Energy-Saving News

UK Government Plans For A Low Carbon Future With Higher Energy Prices and Green Farming

Posted on 15. Jul, 2009 by Ross in Energy Prices, Government Policy, United Kingdom

The UK Government has today outlined plans for a major expansion in renewable energy as part of its strategy to reduce the UK’s carbon emissions in the coming decade, the impact of which would likely increase people’s and companies’ energy bills in the future.

Following on from the world’s first legally binding Carbon Budget, which requires a reduction in greenhouse gas emissions of 34% by 2020 and at least 80% by 2050, the white paper titled the Low Carbon Transition Plan ties these targets together with the EU target of meeting 15% of all energy needs from renewables by 2020. It clarifies what goals need to be achieved across various sectors including power, transport, homes, workplaces and agriculture.

The latter category sees the most novel attention. The Government has for the first time stated a targeted ambition for a 6% reduction in agricultural carbon emissions. Anaerobic digesters, which turn manure into renewable energy, are set to receive financial support, whilst farms may start qualifying for Carbon Trust interest-free loans.

A key new domestic scheme to reduce climate emissions launched in the Low Carbon Transition Plan was a “pay as you save” programme for home-owners to receive loans for home insulation, with the money repaid directly from energy bill savings.

Although not new news, the long-awaited “feed-in tariffs” programme was launched, enabling people who install small-scale renewables such as solar panels or wind turbines to be paid for the electricity they generate. Controversial smart meters will be mandatorily installed nationwide in homes as well in an attempt to encourage behaviour changes which could lead to lower electricity consumption.

There are also proposals to increase large-scale renewable energy and in particular wind - with plans for 3,000 new offshore and 4,000 onshore turbines. As well as £120 million for offshore wind turbines, £60 is being earmarked for tidal/wave power generation, with 5 short-listed projects for the Severn barrage announced in the plans, including 2 lagoon options.

In all, 50% of the annual emissions cuts required to meet the UK’s targets will come from the energy sector, according to the Low Carbon Transition Plan. The new smart grid development will only receive £6 million, however, whilst much of the news in this area concerns the establishment of new committees and consultations. A noticeable re-emergence in policy is made by geothermal energy, with areas such as Cornwall residing on igneous rock strata the most likely targets of such power generation.

Officials are keen to downplay the costs to energy consumers of the renewable switch. Last year’s government’s consultation estimated meeting renewable energy targets could lead to a rise in the average annual household energy bills of almost £230 by 2020. Other reports have put the cost to UK consumers as high as £4,700 a year, whilst the government’s newly-revised but secret estimates put the costs lower than in their previous announcements, aware that price rises during an economic recession could be politically damaging.

Ahead of today’s strategy document launched in tandem with the Low Carbon Transition Plan, Energy and Climate Change Secretary Ed Miliband acknowledged that low-carbon energy would lead to energy price rises, but claimed that fossil fuels such as coal and gas are also be expected to become more expensive because of increased demand from China and India. Speaking on BBC Radio 4’s Today programme, Miliband said:

What we are trying to do is to set out not simply targets for 2020 - which have been set - but a route map to get there: How we are going to take the carbon dioxide out of the way we travel, our homes and the way we provide energy… there isn’t a low-cost energy future out there; there’s a high-carbon, high-cost future, in my view, because we see big growth in demand from China and India which will drive up gas and oil prices.

The Committee on Climate Change, set up to advise ministers on cutting emissions and whose recommended targets for carbon reductions formed the basis for the UK Government’s official targets, recommended almost total de-carbonisation of the UK electricity sector by 2030. As well as renewable energy, new nuclear and carbon-capture-equipped coal fired power stations will generate a majority of the UK’s energy mix in the medium term.

As part of today’s announcement of the Low Carbon Transition Plan, the government also published its half-hearted transport carbon-reduction strategy. The government had already announced several initiatives, including subsidies on electric cars more affordable by providing up to £5,000 towards buying the first electric and plug in hybrid cars, but only for mass-production models expected to start becoming available in two years’ time.

Emissions from shipping are now in the government’s targets, as it continues to avoid taking measures against air travel which it sees as a step too far for the voting public

Related posts:

1. UK Government Plans Climate Change Adaption, UK Consumers Need To Adapt To £4,700 Energy Bills
2. Copenhagen Results In Higher Energy Prices
3. Carbon Trust Helps Track Dirty Carbon Farming Footprint
4. Energy Prices Leave UK Steel On The Brink Of Collapse
5. World’s First Government Carbon Budget Announced By UK Chancellor

Find this article useful? You should subscribe to our RSS feed here.

Tags: agriculture, Energy Prices, farming, Government Policy, price rises, renewables, uk