Archive for the ‘Clean Energy’ Category

Comment on HMG’s decision to take their illegal FiT plan to the Supreme Court.

February 21, 2012 Clean Energy, Commentaries

Jeremy Leggett: “We have been expecting this but we hoped that Ed Davey would see sense and not take the appeal. If we are lucky this is just a cynical exercise to limit the market to 3rd March and they will withdraw in a few weeks. If not, and they really are serious about a Supreme Court appeal, then the implications for the renewables industry are deeply worrying. Two weeks ago, Ministers reassured the industry that they wanted to see 4 million solar homes in the UK by 2020. This appeal completely undermines that claim. They need to stop rewriting the scheme, end the constant stop-start and provide long-term stability and meaningful returns for investors and customers and give certainty to the 30,000+ employees of this successful industry – one of the few that is actively creating jobs in this country. If the appeal is successful it will allow Government to change feed-in tariffs whenever it chooses, even for projects that are already installed and supposedly guaranteed the feed-in tariff. At a stroke, this would undermine investment in all UK renewables, not just PV, and show investors that the UK government simply cannot be trusted. Fortunately their arguments are weak. They are the same ones unanimously rejected by the Court of Appeal so I wouldn’t give them much chance of success. Sadly, this appeal has the whiff of farce about it. First they try to woo private capital into infrastructure; then they mismanage it; now they go to the Supreme Court to argue for sovereign default to cover their tracks. I just hope the new Secretary of State actually understands what his lawyers are doing.”

Eon threatens to stop offshore wind power investments in Germany.

February 14, 2012 Clean Energy

Der Spiegel: “The company said it will put two large projects on hold unless the grid operators speed up the construction of power lines. … The German government plans to increase the share of green power to 35 percent of power consumption by 2020 from 20 percent at present. A decisive part of that increase is to come from offshore wind farms. …There has been growing criticism of delays in building wind farms in the North Sea and Baltic. In January, the German Transport Ministry provided figures which outline the scale of the task Germany faces. The plan is to have 10,000 wind turbines in operation off Germany’s coasts by 2030. It currently only has 27. The aim is for the windfarms to produce 25,000 megawatts of power — so far, it’s just 135 megawatts. Energy company RWE has also complained about delays in power line construction.”

 

Iberdrola backs subsidies freeze on Spanish renewables, and wants British nuclear

February 12, 2012 Clean Energy, Nuclear

Spain’s biggest power utility by market value says it is a sensible move for a country that has been paying too much for electricity it does not need. “What we were doing was irrational,” says  Ignacio Galán, chairman. “It makes no sense. Spain is installing the most expensive technologies in Europe instead of looking for those which are cheapest.” One analyst says they fear retrospective cuts in tariffs from government. Another says a nuclear windfall tax is what they should worry about. As for plans in Britain, Galan says: ”The area that has the most uncertainty is the area of nuclear. We still don’t know how it’s going to be properly paid – what the return will be. The decision to go ahead (in a consortium with GDF Suez) is not going to be taken until the moment the framework is clear and predictable enough, with enough remuneration for those investments.”

“End the Big 6 Energy Fix” public campaign launches.

February 10, 2012 Clean Energy, Coal, Gas, Nuclear, Oil

Caroline Lucas speaking for 100 public figures: “First, we are calling on the Government to impose a similar levy to the one it has imposed on North Sea oil companies and the big banks. Over time, such a levy could raise billions, revenues that could be ring-fenced and used to ensure that every home is insulated and highly energy-efficient – starting with the homes of the fuel-poor. This would form part of a Green New Deal and would help to create thousands of new skilled jobs. Second, to prevent energy companies from passing the cost of any levy on to customers, we want the Government to give Ofgem the power to cap prices. This could be linked to the wholesale price to make energy prices fairer. Third, we want the Government to launch a public inquiry into the Big Six energy companies.”

Climate change should mean a 100% renewables by 2030 target.

February 10, 2012 Clean Energy, Climate, Commentaries

Interview at the Oxford Climate Forum, in Oxford university student magazine, Cherwell: “There are people who are worried about peak oil who aren’t worried about climate change. And vice versa. I’m worried about both. With both of them, at a minimum it’s about wrecking the global economy. A lot more in the case of climate change. These are high stakes issues. And both are high risk. In fact, climate change isn’t just high risk. It’s odds on certainty.” More.

BBC partially retracts its anti-wind Panorama programme.

February 7, 2012 Clean Energy

BBC website: “Panorama wishes to clarify the following information regarding What’s Fuelling Your Energy Bill?, first broadcast on 7 November 2011: While the film focussed on government energy policy going forward – and the associated costs – we feel it worth repeating that the rise in current energy bills is predominantly linked to the increase in winter gas prices. In Ofgem’s Why Are Energy Prices Rising? report from 14 October 2011, it states that winter gas prices were 40% higher for 2011/12 than the previous winter. In its Energy and Gas Supply Market Report published the same day, Ofgem found that wholesale electricity and gas costs were the biggest factor in the rise in bills, accounting for 45% of current fuel bills. We accept that it would have been helpful to our audience had this point been made more clear in the film and the website materials that accompanied it.”

KPMG refuses to release controversial green energy report.

February 7, 2012 Clean Energy

Business Green: “KMPG is refusing to publish the full findings of a controversial study examining the cost of the government’s green energy policies, which was originally used as a basis for a series of media reports attacking the cost of renewable energy. The preliminary findings of the report, dubbed Thinking about the Affordable, were made public last November. They claimed Britain could meet its 2020 carbon reduction targets more cost effectively by building nuclear and gas-fired power stations instead of wind farms. The report was seized on by critics of the government’s green agenda and also formed the basis of a number of media reports, including a BBCPanorama special that attacked the cost of renewable energy subsidies.”

 

German power exports to France, including solar, increasing.

February 6, 2012 Clean Energy, Nuclear

Exports from Germany to France reached 4 to 5 gigawatts in the cold snap last Friday morning according to German journalist Bernward Janzing. It was not exactly a time of low consumption in Germany either at 70 gigawatts around noon on Friday. On the contrary, he reports that a spokesperson for transit grid operator Amprion told him that “photovoltaics in southern Germany is currently helping us a lot.” Solar power production has been peaking at around 10 gigawatts at noon in the dcold spell. Germany currently has around 25 gigawatts of PV installed, i.e. this capacity is peaking at around 40 percent in early February.

Grass roots projects are “the way to low carbon UK, says coalition of 12 m.

February 1, 2012 Change for Good, Clean Energy, Finance

The civil society groups advocating more locally owned wind and solar farms include some of the leading UK NGOs, including the Co-operative, the National Trust, the Church of England and the National Federation of Women’s Institutes. Patrick Begg, director of rural enterprise at the National Trust: “Many other European countries are way ahead of the UK, as we found out when visiting German communities last year. Germany produces over 20% of its electricity from renewable sources, with communities generating about a quarter of this. In the UK, less than 1% is generated by our communities.”

“The coming US-China solar war”: Time.

January 31, 2012 Clean Energy

Time: “If you’re buying solar panels or running a business installing them, life is good, but if you own a company that actually makes solar equipment in the U.S., you’re looking at a lot of red ink. That’s because solar power is getting much cheaper — prices for modules have dropped 40% over the past five years. According to some U.S. solar-panel manufacturers, that drop in price is due largely to low-cost imports from Chinese panelmakers.”

Dismay as Spain freezes all support for new renewables projects.

January 30, 2012 Clean Energy

Arguing the strictures of austerity, the Spanish government calls a moratorium, end date to be announced. Spain’s wind energy association says the moratorium “puts at risk a sector which is a world leader that exports goods and services of more than €2.4bn per year, and is fundamental for Spain’s energy independence”.

UK government loses appeal on illegality of DECC’s solar feed-in tariff cuts.

January 25, 2012 Clean Energy, Commentaries

Three more judges rule, in the Appeal Court that the government’s proposal to cut tariffs from 12 December was illegal. Business Green: “Jeremy Leggett, chairman of Solarcentury, said the news was a positive outcome for the entire renewable energy industry: “Today we have reminded government that it will be held to account when it acts illegally and tries to push through unlawful policy changes. We would much prefer not to have taken this path but ministers gave us no choice. Our hope now is that we can work together again to restore the thriving jobs-rich solar sector that has been so badly undermined by government actions since October”.”

FT: “Radiant outlook for energy sector” …meaning gas.

January 20, 2012 Clean Energy, Finance, Gas

The S&P 500 is having its best start since 1987, especially in energy stocks, after a disappointing 2011, wherein when the single worst-performing share was First Solar A short on the shares was the most profitable position in 2011 for some hedge funds, such as Greenlight. “Many future deals will focus on traditional energy. But many others will also involve bets tied to the new technologies around gas generally – and shale in particular – in part because of such uncertainty” (as the Arab Spring aftermath and the Iranian sanctions).

US regulator rejects utility’s proposed “network usage charge” ploy to suppress solar PV.

January 19, 2012 Clean Energy

The California Public Utility Commission fears that San Diego Gas & Electricity’s slapped-on charge, one that would wreck solar economics, is illegal.

Clean energy investment up 5% to $260bn in 2010, with solar more than half.

January 12, 2012 Clean Energy, Finance

So Bloomberg New Energy Finance reports. The US retook top position from China, thanks to stimulus measures. Ethan Zindler, of Bloomberg NEF: “We are on the verge of a turning a corner where in the next five to seven years or so, subsidy will be much less important for clean energy investment.” Solar investment was up 36% to $137bn: more than a half of all clean energy investment. Kevin Parker of Deutsche Bank Asset Management: “We are on our way to the point where solar power costs the same as fossil fuel power, and it’s not that far away. When we get there, there’s going to be a lot of money to be made by the leaders in the solar industry.”

Germany installs 7.5 GW of solar PV in 2011.

January 9, 2012 Clean Energy

The record figure is slightly exceeds the 7.4 GW recorded in 2010, says German network regulatory agency Bundesnetzagentur (BnetzA). Additions in December alone amounted to 3 GW. The pace of installations could trigger a 15 percent cut in tariffs from July 2012: it would take only 225 megawatts (MW) between January and April to trigger that level. Equinet analyst Stefan Freudenreich: “We see proponents of an annual installation cap gaining influence in the discussion, especially in the context of an overall weakening economy, making politicians more sensitive to cost burdens in the manufacturing industry sector.”  Solar PV is now just over 3% of Germany’s overall power output, or 18 billion kilowatt hours.

Richard Branson: “the absolute necessity” of investing in renewables.

January 5, 2012 Clean Energy, Climate, Commentaries, Finance

Richard Branson, in posting my latest blog on his website: “Struck by this email from my friend Dr Jeremy Leggett over Christmas highlighting the growing divide between those that believe in the absolute necessity of investing in renewable fuels and those who ignore the obvious need – preferring to focus on short term goals and profits. I believe we must keep investing in alternative fuels to help reduce our Global carbon problem. Those fearing that economic growth will be stifled by investment in renewables are wrong.” etc.

UK third-bottom of the European renewable energy league.

January 2, 2012 Clean Energy

European Commission statistics published today as part of the EurObserv’ER project show the share of renewable energy in the UK’s final energy consumption was just 3.3%, slightly ahead of only Malta and Luxembourg. The report also shows the UK has the biggest gap to bridge to achieve the legally binding 2020 target of sourcing 15% of the country’s energy mix from renewables. Sweden tops the league with 46.9% of the national energy mix sourced from renewables. Across Europe renewables are 12.4% of overall gross final energy consumption, compared to 11.5% in 2009 – a 0.9 point year-on-year increase compared to 2009.

JL blog: Energy dramas for 2012.

January 2, 2012 Clean Energy, Climate, Coal, Finance, Gas, Nuclear, Oil

2011 was a year of growing polarisation for those of us who long for renaissance fuelled by renewables. The Germans announced targets to run their railway system entirely on renewable energy, mostly wind,and solar. Yet BP announced it will quit solar entirely to pile ever further into tar sands, unconventional gas and the rest of the carbon status quo. The IEA pronounced that the cost of energy will rise “viciously” on a global basis without clean energy. Yet the British “Big Six” opted for so much gas that the installation rate of British renewables fell steeply: this despite conventional UK energy prices soaring so steeply that fully 1 in 4 of UK households fell into fuel poverty in 2011, up from 1 in 5 in 2010.
There were so many of these stark contrasts in the theatre of energy last year.
It seems that the closer renewables advocates get to their dream, the harder the defenders of the status quo push back the other way, notwithstanding the increasingly clear economic, environmental and social downsides. They surely are teeing up some dramas for 2012.
Not to mention interesting research material for neuroscientists interested in how dysfunctional human cultures work. Its not as though Big Energy, and their cosy nexus with conventional capital, just do these things and be done with it. They lobby for their short-term perceived interests – hard, and mostly below the radar – entraining many in officialdom and politics to their ruinous causes.
To the extent that solar energy in cloudy Britain might be a tiny-corner microcosm of a much bigger picture of the potential for renewable-powered renaissance, there is a particularly interesting drama unfolding as we enter 2012. In case you missed it, the British High Court ruled on 21st December that the UK government has acted illegally in proposing a retrospective reduction in the solar feed-in tariff. The arguments for and against were summarised that night on the BBC, here (headline and 7 mins 20 secs in for the detail). The government can appeal by January 4th, risking further humiliation in its efforts to cut back a solar market just a tiny fraction the size of Germany’s. Or it can switch tack, resurrect an industry that was creating thousands of jobs – at net economic benefit to the UK economy – in a time of dire need for such, while realigning with some its core strategic themes, not least a Big Society countering austerity-related unemployment with a domestic green industrial revolution. This will be a choice to watch as the dramas in the triple crunch of financial crisis, climate crisis, and energy crisis roll on in 2012.

UK green energy investment sharply down on 2009.

December 30, 2011 Clean Energy

£2.5bn is the latest DECC figure. The developing world is now surging ahead of Britain, which fell out of the top 10 in 2010. 3.3% of UK energy now comes from renewables.

Rebuilding the UK’s energy system by 2050: costs about the same for clean or conventional energy, DECC says.

December 28, 2011 Clean Energy, Coal, Gas, Nuclear

Every person in Britain will need to pay about £5,000 a year between now and 2050 on rebuilding and using the nation’s entire energy system, new DECC figures suggest. The cost of developing clean and sustainable electricity, heating and transport will be very similar to replacing today’s conventional power stations. The forecasts come from a unique open-source analysis package, called the 2050 pathways calculator, created by Professor David MacKay, DECC chief scientific adviser. Guardian: “However, the cost of the “do nothing” option does not include the damage to the economy expected as a result of climate change, and the calculator notes that, according to the landmark Stern review: “This is the equivalent of up to £6,500 per person per year on average, on top of the cost of the energy system”.”

  • My most recent commentaries

    • Comment on HMG’s decision to take their illegal FiT plan to the Supreme Court.

      Jeremy Leggett: “We have been expecting this but we hoped that Ed Davey would see sense and not take the appeal. If we are lucky this is just a cynical exercise to limit the market to 3rd March and they will withdraw in a few weeks. If not, and they really are serious about a Supreme Court appeal, then the implications for the renewables industry are deeply worrying. Two weeks ago, Ministers reassured the industry that they wanted to see 4 million solar homes in the UK by 2020. This appeal completely undermines that claim. They need to stop rewriting the scheme, end the constant stop-start and provide long-term stability and meaningful returns for investors and customers and give certainty to the 30,000+ employees of this successful industry – one of the few that is actively creating jobs in this country. If the appeal is successful it will allow Government to change feed-in tariffs whenever it chooses, even for projects that are already installed and supposedly guaranteed the feed-in tariff. At a stroke, this would undermine investment in all UK renewables, not just PV, and show investors that the UK government simply cannot be trusted. Fortunately their arguments are weak. They are the same ones unanimously rejected by the Court of Appeal so I wouldn’t give them much chance of success. Sadly, this appeal has the whiff of farce about it. First they try to woo private capital into infrastructure; then they mismanage it; now they go to the Supreme Court to argue for sovereign default to cover their tracks. I just hope the new Secretary of State actually understands what his lawyers are doing.”

    • Climate change should mean a 100% renewables by 2030 target.

      Interview at the Oxford Climate Forum, in Oxford university student magazine, Cherwell: “There are people who are worried about peak oil who aren’t worried about climate change. And vice versa. I’m worried about both. With both of them, at a minimum it’s about wrecking the global economy. A lot more in the case of climate change. These are high stakes issues. And both are high risk. In fact, climate change isn’t just high risk. It’s odds on certainty.” More.

    • UK government loses appeal on illegality of DECC’s solar feed-in tariff cuts.

      Three more judges rule, in the Appeal Court that the government’s proposal to cut tariffs from 12 December was illegal. Business Green: “Jeremy Leggett, chairman of Solarcentury, said the news was a positive outcome for the entire renewable energy industry: “Today we have reminded government that it will be held to account when it acts illegally and tries to push through unlawful policy changes. We would much prefer not to have taken this path but ministers gave us no choice. Our hope now is that we can work together again to restore the thriving jobs-rich solar sector that has been so badly undermined by government actions since October”.”

    • “The carbon bubble will burst – we must be prepared this time”.

      Business Green: “This is really important. No matter where you stand in the green debate, the threat posed by the systemic over valuation of carbon intensive firms and assets is a critical issue that should concern you – really, really concern you.” …. That is the warning currently being sounded by the recently launched Carbon Tracker Initiative, which last week released its second report on the scale of the so-called “carbon bubble” and wrote to Bank of England Governor Mervyn King urging him to take action. The two reports from the group – which is backed by some high profile green thinkers and investors, including the WWF, Solarcentury chairman Jeremy Leggett, former chief scientist Sir David King, and Conservative MP Zac Goldsmith – should be required reading for political leaders, business leaders, and economists everywhere. If there was any sense of proportion, it would be at the top of the agenda at this week’s annual billionaire schmooze-fest at the World Economic Forum in Davos.”

    • Investors ask BoE to probe risk that fossil-fuel reserves pose “sub-prime” risk.

      Fossil fuel reserves listed in the City of London are “sub-prime” assets posing a systemic risk to economic stability. So warns a high-profile coalition of investors, politicians and scientists , writing an open letter to Sir Mervyn King asking him to launch an investigation. Signatories include Aviva Investors, Climate Change Capital, Conservative politician Zac Goldsmith and Solarcentury chairman Jeremy Leggett. Abatement policies could mean billions of pounds of fossil fuel reserves will rapidly lose value and cause a “major problem” for institutional investors and pension funds. Guardian: “CarbonTracker’s latest report reveals that coal reserves held by 16 London-listed companies will release 45bn tonnes of CO2 when burned, equivalent to 86 years of annual UK emissions, which are the tenth highest in the world. Most of the coal is in other countries such as Australia and South Africa.”

    • Richard Branson: “the absolute necessity” of investing in renewables.

      Richard Branson, in posting my latest blog on his website: “Struck by this email from my friend Dr Jeremy Leggett over Christmas highlighting the growing divide between those that believe in the absolute necessity of investing in renewable fuels and those who ignore the obvious need – preferring to focus on short term goals and profits. I believe we must keep investing in alternative fuels to help reduce our Global carbon problem. Those fearing that economic growth will be stifled by investment in renewables are wrong.” etc.

    • High Court rules UK government has acted illegally of solar feed-in tariff target date.

      My message to BBC Radio’s The World Tonight: let us turn this humiliation for HMG into something positive and get back to where we were: creating jobs the nation needs in these hard times. And to Business Green: “We encourage the Secretary of State to accept the judge’s very clear ruling, to not plunge the industry into a further period of uncertainty by considering going to appeal, and to conduct the remainder of the current consultation process properly with constructive conversations with the industry.”

    • Big 6 pressure on UK government led to UK solar feed-in tariff ambush.

      My view in the Huffington Post: “There are only two possibilities, given the absence of a credible savings narrative and the seemingly lethal intent of the six week warning and the market-shrivelling energy-efficiency pre-qualification. One is breathtaking collective incompetence. The other is conspiracy.
      The answer is conspiracy. So I have been told in recent weeks by insiders in Whitehall, Westminster, and in the relevant parts of the energy, PR, and financial industries.”

    • Countercurrents: the triple crunch we face and the barriers to renaissance.

      In an extended interview in India, I talk about the similarities between the credit crunch and the peak oil issue, and the power of renewables and why clean-energy industries are being held back.

    • “A focus on renewables would allow the Government to deliver on some of its cornerstone mantras”.

      My latest column in Sublime magazine: “The current government in Britain appears to be playing fast and loose with some fantastic renewable energy opportunities – and ones that could provide much-needed jobs. what is that about? If the British Prime Minister were being authentic, he could be leading on an impressive story right now. Those of his core mantras that involve energy, taken together in strategic harness, make for an inspiring vision. Picture the scene. His Big Society concept sees communities taking power for themselves, providing for themselves. In short, Britain could be less centralised, more community-centric, more resilient to economic shocks.”

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