Monday, 16 July 2012

Britain's supply of green energy soars
1 Jul 2012

Britain is being powered by record levels of green energy, after a surprise increase in electricity generated from wind, sun and waves. Renewables accounted for 11% of the UK's electricity in the first three months of 2012, compared with 7.7% from January to March 2011. There were big rises in power from onshore wind farms, while generation from hydroelectric and bioenergy plants also rose sharply, putting Britain much closer to meeting its legally binding commitment to get 15% of its power from renewable sources by 2020. The increases could also go some way to solving the looming energy crisis, as decades-old nuclear, coal and gas power stations are taken out of service.

The latest figures from the Department of Climate Change and Energy Efficiency show that gas accounted for 27% of electricity generated in the first quarter of 2012, its lowest level in the past 14 years. High gas prices were blamed. Coal accounted for 42%, up by a fifth, while nuclear fell from 19 to 17%. Onshore and offshore wind generation was up by around 50% year-on-year. Hydroelectricity output was 43% higher between January and March 2012 than a year earlier, and thermal renewables rose by 20%. Solar, wave and tidal grew by more than 800%, but remain the smallest renewables sector with most technologies still in their infancy. Gordon Edge, of the trade body RenewableUK, claimed the figures were proof that "green growth is beginning to take hold".

Joss Garman, a senior campaigner at Greenpeace, said: "Britain is now in prime position to become the Saudi Arabia of the global offshore wind industry. The cost of wind power is falling fast so if ministers don't make the wrong decision over the next few months-and if they avoid a risky bet on a new dash for more gas burning-then we could all reap the benefits of a strong home-grown clean energy boom with stabilised energy bills, new jobs and industries, and reduced carbon emissions".

Major progress in renewables risks being undermined by a cabinet row over imminent cuts to some subsidies between 2013 and 2017. Ed Davey, the Energy and Climate Change Secretary, is planning a 10% reduction in subsidies for onshore wind, but George Osborne is reported to favour a cut of up to 25%. With the Renewables Obligation Certificate regime due to expire in 2017, there are fears that uncertainty over its replacement could spook investors. Shaun Kingsbury, of the private equity firm Hudson Clean Energy, warned MPs that "if things continue to slow andmore detail comes out that makes it more complex, then you will see people stopping development spend". The Government claims its Energy Market Reform Bill will attract the £150bn-£200bn needed to overhaul the national grid and replace ageing nuclear and coal power stations. "Our ageing infrastructure has not been invested in for 30 years", said a government source. "If we don't fix it, the lights go out".

The surprise rise in green energy production at the start of this year builds on strong growth in 2011, when renewables generated 34,410 GWh, up a third on 2010. In 2009, just 3% of energy consumption in the UK came from renewables. Capacity grew by 36% last year. Charles Hendry, the climate change minister, said: "This shows that the UK is powering forward on clean and secure energy and is a very attractive place to invest".

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