy is heavily reliant on oil and gas exports. Some countries subsidise their fuel prices (how sustainable that is over the medium to longer term is open to debate), in the UK this does not happen, everybody wins, Government gets vastly more tax revenue, the oil companies get more profit, and us the ordinary punters get regularly fleeced.
When it comes to gas, some countries made efforts to protect themselves against external shocks to their energy needs; France was able to store 122 days of gas and Germany able to store 99 days worth (2009 figures). Here in the UK the almost entirely market driven approach turned out to be entirely inadequate, in the UK had a storage capacity which would have lasted for only 15 days (2009 figures). Some countries discuss the issue of energy independence at the highest level here I get the impression that here in the UK it is best avoided, with the occasional exception.
The New Labour Government took the best part of a decade to recognise the need to increase storage capacity and the UK has been playing catch up ever since. One consequence of the lack of storage capacity was that UK had to sell gas during the summer and purchase gas again when it is needed in the winter. The Conservatives headlong dash to gas in the 1980’s was compounded by an abject failure in strategic energy planning. The situation has been made worse by the current Government's perverse decision to half-heartedly look at developing diverse reliable alternative energy sources.
The last New Labour Government and the current Con Dem Government largely ignored repeated warnings that the lack of sustainable energy has set the UK on a path towards higher prices and blackouts. Over the next four to six years almost all of our old nuclear reactors, along with nine major coal and oil-fired power stations, will be run down and closed, with nothing ready to replace them. We are now in the situation where we will become even more dependent upon imported gas from either unstable regions or dubious suppliers.
The Con Dem’s solution to this is to rush to go Nuclear and to effectively hand the Nuclear industry lock stock and barrel over to French energy companies who are busy paying off large loans to the French government. Since 1997, what successive Westminster Governments should have done was to work with the devolved governments and the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources run by not for profit companies. They should have developed a flexible self-sufficient energy development strategy that encourages decentralised micro-generation. This could create jobs, useful skills and bootstrap the economy out of the recession as well as helping consumers by delivering community beneficial energy schemes.
Wales needs real direction not Carwyn's platitudes when it comes to the development of safe and secure energy resources and full control of energy planning. The renewable energy sector can play an immensely important role in creating more green energy jobs. We need to create sustainable long-term jobs for local people, not damage the environment and to provide our communities with a long-term viable economic energy future, that's the real future dividend for our communities rather than the shareholders in the City.
Showing posts with label Energy indepdendence. Show all posts
Showing posts with label Energy indepdendence. Show all posts
Thursday, 22 March 2012
Sunday, 22 May 2011
SAT IN THE DARK?
Human society, has never been so energy dependent throughout all of human history as is it is now on energy. Electricity in one from or another helps to make our urban (and not so urban) communities run, think how many labour saving devices we have in our homes, or rather think what we have that's not electrically driven. Electricity helps to make a more equal society a distinct possibility, otherwise we are literally sat in the dark. Once in the dark, there is a risk that notions of fairness and quality go out the window, taking us somewhere quite unpleasant.
Our domestic (and business) energy prices can go up and down in the short-term, yet the long term trend is always (at least for hydro-carbons) going to be upwards, this is something that is unavoidable due to increasing demands for more energy, a growing population and the relative short term limit to the earth's hydro carbon fuel reserves. It's important to recall that in the 1950's people were actually told that in the future by the end of the 20th century energy would be too cheap to meter...oops!
In hindsight perhaps this was before so complicit idiots (in this case a Conservative Government) decided to purse a headlong dash to gas in the 1980’s and to throw our energy resources to this wolves, sorry the free market. In Norway, being no doubt of slightly sounder mind, they chose to sell their gas overseas (to the UK) and to pocket the profits, whilst massively investing in sustainable renewable energy sources (in Norway) which gives the Norwegians control of their own secure energy supplies.
In the UK, upon privatisation, there were 22 electricity companies and 19 gas companies, now we have six. Energy planning has by and large been left in the hands of the private sector, who have been far too focused on squeezing profits out of us to give any thoughts to the future. While other countries attempted to protect themselves against external shocks to their energy needs; the UK’s market driven approach has been proven to be entirely inadequate. France can store 122 days of gas and Germany 99. Yet the UK had as of April 2009 a gas storage capacity which would last only 15 days; the New Labour Government took almost a decade to recognise the need to increase storage capacity.
One direct consequence of this was that the UK has to sell gas during the summer because they could not store it, leaving UK energy suppliers scrambling to purchase gas again when it is needed in the winter. Massive investment in gas storage facilities to hold gas imported from Qatar has taken place, but, with the best will in the world, that gas supply could hardly be described as secure as it sits in one of the more volatile and unstable regions of the planet. David Cameron can sell all the stun guns, cattle prods and baton rounds he likes to some of the most repressive regimes on the planet, but, over longer term he is not backing a winner (as recent events in the Middle East with the Arab spring clearly show).
Anyone with slightly more than half a brain (even the Con Dems) should actually be capable of plot this trend and be able to note the medium and long-term consequences of being dependent upon energy resources that you don't actually control and that are running out. Over reliance on an an increasingly self interested private sector, who's behaviour has been repeatedly flagged up as cartel like, has not helped to safely plan the energy future of these islands.
Self interest has been compounded by a real failure in basic strategic energy planning and made worse by the last New Labour government and the current Con Dem Government's perverse decision to half-heartedly look at developing diverse reliable alternative energy sources, whilst doing its best to try and hide a whopping great subsidy for the much favoured (at least by the UK Government) Nuclear industry.
Being reliant on that nice Mr Putin's for our energy supplies is not the brightest of ideas, especially as having Russia's hand on our gas supplies can be a tad risky - just ask the Ukraine. Over the longer term, Russia will have potentially declining cash reserves and an economy that is heavily reliant on its trade in gas for export, as Europe grows more dependent on Russian gas then the risk of artificial shortages as a consequence of Mr Putin's (our his successors) geopolitical games will be something all of us in Europe can all do without.
In Scotland, the SNP government is actively driving Scottish energy policy, something that will benefit the Scottish people. Energy consultants and developers are busy mapping specific locations where water that flows down steep enough slopes and ravines to allow it to generate an increasingly precious resource: energy.The Loch Lomond and the Trossachs National Park is actively supporting and encouraging the development of hydro power schemes within the park's boundaries and local communities are also planning to build their own local schemes (something that will deliver sustainable cheap energy and other financial benefits as well).
One of the reasons why the hydro rush will work in Scotland (and could work here in Wales) and should deliver long term sustainable benefits is the new feed-in tariff that came in 2010. The subsidy for producing green energy has been increased and it makes schemes more viable, which when combined with a progressive Government that is actively driving the growth of sustainable non oil and gas and non nuclear dependent energy supplies'- means that plans to develop sustainable renewable energy supplies are proceeding apace.
The question is will Labour in Wales step up to the plate and grasp the opportunity to drive and develop energy policy in Wales?
Our domestic (and business) energy prices can go up and down in the short-term, yet the long term trend is always (at least for hydro-carbons) going to be upwards, this is something that is unavoidable due to increasing demands for more energy, a growing population and the relative short term limit to the earth's hydro carbon fuel reserves. It's important to recall that in the 1950's people were actually told that in the future by the end of the 20th century energy would be too cheap to meter...oops!
In hindsight perhaps this was before so complicit idiots (in this case a Conservative Government) decided to purse a headlong dash to gas in the 1980’s and to throw our energy resources to this wolves, sorry the free market. In Norway, being no doubt of slightly sounder mind, they chose to sell their gas overseas (to the UK) and to pocket the profits, whilst massively investing in sustainable renewable energy sources (in Norway) which gives the Norwegians control of their own secure energy supplies.
In the UK, upon privatisation, there were 22 electricity companies and 19 gas companies, now we have six. Energy planning has by and large been left in the hands of the private sector, who have been far too focused on squeezing profits out of us to give any thoughts to the future. While other countries attempted to protect themselves against external shocks to their energy needs; the UK’s market driven approach has been proven to be entirely inadequate. France can store 122 days of gas and Germany 99. Yet the UK had as of April 2009 a gas storage capacity which would last only 15 days; the New Labour Government took almost a decade to recognise the need to increase storage capacity.
One direct consequence of this was that the UK has to sell gas during the summer because they could not store it, leaving UK energy suppliers scrambling to purchase gas again when it is needed in the winter. Massive investment in gas storage facilities to hold gas imported from Qatar has taken place, but, with the best will in the world, that gas supply could hardly be described as secure as it sits in one of the more volatile and unstable regions of the planet. David Cameron can sell all the stun guns, cattle prods and baton rounds he likes to some of the most repressive regimes on the planet, but, over longer term he is not backing a winner (as recent events in the Middle East with the Arab spring clearly show).
Anyone with slightly more than half a brain (even the Con Dems) should actually be capable of plot this trend and be able to note the medium and long-term consequences of being dependent upon energy resources that you don't actually control and that are running out. Over reliance on an an increasingly self interested private sector, who's behaviour has been repeatedly flagged up as cartel like, has not helped to safely plan the energy future of these islands.
Self interest has been compounded by a real failure in basic strategic energy planning and made worse by the last New Labour government and the current Con Dem Government's perverse decision to half-heartedly look at developing diverse reliable alternative energy sources, whilst doing its best to try and hide a whopping great subsidy for the much favoured (at least by the UK Government) Nuclear industry.
Being reliant on that nice Mr Putin's for our energy supplies is not the brightest of ideas, especially as having Russia's hand on our gas supplies can be a tad risky - just ask the Ukraine. Over the longer term, Russia will have potentially declining cash reserves and an economy that is heavily reliant on its trade in gas for export, as Europe grows more dependent on Russian gas then the risk of artificial shortages as a consequence of Mr Putin's (our his successors) geopolitical games will be something all of us in Europe can all do without.
In Scotland, the SNP government is actively driving Scottish energy policy, something that will benefit the Scottish people. Energy consultants and developers are busy mapping specific locations where water that flows down steep enough slopes and ravines to allow it to generate an increasingly precious resource: energy.The Loch Lomond and the Trossachs National Park is actively supporting and encouraging the development of hydro power schemes within the park's boundaries and local communities are also planning to build their own local schemes (something that will deliver sustainable cheap energy and other financial benefits as well).
One of the reasons why the hydro rush will work in Scotland (and could work here in Wales) and should deliver long term sustainable benefits is the new feed-in tariff that came in 2010. The subsidy for producing green energy has been increased and it makes schemes more viable, which when combined with a progressive Government that is actively driving the growth of sustainable non oil and gas and non nuclear dependent energy supplies'- means that plans to develop sustainable renewable energy supplies are proceeding apace.
The question is will Labour in Wales step up to the plate and grasp the opportunity to drive and develop energy policy in Wales?
Sunday, 18 July 2010
THE NUCLEAR CONVERSATION
Post-election it seems to have gone pretty quiet at Westminster in relation to developing sustainable green energy - we have yet to see what damage the 'new financial reality / austerity' will inflict on efforts to develop alternative sustainable green energy. The Nuclear option may well still be on the table, one significant question that needs to be addressed is who will be sat around the table if and when the Nuclear conversation takes place.
The Scottish Government will be a full party to any discussions about the construction of any new generation of Nuclear power plants in Scotland and along with the Scottish people it will play a full part in the planning process. In Wales things are quite different, the National Assembly may end up as a coat holder, actioning decisions made elsewhere in relation to Energy Policy in general and Nuclear Energy in particular.
Now this fact should be a matter of serious concern, especially when it comes to Nuclear Energy developments that may take place within or near to Wales - any planning processes related to Energy provision should take place with the full involvement of the people of Wales and their elected representatives and alternative energy generation schemes should be fully and seriously considered as well - this may not however, be the case.
The failure to devolve control of planning consent for 50MW power generation projects to the National Assembly when combined with the role of the Infrastructure Planning Commission (IPC) runs the risk of damaging our economic prospects for only with complete planning control over power generation can Wales generate long–term sustainable job opportunities.
The final years of the New Labour Government (if government is an appropriate word for it) may well end up by being written off as a literal case of the lights being on but nobody being at home. there were few new or fresh original ideas about solving our energy problems. Back in 2008, Gordon Brown's cabinet rubber stamped Tony Blair's decision to back the nuclear option to solve the UK energy needs.
This decision was both disappointing and short-sighted, but, was not unexpected. By making nuclear power its priority the failing Brown Government effectively abandoned any serious attempts to conserve energy, and significantly undermined its own commitments to tackling climate change.
When it comes to power generation there are real job opportunities here that need to be fully grasped; the renewable energy sector should play an immensely important role in creating more green energy jobs. We need to create a decentralised power generation system which will create sustainable long-term jobs for local people, not damage the environment and contribute to providing our local communities with a long-term viable economic energy future.
Now is definitely the time for control of energy policy to be devolved to the National Assembly and time for some original non nuclear thinking and a fundamental sea change in attitude from all levels of government in Wales towards energy policy.
The Scottish Government has already set out a wide-ranging vision to address climate change, which includes a drive to boost renewable energy such as wind and wave power. Scottish Ministers also aim to see significant progress in boosting the energy efficiency of buildings, increase the number of electric vehicles on the roads and aim to cut in emissions across the farming and rural sector.
This is serious forward thinking on the part of the Scottish government as energy experts have for several years been consistently warning of a serious future shortfall in Britain's energy supplies, as a result of the rapid depletion of Britain's North Sea gas reserves, the increasingly tough regulations on carbon emissions from Britain's ageing coal-fired power plants and the planned decommissioning of 14 of 15 existing nuclear generating stations by 2025.
Imagine what we could do if the National Assembly possessed similar powers to develop the alternative energy sector here in Wales. In Wales, we need real direction when it comes to the development of safe and secure energy resources, power generation can provide the potential for real sustainable long term job opportunities; the renewable energy sector can and should play an immensely important role in creating more green energy jobs.
Beyond this there is a need to unify the power generation and supply companies into a single entity, preferably run on a not for profit basis, in the interests of the inhabitants of the UK rather than big businesses. A growing number of people are coming around to the conclusion that this decision was influenced by an unholy combination of irresponsibility and self-interest - it's certainly worth having a look to see which former Conservative and New Labour Minster's have made that transition from Government benches to the Boardroom over the years since energy privatisation.
Whether or not it was a matter of irresponsibility for successive Conservative and New Labour Government's to leave the energy sector largely and effectively unregulated as the private energy companies - is probably no longer open for discussion. The Energy companies have proved themselves almost entirely incapable of making long term strategic decisions that are necessary to provide us with safe and secure energy.
The Scottish Government will be a full party to any discussions about the construction of any new generation of Nuclear power plants in Scotland and along with the Scottish people it will play a full part in the planning process. In Wales things are quite different, the National Assembly may end up as a coat holder, actioning decisions made elsewhere in relation to Energy Policy in general and Nuclear Energy in particular.
Now this fact should be a matter of serious concern, especially when it comes to Nuclear Energy developments that may take place within or near to Wales - any planning processes related to Energy provision should take place with the full involvement of the people of Wales and their elected representatives and alternative energy generation schemes should be fully and seriously considered as well - this may not however, be the case.
The failure to devolve control of planning consent for 50MW power generation projects to the National Assembly when combined with the role of the Infrastructure Planning Commission (IPC) runs the risk of damaging our economic prospects for only with complete planning control over power generation can Wales generate long–term sustainable job opportunities.
The final years of the New Labour Government (if government is an appropriate word for it) may well end up by being written off as a literal case of the lights being on but nobody being at home. there were few new or fresh original ideas about solving our energy problems. Back in 2008, Gordon Brown's cabinet rubber stamped Tony Blair's decision to back the nuclear option to solve the UK energy needs.
This decision was both disappointing and short-sighted, but, was not unexpected. By making nuclear power its priority the failing Brown Government effectively abandoned any serious attempts to conserve energy, and significantly undermined its own commitments to tackling climate change.
When it comes to power generation there are real job opportunities here that need to be fully grasped; the renewable energy sector should play an immensely important role in creating more green energy jobs. We need to create a decentralised power generation system which will create sustainable long-term jobs for local people, not damage the environment and contribute to providing our local communities with a long-term viable economic energy future.
Now is definitely the time for control of energy policy to be devolved to the National Assembly and time for some original non nuclear thinking and a fundamental sea change in attitude from all levels of government in Wales towards energy policy.
The Scottish Government has already set out a wide-ranging vision to address climate change, which includes a drive to boost renewable energy such as wind and wave power. Scottish Ministers also aim to see significant progress in boosting the energy efficiency of buildings, increase the number of electric vehicles on the roads and aim to cut in emissions across the farming and rural sector.
This is serious forward thinking on the part of the Scottish government as energy experts have for several years been consistently warning of a serious future shortfall in Britain's energy supplies, as a result of the rapid depletion of Britain's North Sea gas reserves, the increasingly tough regulations on carbon emissions from Britain's ageing coal-fired power plants and the planned decommissioning of 14 of 15 existing nuclear generating stations by 2025.
Imagine what we could do if the National Assembly possessed similar powers to develop the alternative energy sector here in Wales. In Wales, we need real direction when it comes to the development of safe and secure energy resources, power generation can provide the potential for real sustainable long term job opportunities; the renewable energy sector can and should play an immensely important role in creating more green energy jobs.
Beyond this there is a need to unify the power generation and supply companies into a single entity, preferably run on a not for profit basis, in the interests of the inhabitants of the UK rather than big businesses. A growing number of people are coming around to the conclusion that this decision was influenced by an unholy combination of irresponsibility and self-interest - it's certainly worth having a look to see which former Conservative and New Labour Minster's have made that transition from Government benches to the Boardroom over the years since energy privatisation.
Whether or not it was a matter of irresponsibility for successive Conservative and New Labour Government's to leave the energy sector largely and effectively unregulated as the private energy companies - is probably no longer open for discussion. The Energy companies have proved themselves almost entirely incapable of making long term strategic decisions that are necessary to provide us with safe and secure energy.
Wednesday, 23 June 2010
SOME INTERESTING READING
The Monmouthshire Renewable Energy and Energy Efficiency Study, commissioned for Monmouthshire County Council has examined ways in which renewable energy sources can be used in new housing and commercial developments. The report suggests that up to 45 per cent of Monmouthshire's electricity needs in 2020 could be generated from renewable sources. It states that this outcome is dependent on the development over the next 10 years, of power generating schemes involving wind, biomass and hydro technologies.
The South Argus notes that the report states that Wind power schemes could emerge as the greatest potential contributor to the county's electricity requirements in 10 years' time, whether based on a successful planning permission rate of one-in-three schemes, the current UK average, or two-in-three. The Argus also notes that the report stresses that the achievement of the latter rate would be vital if the 45 per cent rate of electricity generation from renewable sources were to be reached, with that figure reduced to 30 per cent if the planning permission rate were to remain at one-in-three.
The report also suggests that there is "good potential" for biomass power development in Monmouthshire. Biomass technology can involve a range of different sources, including forestry and sawmill by-products, commercial food waste, and energy crops. A number of small hydro-electricity projects have already begun in the county, and a scheme to harness power from the Angiddy River near Tintern was granted planning permission recently. The report suggests however, that further work on the potential for such schemes should be carried out.
The South Argus notes that the report states that Wind power schemes could emerge as the greatest potential contributor to the county's electricity requirements in 10 years' time, whether based on a successful planning permission rate of one-in-three schemes, the current UK average, or two-in-three. The Argus also notes that the report stresses that the achievement of the latter rate would be vital if the 45 per cent rate of electricity generation from renewable sources were to be reached, with that figure reduced to 30 per cent if the planning permission rate were to remain at one-in-three.
The report also suggests that there is "good potential" for biomass power development in Monmouthshire. Biomass technology can involve a range of different sources, including forestry and sawmill by-products, commercial food waste, and energy crops. A number of small hydro-electricity projects have already begun in the county, and a scheme to harness power from the Angiddy River near Tintern was granted planning permission recently. The report suggests however, that further work on the potential for such schemes should be carried out.
A positive note is that the report places emphasis on the renewable energy potential from new residential and commercial developments. As well as stressing that such projects need to be backed up by efficiency measures and energy conservation elsewhere, if this happens then the percentage of Monmouthshire's electricity needs that could be met by renewable sources could be higher still.
Incidentally a report (on the BBC) by the Centre for Alternative Technology (CAT) published today goes into some detail about the job creation opportunities for young people can be trained and industry boosted by its plan to eliminate emissions by 2030. CAT, which is based in Machynlleth in Powys, is due to launch its report, zerocarbonbritain2030, at the Senedd. The Welsh Assembly Government has welcomed the report, which suggests greater use of Wales' coastal energy. The report is part of a UK-wide strategy to eliminate emissions for all greenhouse gases and across all sectors in the UK.
Just in case you wondered why we need to develop sustainable secure energy supplies, largely thanks to Mr's T's short-sighted 'Dash for Gas' in the 1980's and any real lack of any comprehensive forward thinking energy policy over the last 30+ years and the Tory and New Labour's best friends in the City, consider our dependency on imported gas and the latest spat between Belarus and Russia.
Belarus has said it will settle its gas debts to Russia within two weeks, after its eastern neighbour started cutting supplies in a dispute over payments. Deputy Prime Minister Uladzimir Syamashka said Belarus would borrow the nearly $200m (£135m) demanded by the state-controlled gas monopoly, Gazprom. But he added that Russia owed Belarus $217m (£146m) in fees for transiting gas via its territory to Europe. Earlier, Russia's president ordered Gazprom to reduce supplies by 15%.
Dmitry Medvedev said this would rise "day-by-day" to 85% if Belarus did not start paying off its debts, accrued when it failed to pay increased prices. Belarus believes the higher price it is being charged contradicts a customs union deal agreed between the two countries. The row threatens to disrupt onward deliveries to Europe as about a fifth of its supplies of Russian gas is pumped through Belarus. Back in 2009, a similar dispute between Russia and Ukraine saw Gazprom shut off supplies in the middle of winter, affecting millions of people.
Just imagine being dependent on energy supplies from potentially hostile or unstable regions of the world... Oops!
Wednesday, 6 January 2010
GOOD OLD UNCLE VLAD...
With the Russian Orthodox New Year rapidly approaching and with temperatures dropping; Vladimir Putin will no doubt pick his moment to revive the long standing feud with Ukraine over gas prices. This time last year the Russians decided to reduce gas exported into Ukraine, through which 80 per cent of Russian gas exports to the EU happen to flow, something which highlighted the real dangers of relying on imported energy.
So what you may say does this have to do with us? A lot is the answer, while Russia may have declining cash reserves over the long term and an economy that is heavily reliant on its trade in oil and gas – the risk of shortages as a consequence of the Kremlin and Mr Putin's geopolitical games is something we in the West can truly all do without. We are in the middle of a cold snap at the moment, and gas is the fuel that is used to heat about two thirds of Britain's homes.
On Monday (4th January 2009) the National Grid issued a warning (a Gas Balancing Alert) to energy providers that demand for gas is threatening to outstrip gas supply. This warning (the last one was sent out in March 2006) follows a 30 percent rise on normal seasonal demand as the cold snap continues. Natural Gas prices rose to their highest level in 10 months (reaching 45 p per therm) – this triggered the import of extra gas from Belgium and Norway via the natural gas (liquefied) importation terminal in Kent.
So what you may ask? Well - quite alot including the prospect of higher energy bills (because we the consumer pay for the shortsighted self interest of the energy companies), higher profits for the energy cartel (sorry companies) and more tax for Gordon Brown’s government. Now while other countries insured themselves against external shocks to their energy needs; successive UK Government’s left it to the market to sort out – so what did the energy companies do, they chased quick short term profits at our expense.
The UK’s market driven approach has been entirely inadequate. One year ago as of January 2009, France could store 122 days of gas and Germany 99 and the UK had storage capacity which would only 15 days. In the 1980’s and 1990’s developing a long term energy strategy or making sensible long term decisions in relation to energy supply was never an option for the Tories during their last tenure on government.
Likewise, the New Labour Government took the best part of a decade to recognise the need to increase storage capacity. The consequence is that UK has to sell gas during the summer because we cannot store it but UK energy suppliers often struggle to purchase gas again when it is needed during a particularly prolonged cold spell as we have at the moment.
The complicit insanity of the Conservative’s headlong shortsighted dash to gas in the 1980’s has been compounded by a real failure in basic strategic energy planning and made worse by the Government's perverse decision to half-heartily look at developing diverse reliable alternative energy sources. This New Labour Government has ignored repeated warnings that it was setting the UK on a path towards higher prices and blackouts.
As I have said before (and will say again) that as a matter of urgency the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources.
If we develop a flexible self-sufficient energy development strategy within these isles that encourages decentralised micro generation schemes and by actually implementing it this could create jobs, useful skills and help to bootstrap the economy out of the developing recession as well as helping consumers.
So what you may say does this have to do with us? A lot is the answer, while Russia may have declining cash reserves over the long term and an economy that is heavily reliant on its trade in oil and gas – the risk of shortages as a consequence of the Kremlin and Mr Putin's geopolitical games is something we in the West can truly all do without. We are in the middle of a cold snap at the moment, and gas is the fuel that is used to heat about two thirds of Britain's homes.
On Monday (4th January 2009) the National Grid issued a warning (a Gas Balancing Alert) to energy providers that demand for gas is threatening to outstrip gas supply. This warning (the last one was sent out in March 2006) follows a 30 percent rise on normal seasonal demand as the cold snap continues. Natural Gas prices rose to their highest level in 10 months (reaching 45 p per therm) – this triggered the import of extra gas from Belgium and Norway via the natural gas (liquefied) importation terminal in Kent.
So what you may ask? Well - quite alot including the prospect of higher energy bills (because we the consumer pay for the shortsighted self interest of the energy companies), higher profits for the energy cartel (sorry companies) and more tax for Gordon Brown’s government. Now while other countries insured themselves against external shocks to their energy needs; successive UK Government’s left it to the market to sort out – so what did the energy companies do, they chased quick short term profits at our expense.
The UK’s market driven approach has been entirely inadequate. One year ago as of January 2009, France could store 122 days of gas and Germany 99 and the UK had storage capacity which would only 15 days. In the 1980’s and 1990’s developing a long term energy strategy or making sensible long term decisions in relation to energy supply was never an option for the Tories during their last tenure on government.
Likewise, the New Labour Government took the best part of a decade to recognise the need to increase storage capacity. The consequence is that UK has to sell gas during the summer because we cannot store it but UK energy suppliers often struggle to purchase gas again when it is needed during a particularly prolonged cold spell as we have at the moment.
The complicit insanity of the Conservative’s headlong shortsighted dash to gas in the 1980’s has been compounded by a real failure in basic strategic energy planning and made worse by the Government's perverse decision to half-heartily look at developing diverse reliable alternative energy sources. This New Labour Government has ignored repeated warnings that it was setting the UK on a path towards higher prices and blackouts.
As I have said before (and will say again) that as a matter of urgency the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources.
If we develop a flexible self-sufficient energy development strategy within these isles that encourages decentralised micro generation schemes and by actually implementing it this could create jobs, useful skills and help to bootstrap the economy out of the developing recession as well as helping consumers.
Saturday, 8 August 2009
THE GREAT ENERGY RIP-OFF
The Energy companies have reaped a 500% increase in profits over the last five years have been quick to blame rising oil and gas prices, and quick to rake in the profits, as the average annual dual fuel bill has risen from £662 a year in 2005 to 1,048 in 2007. The New Labour Government has been happy to rake in the extra tax revenues and the Energy companies have been slow to pass on reductions in energy costs to their customers – the only real losers are the energy customers.
While Crude oil has fallen from $147 a barrel in July last year to about $70 a barrel and no one is disputing that the six main energy suppliers have not cut their prices since the beginning of the year, energy bills are still too high. Consumer Focus research suggests that current gas bills should be at least 7.4% cheaper (£60.10 annually) and electricity bills at least 3.1% cheaper (£13.80 annually). Customer Focus’s new research for the first time shows the reality, that the energy companies are pocketing £1.6bn extra, while millions of households struggle to make ends meet.
Lets be brutally honest here, what we have here is an effective monopoly on energy supply in the UK. This is a direct result over the last ten years of the number of energy supply companies falling from twenty two to six - that's the way the market works we have been told don't worry about it. Now with less that £30 differential between all of the energy supply companies, which works out to be no more than a few pence a week difference in bills, so what we have is an energy cartel which brings minimal benefit to hard pressed energy customers and maximises it's profits and which feeds the government impressive amounts of tax.
The complicit insanity of the Conservative’s headlong dash to gas in the 1980’s has been compounded by a real failure in basic strategic energy planning and made worse by the Government's perverse decision to half-heartedly look at developing diverse reliable alternative energy sources. This New Labour Government has ignored repeated warnings that it was setting the UK on a path towards higher prices and blackouts. Over the next six years almost all of our old nuclear reactors, along with nine major coal and oil-fired power stations, will be closed, with nothing ready to replace them.
We are now in the situation where we are now even more dependent upon imported gas from either unstable regions or dubious suppliers and we the customers face unnecessarily expensive bills. As a matter of urgency the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources. By developing a flexible self-sufficient energy development strategy that encourages decentralised microgeneration schemes and by actually implementing it this could create jobs, useful skills and help to bootstrap the economy out of the developing recession as well as helping consumers.
Thursday, 2 July 2009
HOPING FOR A MILD WINTER...
News that Gazprom (the Kremlin controlled Gas company and an effective arm of the Russian State) has signed a big new natural gas deal with Azerbaijan, may seem of little importance as we in the UK temporarily swelter in hot weather. What it does though is strike a severe blow to European efforts to reduce energy dependence on Russia (and Russian controlled Gas supplies).
The fact that Gazprom chief executive Alexei Miller was more than happy to say that that the firm had also been promised priority in buying gas from the second phase of the Shakh Deniz Caspian Sea field, is not good news for the rest of Europe. The Shakh Deniz Caspian Sea field has been seen as a potential key source of gas for the EU-backed Nabucco pipeline, which is free from Russian control.
Back in the spring, Vladimir Putin's decision to reduce further gas exported into Ukraine, through which 80 per cent of Russian gas exports to the EU flows, should have highlighted the real dangers of relying on imported energy. While Russia has declining cash reserves and its economy is heavily reliant on its trade in gas – the risk of shortages as a consequence of Mr Putin's geopolitical games is something we can truly all do without.
While other countries have insured themselves against external shocks to their energy needs; the UK’s market driven approach has been entirely inadequate. France can store 122 days of gas and Germany 99. Yet the UK has storage capacity to last only 15 days (there is a quiet but frantic effort to change this); the New Labour Government took almost a decade to recognise the need to increase storage capacity. The consequence is that UK sells gas during the summer because we cannot store it but UK energy suppliers struggle to purchase gas again when it is needed in the winter.
The complicit greed driven insanity of the Conservatives headlong dash to gas in the 1980’s has been compounded by a real failure in basic strategic energy planning and made worse by the Government's perverse decision to half-hearted look at developing diverse reliable alternative energy sources. This New Labour Government has ignored repeated warnings that it was setting the UK on a path towards higher prices and blackouts.
Over the next six years almost all of our old nuclear reactors, along with nine major coal and oil-fired power stations, will be closed, with nothing ready to replace them. We are now in the situation where we are now even more dependent upon imported gas from either unstable regions or dubious suppliers and we the customers face unnecessarily expensive bills.
As a matter of urgency the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources. By developing a flexible self-sufficient energy development strategy that encourages decentralised microgeneration schemes and by actually implementing it this could create jobs, useful skills and help to bootstrap the economy out of the developing recession as well as helping consumers.
In the meantime, lets all hope we have a mild winter...
Wednesday, 8 April 2009
Energy indepedence - the only game in town!
While energy prices can go up and down in the short-term, the long term trend is always (at least for hydro-carbons) going to be upwards, this is something that is unavoidable due to increasing demands for more energy, a growing poplulation and the relative short term limit to the earth's hydro carbon fuel reserves. Anyone with half a brain should be able to plot this trend and note the medium and long-term consequences of being depdendent upon energy resources that you don't actually control.
Anyone awake in the current New Labour Westminster Government should be working with the devolved administrations in Wales, Scotland and Northern Ireland to develop a hands on energy strategy that will lead to an end to dependency on unstable overseas energy sources and dubious suppliers and lead to energy independence.
You would have thought that Vladimir Putin's decision a few months ago to reduce further gas exported into Ukraine, through which 80 per cent of Russian gas exports to the EU flows, would have highlighted the real dangers of relying on imported energy.
While Russia has declining cash reserves and its economy is heavily reliant on its trade in gas – the risk of shortages as a consequence of Mr Putin's geopolitical games is something we can truly all do without.
While other countries have attempted to protect themselves against external shocks to their energy needs; the UK’s market driven approach has been proven to be entirely inadequate. France can store 122 days of gas and Germany 99.
Yet the UK has storage capacity to last only 15 days; the New Labour Government took almost a decade to recognise the need to increase storage capacity. The consequence is that UK has to sell gas during the summer because we cannot store it but UK energy suppliers struggle to purchase gas again when it is needed in the winter.
The complicit insanity of the Conservative’s headlong dash to gas in the 1980’s has been compounded by a real failure in basic strategic energy planning and made worse by the current Government's perverse decision to half-heartdly look at developing diverse reliable alternative energy sources. The current New Labour Government has ignored repeated warnings that it was setting the UK on a path towards higher prices and blackouts.
Over the next six years almost all of our old nuclear reactors, along with nine major coal and oil-fired power stations, will be closed, with nothing ready to replace them. We are now in the situation where we are now even more dependent upon imported gas from either unstable regions or dubious suppliers and we the customers face unnecessarily expensive bills.
As a matter of urgency the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources.
By developing a flexible self-sufficient energy development strategy that encourages decentralised microgeneration schemes and by actually implementing it this could not only create jobs, it could create useful skills and actually help to bootstrap the economy out of the developing recession as well as helping consumers.
In Wales, we need real direction when it comes to the development of safe and secure energy resources, power generation can provide the potential for real sustainable long term job opportunities; the renewable energy sector can and should play an immensely important role in creating more green energy jobs.
We need to create a decentralised power generation system which will create sustainable long-term jobs for local people, not damage the environment and contribute to providing our local communities with a long-term viable economic energy future, that’s the real future dividend for our communities.
Anyone awake in the current New Labour Westminster Government should be working with the devolved administrations in Wales, Scotland and Northern Ireland to develop a hands on energy strategy that will lead to an end to dependency on unstable overseas energy sources and dubious suppliers and lead to energy independence.
You would have thought that Vladimir Putin's decision a few months ago to reduce further gas exported into Ukraine, through which 80 per cent of Russian gas exports to the EU flows, would have highlighted the real dangers of relying on imported energy.
While Russia has declining cash reserves and its economy is heavily reliant on its trade in gas – the risk of shortages as a consequence of Mr Putin's geopolitical games is something we can truly all do without.
While other countries have attempted to protect themselves against external shocks to their energy needs; the UK’s market driven approach has been proven to be entirely inadequate. France can store 122 days of gas and Germany 99.
Yet the UK has storage capacity to last only 15 days; the New Labour Government took almost a decade to recognise the need to increase storage capacity. The consequence is that UK has to sell gas during the summer because we cannot store it but UK energy suppliers struggle to purchase gas again when it is needed in the winter.
The complicit insanity of the Conservative’s headlong dash to gas in the 1980’s has been compounded by a real failure in basic strategic energy planning and made worse by the current Government's perverse decision to half-heartdly look at developing diverse reliable alternative energy sources. The current New Labour Government has ignored repeated warnings that it was setting the UK on a path towards higher prices and blackouts.
Over the next six years almost all of our old nuclear reactors, along with nine major coal and oil-fired power stations, will be closed, with nothing ready to replace them. We are now in the situation where we are now even more dependent upon imported gas from either unstable regions or dubious suppliers and we the customers face unnecessarily expensive bills.
As a matter of urgency the Westminster Government, the Scottish Parliament, the National Assembly and the Northern Ireland Assembly should work with the Irish Government to make these islands entirely self sufficient via renewable non market driven energy resources.
By developing a flexible self-sufficient energy development strategy that encourages decentralised microgeneration schemes and by actually implementing it this could not only create jobs, it could create useful skills and actually help to bootstrap the economy out of the developing recession as well as helping consumers.
In Wales, we need real direction when it comes to the development of safe and secure energy resources, power generation can provide the potential for real sustainable long term job opportunities; the renewable energy sector can and should play an immensely important role in creating more green energy jobs.
We need to create a decentralised power generation system which will create sustainable long-term jobs for local people, not damage the environment and contribute to providing our local communities with a long-term viable economic energy future, that’s the real future dividend for our communities.
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