Posts Tagged ccs

Weinberg Next Nuclear’s response to Industrial Strategy Green Paper

Posted by Suzanna Hinson on April 11th, 2017

The Government are currently undertaking a consultation on their Industrial Strategy Green Paper. Our response is below.

Response to Industrial Strategy Green Paper – submitted by Weinberg Next Nuclear

  1. Introduction

Weinberg Next Nuclear is a UK-based think tank promoting clean energy, including advanced nuclear power.

Weinberg Next Nuclear welcomes the opportunity to respond to the Department of Business, Energy and Industrial Strategy’s (BEIS) Green Paper on Industrial Strategy. We welcome the Government’s commitment to an Industrial Strategy and agree with BEIS that industrial strategy is needed to “build on our strengths and extend excellence into the future”.

The Green Paper has a significant focus on productivity. Energy productivity – including end use, production and distribution – must be a part of that. As such we welcome the commitment to “delivering affordable energy and clean growth” as one of the Government’s 10 pillars. Success in delivering this strategic pillar will require clarity in policy and diversity in approach. Below, we set out our recommendations for progress on energy in the Industrial Strategy.

  1. Delivering Secure and Sustainable UK Power

Investing in clean power not only tackles policy issues such as decarbonisation and air quality, it is also highly important to increasing energy security and rejuvenating industry around the UK.

The Green Paper suggests as one of the pillars of the Industrial Strategy, the aim of “driving growth across the whole country”. Energy is a key sector that could deliver this. Nuclear power for example, only has one site in the southeast, the rest being distributed around the Midlands, North and Wales. New power stations on these sites would secure jobs for many decades to come, which is why many of the communities around existing sites are so in favour of new development. The Government should tell the Nuclear Decommissioning Authority (NDA) to more actively release sites and pursue the options of using nuclear reactors to burn nuclear waste (our forthcoming report will be on this issue). The Government should also tell the Office for Nuclear Regulation (ONR) to begin more Generic Design Assessments, especially now the AP1000 is complete, so that regulation is less of a barrier to progress. If necessary the ONR capacity should be increased (as we argued in our 2016 report Next Steps for Nuclear Innovation in the UK). The Government should accelerate the progress of its Small Modular Reactor Competition, to quell uncertainty in the industry and prevent further reactor companies seeking development elsewhere rather than the UK. Achieving a fleet of new nuclear power stations would allow the UK a long term supply of low carbon, secure energy whilst rejuvenating Britain’s leadership status within the sector.

Other technologies can also improve economic development around the UK. Offshore wind expansion will be good for the economies of Wales, Scotland, North West England, North East England and East Anglia. Offshore wind technology, which is rapidly getting cheaper, exerts to the best advantage our natural resources of wind and sea. As turbines get higher and floating potential is explored, the power they produce is increasing and the issues of intermittency are decreasing. It is essential the UK Government continues its work in encouraging the development of this technology and the entire industry that supports it (see section 6 below).

There are significant, simple and inexpensive policy changes that could encourage decarbonised energy. Removing the local veto and subsidy block for onshore wind, the cheapest renewable technology, would allow sensible developments to go ahead. Providing an exemption for solar panels within the new, higher business rates would avoid discouraging schools, hospitals and other businesses from pursuing the technology. This would not necessarily require new legislation, only an exemption similar to that of combined heat and power.

Carbon capture and storage (CCS) also has great potential for rejuvenating industry in our industrial areas. The 2016 report of the Parliamentary Advisory Group on Carbon Capture and Storage Lowest Cost Decarbonisation for the UK: The Critical Role of CCS cited potential locations for clusters, including Merseyside and Humberside, where CCS should be pursued due to the ability to capitalise on existing gas infrastructure and skills. Many organisations, from the UN Intergovernmental Panel on Climate Change to the UK’s Committee on Climate Change have said CCS is essential in order to meet carbon budgets cost-effectively. The UK Government should heed this advice and re-start a UK CCS programme.

There are also areas where the UK could achieve regional development and cultivate world-leading skills and export potential. For example, the Swansea Bay tidal lagoon, recently backed by the Hendry review, addresses many pillars of the Green Paper. The Government should move quickly to agree a Contract for Difference.

In combination with cultivating and supporting new industries, the industrial strategy should ensure that the UK is not supporting out-dated industries. Removing coal and diesel from the capacity market would be a key step in ensuring our future energy mix is sustainable and that the UK is only supporting future-proof industries. In addition, to support the proposed phase out of coal, the UK should legislate that by the end of 2025 the Emissions Performance Standard will be applied to existing as well as new power stations.

  1. Delivering Secure and Sustainable UK Heat and Transport

We welcome the proposed sector deals in the Green Paper for electric transport vehicles. Because of air pollution and climate change, it is vital that the car industry is a focus for change in the future. Therefore the £390 million for electric transport is much needed. The focus should be on forming the bridge between innovation and realisation. In addition to developing the electric vehicle industry, barriers to commercialisation should be addressed. A scrappage scheme for polluting diesel cars to enable more consumers to buy electric vehicles and more infrastructure, including charging points, would support commercialisation of the industry. These could be rolled out in public areas such as supermarkets and train stations.

Heat is the biggest source of demand for energy in the UK, and the biggest source of energy-related emissions. As such we hope to hear ambitious, long term plans to decarbonise heat in the forthcoming Clean Growth Plan. Heat policy can be combined with industrial strategy to serve both heat decarbonisation and industrial rejuvenation. Nuclear reactors and CCS plants should be used to provide combined heat and power, greatly increasing the efficiency of energy production. Additionally new industries, such as hydrogen, could act to balance the grid by using excess renewable electricity to produce hydrogen via electrolysis. The hydrogen could then be used as sustainable heat sources with little infrastructure change required. Methane steam reforming should also be used to produce hydrogen at scale – though this would only be low-carbon if combined with CCS. We recommend that the Government gives more priority to options to decarbonise heat, rejuvenate industry and increase the efficiency of energy production.

  1. Delivering Skills for the Future

Many of the Green Paper’s proposed sector deals are vertically focused on specific areas. Horizontal policy, that crosscuts and benefits multiple sectors, is also key. Skills is one of these beneficial, horizontal areas. As well as preparing for the future in general, we must address areas where gaps are appearing. Nuclear is one of the areas where a gap is imminent and skills investment needs to take place. Investment in engineering skills could deliver excellent returns for the UK.

  1. Creating Long-term Certainty and Consistency

Industry needs security, but in the uncertainty wrought by the Brexit vote it also needs consistency. Blocking low cost, green solutions such as onshore wind, is unwise. A consistent approach should be used between energy sources. For example, if local communities are not allowed a veto vote over shale gas developments, they should also not be allowed a veto on wind farms. Whatever is decided on veto policy, it should be consistent across technologies.

Similarly, industry needs consistency over time. Regulatory stability and long-term agendas help investor confidence. One of the key mechanisms for delivering regulatory stability was EU membership. In the Brexit scenario that the UK now finds itself in, it is essential that a stable, consistent and long-term approach to policy is developed, to maintain confidence and ensure industrial progress.

One area where consistency and certainty must now be cultivated is the Levy Control Framework replacement. Having removed the framework in the Spring Budget but not providing replacement details until the autumn budget, the Government has created uncertainty. A new framework should be developed and announced as soon as possible.

  1. Cooperation with Europe

Significant portions of our energy infrastructure are imported: for example, parts for wind turbines. Tariffs on these imports would increase the cost of energy infrastructure, and so damage British industry. The Government should therefore give priority to energy in the Brexit negotiations.

In addition to securing imports that do not damage industry, the UK should cultivate more home grown industry by producing more of its infrastructure needs within the UK.

The UK must also ensure it stays competitive and open to EU and global markets, whilst also maintaining its leadership in certain fields. One of these fields is emissions. The Industrial Emissions Directive is a key policy that keep relationships with Europe strong whilst protecting our local and global environment. It is essential that that this, and other environmental initiatives are maintained and strengthened to allow the UK to continue to be a key part of Europe’s sustainable industrial future.

Another key treaty with Europe that will impact the UK’s infrastructure plans and energy security is Euratom. The Government has said that it intends to leave this treaty, but not what the desired future relationship with Euratom will be. As Euratom manages the movement of nuclear fuel, and nuclear fuel is essential to UK energy security, it is by extension essential that the UK achieves a good deal and a form of associate membership with Euratom. This could also potentially mean the continuation of research projects in the UK funded by Euratom, such as the Culham centre in Oxford.

  1. Cooperation with the rest of the world

As well as working closely with Europe, in a post-Brexit scenario the UK will be looking more at closer relationships with the rest of the world. One area in which this will benefit our industrial strategy is through cooperation on regulation. In the nuclear sector, high standards of regulation are crucial, but lack of co-operation with other countries pursuing nuclear, such as Canada and the USA, is slowing progress. The UK should work more closely with these countries to smooth the regulation process and allow maximum benefit of nuclear power to the UK.

Our response to Scottish Government consultation on draft Climate Plan

Posted by Suzanna Hinson on February 10th, 2017

The Scottish Government released in January a Draft Climate Change Plan along with a consultation on their suggested policies. Weinberg Next Nuclear has responded and our submission is available below. Scotland is leading the UK in decarbonisation and we believe their targets for negative power emissions and overall decarbonisation timescales should be celebrated for their ambition. Continued support for renewables, and significant hope in the potential for Carbon Capture and Storage form the basis of their policy. However nuclear power, which currently supplies a third of Scotland’s electricity, is neglected. Weinberg Next Nuclear believes that nuclear power is an essential element of a a diverse decarbonisation energy mix. Scotland’s nuclear power plants are ageing and even with life extensions, will be unlikely to operate past 2030. Thus without plans for new nuclear power, Scotland risks missing its decarbonisation targets. Instead, Scotland should look at the potential for advanced nuclear power, which can offer low-carbon, reliable electricity, whilst also securing other benefits for Scotland.

 

Written evidence to the Economy, Jobs and Fair Work Committee submitted by Weinberg Next Nuclear

  1. Summary
  • Progress, targets and timescales are all good. A net zero target is recommended.
  • Power sector is already driving decarbonisation; however policy to decarbonize power relies too heavily on CCS and neglects nuclear, undermining the Scottish Government’s commitment to decarbonisation.
  • Without a significant policy shift in the power sector Scotland risks no longer meeting its targets.
  • Considerable benefits for Scotland, within e.g. air quality and landscape, can be derived from a new nuclear build programme and should therefore be pursued.
  1. Introduction

Weinberg Next Nuclear is a UK charity promoting safe, secure and sustainable nuclear power as a solution to the energy challenges of today. Weinberg focuses on all aspects of the nuclear power industry as well as the wider energy sector and decarbonisation.

Weinberg Next Nuclear welcomes the opportunity to respond to the Scottish Governments call for Evidence on the Draft Climate Plan. As a charity that works across the energy space, we will be directing our response to the Economy, Jobs and Fair Work Committee as the energy sector falls within their remit.

  1. Progress, targets and timescales good

As the Committee on Climate Change reported, Scotland is leading the UK in greenhouse gas emissions reductions. Previous targets have been successfully met with a cut of adjusted emissions by 45.8% between 1990 and 2014, exceeding the 2020 target of a 42% cut six years early. These impressive emissions reductions were achieved whilst the Scottish economy grew. This success has made Scotland a leader in the decarbonisation space, second only to Sweden among Western European countries in cutting emissions over this period.

Future targets as set by The Climate Change Act 2009 show good ambition, with an 80% cut by 2050, though a net zero target should soon be discussed. The power sector has previously been the most successful at decarbonising, and future emissions savings may rely on progress in power whilst other sectors are more challenging. The policy for zero, or even negative emissions from power by 2030 is an ambitious target on an ambitious timeline. This level of ambition is needed but it needs policies to match that are currently lacking. Without more comprehensive, diverse power policy, this target is at risk of being missed.

  1. Meeting the Targets: a role for nuclear

The Economy, Jobs and Fair Work Committee focuses on the following areas, Electricity generation, Reducing energy demand, Renewable energy (renewable electricity and renewable heat), Interconnection, Grid issues and Fuel poverty. These are all key areas of the power sector, and focusing on demand side issues such as interconnection and efficiency as well as the underemphasised renewable heat are vital to overall decarbonisation. But focusing on renewable energy, rather than low carbon energy, is limited. To give the best chance of decarbonisation, Scotland should encourage an all of the above approach including CCS and nuclear.

There is no current CCS in Scotland or anywhere else in the UK. With the cancellation of the CCS competition by Former Chancellor George Osborne the likelihood of imminent CCS commercialisation in the UK is low. Nuclear power on the other hand as point 7.1.5 states supplied,

“just over a third of Scotland’s electricity in 2015. This represents an increase from 2007, when nuclear energy represented 25.7% of Scotland’s electricity supply.”

Additionally 2.2.4 states:

Electricity will be increasingly important as a power source for heat and transport. As a result, the total volume of electricity supplied within Scotland will increase to 2032. System security will be ensured through diverse generation technologies, increased storage, smart grid technologies and improved interconnection.”

Nuclear power is already making up a significant proportion of the low carbon power required to meet the negative emissions electricity generation target by 2030. If unabated fossil fuels are to continue to be replaced whilst electricity demand grows, Scotland will need a reliable form of power.

Pursuing CCS is wise, especially with the potential to combine with bioenergy for negative emissions; on which we welcome the proposal of a whole system bioenergy action plan and suggest it has a large emphasis on sustainability criteria. However with CCS still a significant way from commercialisation, Scotland should not rule out options that are already delivering carbon savings, such as nuclear power.

We recommend Scotland replaces Hunterston nuclear power station with a new nuclear station. Hunterston is due to close in 2023 and though the owner EDF may extend its life, it has been generating since 1976 so will not be able to continue for much of the foreseeable future. When it does close the gap will need to be filled and if renewables are not expanding quickly enough there is a risk of a relapse on emission savings. Torness nuclear power stations’ life has already been extended, but only until 2030. Thus even if the Scottish government met it’s 2030 target, emissions would likely rise again when Torness closes.

With a third of Scotland’s low carbon power due to close down, there is a need for replacement to compliment the expansion of renewables. This will be necessary whether CCS is delivered or not. Advanced nuclear power, with simpler, more secure and more sustainable reactors, can fill this gap, contribute to emissions savings and also generate new opportunities for Scotland (see below section 5).

Though Weinberg Next Nuclear accept the limits to Scotland’s options due to the policy demands of Westminster, the Scottish government now has an opportunity to channel the pro-nuclear sentiment set out by Westminster in the Industrial Strategy into a decarbonisation narrative.

Though Weinberg Next Nuclear recommends a diverse energy supply based on an “all of the above” strategy, there are obvious environmental concerns to take into account. All technologies have their limitations, including nuclear, but these are often overstated. One technology that can cause more damage than others is pumped storage hydropower, which is supported in the draft climate plan. Though hydro provides reliable power, the construction of dams is often fraught with environmental compromises, and the location should be considered, especially in areas of natural beauty such as the Scottish highlands. Nuclear could provide the same power, with additional skills benefits, without the environmental compromises.

  1. Opportunities to secure wider benefits

In line with the UK’s industrial strategy, a renewed nuclear focus could give the opportunity for building a strong nuclear skills and innovation base in Scotland, drawing upon the wealth of experience and expertise that exists. Continuous failure to preserve this expertise is regrettable and could lead to a further ‘brain drain’. Similarly, focusing on building a skills and innovation based economy in Scotland, led by a dual commitment to nuclear and renewables, could see Scotland becoming a leading nation in the world on successful and sustainable decarbonisation.

There are social opportunities to consider to expanding nuclear power. Nuclear power stations are expensive to build but, given their very long lifespans, most of the power produced will be cheap. Fuel prices will not play any significant role as the price of uranium remains low, as well as the fact that uranium is almost 71 000 times more energy dense than natural gas. This has a dual benefit. Firstly, modern nuclear power stations can play a significant role in addressing fuel poverty by reducing the costs of electricity. Secondly, by opting for nuclear power, issues around landscape (e.g. windfarms, commercial solar farms) are less of an issue. This is highlighted in table 1, showing the vast amounts of space required to replace merely one nuclear reactor.

Table 1: Landscape impact

Technology Capacity factor (%) Sq. miles needed to produce 1000 MW
Nuclear 90 1
Wind 32-47 260-360
Solar 17-28 45-75

 

Further social opportunities stemming from a nuclear-led decarbonisation are found within air quality. By opting for a rapid decarbonisation by using long-proved technologies, nuclear power can replace fossil fuel-based electricity generation within timescales that renewables cannot match. If this is coupled with a serious commitment to decarbonise the transport (non-aviation) fleet, the air quality in Scotland could derive considerable benefits. This, in turn, would allow many serious health issues connected with poor air quality in many of Scotland’s cities to be addressed in an adequate manner.

  1. Recommendations
  • Set a net zero decarbonisation target.
  • Acknowledge the urgency of decarbonisation of the energy sector, by changing focus to low carbon energy focus to encompass nuclear and CCS
  • Establishing a nuclear skills and innovation programme in Scotland.
  • Remove the Memorandum on New Nuclear in Scotland, thus allowing for modern nuclear power stations to be built in Scotland.
  • Establish a programme of nuclear new build in Scotland, coupled with a commitment to decarbonise the non-aviation transport sector.

February, 2017

New Report: The Case for a Clean Energy Alliance

Posted by Suzanna Hinson on January 23rd, 2017

23 January 2017: Clean energy sectors should set up an alliance to shape a supportive industrial strategy.

The British government is today publishing a consultative green paper on a new industrial strategy. It proposes to offer ‘Sector Deals’ to address sector-specific challenges and opportunities. These would “offer a range of support”, including supporting innovation.

The Government highlights that Britain has strengths in research and development of smart energy technologies. And one of the ten” strategic pillars” will be:

“Delivering affordable energy and clean growth. We need to keep costs down for businesses, and secure the economic benefits of the transition to a low-carbon economy.”

In response to the green paper, the Alvin Weinberg Foundation think tank has published a report on The Case for a Clean Energy Alliance. The report argues that:

 

“An Alliance would bring together like-minded organisations – those concerned with energy security, fuel poverty, economic competitiveness, environment, air quality and climate change – to work towards a common goal of decarbonisation. The renewables, CCS and nuclear sectors do already work together on specific issues, through their trade associations. An Alliance would add value by taking a strategic approach, to complement, not duplicate, the tactical co-operation that takes place between sectors already. The Alliance should not be an alternative public voice for clean energy, but rather unite existing voices.”

“The energy industry needs to offer strategic advice to governments on how best to facilitate clean energy. Some competition between sectors is inevitable: public money is limited. Nevertheless, there are significant questions on which competition is neither necessary nor helpful.”[i]

The criteria for judging what is low-carbon should include the full life-cycle of the technology, including land use change. Full members should be trade associations: companies and civil society organisations could become associate members.

Stephen Tindale, Weinberg director, said:

“An active industrial strategy offers a great opportunity for clean energy. To take advantage, different clean energy sectors should work together more strategically. With all the energy challenges of today, now is not the time for sectoral technology tribalism: it is the time for a Clean Energy Alliance.”

Contact: Stephen Tindale

stephen.tindale@the-weinberg-foundation.org

07941 433780

[i] Strategic questions that an Alliance could address include:

  • Should low-carbon energy technologies continue to receive public financial support into the 2020s?
  • If so, how should such support be delivered – through guaranteed tariffs or through grants?
  • Should public money to support clean energy be raised through taxation or through energy bills?
  • How can the operation of the Levy Control Framework be improved in order to increase investor confidence?
  • Is the Contract-for-Difference approach efficient and fair: should it be reformed or would the resulting regulatory instability undermine any potential benefits?”

Evidence to Lord’s Committee by Director Stephen Tindale

Posted by Suzanna Hinson on December 9th, 2016

Our Director Stephen Tindale gave oral evidence on the economics of UK energy policy to the House of Lord’s Economic Affairs Committee on 15 November. He argued for a more diverse energy mix, more consistent policy and more rapid decision making on key issues.

The Chancellor’s Autumn Statement said little about energy. The spring 2017 Budget therefore becomes a crucial event: for advanced nuclear, tidal lagoons, energy efficiency, CCS and several other climate and energy issues. In our work for Weinberg Next Nuclear we will continue to urge the UK government to make the necessary public investment to move beyond research, at which the UK is very good, to demonstration and deployment, at which the UK is much less good.

 

Lord Tugendhat: A completely straight-up question: can you please explain the work you are doing and how it fits into the UK energy system?

Stephen Tindale: I work for two days a week running the Alvin Weinberg Foundation, which is the only pro-nuclear charity in the UK. Specifically we are pro-advanced nuclear generation for nuclear—fast reactors. We have tried fast breeder reactors in the UK at Dounreay, and that did not work economically. We now need to look at fast burner reactors, because there is no shortage of plutonium and so on. That is one form of advanced nuclear. The other is molten salt reactors, one of which Alvin Weinberg, the US physicist after whom we are named, was building in the 1960s and early 1970s until President Nixon shut it down. It is an advanced technology—it is not just a paper reactor—but it has not been implemented or built more recently, so there is much work to be done there. The rest of the week I am a consultant, and I work particularly for Tidal Lagoon Power. You have just had a discussion about possible new forms of renewable energy. I would say that tidal lagoons are a very good example of that, and I am very happy to talk about that.

Lord Sharkey: Can I ask you two more questions about technology? First, what impact do you expect your own technologies to make over the next 10 years? Secondly, which other technologies will have the most transformative or disruptive effect on the energy sector and which areas should be priorities for research, apart from your own technologies of course?

Stephen Tindale: Over the next 10 years, advanced nuclear will not be a major player in energy systems. Commercialisation is possible over the next 10 years, but there will not be many advanced nuclear reactors operating in 10 years’ time. That does not mean that we should go slow on it, because over the following 10 or 20 years they could become major players, but a decade is too short a period. One of the companies I am working with, Terrestrial Energy, a Canadian-based company, has said that it aims to commercialise by the mid-2020s, so it is possible, at least in its view. That is why further generation 3 existing reactor designs are necessary as a kind of bridge technology to get us to advanced nuclear, which will be a major player not only in electricity but in heat. Industrial heating cannot be delivered by electricity, as I understand it, so some other form of heating is necessary. Bioenergy is possible, but that has lots of downsides relating to land use and biodiversity, so advanced nuclear for industrial heating seems a sensible way forward.

The other company I mentioned, Tidal Lagoon Power, could be a major player in the next 10 years. I very much hope that following the Hendry review the Government will authorise and support the pathfinder proposal for Swansea financially through a CFD. That is necessary, learning by doing and so on, but the company says that it will then build a 3 gigawatt lagoon off Cardiff, and the Welsh Government are very supportive; they have given it a commercial loan. It is therefore possible that by 2026 more than 3 gigawatts will be generated by the Severn.

Lord Layard: I wanted to ask you about Britain’s record in clean energy research compared with other countries’, and in particular about the implications of the Government’s announcement in the spending review that they would double public expenditure on clean energy research by 2020. How would that money be best spent? What kind of co-ordination is needed to produce value for money from that kind of expenditure?

Stephen Tindale: In the nuclear field, the UK remains quite good on research but not good on research and development, or at least not on the development bit, because we have built no nuclear power stations since the early 1990s. What is needed now is to co-operate with the US, depending on what happens there; certainly the Obama Administration was allocating money and giving it out to research and development for advanced nuclear, and the Trudeau Government in Canada are doing likewise. It would be good to talk to Oak Ridge National Laboratory, for 25 example, to learn how to make progress on delivering advanced nuclear in a way that not only helps with energy security and climate protection but is a major economic opportunity.

Baroness Wheatcroft: One of the reasons why we have not developed any nuclear power stations over the last decades is presumably because there was a perception that the public were not in favour. We are told in your biography that you spent two decades campaigning against nuclear. Can you tell us where the change of heart came from?

Stephen Tindale: That is a perfectly fair question. Indeed, I spent two decades campaigning against nuclear and drafted the Labour Party’s environment policy in 1994, which said, “No new nuclear”. It took Tony Blair in No. 10 and Gordon Brown some time to shift away from that. I then went to work for Greenpeace. I was always worried primarily about the weapons proliferation risk of nuclear rather than radioactive discharges or waste. At least the nuclear industry is required to look after its waste, whereas the fossil fuel industry just puts it out into the atmosphere. I remained concerned about weapons proliferation. My change of heart occurred in August 2006, when the permafrost in Siberia had a massive melt and released vast quantities of methane, at which point I thought, “Oh dear”—to put it politely—“What can we do about this?”. I then concluded over several months, during which I ended up leaving Greenpeace, that we needed to stop arguing only for “the best”, which in terms of energy supply would be renewables, but we need the good as well. Nuclear, because it is low carbon, is in this sense good.

Baroness Wheatcroft: Climate change trumps nuclear arms.

Stephen Tindale: Correct

Lord Forsyth of Drumlean: An easy question: should the Government treat investment in energy technology as part of their so-called industrial strategy? If you think they should, do you really think that government is well placed to start picking winners and deciding where that money should best be deployed? I just wonder whether the experience to date with the very generous subsidies for renewables may have deterred some of the work that should have been done on new technologies.

Stephen Tindale: I agree that energy has to be a central part of the industrial strategy. That is why I welcomed the creation of BEIS. Many of my colleagues in the climate movement were very unhappy that DECC was abolished, but in my view the name of the department is less important than its clout in Whitehall. BEIS has the potential to be a significant player in Whitehall, which I am afraid DECC never was. Industrial strategy should cover not only the job creation potential of energy, or how to promote energy security, but, crucially, innovation. On innovation, as well as the issues I have talked about, carbon capture and storage should be restarted. George Osborne’s cancellation of that competition not only was bad in content but sent appalling signals to the potential investors—actual investors in that case—that there was no regulatory stability in the UK. This is one of our major challenges and obstacles: that energy policy changes too often, even when there is no change of Government. To reinsert carbon capture and storage, maybe not for coal but certainly for gas, would be very good not only to protect the climate and keep up with other countries that are developing CCS but to reassure potential investors. On picking winners, if the market was working well, it would not be necessary for the Government to pick winners. By “working well” I mean if all relevant externalities had been internalised—so not only a carbon price but toxic pollutants, such as sulphur dioxide and nitrogen dioxide. We are nowhere near that. The carbon price floor in the UK can be argued many ways, but it is about a third of the external costs of greenhouse gas emissions. The EU ETS is about a tenth of the cost, so it is a complete waste of time. So we are doing better than continental Europe but not nearly well enough. In my view, the major achievement of the coalition was the emissions performance standard—the regulation to prevent new coalfired power stations without carbon capture and storage. It is not low enough in that it allows unabated gas to be built or to continue, and it does not use a regulatory system to shut coal down quickly, but the market appears to be doing that for other reasons. The role of the Government, given the lack of sufficient carbon prices and other green taxes, is to set the framework, which is what Greg Clark said in his speech to Energy UK earlier this week.

The Chairman:. Can I bring this session to a close by asking you what steps you think the Government need to take to encourage private investment in your particular businesses and in the sector generally?

Stephen Tindale: On nuclear, the Government have started on the right course with their promise of £250 million over five years on nuclear R&D innovation funding. That is part of the mission innovation commitment which the UK has made in the international climate agreement context. It has made a start and it is now running two competitions, but the experience of potential investments in carbon capture and storage competition, as I said, was not great. The Government need to set out a timetable and make some awards as soon as possible—give some money. That will encourage investor confidence. There is no lack of potential investors, but there is too much regulatory uncertainty and instability at the moment. The Government definitely need to counter that. The other thing the Government could do on nuclear is encourage the Office for Nuclear Regulation to assess some of these generation 4 designs. Clearly, the Government cannot tell it to say yes, but they can indicate that they are priorities for UK energy policy: that some of these generation 4 reactor designs should be assessed by the Office for Nuclear Regulation.

The Chairman: It seemed that there was a lack of enthusiasm to invest in what turned out to be Hinkley C. The Government have ended up paying a very high price for it.

Stephen Tindale: Indeed. My view of the European pressurised reactor—the design that might be built at Hinkley, and now that the decision has been made I hope it is built—is that it does not have a great track record. It is quite an old-fashioned design and very complicated. More and more safety features were added to it, rather than a more holistic approach of starting from scratch and building safety intrinsically into the design.

The Chairman: So we are paying a high price for yesterday’s model?

Stephen Tindale: Yes.

Lord Burns: What prices are you expecting for the Swansea lagoon?

Stephen Tindale: Are you asking about the strike price?

Lord Burns: Yes.

Stephen Tindale: It is roughly £120. Okay, that is higher than Hinkley, but it is a global first of its kind. I know that the Treasury does not like talk of global firsts of a kind, but La Rance, the barrage in France that uses broadly the same turbines, was built 50 years ago. Turbine technology has advanced somewhat. We need to test it. That is why the argument that we should go first for a three gigawatt one, to invest in an undemonstrated technological approach, is asking investors to be a bit too brave. If the Government wanted to do three gigawatts, they would probably have to provide all the capital themselves. That is not, apparently, on offer.

 

IEA chief says we can’t be picky about energy technology

Posted by Suzanna Hinson on October 27th, 2016

The Executive director of the International Energy Association, Fatih Birol, has spoken out on the need for a diverse solution to the decarbonisation challenge, including nuclear. With the climate and energy crises worsening, the solutions are growing more urgent. At the annual Singapore International Energy Week, Birol argued;

“we don’t have the luxury to pick just one technology”

At an event dominated by renewables, he championed the importance of also pursuing energy efficiency and nuclear power, saying:

“for me, the number one is improving energy efficiency. All countries have different resources, but they can all take action on energy efficiency. And in some countries nuclear power, which can generate without creating emission problems, will be part of the solution”.

The future of nuclear was questioned at the event, with public opinion cited as an issue that could prevent progress. However as Birol continued, 2015 had been a kind of “golden year” for nuclear with 10 new reactors, the highest number in almost three decades. Weinberg has reported that progress in China and India as well as new initiatives for nuclear in Canada, the US and the UK is keeping the industry moving. It is vital that new technologies continue to be pursued. As Birol said,

“we have to accelerate innovation because the current technologies will not be enough.”

A diverse, holistic and innovative approach to energy and decarbonisation, based on an “all of the above” strategy, is very much needed. This will need to include renewables, but as Birol said, efficiency and nuclear too, as well as other technologies like carbon capture and storage and interconnection. It is through diversity that we are most likely to achieve energy security and climate protection.

 

 

http://www.world-nuclear-news.org/EE-Implementing-the-transition-to-clean-energy-24101601.html

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