Posted on February 26th, 2013 1 comment
As rumours and genuine information leak from central sources about the policy instruments and fiscal measures that will be signed into the United Kingdom’s Energy Bill, the subsidy support likely to be made available to new nuclear power is really straining credibility from my point of view. I am even more on the “incredulous” end of the spectrum of faith in the UK Government’s Energy Policy than I ever was before.
The national demand for electrical power is pretty constant, with annual variations of only a few percent. It was therefore easy to project that there could be a “power cliff” when supply would be curtailed from coal-fired generation under European legislation :-
The pat answer to how we should “Keep the Lights On” has been to wave the new nuclear fission reactor card. Look ! Shiny new toys. Keep us in power for yonks ! And hidden a little behind this fan of aces and jokers, a get-out-of-jail free card from the Coal monopoly – Carbon Capture and Storage or CCS. Buy into this, and we could have hundreds more years of clean power from coal, by pumping nasty carbon dioxide under the sea bed.
Now, here’s where the answers are just plain wrong : new nuclear power cannot be brought into the National Grid before the early 2020s at the very earliest. And options for CCS are still in the balance, being weighed and vetted, and very unlikely to clean up much of the black stuff until well past 2025.
When put through my best onboard guesstimiser, I came up with the above little graph in answer to the question : how soon can the UK build new power generation ? Since our “energy cliff” is likely to be in one of the winters of 2015 or 2016, and we’re not sure other countries we import from will have spare capacity, we have little option but to increase Natural Gas-fired power generation and go hell-for-leather with the wind and solar power deployment.
So no – it’s of no use promising to pay the new nuclear reactor bearer the sum of 40 or more years of subsidy in the form of guaranteed price for power under the scheme known as Contracts for Difference – they still won’t be delivering anything to cope with the “power drain” of the next few years. If this is written into the Electricity Market Reform, we could justifiably say this would destroy competition, and destroy any market, too, and be “central planning” by any other name – this level of subsidy is not exactly “technology-neutral” !
And offering the so-called Capacity Mechanism – a kind of top-up payment to keep old nuclear reactors running, warts and all – when really they should be decommissioned as they are reaching the end of their safe lives, is not a good option, in my book.
Offering the Capacity Mechanism to those who build new gas-fired power plant does make sense, however. If offshore wind power continues with its current trajectory and hits the big time in the next few years, and people want the cheap wind power instead of the gas, and the gas stations will be feeling they can’t run all the time, then the Capacity Mechanism will be vital to make sure the gas plant does get built to back up the wind power, and stays available to use on cold, still nights in February.
Oh, people may complain about the idea of new “unabated” gas power plants, and insist they should be fitted with carbon capture, but new gas plants won’t run all the time in future, because renewable electricity generation will be cheaper, so forcing gas plant owners to pay for CCS seems like overkill to me. And, anyway, we will be decarbonising the gas supply, as we develop supplies of Renewable Gas.
I say forget the nuclear option – build the gas !Assets not Liabilities, Be Prepared, Big Number, Big Picture, British Biogas, Burning Money, Carbon Capture, Change Management, Coal Hell, Corporate Pressure, Demoticratica, Design Matters, Dreamworld Economics, Energy Change, Energy Insecurity, Energy Revival, Energy Socialism, Green Power, Low Carbon Life, National Energy, National Power, Nuclear Nuisance, Nuclear Shambles, Optimistic Generation, Peak Coal, Policy Warfare, Political Nightmare, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Solar Sunrise, Solution City, The Power of Intention, The Price of Gas, Wind of Fortune
Posted on February 11th, 2013 No comments
I had a most refreshing evening at Portcullis House in Westminster this evening – apart from the fact that the Macmillan Room was overheated, so you couldn’t possibly deduce that energy conservation is intended to be part of the UK Government’s strategy, making an example with the public sector.
Tonight was the launch of the Greenpeace and WWF-UK report “A Study into the Economics of Gas and Offshore Wind“, which was commissioned from Cambridge Econometrics.
Professor Paul Ekins got up to speak and actually had the gall to declare the Government’s “Gas Strategy” to be a “dangerous gamble”. It was at this point that I took heart again – there are still some sane, rational people in the “national energy conversation”, even though Ekins did admit that he wasn’t sure that the “Gas Strategy” was an actual thing. Oh, but it is. All eighty pages of it.
Today was not the first time Professor Paul Ekins called out the Government on this, apparently, although I didn’t have a recollection of seeing the the mention in New Scientist before today.
Other highlights of the evening were provided by Laura Sandys MP naming her political opposition Alan Whitehead MP as the leader of a “parliamentary roadshow” on Energy and Climate Change, and questioning the use of the term “energy efficiency”. “It’s energy waste, guys”, she corrected and said we should be using that term instead of the “effete word efficiency”, and encouraged the energy waste prevention industry to get the rest of us engaged with their products.
A chap from Scottish and Southern Energy (SSE) – I think it might have been Kevin MacLean – got up during questions from the floor, and almost begged for a long-term framework – a plan for renewable energy – a “binding framework” to encourage investment and “get costs down”.
It was pointed out during the evening, that, logically enough, that policy is important to energy futures, “if you have more certainty, you get more investment”. And there was encouragement to get Government Departments to think about this more. Yes, some subsidies and other forms of support are going to be needed to get the renewable energy revolution kickstarted, but “if [we] get benefits – isn’t that a price worth paying ?” The benefits outlined included potential for some small growth in the economy, around about 0.8% GDP, but good prospects for high value employment in depressed coastal towns where much of the offshore wind industry will host engineers, both for construction and ongoing operations and maintenance.
Laura Sandys MP was ashamed to say that she may no longer be able to claim she has the two largest offshore wind farms in her constituency – as progress is being made elsewhere.
Sarah Merrick from Vestas, the wind power engineering firm, emphasised that the economics of wind power stacks up and that it’s important to communicate this – despite the current dismissive media agenda – where she said it is important to defend the industry against certain media claims.
Lord Alan Haworth brought up the inevitable question of renewable energy intermittency – “days of dead calm and dark nights”. He raised the statistic that weather systems in Europe can cover 1,500 kilometres, so if wind power is down in the UK, it’s going to be down elsewhere in the EU electricity networks – the countries we have interconnectors with. What he didn’t elaborate on was this – just as the UK is beefing (and I don’t mean “up to 100% horsing about”) up its connections with the European electricity networks, so too, Europe as a whole is beginning to reach out with its networks to satellite countries. What that could mean is that even if wind-powered electrons in the UK take a dive, electrons could still appear in the power network from very far afield, and shunt power to the UK.
The speaker from the Crown Estate said that it was “sensible” to push for a good quantity of wind power – and that the report was a compelling argument. He regretted that it could not be guaranteed that the wind power-ed economy would necessarily have more of its supply chain in the UK – as various bodies have to comply with EU trade rules – but that there was a commitment in one part of the industry to 50% indigenous resourcing and employment (if I noted that down correctly).
Long-term policy clarity was espoused. Disappointment was expressed in the Coalition Government’s flip-flop about gas – emphasising the development of gas-powered electricity generation at the expense of projecting high levels of renewables (65%, says the report, is perfectly feasible) – and that it gave mixed messages – which weren’t helping investment decisions. Sarah Merrick repeated the E.On line that UK electricity should be “balanced by gas, not based on gas”, although she didn’t explain that they weren’t necessarily talking about wind power being the mainstay of new generation capacity.
It was generally agreed that David Cameron should lead and adopt the EU 2030 renewable energy targets – to enable billions of new confidence in the UK energy sector.
Not having a strong lead on renewable energy and energy waste reduction would be an “abdication of responsibility on the part of the policy-creating machine”. And, “even if shale gas does materialise”, it would not provide much stimulus.Academic Freedom, Assets not Liabilities, Be Prepared, Big Number, Big Picture, Big Society, Carbon Army, Change Management, Corporate Pressure, Cost Effective, Demoticratica, Direction of Travel, Dreamworld Economics, Efficiency is King, Energy Autonomy, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Green Power, Growth Paradigm, Human Nurture, Major Shift, Marvellous Wonderful, Mass Propaganda, Media, Policy Warfare, Political Nightmare, Public Relations, Shale Game, Unnatural Gas, Western Hedge, Wind of Fortune
Posted on January 28th, 2013 No comments
Again, the evil and greedy oil, gas and mining companies have proved their wickedness by manipulating public opinion, by directly financing conspiracy theorists who deny climate change science. The irony is tangibly acidic. The paranoid have actually been duped by a genuine conspiracy. They have drunk the Kool Aid; they have believed the lies; they have continued to communicate doubt. They think they are challenging corruption in high places, but what they are really doing is reinforcing apathy in the face of genuine risk.
The questions posed so unrelentingly by the climate change deniers have sewn a patchwork tapestry of disinformation, which continues to poison genuine dialogue and is undermining political progress. We cannot take these people with us into constructive engagement, and ask them to help us forge a broad consensus. It is as if they exist in a parallel universe. Some of us will continue to attempt to conduct dialogue, but will end up wasting our time. The documentation by the media is faulty, and perpetuates the success of the denier strategy of divide and rule.
But hold on a minute. There are problems with the stance of climate change denial, but what about the positioning of climate change activists ? Let’s try that first paragraph one more time :-
[ Again, the "evil" and "greedy" oil, gas and mining companies have proved their "wickedness" by manipulating public opinion, by directly financing conspiracy theorists who deny climate change science. The irony is tangibly acidic. The paranoid have actually been duped by a genuine conspiracy. They have drunk the Kool Aid; they have believed the lies; they have continued to communicate doubt. They think they are challenging corruption in high places, but what they are really doing is reinforcing apathy in the face of genuine risk. ]
By casting the fossil fuel and mining corporations as wrongly motivated, by using negative emotive labels, the dominant narrative of political activists has failed, once again, to move us all forward. These kinds of revelations about underhand corporate public relations activities are by now unsurprising. The news cannot shock, although it may disgust. Yet, since nothing is offered to counter-balance or correct the inappropriate behaviour of the “fossil fuellers”, they win the game they invented, the game they wrote the rules for. Protesting at a petrol station achieves nothing of any note, not even when there’s a camera-friendly polar bear. We hear the message of pain, but there is no ointment. There is a disconnect between the gruesome discovery and any way out of this mess. The revelation of intent of the carbon dinosaurs, the recounting of the anti-democratic activities, does not result in change.
Environmental pollution is a “victimless” crime – no matter how much we sympathise or empathise with the plight of poisoned floating fish, dying bees, asthmatic kids, or cancer-laden people. Fines and taxes cannot rectify the scourge of environmental pollution, because there is no ultimate accountability. Regulation cannot be enforced. The misbehaviour just carries on, because there is systemic momentum. There is no legal redress (“due process” in Americanese) for those who are suffering the worsening effects of climate change, and there is no treaty that can be made to curb greenhouse gas emissions that anybody can be bound to by international sanctions.
And so when we hear the same old story – that the energy industry is propagandising – we cannot respond. We don’t know what we can do. We are paralysed. This narrative is so tired, it snores.
Truth may have been a victim, but the energy industry are also vulnerable – they are acting in self-defence mode. Let’s take the big vista in : there is stress in the global production of fossil fuel energy, and all routes to an easy fix, even if it’s only a short-term fix, are choked.
So let’s ask the question – why do the energy companies deceive ? Do they think they are being deceptive ? Why do fossil fuel miners seek to massage public opinion ? This is a question of resilience, of Darwinian survival – seeking advantage by altering policy by tampering with public assent. They believe in their product, they construct their mission – they are protecting their future profits, they’re making a living. They’re humans in human organisations. They’re not “evil”, “greedy” or “lying” – as a rule. There are no demons here, nor can we convincingly summon them.
Look at the activist game plan – we announce the deliberate actions of the fossil fuel companies to influence the political mandate. But these scandals are only ever voiced, never acted upon. They cannot be acted upon because those who care have no power, no agency, to correct or prevent the outcomes. And those who should care, do not care, because they themselves have rationalised the misdemeanours of the fossil fuellers. They too have drunk from the goblet of doubt. Amongst English-speaking politicians, I detect a good number who consider climate change to be a matter for wait-and-see rather than urgent measures. Besides those who continue to downplay the seriousness of climate change.
Look also at the difference between the covert nature of the support for climate change deniers, and the open public relations activities of the fossil fuel and mining companies. They speak in the right way for their audiences. That’s smart.
In time, the end of the fossil fuel age will become apparent, certain vague shapes on the horizon will come out of the blur and into sharp focus. But in the meantime, the carbon dinosaurs are taking action to secure market share, maintain the value of their stock, prop up the value of their shareholders’ assets. The action plan for survival of the oil, gas, coal and mining operations now includes the promotion of extreme energy – so-called unconventional fossil fuels, the once-dismissed lower quality resources such as tight gas, shale gas, shale oil and coalbed methane (coal seam methane). Why are the energy industry trying to gild the rotten lily ? Is the support for unconventional fossil fuels a move for certain countries, such as the United States of America, to develop more indigenous sources of energy – more homegrown energy to make them independent of foreign influence ? This could be the main factor – most of the public relations for shale gas, for example, seems to come from USA.
The answer could come by responding to another question. Could it be that the production of petroleum oil has in fact peaked – that decline has set in for good ? Could it be that the Saudis are not “turning off the taps” to force market prices, because in actual fact the taps are being turned off for them, by natural well depletion ? The Arab Spring is a marvellous distraction – the economic sanctions and military and democratic upheaval are excellent explanations for the plateau in global oil production.
It seems possible from what I have looked at that Peak Oil is a reality, that decline in the volumes of produced petroleum is inevitable. The fossil fuel producers, the international corporations who have their shareholders and stock prices to maintain, have been pushing the narrative that the exploitation of unconventional fossil fuels can replace lost conventional production. They have been painting a picture of the horn of plenty – a cornucopia of unconventional fossil fuels far exceeding conventional resources. To please their investors, the fossil fuel companies are lying about the future.
Sure, brute force and some new technology are opening up “unconventionals” but this will not herald the “golden age” of shale gas or oils from shale. Shale gas fields deplete rapidly, and tar sands production is hugely polluting and likely to be unsustainable in several ways because of that. There might be huge reserves – but who knows how quickly heavy oils can be produced ? And how much energy input is required to create output energy from other low grade fossil strata ? It is simply not possible to be certain that the volumes of unconventional fossil fuel production can match the decline in conventionals.
The facts of the matter need admitting – there is no expansion of sweet crude oil production possible. There’s no more crude – there’s only crud. And slow crud, at that.
Peak Oil is a geological fact, not a market artefact. The production levels of crude and condensate may not recover, even if military-backed diplomacy wins the day for the energy industry in the Middle East and North Africa.
Peak Oil has implications for resilience of the whole global economy – the conversion of social and trade systems to use new forms of energy will take some considerable time – and their integrity is at risk if Peak Oil cannot be navigated smoothly. Peak Oil is dangerous – it seems useful to deny it as long as possible.
It’s pretty clear that we’ve been handed lots of unreliable sops over the years. The energy industry promised us that biofuels could replace gasoline and diesel – but the realisation of this dream has been blocked at every turn by inconvenient failings. The energy industry has, to my mind, been deploying duds in order to build in a delay while they attempt to research and develop genuine alternatives to conventional fossil fuels – but they are failing. The dominant narrative of success is at risk – will all of this continue to hold together ? Can people continue to believe in the security of energy systems – the stability of trade and economic wealth creation ? Oh yes, people raise concerns – for example about disruption in the Middle East and North Africa, and then propose “solutions” – regime change, military support for opposition forces, non-invasive invasions. But overall, despite these all too evident skirmishes, the impression of resilience is left intact. The problem is being framed as one of “edge issues” – not systemic. It’s not clear how long they can keep up with this game.
The facade is cracking. The mask is slipping. BP and Centrica in a bout of hyper-realism have said that the development of shale gas in the UK will not be a “game changer”. It may be that their core reasoning is to drag down the market value of Cuadrilla, maybe in order to purchase it. But anyway, they have defied the American energy industry public relations – hurrah ! Shale gas is not the milk of a honey-worded mother goddess after all – but what’s their alternative story ? That previously under-developed gas in Iran and Iraq will be secured ? And what about petroleum ? Will the public relations bubble about that be punctured too ? Telling people about Peak Oil – how useful is that ? They won’t do it because it has to be kept unbelievable and unbelieved in order to save face and keep global order. Academics talk about Peak Oil, but it is not just a dry, technical question confined to ivory towers. Attention is diverted, but the issue remains. Looking at it doesn’t solve it, so we are encouraged not to look at it.
So, why do the energy industry purposely set out to manipulate public opinion ? Well, the reason for their open advertising strategy is clear – to convince investors, governments, customers, that all is well in oil and gas – that there is a “gas glut” – that the world is still awash in petroleum and Natural Gas – that the future will be even more providential than the past – that the only way is up. All the projections of the oil and gas industry and the national, regional and international agencies are that energy demand will continue to rise – the underlying impression you are intended to be left with is that, therefore, global energy supply will also continue to rise. Business has never been better, and it can only get more profitable. We will need to turn to unconventional resources, but hey, there’s so much of the stuff, we’ll be swimming in it.
But what is the purpose of the covert “public relations” of the energy industry ? Why do they seek to put out deception via secretly-funded groups ? When the truth emerges, as it always does in the end, the anger and indignation of the climate change activists is guaranteed. And angry and indignant activists can easily be ignored. So, the purpose in funding climate change deniers is to emotionally manipulate climate change activists – rattle their cages, shake their prison bars. Let them rail – it keeps the greens busy, too occupied with their emotional disturbance. By looking at these infractions in depth are we being distracted from the bigger picture ? Can we make any change in global governance by bringing energy industry deception to light ?
Even as commentators peddle conspiracy theories about the science and politics of a warming planet, the “leader of the free world” is inaugurated into a second term and announces action on climate change. Although progressives around the world applaud this, I’m not sure what concrete action the President and his elite colleague team of rich, mostly white, middle-aged men can take. I am listening to the heartbeat of the conversation, and my take away is this : by announcing action on climate change, Barack Obama is declaring war on the sovereignty of the oil and gas producing nations of the Middle East and North Africa.
You see, the Middle East and North Africa are awash in Natural Gas. Untapped Natural Gas. The seismic surveys are complete. The secret services have de-stabilised democracy in a number of countries now, and this “soft power” will assist in constructing a new narrative – that unruliness in the Middle East and North Africa is preventing progress – that the unstable countries are withholding Natural Gas from the world – the fossil fuel that can replace petroleum oil in vehicles when chemically processed, the fossil fuel that has half the carbon emissions of coal when generating electricity. Resources of Natural Gas need “protecting”, securing, “liberating”, to save the world’s economy from collapse.
Obama stands up and declares “war” on climate change. And all I hear is a klaxon alarm for military assault on Iran.
But even then, if the world turns to previously untapped Natural Gas, I believe this is only a short-term answer to Peak Oil. Because waiting in the wings, about ten years behind, is Peak Natural Gas. And there is no answer to Peak Natural Gas, unless it includes a genuine revolution in energy production away from what lies beneath. And that threatens the sustenance of the oil and gas industry.
No wonder, then, that those who fund climate change denial – who stand to profit from access to untapped fossil fuels, secured by military aggresssion in the Middle East and North Africa – also fund opposition to renewable energy. The full details of this are still emerging. Will we continue to express horror and distaste when the strategy becomes more transparent ? Will that achieve anything ? Or will we focus on ways to bring about the only possible future – a fossil-fuel-free energy economy ? This will always take more action than words, but messaging will remain key. The central message is one that will sound strange to most people, but it needs to be said : fossil fuels will not continue to sustain the global economy : all will change.
Funnily enough, that is exactly the summary of the statements from the World Economic Forum in Davos – only the world’s administration are still not admitting to Peak Fossil Fuels. Instead, they are using climate change as the rationale for purposeful decarbonisation.
Well, whichever way it comes, let’s welcome it – as long as it comes soon. It’s not just the survival of individual oil and gas companies that is at stake – the whole global economy is at risk from Peak Fossil Fuels – and climate change. I use the word “economy”, because that is the word used by MBAs. What I mean is, the whole of human civilisation and life on Earth is at risk from Peak Fossil Fuels and climate change. Unconventional fossil fuels are the most polluting answer to any question, and expansion of their use will undoubtedly set off “climate bombs“.
Don’t get me wrong – Natural Gas is a good bridge to the future, but it is only a transition fuel, not a destination. Please, can we not have war against Iran. Please let’s have some peaceful trade instead. And some public admissions of the seriousness of both Peak Fossil Fuels and climate change by all the key players in governance and energy.Academic Freedom, Bad Science, Bait & Switch, Be Prepared, Big Picture, Biofools, Climate Change, Climate Chaos, Climate Damages, Coal Hell, Corporate Pressure, Delay and Deny, Demoticratica, Direction of Travel, Divide & Rule, Emissions Impossible, Energy Change, Energy Denial, Energy Insecurity, Evil Opposition, Financiers of the Apocalypse, Freak Science, Freemarketeering, Gamechanger, Global Heating, Global Singeing, Global Warming, Green Investment, Growth Paradigm, Hide the Incline, Hydrocarbon Hegemony, Incalculable Disaster, Low Carbon Life, Mad Mad World, Major Shift, Mass Propaganda, Media, Neverending Disaster, No Blood For Oil, Not In My Name, Nudge & Budge, Obamawatch, Oil Change, Paradigm Shapeshifter, Peace not War, Peak Natural Gas, Peak Oil, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Regulatory Ultimatum, Scientific Fallacy, Social Capital, Social Chaos, Stop War, Sustainable Deferment, Tarred Sands, Technological Sideshow, The War on Error, Toxic Hazard, Unconventional Foul, Unnatural Gas, Unutterably Useless, Utter Futility, Vain Hope, Western Hedge, Zero Net
Posted on January 24th, 2013 No comments
As I dodged the perfunctory little spots of snow yesterday, on my way down to Highbury and Islington underground train station, I passed a man who appeared to have jerky muscle control attempting to punch numbers on the keypad of a cash machine in the wall. He was missing, but he was grinning. A personal joke, perhaps. The only way he could get his money out of the bank to buy a pint of milk and a sliced loaf for his tea was to accurately tap his PIN number. But he wasn’t certain his body would let him. I threw him an enquiring glance, but he seemed too involved in trying to get control of his arms and legs to think of accepting help.
This, I felt, was a metaphor for the state of energy policy and planning in the United Kingdom – everybody in the industry and public sector has focus, but nobody appears to have much in the way of overall control – or even, sometimes, direction. I attended two meetings today setting out to address very different parts of the energy agenda : the social provision of energy services to the fuel-poor, and the impact that administrative devolution may have on reaching Britain’s Renewable Energy targets.
At St Luke’s Centre in Central Street in Islington, I heard from the SHINE team on the progress they are making in providing integrated social interventions to improve the quality of life for those who suffer fuel poverty in winter, where they need to spend more than 10% of their income on energy, and are vulnerable to extreme temperatures in both summer heatwaves and winter cold snaps. The Seasonal Health Interventions Network was winning a Community Footprint award from the National Energy Action charity for success in their ability to reach at-risk people through referrals for a basket of social needs, including fuel poverty. It was pointed out that people who struggle to pay energy bills are more likely to suffer a range of poverty problems, and that by linking up the social services and other agencies, one referral could lead to multiple problem-solving.
In an economy that is suffering signs of contraction, and with austerity measures being imposed, and increasing unemployment, it is clear that social services are being stretched, and yet need is still great, and statutory responsibility for handling poverty is still mostly a publicly-funded matter. By offering a “one-stop shop”, SHINE is able to offer people a range of energy conservation and efficiency services alongside fire safety and benefits checks and other help to make sure those in need are protected at home and get what they are entitled to. With 1 in 5 households meeting the fuel poverty criteria, there is clearly a lot of work to do. Hackney and Islington feel that the SHINE model could be useful to other London Boroughs, particularly as the Local Authority borders are porous.
We had a presentation on the Cold Weather Plan from Carl Petrokovsky working for the Department of Health, explaining how national action on cold weather planning is being organised, using Met Office weather forecasts to generate appropriate alert levels, in a similar way to heatwave alerts in summer – warnings that I understand could become much more important in future owing to the possible range of outcomes from climate change.
By way of some explanation – more global warming could mean significant warming for the UK. More UK warming could mean longer and, or, more frequent heated periods in summer weather, perhaps with higher temperatures. More UK warming could also mean more disturbances in an effect known as “blocking” where weather systems lock into place, in any season, potentially pinning the UK under a very hot or very cold mass of air for weeks on end. In addition, more UK warming could mean more precipitation – which would mean more rain in summer and more snow in winter.
Essentially, extremes in weather are public health issues, and particularly in winter, more people are likely to suffer hospitalisation from the extreme cold, or falls, or poor air quality from boiler fumes – and maybe end up in residential care. Much of this expensive change of life is preventable, as are many of the excess winter deaths due to cold. The risks of increasing severity in adverse conditions due to climate change are appropriately dealt with by addressing the waste of energy at home – targeting social goals can in effect contribute to meeting wider adaptational goals in overall energy consumption.
If the UK were to be treated as a single system, and the exports and imports of the most significant value analysed, the increasing net import of energy – the yawning gap in the balance of trade – would be seen in its true light – the country is becoming impoverished. Domestic, indigenously produced sources of energy urgently need to be developed. Policy instruments and measured designed to reinvigorate oil and gas exploration in the North Sea and over the whole UKCS – UK Continental Shelf – are not showing signs of improving production significantly. European-level policy on biofuels did not revolutionise European agriculture as regards energy cropping – although it did contribute to decimating Indonesian and Malaysian rainforest. The obvious logical end point of this kind of thought process is that we need vast amounts of new Renewable Energy to retain a functioning economy, given global financial, and therefore, trade capacity, weakness.
Many groups, both with the remit for public service and private enterprise oppose the deployment of wind and solar power, and even energy conservation measures such as building wall cladding. Commentators with access to major media platforms spread disinformation about the ability of Renewable Energy technologies to add value. In England, in particular, debates rage, and many hurdles are encountered. Yet within the United Kingdom as a whole, there are real indicators of progressive change, particularly in Scotland and Wales.
I picked up the threads of some of these advances by attending a PRASEG meeting on “Delivering Renewable Energy Under Devolution”, held at the Institution of Mechanical Engineers in Westminster, London; a tour to back up the launch of a new academic report that analyses performance of the devolved administrations and their counterpart in the English Government in Westminster. The conclusions pointed to something that I think could be very useful – if Scotland takes the referendum decision for independence, and continues to show strong leadership and business and community engagement in Renewable Energy deployment, the original UK Renewable Energy targets could be surpassed.
I ended the afternoon exchanging some perceptions with an academic from Northern Ireland. We shared that Eire and Northern Ireland could become virtually energy-independent – what with the Renewable Electricity it is possible to generate on the West Coast, and the Renewable Gas it is possible to produce from the island’s grass (amongst other things). We also discussed the tendency of England to suck energy out of its neighbour territories. I suggested that England had appropriated Scottish hydrocarbon resources, literally draining the Scottish North Sea dry of fossil fuels in exchange for token payments to the Western Isles, and suchlike. If Scotland leads on Renewable Energy and becomes independent, I suggested, the country could finally make back the wealth it lost to England. We also shared our views about the Republic of Ireland and Northern Ireland being asked to wire all their new Renewable Electricity to England, an announcement that has been waiting to happen for some time. England could also bleed Wales of green power with the same lines being installed to import green juice from across the Irish Sea.
I doubt that politics will completely nix progress on Renewable Energy deployment – the economics are rapidly becoming clear that clean, green power and gas are essential for the future. However, I would suggest we could expect some turbulence in the political sphere, as the English have to learn the hard way that they have a responsibility to rapidly increase their production of low carbon energy.
Asking the English if they want to break ties with the European Union, as David Cameron has suggested with this week’s news on a Referendum, is the most unworkable idea, I think. England, and in fact, all the individual countries of the United Kingdom, need close participation in Europe, to join in with the development of new European energy networks, in order to overcome the risks of economic collapse. It may happen that Scotland, and perhaps Wales, even, separate themselves from any increasing English isolation and join the great pan-Europe energy projects in their own right. Their economies may stabilise and improve, while the fortunes of England may tumble, as those with decision-making powers, crony influence and web logs in the Daily Telegraph and Daily Mail, resist the net benefits of the low carbon energy revolution.
[ Many thanks to Simon and all at the Unity Kitchen at St Luke's Centre, and the handsomely reviving Unity Latte, and a big hi to all the lunching ladies and gents with whom I shared opinions on the chunkiness of the soup of the day and the correct identification of the vegetables in it. ]
Other Snapshots of Yesterday #1 : Approached by short woman with a notebook in Parliament Square, pointing out to me a handwritten list that included the line “Big Ben”. I pointed at the clock tower and started to explain. The titchy tourist apologised for non-comprehension by saying, “French”, so then I explained the feature attraction to her in French, which I think quite surprised her. We are all European.
Other Snapshots of Yesterday #2 : Spoke with an Austrian academic by the fire for coffee at IMechE, One Birdcage Walk, about the odd attitudes as regards gun ownership in the United States, and the American tendency to collective, cohort behaviour. I suggested that this tendency could be useful, as the levels of progressive political thinking, for instance about drone warfare, could put an end to the practice. When aerial bombardment was first conducted, it should have been challenged in law at that point. We are all Europeans.
Other Snapshots of Yesterday #3 : Met a very creative Belgian from Gent, living in London. We are all European.
Other Snapshots of Yesterday #4 : We Europeans, we are all so civilised. We think that we need to heat venues for meetings, so that people feel comfortable. Levels of comfort are different for different people, but the lack of informed agreement means that the default setting for temperature always ends up being too high. The St Luke’s Centre meeting room was at roughly 23.5 degrees C when I arrived, and roughly 25 degrees C with all the visitors in the room. I shared with a co-attendee that my personal maximum operating temperature is around 19 degrees C. She thought that was fine for night-time. The IMechE venue on the 2nd floor was roughly 19 – 20 degrees C, but the basement was roughly 24 degrees C. Since one degree Celsius of temperature reduction can knock about 10% of the winter heating bill, why are public meetings about energy not more conscious of adjusting their surroundings ?Academic Freedom, Assets not Liabilities, Be Prepared, Big Picture, Big Society, Bioeffigy, Biofools, British Biogas, Change Management, Climate Change, Conflict of Interest, Demoticratica, Direction of Travel, Divide & Rule, Economic Implosion, Efficiency is King, Electrificandum, Energy Autonomy, Energy Change, Energy Denial, Energy Disenfranchisement, Energy Insecurity, Energy Nix, Energy Revival, Energy Socialism, Extreme Weather, Feel Gooder, Fossilised Fuels, Fuel Poverty, Global Heating, Global Warming, Green Investment, Green Power, Health Impacts, Heatwave, Hide the Incline, Human Nurture, Hydrocarbon Hegemony, Incalculable Disaster, Insulation, Low Carbon Life, Major Shift, Mass Propaganda, Media, National Energy, National Power, National Socialism, Optimistic Generation, Paradigm Shapeshifter, Peak Coal, Peak Emissions, Peak Energy, Peak Natural Gas, Peak Oil, Petrolheads, Policy Warfare, Political Nightmare, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Resource Curse, Resource Wards, Social Capital, Social Change, Social Chaos, Social Democracy, Solar Sunrise, Solution City, Stirring Stuff, Sustainable Deferment, Technological Fallacy, The Data, The Power of Intention, Vote Loser, Wasted Resource, Western Hedge, Wind of Fortune
Posted on November 6th, 2012 No comments
I knew I knew her from somewhere, Ms Henrietta Lynch PhD, from the UCL Energy Institute. I had the feeling we’d sheltered together from the rain/police helicopters at a Climate Camp somewhere, but she was fairly convinced we’d crossed paths at the Frontline Club, where, if she was recalling correctly, I probably tried to pick an “difference of opinion” with somebody, which she would have remembered as more than a little awkward.
Why ? Because when I’m surrounded by smart people displaying self-confidence, I sometimes feel pushed to try to irritate them out of any complacency they may be harbouring. Niceness can give me itchy feet, or rather emotional hives, and I don’t see why others should feel settled when I feel all scratchy.
So here we were at a Parliamentary event, and I was on my best behaviour, neither challenging nor remonstrative, but all the same, I felt the urge to engage Henrietta in disagreement. It was nothing personal, really. It was all about cognition, perception – worldviews, even. After my usual gauche preamble, I snuck in with a barbed gambit, “The United Nations climate change process has completely failed.” A shadow of anxiety crossed her brow. “Oh, I wouldn’t say that”, said Henrietta Lynch. She went on to recount for me the validity of the UN climate talks, and how much further we are because of the Kyoto Protocol. “Ruined by Article 12″, I said, “…the flexible mechanisms”. She said I shouldn’t underestimate the effort that had gone into getting everybody into the room to talk about a response to climate change. I said, it would be useful if the delegates to the climate talks had power of some kind – executive decision-making status. Henrietta insisted that delegates to the climate talks do indeed have authority.
I said that the really significant players, the oil and gas production companies, were not at the climate talks, and that there would be no progress until they were. I said that the last time the UN really consulted the oil and gas companies was in the 1990s, and the outcome of that was proposals for carbon trading and Carbon Capture and Storage. Each year, I said, the adminstration of the climate talks did the diplomatic equivalent of passing round a busker’s hat to the national delegations, begging for commitments to carbon emissions reductions. Besides leading to squabbling and game-playing, the country representatives do not even have the practical means of achieving these changes. Instead, I said, the energy production companies should be summoned to the climate talks and given obligations – to decarbonise the energy resources they sell, and to increase their production of renewable and sustainable energy. I said that without that, there will be no progress.
Oil and gas companies always point to energy demand as their get-out-of-jail-free card – they insist that while the world demands fossil fuel energy, they, the energy resource companies, are being responsible in producing it. Their economists say that consumer behaviour can be modified by pricing carbon dioxide emissions, and yet the vast majority of the energy they supply is full of embedded carbon – there is no greener choice. They know that it is impossible to set an economically significant carbon price in any form, that there are too many forces against it, and that any behavioural “signal” from carbon pricing is likely to be swallowed up by volatility in the prices of fossil fuels, and tax revenue demands. Most crucially, the oil and gas companies know that fossil fuels will remain essential for transport vehicles for some time, as it will be a long, hard struggle to replace all the drive engines in the world, and high volumes of transport are essential because of the globalised nature of trade.
Oil and gas companies have made token handwaving gestures towards sustainability. BP has spent roughly 5% of its annual budget on renewable energy, although it’s dropped its solar power division, and has now dropped its cellulosic ethanol facility. BP says that it will “instead will focus on research and development“. Research and development into what, precisely ? Improved oil and gas drilling for harsh environmental conditions like the Arctic Ocean or sub-sea high depth, high pressure fields ? How many renewable energy pipedreams are exhausted ? BP are willing to take competitors to court over biobutanol, but even advanced techniques to produce this biofuel are not yet commercialised.
So, the oil and gas majors do not appear to be serious about renewable energy, but are they also in denial about fossil fuels ? All business school graduates, anybody who has studied for an MBA or attended an economics course, they all come out with the mantra that technology will deliver, that innovation in technology will race ahead of the problems. Yet, as the rolling disasters of the multiple Fukushima Dai-ichi nuclear reactor accident and the continuing oil spill in the Gulf of Mexico from the blowout of the Horizon Deepwater drilling rig show, technological advancement ain’t what it used to be. Put not your faith in technology, for engineering may fail.
For the oil and gas companies to be going after the development of unconventional fossil fuel resources is an unspoken, tacit admission of failure – not only of holding a bold vision of change, but also a demonstration of the failure of being able to increase production from discoveries of more conventional petroleum and Natural Gas. It is true that oil and gas exploration has improved, and that technology to drill for oil and gas has improved, but it could be said that the halting pace of technological advancement means that the growth in fossil fuel exploitation is not strong enough to meet projected demand. Technology does not always make things more efficient – the basic fossil fuel resources are getting much poorer, and perhaps scarcer.
There is some evidence that global petroleum crude oil production rates have peaked, despite BP adding significant South American heavy oil fields to their annual Statistical Review of World Energy within the last few years. Some of the jitteriness in total production is down to geopolitical factors, like the chokehold that the United States has imposed on Iran via economic sanctions, and some of it is related to consumption patterns, but there is an element of resource failure, as indicated in this IMF report from last month :-
“Over the past decade the world economy has experienced a persistent increase in oil prices. While part of this may have been due to continued rapid demand growth in emerging markets, stagnant supply also played a major role. Figure 1 shows the sequence of downward shifts in the trend growth rate of world oil production since the late 1960s. The latest trend break occurred in late 2005, when the average growth rate of 1.8 percent per annum of the 1981-2005 period could no longer be sustained, and production entered a fluctuating plateau that it has maintained ever since.”
There is an increasing amount of evidence and projection of Peak Oil from diverse sources, so perhaps our attention should be drawn to it. If this type of analysis is to be trusted, regardless of whether the oil and gas companies pursue unconventional oil, change is inevitable. Bringing the oil and gas companies onto the world stage at the United Nations climate talks and demanding a reduction in fossil fuel production would be an straightford thing to make commitments to – as it is happening already. A huge facesaver in many respects – except that it does not answer the energy security question – how the world is going to be able to adapt to falling fossil fuel supplies. You see, besides Peak Oil, there are other peaks to contend with – it will not simply be a matter of exchanging one energy resource with another.
Can the oil and gas companies hold on by selling us Natural Gas to replace failing oil ? Only if Natural Gas itself is not peaking. As the oil and gas companies drill deeper, more Natural Gas is likely to be found than petroleum oil, but because they are so often associated, Peak Oil is likely to be followed quite sharply by Peak Natural Gas. But does anybody in the oil and gas companies really know ? And if they did, would they be able to let their shareholders and world’s media know about it without their businesses crumbling ?
What I want to know is : with all the skills of dialogue, collaboration, and facilitation that the human race has developed, why can Civil Society not engage the oil and gas companies in productive communication on these problems ?Academic Freedom, Bad Science, Bait & Switch, Behaviour Changeling, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Climate Change, Climate Chaos, Global Singeing, Global Warming, Green Investment, Green Power, Growth Paradigm, Human Nurture, Low Carbon Life, Mass Propaganda, No Pressure, Not In My Name, Nuclear Nuisance, Nuclear Shambles, Nudge & Budge, Optimistic Generation, Paradigm Shapeshifter, Peak Energy, Peak Natural Gas, Peak Oil, Petrolheads, Policy Warfare, Political Nightmare, Protest & Survive, Regulatory Ultimatum, Resource Wards, Scientific Fallacy, Shale Game, Social Capital, Social Change, Social Chaos, Solar Sunrise, Solution City, Stirring Stuff, Sustainable Deferment, Technofix, Technological Fallacy, Technomess, The Myth of Innovation, The Power of Intention, The War on Error, Transport of Delight, Unconventional Foul, Ungreen Development, Unnatural Gas, Unqualified Opinion, Unsolicited Advice & Guidance, Unutterably Useless, Utter Futility, Vain Hope, Voluntary Behaviour Change, Western Hedge, Wind of Fortune, Zero Net
Posted on November 3rd, 2012 No comments
PRASEG Annual Conference 2012
“After EMR: What future for renewable and sustainable energy?”
31st October 2012
One Birdcage Walk, Westminster
Twitter hashtag : #PRASEG12
Dr Mayer Hillman of the Policy Studies Institute has contributed a summary of the questions that he raised at the PRASEG Annual Conference on Wednesday 31st October 2012, together with more background detail, and I am pleased to add this to the record of the day, and wish him a happy 82nd year !
PRASEG Conference 31 October 2012
Questions raised by Dr. Mayer Hillman (Policy Studies Institute) in the following sessions
The Future of Renewable and Sustainable Energy: Panel Session
I can only assume from the statements of each of the panellists of this session that their point of departure is that consumers have an inalienable right to engage in as much energy-intensive activity as they wish. Thereafter, it is the Government’s responsibility to aim to meet as much of the consequent demand as possible, subject only to doing so in the most cost-effective and least environmentally-damaging ways possible.
However as Laura Sandys pointed out in her introduction, “policy must reflect the realities of the world we live in”. The most fundamental of these realities is that the planet’s atmosphere only has a finite capacity to safely absorb further greenhouse gas emissions. Surely, that must be the point of departure for policy if we are to ensure a long-term future for life on earth. That future can only be assured by the adoption of zero-carbon lifestyles as soon as conceivably possible. Simply aiming to increase the contribution of the renewables and of the efficiency with which fossil fuels are used is clearly bound to prove inadequate as the process of climate change is already irreversible.
Demand side policy: The missing element?: Panel Session
Given that the process of climate change cannot now be reversed, at best only slowed down by our actions, continued development of means of matching the predicted huge increase in energy demand whilst minimising its contribution to climate change is seen to be the logical way forward. However, any burning of fossil fuels adds to the already excessive concentration of CO2 in the atmosphere.
The only solution now is the one advocated by the Global Commons Institute since 1996. The extent of GCI’s success, both national and international, is very apparent by looking at the Institute’s website http://www.gci.org.uk. Contraction and Convergence is the framework, that is the contraction of greenhouse gases to a safe level and their convergence to equal per capita shares across the world’s population.
Our chair for this session has been a supporter for several years. Why cannot the panellists see this to be the way ahead rather than taking small steps which, in aggregate, cannot conceivably prevent catastrophe in the longer term?
Keynote address by the Right Hon. Edward Davey, Secretary of State, DECC
The Secretary-of-State has just confirmed the fears that I expressed in the first session of this conference, namely that he sees it to be the Government’s responsibility, if not duty, to ensure that, if at all possible, the burgeoning growth in energy demand predicted for the future is met. To that end, he has just outlined stages of a strategy intended to enable comparisons to be made on “a level playing field” between different types of electricity generation as energy is increasingly likely to be supplied in the form of electricity. To do so, in his view, it is essential that a market price for the release of a tonne of CO2 emissions into the atmosphere is determined.
I have two great reservations about such a process. First, if the price is to cover all the costs incurred then, for instance, the real costs of large scale migration of vast populations fleeing the regions that will be rendered uninhabitable by climate change caused by the increase in the concentration of CO2 in the atmosphere (with more than 100 years continuous impacts) would have to be included. I fail to see how that could be realistically established, let alone its moral implications being acceptable.
Second, we know that we have already passed the stage that would have allowed us to reverse the process of global climate change – just consider the melting of the Arctic ice cap. That market price for the tonne of CO2 emissions, insofar as it could be determined, would have to rise exponentially owing to the planet’s non-negotiable capacity to safely absorb further emissions. Yet the market requires a fixed price to enable decisions affecting the future to be made.
Academic Freedom, Assets not Liabilities, Big Society, Burning Money, Carbon Army, Carbon Commodities, Carbon Pricing, Carbon Rationing, Carbon Taxatious, Climate Change, Climate Damages, Contraction & Convergence, Efficiency is King, Electrificandum, Emissions Impossible, Financiers of the Apocalypse, Fossilised Fuels, Gamechanger, Green Investment, Green Power, Growth Paradigm, Low Carbon Life, National Power, Optimistic Generation, Paradigm Shapeshifter, Policy Warfare, Political Nightmare, Solution City, Technological Sideshow, The Power of Intention, The War on Error, Ungreen Development, Vain Hope, Western Hedge
Posted on November 1st, 2012 No comments
PRASEG Annual Conference 2012
“After EMR: What future for renewable and sustainable energy?”
31st October 2012
One Birdcage Walk, Westminster
Twitter hashtag : #PRASEG12
PLEASE NOTE : The record is NOT verbatim and should not be treated as such. Check against delivery, I think they say in the trade. If I have scribbled incomprehensively or missed something, I have interpolated according to the spirit of the context. I am open to correction or challenge on my record of the event.
[Start of second session : "Demand side policy: The missing element ?]
[Caroline Lucas MP]
Demand side is often the poor cousin – it’s a shame to leave it to the end of the meeting.
[Andrew Warren, Association for the Conservation of Energy (ACE)]
Let’s run through the patronised world of energy efficiency. The Committee on Climate Change always emphasises two things are going to have to happen to de-carbonise the economy. First, new generation – but also, what do we do with consumption ? How do we deliver the society we want while consuming less ? Germany has a broadly similar aim – competitive energy, energy security. DECC projects a doubling, or even a tripling of electricity consumption. Germany tries to achieve exactly the same objectives, but consuming 25% to 40% less energy overall. What have we been doing in the UK ? Passing EU Directives, in particular, the recent Energy Efficiency Directive. This is interesting – we have never had targets on energy efficiency before. Energy efficiency is moderately politically uncontroversial – apart from some of the things put forward in connect with the work of the Department for Communities and Local Government (CLG) over the Building Regulations. It is key that new build should follow the new standards, and it is also key that when improving existing buildings, that the new standards be used. The Guardian last Saturday carried a front page explaining that CLG would look *again* at Building Regulations [ http://www.guardian.co.uk/politics/2012/oct/26/government-building-standards-review-regulation http://www.guardian.co.uk/business/2012/oct/31/dangers-bonfire-building-regulations ]. The original Government consultation concluded in March 2011 – but there has been no conclusions or report since then. Unfortunately, we need those conclusions by October 2012 in order to maintain progress on the agreed time schedule. What do we see from CLG ? A “conservatory tax”. There are problems in DECC on issues like Fuel Poverty. There are 5 million people in the UK in fuel poverty, and the only Government-funded programme to address this will be terminated in March 2013. Even though the funding for the programme was cut by two thirds last year, it didn’t manage to spend all its money. Perhaps there will be measures in the EMR to impact energy efficiency ? We need to modify the Capacity Mechanism [of the EMR] so that we can incorporate demand side into that. Parallel to the work on the Energy Bill, there is the Energy Bill Revolution, outside Parliament, which argues that if we are start increasing the cost of energy through policy and measures such as the EMR and the EU Emissions Trading Scheme (EU ETS) modifications, then those funds ought to come back to consumers – this happens in Germany. There is some good news – this year we have at last got a strategic body which will deal with the deployment of energy efficiency [the Energy Efficiency Deployment Office (EEDO)]. We do have the Green Deal and the smart meter rollout, but the key thing we’ve never had before is some entity in Government that speaks strategically on demand side.
[Peter Boyd, Expert Chair, Energy Efficiency Deployment Office (EEDO)/Carbon War Room]
I work one day per week for EEDO. My “day job” is with the Carbon War Room where we’re looking at the left hand side of the McKinsey MACC cost curves globally. [The McKinsey & Company Greenhouse Gas Abatement Cost Curves show on the left hand side where carbon savings are cost-negative and so produce payback : http://www.mckinsey.com/client_service/sustainability/latest_thinking/~/media/mckinsey/dotcom/client_service/sustainability/cost%20curve%20pdfs/impactfinancialcrisiscarboneconomicsghgcostcurvev21.ashx ] We work on marine shipping [...] This is right in the wheelhouse of what we are talking about today. A strategy on energy efficiency has to be linked to carbon targets. For example, the world economy currently produces 768 grammes of Carbon for each dollar of GDP. To get to sustainable levels of emissions [the two degrees Celsius UNFCCC target], that figure has to drop to 6 gC/$GDP. This is a complete pivot for the world economy. If we don’t address energy efficiency, where there are savings, are jobs, are growth. The role of the EEDO is explicitly aiming to fill in the joins in DECC and other departments. The key place where the economy and the environment can work together. There is a suite of announcements to come – to tackle market failure by market failure, new policies and measures are needed. We work with many departments and stakeholders. We held Summer briefings. If anyone wants to take part in the process, they’re welcome to speak with me. There is a recognition that demand response (demand side response (DSR) and energy demand response (EDR)) is underweight in the current Energy Bill. The team in DECC will look at how EDR can be put into EMR – which it is not covered by yet. We are coming out with a draft report on strategy in November 2012. Why is capital not flowing to get white vans out on the roads, rolling out insulation ? We are committed to working with practitioners. With the EMR it will be helpful to get behind it and not just throw rocks at it – it won’t help. I’m passionate about energy efficiency. The UK has a fantastic opportunity to be a world leader – a country with poor weather and leaky buildings.
[Roisin Quinn, National Grid]
On the Capacity Mechanism, our role in the EMR is to be the delivery body, not the counterparty [to the various Capacity Mechanism and Contracts for Difference (CfD) contracting and strike price]. For the CfD, we will assess eligibility of projects. We will be running auctions for Demand Side Response (DSR) [aggregators of DSR such as Kiwi Power http://www.kiwipowered.com/ will be capable of taking part in these auctions]. We will take responsibility for energy security outcomes, and monitor costs and progress. We won’t be setting government policy. We will have access to sensitive information under the EMR, but we will not use that other than for EMR policy-based contracts. What does the Capacity Obligation (under contracts for the Capacity Mechanism) mean for EMR ? The idea of the Capacity Mechanism is to ensure that generators supply electricity when needed, or DSR can reduce demand “when needed” – for example on a cold Winter’s night. We need to redefine what “when needed” means to make sure the consumer is protected. There is such a potential for DSR to be really valuable. The National Grid is working with DECC to access DSR ahead of the Energy Bill. We are looking at consumer issues and continuing discussions with DSR providers – who would supply balancing to the grid as well as overall demand reduction. We host the National Grid forums nation-wide. We lead on developing the pipeline of projects needed for energy security – what products can be packaged, and what the lead time is for energy storage compared to DSR. We are looking at measurement and verification (M&V) criteria, so that we can all have confidence in DSR packages, and that M&V does not present a barrier to entry in the DSR market, and future-proofing. We’re not there yet. We’re still on the journey. This is a transitional scheme and we are pleased with our engagement with DSRs [DSR providers and aggregators] so far.
[Judith Ward, Director, Sustainability First (ex-National Grid)]
Sustainability First is a small environmental think tank running three year multi-project. We are looking for the scope for DR (demand reduction) and DR (demand response). We need to understand the economic values for customers and industry players. We have a strong practical focus – some of us are in the Low Carbon Forum/Fund and Ofgem and so on. All our papers are published as we go [http://www.sustainabilityfirst.org.uk/]. We aim to produce a “best picture” on how we use electricity in the country today. We’ve done a survey of large industrial customers and done household data research. Without a clear grasp of how consumers really use electricity, we are working with ill-informed risk. In understanding electricity usage the key is in re-engineering the consumer. Our fifth report is out next week. DSR is value today for sale into the UK balancing and “peak” market [peak load is a daily occurence, when a much higher demand for electricity lasts for somewhere between 30 minutes and a couple of hours, on a fairly regular daily basis. For the realtime example :
http://www.nationalgrid.com/uk/Electricity/Data/Realtime/Demand/Demand60.htm http://www.nationalgrid.com/uk/Electricity/Data/Realtime/Demand/demand24.htm http://www.nationalgrid.com/uk/Electricity/Data/Realtime/Demand/Demand8.htm ] For the large customers on half-hourly distribution network, use the triad scheme to avoid charges [ http://www.flexitricity.com/core-services/triad-management ] Do we need yet more DSR – or is it premature at this point ? We need to understand schemes, how the services will supply flexible and peak avoidance. For the Capacity Mechanism, we need to introduce price information – however basic – so that customers know what they can earn by taking part [in DSR aggregator contracts]. Sources of flexible, suitable load are somewhat limited in the GB electricity system – but there is a surprising amount of peak electricity heating in commercial and some residential applications. But is there potential to shift it to overnight charging ? For retailers there is little incentive to promote DSR at scale. For the vast majority of the 29 million customers, the smart meter rollout is far away, but the settlement system adjustment is close at hand. The question is how to unlock smarter markets. System flexibility has to increase by the 2020s, so will need a more controllable load – and the system costs will go up. The search is on for new sources of flexibility in electricity load. At present there are incentives for electricity demand reduction – lower bills. But from the perspective of the electricity system, not all electricity demand reduction is useful. The time of day and season related. “Time of use” tariffs should promote electricity demand response, assigning value. The Green Deal and the Energy Company Obligation (ECO) should work in a more concerted way to deliver more demand response. Let’s be clear about the priorities on what to do first. Electricity has specific end uses – targetting those could make a difference today. Light efficiency schemes are not very glamorous…
[Tim Probert, New Power]
A question for National Grid. The existing balancing mechanisms – will they be part of the Capacity Mechanism ? Or will there be extra money available to balance grid load [under the new regime] ? The cash out settlement system charges will need reviewing – will more revenue be available for those with flexibility to help in balancing load ?
[Jenny Holland, Association for the Conservation of Energy (ACE)]
Is long-term demand reduction in your frame in the Capacity Mechanism ? It is simply not going to happen if the draft Energy Bill stay the same. In the United States, the market is “technology-neutral”, but only 10% comes from demand control. If DSR and energy efficiency are not targetted, they won’t happen. Generators will be able to bid in at a lower cost than DSR and energy efficiency – as they will get money for selling their electricity, *and* for the Capacity Mechanism. We are favouring modification of the Energy Bill with a merit order that favours low carbon and demand reduction, not letting gas wing its way though and swamp the Capacity Mechanism.
[Roisin Quinn, National Grid]
Absolutely agree. We should not be locking ourselve into long-term contracts with the implication of demand in future that just won’t be there. To date our focus has been DSR, not long-term permanent cuts in electricity use.
[Peter Boyd, EEDO/Carbon War Room]
From the strategy side we are looking at options for permanent demand reduction [energy demand reduction (EDR)]. We can exploit international learnings. We’ve recognised that DSR is just a small part of the EDR landscape. This is a market failure – where poor information is preventing [development].
[Andrew Warren, ACE]
Th National Grid are “implementing policy coming through”. There is a complete absence of anything in the draft Energy Bill on the demand side as opposed to addressing load balancing and peak demand issues. We should be trying to do what Germany and some American States are doing – allowing direct comparison. Which is cheaper – investing in new generation or investing in demand side reduction ? The cheapest way in almost all circumstances is to reduce the overall level of demand. It’s important that the National Grid flag up the implications of yesterday’s solution dominating.
[Roisin Quinn, National Grid]
We are pleased to be involved with the DSR pilot scheme – demand avoidance is appreciated – especially when dealing daily peak demand.
[Judith Ward, Sustainability First]
Demand side and the capacity market – I get the sense that they are jelly-like because it is not clear what the Capacity Market is intended to do – either on supply or demand side. It’s hard to know if the DSR is is going to be locked out or not. Is it going to bring forward the merit cap ? In the capacity market, how much is likely to be backup generation [generation brought on at particular times when renewable energy is a a low], not turn-down [when plant is turned from full power output to standby] ? We need to look at the carbon emissions implications as well.
Maybe we should look at it this way – “peak” equals “cap” and “demand” equals “energy” [to meet peak demand we need to cap it by demand reduction - temporary or long term, but to meet usual demand we need new and balanced generation]. Perhaps we should value these separately. There is clearly a market failure, there has been little supply increase. Could electricity distributors drive or aggregate demand response ? Perhaps they are better placed to do that ? There is more trust ?
Are you sufficiently well-informed that climate change is now irreversible ? In the light of that, the only logical course of action is the Contraction and Convergence (C&C) global framework solution of equal per capita shares and rationing. In 20 years I haven’t seen any alternative. Does that not put that into perspective ? [The main argument of C&C is that there is no point in pricing or trading carbon unless there is a global cap enforced.]
[Matthew Parlour, "working for Lord Browne of Madingley"]
After half a century [of efforts on energy efficiency and energy savings] we have learned the consumers do not respond. An example is the difference in Americans being offered free energy demand measures. If the offer was on a website where they had to click to order something sent directly to them, they would not do it. However, if they were offered the same free product by telephone, most accepted it. How much have you thought through the rationality basics ? How do you see the balance of incentives offered to consumers and mandated changes ?
[Andrew Warren, ACE]
Mayer, you remain the voice of my conscience. The ice caps are melting. There is less and less opportunity to stop exploitation of Arctic oil – one of the single most depressing things – climate change is exacerbating, leading to greate availability of what caused it in the first place. In ones darkest moments, I turn around and say, oh my God, what are we going to do ? But there was an 18th Century philosopher who posed the problem of a man who did nothing because he thought he could only do a little. I would like to respond to Lord Browne’s assistant – and interesting question regarding the irrational behaviour of consumers. I am impressed by your boss, he changed BP. He was the first head of an international oil and gas company to say climate change is real. He demanded from all his operational groups 20% more efficiency [making the company more efficient and sustainable into the long term in getting oil to market to be burned to emit carbon dioxide...] – a diktat from the top. The rest of the world needs to follow what your boss proposed. With his new venture Cuadrilla, that “Prince Charming” George Osborne was enthusiastic at an event about the prospects for shale gas. Every other energy minister says that reduction in consumption is required. I hoep your boss not only asks for generous tax breaks, but also asks for support for the other more cost-effective solution – reduction of energy demand.
[Peter Boyd, EEDO/Carbon War Room]
You vote in a democracy – not because your individual vote really counts [but because of the accumulated effect]. The single biggest failure of the Non-Governmental Organisations (NGOs) at Copenhagen was to demand a global treaty, a single collective political goal – but the white van still needs to be paid to turn up [in other words : the practical details of creating incentives to get insulation done is more important in the long run compared to aspirations on paper.] It is becoming clear that Mitigation of and Adaptation to climate change needs to be joined by a third actor – Suffering. And we can only choose one of two options. We can either do Mitigation and Suffer [the cost] or we can do Adaptation and Suffer [the climate change chaos]. Climate change singularity is one of the problems our brains are not wired to compute. We’re not structured to solve this. We can we do now ? Energy efficiency. While the policy guys are going for the right hand side of the McKinsey MACC curves, and how we’re going to finance that, we’re going for the left hand side. Most of the technologies that can really make a difference are already 20 years old. And it will be a better world that we’re in – not a hair shirt and sandals world. On rationality – if we make these really efficient buildings of our workplaces and then walk around in tee shirts [with the heating turned up] at home, then we haven’t solved the problem. When energy efficiency measures do go in, we can minimise irrationality. What’s the electricity distributor’s role in delivering energy efficiency ? This is the Government’s iPod moment. The array of policies to solve this will get more complex, just like the technology of the iPod was more complex than previously. But the interface of the iPod was clearer, more attractive, and so was usable and popular. A company needs to come round to your house, do an assessment and say “this is what will work for you”.
[Caroline Lucas MP]
I welcome the stress on urgency [in relation to Mayer Hillman's question]
[Judith Ward, Sustainability First]
The issue about possible supply failure. There has been retail failure in the settlement system – complex and opaque – a broken link between how upstream costs are recovered (on a socialised basis) weakens their resolve to offer cheaper tariffs. I think that if we can fix some of the issues in the retail market [...] I think it’s too early to decide if we want a DSO-led [distribution system operator in the electricity grid] world or a supplier-led world. If we want to do a community project, if will be very difficult to get incentives.
[Roisin Quinn, National Grid]
Somebody needs to lead. Climate change. Can we do anything about it ? We have to try. We need a new electricity demand profile in the UK power market that flattens the evening peak load – then we could marketise this.
[Rebecca Aspin, powerPerfector]
Energy reduction should be 30% – 40% of our carbon targets. We are not really being energy efficiency focussed. We are disappointed that voltage (power) control is not in the SAP [the Standard Assessment Procedure for permitted technologies for consideration of Energy Bill subsidies]. It seems that policy cannot cope with electricity – they are more heat-focussed.
Regarding the problem with consumers being rational to accept energy reduction – the bigger problem is the implementation of DSR. There is not much money available to get consumers engaged in DSR. £90 per annum would be available – but not to consumers. Heat storage takes up a lot of space – how are we getting consumers to do this ?
[Judith Ward, Sustainability First]
The values in our eenrgy system are not there.
There are savings, but they don’t add up to much. It comes down to questions such as – my cup of tea – really not worth the money to forego it.
Is £90 enough in a £1,200 energy bill ? It will be worth it to have Tesco turn off their air conditioning for a minute, but… Is there sufficient cash to see what is going on. The power of education – waiting for the kids coming through who know about energy demand ? We need a way to measure changes.
[to powerPerfector] You are not the only technology that is not in the SAP – in fact you have to consider the RDSAP [Reduced Data Standard Assessment Procedure] and a lot more technologies are not in there. On providing incentives : in the last few days, the Green Deal has put in place a 15 month £125 million cashback scheme rewarding you for implementing Green Deal measures – you don’t even need to take the Green Deal finance. This is to kickstart the Green Deal, and that is essential as [the Government's own figures show] in 2013 there will be a reduction in insulation installation projected, if not.
[Caroline Lucas MP]
This does come down to political will. And the politicians will only act when more people want them to act. The population assume the situation is not serious as we say, or otherwise the politicians would have acted on it…
[Andrew Warren, ACE]
Ed Davey considers delivering demand side as being his number one priority – I know his commitment to energy efficiency. It has been an interesting day in DECC…
[Ed Davey MP, Secretary of State, Department of Energy and Climate Change, and on the Energy and Climate Change Select Committee]
I would like to offer my thanks to this group for over the years pushing an agenda I believe is incredibly important – something I’ve been involved in for many years [...] We have a Bill that we’re bringing to Parliament, a really critical bill for the low carbon agenda. The challenge that faces the country is that demand is set to increase, due to economic and population growth, with the electrification of transport and the electrification of heat. As demand is likely to go up as we de-carbonise, supply is going down. A fifth of all power plants are to close by 2020 – there is a huge need for investment – £100 billion in new low carbon electricity generation by 2020 and the network grids and so on. One of the real opportunities for the UK – which is struggling with growth and needs to get the economy going. Energy is often the largest [sector for growth] available. In the national investment plan, £250 billion is needed for infrastructure investment – nearly half of that in energy, several times more than needed in transport, six times more than for water, and seven times more than needed for Crossrail. We have to double investment in energy to meet that. This is a huge opportunity for growth. It’s important for energy security, keeping the lights on and for industry. It’s a huge opportunity – and we can use it to diversify – Carbon Capture and Storage (CCS) [to capture greenhouse gas emissions from coal burning] and nuclear and renewable energy all playing a part. It will insulate us from fossil fuel price spikes and the impact of [energy] bills, and meet our carbon targets. It is a timely opportunity that we need to grasp. The great thing about energy infrastructure investment is that it is available in all parts of the country – a good way of rebalancing the economy. The argument has always been that infrastructure planning takes too long – 4 to 5 years before the first sod is turned. But much energy investment money is ready. If we look at which part of the economy is growing, even in difficult times – it is the green sector. The whole point of EMR is to allow low carbon investment to happen – switching to a more low carbon [economy]. A key element is Contracts for Difference [Feed-in Tariffs] – a really smart investment instrument. On nuclear power we are negotiating bilaterally. And for Carbon Capture and Storage we have a competition. It is quite statist, quite interventionist. The EMR with CfD is about moving u from where we are through four phases to where markets are leading investment at low cost. In Phase 1, the Feed-in Tariff Contracts for Difference (CfD) prices will be set administratively [just as] had the Renewable Obligation prices set in the July review. The National Grid has already issued evidence for the strike price – to try to bring all technology groups down in cost and level the playing field. Some people think this is quite complicated. We will set a fair price, the strike price for low carbon electricity – a variable premium to top up the market price. Generators will pay back if their prices are higher than the strike price, therefore it is more cost-effective for the customer. I’ve spoken to investors – the CfD is really attractive – it offers a predictable return – smoothing out volatility. We will still get market efficiencies as companies will have to sell into the market. [In the Energy Bill I will have] powers to give project developers the comfort that they need [to arrange financing]. In 2017, Phase 2 will want to move to price discovery – with technology-specific auctions, such as with onshore wind generation. By Phase 3, current technologies will have matured, so we will move to more technology-neutral auctions. We could see all technologies competing on cost – clean affordable energy security. There is a huge amount of detail in this. We will publish in a few weeks’ time. Developers want early certainty – looking for entering into the CfD early. We will be providing commitment at a reasonable pace. Discussions about the counterparty and assuring its workability – this will probably be a company owned by the Government. In addition is the Capacity Market – as more of our electricity comes from renewable energy and less from gas etc, we will need to be sure we have enough to come on [in the case of wide variability in solar and wind power supply]. The National Grid is projecting shortfalls, so we will guarantee a steady payment for capacity – we are particularly keen to see a DSR when at the margins [of operability] at Peak [Demand, daily] organised by aggregators to prevent the prices peaking. We want to design a Capacity Market to ensure DSR plays its part. Liquidity is really important in the wholesale market – meaning for lower prices. I don’t think this is working well – we need a more diverse [energy mix]. Some think we should reintroduce the Pool, but that doesn’t solve the problem of lack of liquidity in the forward market. Ofgem has been working on potential reform – the threat of regulating has moved industry, particularly in the day-ahead market. I’ve made clear we’ll have backstop powers to promote liquidity [...] On DSR, there is a real demand that Government drives permanent reduction in energy demand. This is crucial, and we are publishing our energy efficiency strategy soon. The Green Deal is going to be extremely exciting – we will see people having warmer homes, cheaper bills and lower carbon. [DSR will be either in the Bill o complementary to the Bill]. The whole point of the EMR is to move towards a low carbon economy – I think these proposals are very radical – they need backing. This is a real radical step forward.
[Andrew Warren, ACE]
You would have to be heroic to believe that you are anticipating increased electricity demand. Why have the Government got it so wrong ? If hand on heart you believe that electrification of transport will replace petrol and diesel in all cars and lorries. 70% of our gas is used to heat, and if that moves to being more electrical, it is heroic to suggest that electricity demand can go down. Our proposals are based on good calculations.
Do you accept front page news ? That the Energy Minister has actively undermined your policy ?
[Ed Davey MP]
I hope you note the Prime Minister quotes. The Prime Minister has supported us, [saying that] although John Hayes made those remarks, it is not Government policy. I have taken personal charge of renewable energy. I am in charge of renewable energy strategy, including of onshore wind.
[Julian O'Halloran, BBC]
The implication from [John] Hayes implies that there will be a moratorium on wind power as there is enough in the pipeline already. Are you ruling out a moratorium while you are Secretary of State ?
[Ed Davey MP]
We are on track to deliver our aspirations (not targets) by 2020 as part of our renewable energy strategy, we are really getting motoring in renewable energy investment, rather than saying we don’t need any more [...] I am conscious of the debate in certain parts of rural England and the Conservative back benches – 100 of them wrote to me on Day 1. It is their democratic right to voice their opinion. I issued a consultation on community energy, that new renewable energy infrastructure is part of their community and brings them benefit too. If we can show that people can benefit from onshore as well as other energy [...] The opinions polls show that a significant majority are in favour, even if close to their homes. I got 62% of my Constituency vote. Wind farms are already more popular than I have ever been.
The Green Deal Skills Alliance. We are not seeting [companies] committed to training. How can we stimulate demand ?
You have confirmed my worst fears. Your aim is to match demand as efficiently and effectively as possible with the least environmental damage. Rather than the eonomy, in achieving a level playing field you should seek to attract a proper value to a tonne of Carbon. Years ago a tonne of Carbon was cheaper than now. I don’t see how you can achieve [low carbon] with a fixed price. The equation has got to include the displacement of ecological refugees.
[Jessica Lennard, Edelman]
In a statement you made [today], you said there are no targets or cap on renewable energy. Can the Minister comment on biomass ?
[Ed Davey MP]
There is a proposed cap on biomass – it is not completely financially within our envelope. Biomass investment is a bit lumpy, and [support for it] would displace [other energy technologies]. On demand for the Green Deal we’ve made a cashback available to encourage early movers. The Local Authorities are running [training] courses and we will be doing marketing efforts when after 28th January. I’d be surprised if demand was taking off now. We are expecting demand to grow – not whizz bang massive demand in the first month – it’s long-term. Solid wall insulation – it’s a bit of a hard sell. Investment is a 10 to 20 year business, not for a quick buck in the next quarter. Timing is really important, and expectations. We didn’t talk about our carbon reduction. The most ambitious carbon emissions reduction target in the world – [as outlined in our] carbon budgets. I’ve proposed decarbonisation in the Energy Bill. [...] [Regarding Mayer Hillman's points] The fixed price will be for low carbon investment. The rising prices will be on carbon. I’m working tirelessly to reform the EU ETS, to persuade the Poles and others. I’m doing exactly what I think you want – and the price of carbon should go up [...] We should have no complacency whatsoever about closing the emissions gap. If sounds technocratic – markets and [...] I apologise – this is how it’s done.
The Prime Minister’s comments will be scrutinised in boardrooms around the world. In a speech to the CBI [...] indicated a three month process in relation to gas generation investment.
[Ed Davey MP]
Called for evidence for the gas strategy to replace coal. There are various barriers to this investment. By the time you have planning gas technology has moved on – this causes delays.
[Andrew Warren, ACE]
The Energy Bill is incredibly important to get right. It’s not something that you can re-visit after 20 years – it is essential to get it right.
Posted on November 1st, 2012 No comments
PRASEG Annual Conference 2012
“After EMR: What future for renewable and sustainable energy?”
31st October 2012
One Birdcage Walk, Westminster
Twitter hashtag : #PRASEG12
PLEASE NOTE : The record is NOT verbatim and should not be treated as such. Check against delivery, I think they say in the trade. If I have scribbled incomprehensively or missed something, I have interpolated according to the spirit of the context. I am open to correction or challenge on my record of the event.
[Alan Whitehead MP : chair of PRASEG]
People are asking about the title of this conference “aren’t you being a bit previous ?” But we do need to talk about the future of renewable and sustainable energy when the Energy Bill comes in with the aim of delivering a low carbon economy. We are at a juncture also where we need investor certainty. There’s been the very successful Round 3 Offshore wind power licencing. The Electricity Market Reform (EMR) is going to be vital in terms of the atmosphere and landscape of that process taking place. Renewable energy is one of the largest areas of investment in the UK. We need to make sure that we meet our targets for the 2020s and onwards. The last thing we need is the shambles of yesterday and this morning – conflicting messages on wind power from two Ministers and a correction by a third Minister, and a further correction at Prime Minister’s Questions. The press treatment will undermine investment certainty in Government policy. With the EMR we *will* be able to talk about the time after the 2020s. Maybe there’s an opportunity that comes out of this political storm. We do need clarity. We need to go ahead and reach our targets and exceed them. Renewable energy will play a part we know it can in the “Energy Revolution”.
[Laura Sandys MP, PPS to Greg Barker MP, Secretary of State Climate Change, Department of Energy and Climate Change]
The work of the Energy and Climate Change Parliamentary Select Committee shows how important this subject is. It is not partisan. In many ways energy is a very big challenge. Addressing it is about putting this country’s interests first with a sustainable and reliable energy system. I am pleased that this event has the support of DONG Energy. My Constituency is host to the London Array [wind power project]. If all the MPs had the experience [of the integration of renewable energy projects with the local population] I had with DONG. They have built a strong community coherence and shown dedication. The project is very much part of the local environment. There has been no better experience than in Thanet. I must also put in a caveat, not speaking as a PPS, but as an expert in energy for 20 years. In many ways, the big challenge is not the 24 hours of [press] debate. I think the second biggest challenge, after deficit reduction, is keeping the lights on – building a long-term competitive energy system. We are in a difficult environment, trying to raise £200 billion of investment at a time of financial contraction. Wholesale energy prices are rising. The challenge is to create a low carbon resilient system. There are no easy energy technology options. We have to balance up price and price stability; supply and security of supply; and even the aesthetics. There is nothing that meets all our requirements entirely. Every energy option has some pain. We need to understand this and be big. We need energy renewal. This is a subject for big people. For people with big ideas and courage to deliver long-term strategy. We need a mixed energy economy – we should not have vilification of any technology – no “religious” response to any technology. We need to focus clearly on our legal obligations and targets. We must also reflect aspirations and realities. The 20th Century was a battle of ideas – capitalism versus communism; free market very long-term planning. This century will see a massive struggle for resources – to sustain the population in each country. I’m not sure it will be such a friendly one. Energy resources and renewable energy, even, will become more expensive. So maximising our supply from domestic renewable energy will provide us with more stability and security. Some say we’re going it alone on decarbonisation. Look at China’s planned investment of $473 billion and the EU and progressive States in the US. The smart, the bright and the intelligent are embracing it. Green and renewable energy are not some form of “sandal” economy, a tie-dye tee shirt. We’ve got to wake up to reality. We’ve got to also look at the challenge of renewing our energy system. It’s an opportunity to be aspirational. I don’t want a lowest common denominator energy system – I want something aspiration that looks to the future in behavioural, structural and technological terms. The EMR is the Government’s job – to get right the forward market and the right settlement market for your industry. The Government is there to support you. Companies are key to making big differences. We are constantly looking at the wrong end of the supply chain – as engineering blokes – looking at big energy projects. A modern, interactive, smart system will take a new approach to consumers. We need new technology, not just new generation technology, but throughout the supply chain. Democratisation – distributed, de-centralised energy – and opportunities for real demand reduction. If developing new energy systems, re-engineer it around the consumer. Take for example mobile phones – thousands of tariffs, but the customer still feels in control. We are as energy consumer merely receivers of energy bills. We cannot conceive of how to “consume” energy. The system is old-fashioned. A command-and-control environment. If the customer knew that there were 100 hours of energy “peak” demand – mostly on Tuesdays in February between 5 and 9pm, if I remember rightly, and that between 5 and 7% of all infrastructure and distribution arrangements are focused on those 100 hours, they’d say “Fabulous. Give me fifty quid and I’ll turn all the lights out.” We need to start to respond [to these exceptional cases] because “peak” is not talked about around the dining room table. We need to be transparent in communication – unnecessary capacity [energy provision in the supply system] is due to old-fashioned practices. At the heart of a new energy system we need a new vision for consumers. I’m a bit green – a “Turquoise Tory”. My father introduced the first clean air Act. Macmillan told him it would be the end of industry. In months, the UK was the leading exporter of clean coal technology. Modernity will move beyond current technologies. It is clearly important to have infrastructure that allows more technologies to come on board. Something we don’t talk about it grid. I have a real sense that it has purpose. The vision is that it should be a plug-and-play operation – like the X-box. Generators are the software – accessing the grid, either microgenerators, community generators, macro generation. The big breakthrough will be getting the grid to play a real part of the new energy system – like the body’s blood system. I’m leaving all the policy bits to the Minister. Because energy resources have been so freely available, so cheaply, in distribution, the Cinderella of all policies is demand reduction. We need to get a clear understanding of where we can *not* (where we do not have to) generate. We can choose to deliver a smart set of energy policies. The smarter the policies, the less generation we need to do. A creative part of these policies will be policies to address demand reduction. We need some other mechanisms – not least price transparency. Energy suppliers need to design their products so that consumers can reduce it. We are currently flying blind. The customer does not understand what they are using – where, when and how – the truth about how much energy costs. Smart consumers deliver smart markets.
[Start of first session "The Future of Renewable and Sustainable Energy"]
[Ben Sykes, Director, UK Markets, DONG Energy]
We have 720 MW of offshore wind energy. I’m going to approach this from a purely business angle. How is the landscape looking for a business doing a lot in offshore wind ? We hear a lot of talk about Renewable Energy. It’s time to differentiate within that. There are different sets of challenges – let’s be realistic. So, considering the impact of the EMR on offshore wind in future, DONG sees a lot of good things coming out of the EMR. The “Contracts for Difference” (CfD) we think is a good one. It gives investors certainty (although there are risks that include the counterparty risks…) DONG is active in bringing in investors – pension funds, private equity. These need to see the certainty of revenue. The big question : what the implementation model will say about the energy mix. How the Energy Bill deals with energy mix is critical. The capacity [mechanism] allocation – nothing to do with the Contracts for Difference – as deployment increases it will affect the balance in the Levy Control Framework. [Note : the Capacity Mechanism is proposed to pay large power plant to remain on standby in the case they are needed as backup generation. The Levy Control Framework is effectively a hard cap on HM Treasury spending in each area - the Government will only subsidise a certain amount of electricity generation capacity held in standby each year, for example.] This is a big issue : will we have the conditions for bringing these projects forward – which are years in the planning ? It’s very difficult spending tens of millions of pounds without knowing if we have access to the subsidy – if we end up walking blind for 5 yeas and then hearing “Oh sorry, there’s no capacity [mechanism funding] left for this year” from Whitehall.
[Nick Molho, World Wildlife Fund (WWF)]
I thought I would touch on the context of the EMR. The International Energy Agency (IEA) in their World Energy Outlook (WEO) says tht unless we shift our energy systems we will be using all the carbon we *can* use by the 2020s in order to keep within the 2 degree global warming target. Where the EMR sits : there is considerable investment uncertainty – the impact of uncertainty can be made clear by recognising that 2030 is only one investment cycle away. We need a framework in the very near future. Does the EMR do enough to attract large amounts of capital ? Yes, two reasons. If there is a long-term volume signal – a decarbonisation target for example – signals especially to renewable energy. And second, if there is a stable and well-balanced Feed-in-Tariff Contract-for-Difference (FiT CfD) for Renewable Energy. Our report from WWF showed that feed-in tariffs are key – continued policy support will be key. If we want to reduce the cost of finance, we need to avoid the summer offshore wind power support levels chaos. Around 40% of our power was generated by gas in 2011 – the UK has a lot of existing gas. A limited amount of new gas generation will be needed to balance the grid in 2030. The role of unabated gas [without Carbon Capture and Storage (CCS)] will have to be limited increasingly – it should not exceed 10% by 2030 if the UK fully de-carbonises according to the Committee on Climate Change (CCC) budgets. The CCC have pointed out that a large amount of gas [percentage terms] is economically not feasible. The International Energy Agency (IEA) and others still project increases in the gas price. Energy Efficiency is often underestimated. The McKinsey report for DECC said that energy efficiency could reduce consumption by 40%
[ http://www.eaem.co.uk/news/uk-could-cut-electricity-demand-40-says-mckinsey "Capturing the full electricity efficiency potential of the UK" ] by 2030. We have to put energy efficiency at the core of policy – according to a WWF and Green Alliance report [ http://www.wwf.org.uk/what_we_do/press_centre/?unewsid=6259 "Creating a market for electricity savings: Paying for energy efficiency through the Energy Bill by Rachel Cary and Dustin Benton" ]. We need energy efficiency enabling powers in the Energy Bill. This is critical to the ability to provide long-term investment, to be clear on gas and energy efficiency, and working across borders on EU co-operation.
[Simon Skillings, Senior Associate, E3G]
What a fascinating industry this is. The EMR is a delivery mechanism. If we ask what it is here to deliver – the “Pool” – how much commodity – the National Grid has got to deliver it regardless of conditions. The question should be how effective they are at delivering what they’ve got to deliver. The trouble is, the future is uncertain, and it’s difficult to be prescriptive about what we need. The challenge is to risk manage economy/energy/environment – what can the Energy Bill do ? Should it ignore the risk management and leave it all up the National Grid ? Alternatively it can specify with a little more clarity – effectively saying to National Grid “go away and do your work” is not viable. The Energy Bill therefore has to specify what the National Grid has to deliver with the EMR tools. How the trade-offs are made should be outed in a more public arena. The fear is that the Treasury holds money as a weapon, it’s not democratic – balancing against other requirements. The EMR has to contain something about carbon control, something about capacity and the levy, something about security of supply. Is it enough ? No – there are actually two other areas. Everybody wants to talk about “demand side” [Demand Side Management (DSR) and Energy Demand Reduction (EDR)]. It’s obvious but hard. Can we mandate demand side in the Energy Bill ? It needs to have some sort of evidence in the Energy Bill about the role of renewable energy into the long-term. Maybe the existing 2020 targets give enough clarity. Could we leave the broad discussions another year or two before we can be clearer on targets in the EU ? No, clearly in the short number of years to 2020, targets for further out need to be provided for renewable energy. Success will be judged by how the Energy Bill specifies how National Grid delivers.
[James Murray, Editor, BusinessGreen, chair of meeting]
Interesting comments there – about the Treasury being anti-democratic – ducking questions of responsibility.
[Andrew Buglass, Head of Energy, Royal Bank of Scotland/Low Carbon Finance Group]
I run the RBS Energy Team, and the Steering Committee of the Low Carbon Finance Group – I’ve been living and breathing this for some time. My perspective is from the lender angle. I echo what Ben says. Clearly we have a situation where there is significant weakness in the economy. There is a massive reduction in the amount of capital. Creit ratings are under pressure. Bank liquidity is tight. But banks really like this sector. Generally this sector performs well. We have financed 9 gigawatts of renewable power. We want to lend money to this sector. Lending volumes are a lot lower the last ten yeas. There has been a hiatus caused by the EMR consultation process. Developers are cautious, and it has not been helped by the revision of the Renewables Obligation (RO) banding. Lenders and developers need a regulatory framework or face regulatory risk. We have financed renewable energy and “conventional thermal”. What matters in policy is transparency, predictability and durability. Can you explain the new system to a sceptical foreign investment committee to encourage them to commit equity capital ? Energy investors have choices…We need to deliver clear overall messages. With the complexity of the EMR there will be issues. The public “debate” – a worrying trend is that there is perceived politicisation of the sector. There needs to be a political debate about policy [not a media debate]. It is unfortunate what has happened in the press. Those things make serious investors very, very nervous. They wait until the path is more clear – then they know what they’re going to be getting. With Contracts for Difference (CfD) it’s about the mechanism – the counterparty and the process. There’s a long lead time and the potential for rationing of CfD’s is likely to put investors off. Also, the involvement of the Government in setting the CfD – whether that’s on volume or price. This is more interventionist than generation has been in the past – investors need to make sure they are comfortable. They are watching the Capacity Mechanism with huge interest – in relation to “conventional thermal” and what it implies for generation mix. On liquidity – independents [independent generators] need a route to sell their power. Even under the Renewables Obligation (RO) we are seeing much less volume of Power Purchase Agreements (PPAs) being agree, and with less favourable terms. Gas is potentially a gamechanger, and it will be playing a major role in this sector. Sticking to the 2020 target has reassured people, we can point to something written in tablets of stone – it offers a direction. I personally think that 2030 indicators would be extraordinarily helpful – as undertaking a commitment to pieces of the low carbon sector.
[Questions from the floor]
[James Murray, Editor, BusinessGreen]
Precisely how unhelpful was the intervention from “The Peoples’ Minister” John Hayes ? Is this press blustering, or really damaging ?
[Nick Molho, World Wildlife Fund (WWF)]
It was unhelpful in two ways. First this kind of dispute will delay investment coming to the UK. And secondly, from the consumer’s perspective, their perception, that arguing about the costs of investment indicate that since the costs will be high, bills will go up.
[Ben Sykes, Director, UK Markets, DONG Energy]
Is lack of clarity helpful ? Probably not. I don’t like having to explain to investors on Wednesday mornings that, despite this, the UK has a stable policy environment, when competing for investment with other north western European countries.
[Andrew Buglass, Head of Energy, Royal Bank of Scotland/Low Carbon Finance Group]
From the investment committee point of view, for years, energy has been relatively boring, predictable. They haven’t seen it on the front page, they haven’t really been bothered. There has been a cross-party consensus. Now they get, on a weekly basis, very serious people raising issues, “You’ve seen the papers ? Why on Earth should we continue to support this ?” It raises the potential risk of policy change. And banks don’t like this. And this is also critical – it almost doesn’t matter what the policy message is – everybody just has to have the *same* one. We cannot have a situation where a subsidy was granted that is now no longer affordable. Projects are competing for capital – they need a consistent set of messages.
[Ben Sykes, Director, UK Markets, DONG Energy]
It is unhelpful for achieving long-term energy security. It’s lots of froth, but it is a problem for the UK. If we can’t settle down on an energy policy, we’re all in trouble. Although, in 24 hours it may have gone away.
[Simon Skillings, Senior Associate, E3G]
This might get some public discussion on energy. Some of these debates might be awkward, but if we don’t have them, we could have the situation in a few years where it is known that half the Cabinet think one thing and the other half of the Cabinet think another, which would be unhelpful. If this [Ministerial difference of policy opinion] does trigger a detailed debate, then it may be a good thing.
[Jessica Lennard, Edelman]
Are we going back to the “Pool” ? Will the Government become the buyer of last resort ? What are the Treasury guarantees ? What can we do about independent generators ? One thing is the design of the markets as much as anything. Can you as an independent enter the market ? There are now less opportunties for PPAs (Power Purchase Agreements). It’s unattractive and increasingly unbankable. The changes in the accounting regulations mean that you need to treat PPAs differently.
[Andrew Buglass, Head of Energy, Royal Bank of Scotland/Low Carbon Finance Group]
We have been working with large users of power and leading generators who are seeking to come to their own arrangements. We have to think about how to use the existing mechanisms and own corporate policies. We want to have a long term helper for large users. The bulk of people we lend to are independent. They need PPAs to unlock funding – and they are increasingly not able to get that.
[Simon Skillings, Senior Associate, E3G]
The issue is the power of the narrative about competition in the wholesale markets. It’s easier to be big than small – it is a driver for consolidation. It’s hard to promote independent generats without unpicking that narrative – for example, reference David Cameron’s remarks.
[Mike Rolls, Siemens]
We’re asking for a 2030 target because of the issues of the supply chain. The time horizon for the supply chain is longer – investors need to see a pipeline [emerging future demand based on policy steer] in order to sustain UK jobs in UK companies in the UK. We’ve seen the benefits of a consistent message on a commitment to nuclear power.
[Nick Molho, World Wildlife Fund (WWF)]
Should we have 2030 targets to replace 2020 one ? Yes, and work is being done in the EU on that. WWF is coming out with a report that the UK should sign up to a 2030 EU renewable energy target – it is entirely consistent with decarbonisation of the energy system. The UK could become an exporter of energy, as outlined in the Offshore Valuation Report, and could also export renewable energy technology.
[James Murray, Editor, BusinessGreen]
…There is the counter-argument that a target doesn’t provide the best price options…
[Nick Molho, World Wildlife Fund (WWF)]
The policy approach of taking a technology-neutral carbon price, from the investors point of view, is that this is not a long-term stable signal, and also, the carbon price will have to be set pragmatically [in a political process in a politically acceptable fashion].
[Ben Sykes, Director, UK Markets, DONG Energy]
A 2030 horizon really matters to us. We need a supply chain to have legs if it’s going to drive down costs by 2020. We can only deliver ever-lower costs in offshore wind if the industry sees the potential. We won’t get to 2020 and then all sit down – no. We need a signal into the supply chain for 2030.
[Alan Simpson MP, "architect of the Feed-in Tariff"]
In Germany the policy discussions are much clearer about the paradigm shift to a cleaner energy system. If DECC didn’t need to find a way to subsidise nuclear power, would we need to have this Energy Bill at all ?
[Andrew Buglass, Head of Energy, Royal Bank of Scotland/Low Carbon Finance Group]
We would need something, even if not trying to support new gas and new nuclear. All the issues are about financing, we haven’t discussed *markets*. Despite the complexity of the Renewables Obligation (RO), it *was* bringing forward renewable energy – the RO would have worked as least as well [as introducing the EMR]. The arguments were that the RO was unfit for purpose – but what’s a levy control framework more than an RO ? We could have had more investment velocity if the EMR had *not* been happening. Introducing that level of uncertainty – a hiatus – has been unhelpful in the supply chain. We should have been investing in the UK.
[James Murray, Editor, BusinessGreen]
It’s important to note that even with all the uncertainty, we are seeing the most investment in energy in the last 10 years.
[Simon Skillings, Senior Associate, E3G]
The Germany comparison is very interesting. The transformation in the energy sector, the Energiewende, is operating at a very deep cultural level. Is the UK Energy Bill re-enshrining history rather than creating a new future ? It’s intelligent to come back to focus on the demand side – a self-reinforcing process.
[Tim Probert, New Power]
The levy control framework, and its inevitable cap on capacity. Is it competitive or anti-competitive ? Will developers bid higher or lower into the market ?
[Simon Skillings, Senior Associate, E3G]
Dieter Helm makes some good and some bad points. A good point is that we are effectively entering a world of centrally managed contracts – the biggest impact is in the supply chain and the new market arrangements need to [cater for that].
[Ben Sykes, Director, UK Markets, DONG Energy]
Will it be possible to game the levy control framework ? How it interacts with the supply chain is critical.
[Mayer Hillman, Policy Studies Institute, reaching the age of 81 yesterday]
I fear my worst expectations have been confirmed. All the discussion i based on the assumption that the Government has a responsibility to meet consumer demand, minimising risks, but this is fundamentally wrong. Policy has to determine demand to capacity of the planet to absorb any further greenhouse gas emissions. If we look at that we need to face reality. We are now living on a planet where climate change is irreversible. If you don’t believe me, answer how we can reverse the melting of the ice cap ? How is it we can go on talking about demanding more renewable energy without considering the extent to which it is essential – the environmental constraints are often lost in the debate.
[Nick Molho, World Wildlife Fund (WWF)]
Our regular report shows that we consuming at a rate of 1.5 planets. We can’t just focus on the supply side – for example to meet the doubling electricity demand forecast by DECC. How can we put efficiency at the centre of policy ? The key needs are energy efficiency, generation, demand side management.
[Rachel Carey, Green Alliance]
The cap on spend for renewable energy and other low carbon energy in the levy control framework – is the capacity market to be included [the proposal to make payments to generators to keep their plants on standby to back up renewable energy] ? Will payments be minimised ?
[Andrew Buglass, Head of Energy, Royal Bank of Scotland/Low Carbon Finance Group]
We are certainly looking at the capacity mechanism influence. We need a capacity indicator [in the levy control framework] to bring forward investment. Decisions on thermal plant [including coal] are difficult to make at the moment. I refer to a recent Reuters article that a £90 per MWh strike price [on the Contracts for Difference (CfDs)] will take forward a price of £60 into the market. To bring on 20 GW of nuclear and Carbon Capture and Storage with coal, this price is double the levy control framework allocation for 2030. There are no numbers beyond 2015 – it runs out pretty quickly.
[James Murray, Editor, BusinessGreen]
Are you saying that if the Treasury made the levy control framework cap low enough, it would make the whole EMR exercise completely redundant ?
[Andrew Buglass, Head of Energy, Royal Bank of Scotland/Low Carbon Finance Group]
In the Energy Bill, the Secretary of State is seeking 50 new powers. Do we need to accept the role for the market is so minor that we should go for national control of energy ? Should we stop the pretence that a competitive market can be induced ?
[Simon Skillings, Senior Associate, E3G]
To me, there seems to be no narrative that speaks to prices, competition, and consumer benefits. We’re trying not to say it [the call for renationalisation of the energy sector]. We don’t believe new narrative should be national planning for energy. We need a new focus for innovation and customer benefits – shifting the narrative away from the wholesale world to the retail options [at point of sale] world.
[Ben Sykes, Director, UK Markets, DONG Energy]
Do I trust the Government or the markets to create a low carbon energy system ? We might need to live with the ambiguity – somewhere in between.
[Nick Molho, World Wildlife Fund (WWF)]
The Government needs to be speaking with one voice. In the past we have seen various parties calling for the 2030 target.
[Andrew Buglass, Head of Energy, Royal Bank of Scotland/Low Carbon Finance Group]
It’s looking like choppy waters.
[James Murray, Editor, BusinessGreen]
We have to recognise that it’s a relatively small number of Conservative MPs whipping up this media storm.
[End of the first session]
Posted on October 17th, 2012 No comments
I could never be in sales and marketing. I have a strong negative reaction to public relations, propaganda and the sticky, inauthentic charm of personal persuasion.
Lead a horse to water, show them how lovely and sparkling it is, talk them through their appreciation of water, how it could benefit their lives, make them thirsty, stand by and observe as they start to lap it up.
One of the mnemonics of marketing is AIDA, which stands for Attention, Interest, Desire, Action, leading a “client” through the process, guiding a sale. Seize Attention. Create Interest. Inspire Desire. Precipitate Action. Some mindbenders insert the letter C for Commitment – hoping to be sure that Desire has turned into certain decision before permitting, allowing, enabling, contracting or encouraging the Action stage.
You won’t get that kind of psychological plasticity nonsense from me. Right is right, and wrong is wrong, and ethics should be applied to every conversion of intent. In fact, the architect of a change of mind should be the mind who is changing – the marketeer or sales person should not proselytise, evangelise, lie, cheat, sneak, creep and massage until they have control.
I refuse to do “Suggestive Sell”. I only do “Show and Tell”.
I am quite observant, and so in interpersonal interactions I am very sensitive to rejection, the “no” forming in the mind of the other. I can sense when somebody is turned off by an idea or a proposal, sometimes even before they know it clearly themselves. I am habituated to detecting disinclination, and I am resigned to it. There is no bridge over the chasm of “no”. I know that marketing people are trained to not accept negative reactions they perceive – to keep pursuing the sale. But I don’t want to. I want to admit, permit, allow my correspondent to say “no” and mean “no”, and not be harrassed, deceived or cajoled to change it to a “yes”.
I have been accused of being on the dark side – in my attempts to show and tell on climate change and renewable energy. Some assume that because I am part of the “communications team”, I am conducting a sales job. I’m not. My discovery becomes your discovery, but it’s not a constructed irreality. For many, it’s true that they believe they need to follow the path of public relations – deploying the “information deficit model” of communication – hierarchically patronising. Me, expert. You, poor unknowing punter. Me, inform you. You, believe, repent, be cleaned and change your ways. In this sense, communications experts have made climate change a religious cult.
In energy futures, I meet so many who are wild-eyed, desperate to make a sale – those who have genuine knowledge of their subject – and who realise that their pitch is not strong enough in the eyes of others. It’s not just a question of money or funding. The engineers, often in large corporations, trying to make an impression on politicians. The consultants who are trying to influence companies and civil servants. The independent professionals trying to exert the wisdom of pragmatism and negotiated co-operation. The establishment trying to sell technical services. Those organisations and institutions playing with people – playing with belonging, with reputation, marketing outdated narratives. People who are in. People who are hands-off. People who are tipped and ditched. Those with connections who give the disconnected a small rocky platform. The awkwardness of invested power contending with radical outsiders. Denial of changing realities. The dearth of ready alternatives. Are you ready to be captured, used and discarded ? Chase government research and development grants. Steal your way into consultations. Play the game. Sell yourself. Dissociate and sell your soul.
I have to face the fact that I do need to sell myself. I have to do it in a way which remains open and honest. To sell myself and my conceptual framework, my proposals for ways forward on energy and climate change, I need a product. My person is often not enough of a product to sell – I am neuro-atypical. My Curriculum Vitae CV in resume is not enough of a product to sell me. My performance in interviews and meetings is often not enough of a product. My weblog has never been a vehicle for sales. I didn’t want it to be – or to be seen as that – as I try to avoid deceit in communications.
Change requires facilitation. You can’t just walk away when the non-persuasional communications dialogue challenge gets speared with distrust and dismissal. Somehow there has to be a way to present direction and decisions in a way that doesn’t have a shadow of evil hovering in the wings.
“A moment to change it all, is all it takes to start anew.
To the other side.”
Why do I need to “sell” myself ? Why do I need to develop a product – a vehicle with which to sell myself ?
1. In order to be recognised, in order to be welcomed, invited to make a contribution to the development of low carbon energy, the optimisation of the use of energy, and effective climate change policy.
2. In order to put my internal motivations and drive to some practical use. To employ my human energy in the service of the future of energy engineering and energy systems.
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Posted on October 7th, 2012 No comments
A fully renewable energy future is not only possible, it is inevitable.
We need to maximise the roll out of wind and solar renewable electricity systems, and at the same time fully develop marine, geothermal and hydropower energy, and of course, energy storage.
We need strong energy conservation and energy efficiency directives to be enacted in every state, sector and region.
But we need to get from here to there. It requires the application of personal energy from all – from governments, from industry, from society.
In arguing for focus on the development of Renewable Gas, which I believe can and will be a bridge from here to a fully renewable energy future, I am making an appeal to those who view themselves as environmentalists, and also an appeal to those who view themselves as part of the energy industry.
Those who cast themselves as the “good guys”, those who want to protect the environment from the ravages of the energy industry, have for decades set themselves in opposition, politically and socially, to those in the energy production and supply sectors, and this has created a wall of negativity, a block to progress in many areas.
I would ask you to accept the situation we find ourselves in – even those who live off-grid and who have very low personal energy and material consumption – we are all dependent on the energy industry – we have a massive fossil fuel infrastructure, and companies that wield immense political power, and this cannot be changed overnight by some revolutionary activity, or by pulling public theatrical stunts.
It definitely cannot be changed by accusation, finger-pointing and blame. We are not going to wake up tomorrow in a zero carbon world. There needs to be a transition – there needs to be a vision and a will. Instead of a depressive, negative, cynical assessment of today that erects and maintains barriers to co-operation, we need optimistic, positive understanding.
In the past there has been naievety – and some environmentalists have been taken in by public relations greenwash. This is not that. The kind of propaganda used to maintain market share for the energy industry continues to prevent and poison good communications and trust. I no more believe in the magic snuff of the shale gas “game changer” than I believe in the existence of goblins and fairies. The shine on the nuclear “renaissance” wore off ever before it was buffed up. And the hopeless dream of Carbon Capture and Storage (CCS) becoming a global-scale solution for carbon emissions is about as realistic to me as the geoengineering described in Tolkein’s “The Lord of the Rings”.
Nuclear power and CCS are actually about mining and concrete construction – they’re not energy or climate solutions. I’m not taken in by token gestures of a small slice of wind or solar power or the promise of a segment of biofuels from large oil and gas companies. Public relations and lobbying are the lowest form of faked, usurping power – but simply attacking brands will fail to make real change. I think honesty, realism and pragmatism are the way forward – and there is nothing more practical than pushing for Renewable Gas to back up the accelerated deployment of renewable electricity to its fullest scale.
My appeal to those in control of energy provision is – to see through the fog to the unstoppable. State support, both political and financial, of new energy technologies and infrastructure has to be a short- to medium-term goal – because of the volatility of the economy, and the demands of your shareholders. The need to build public support for new energy means that we the citizens must all be offered the opportunity to own energy – and so that means building a common purpose between the energy sector and society – and that purpose must be Zero Carbon.
There is and will continue to be a porous border between the energy industry and governments – energy is a social utility of high political value. However, the privilege and access that this provides should not automatically mean that the energy industry can plunder public coffers for their own profit. What contribution can the energy industry make to society – apart from the provision of energy at cost – in addition to the subsidies ? Energy, being so vital to the economy, will mean that the energy sector will continue to survive, but it has to change its shape.
You can dance around the facts, but climate change is hitting home, and there is no point in continuing to be in denial about Peak Oil, Peak Coal and Peak Natural Gas. These are genuine risks, not only to the planet, or its people, but also your business plans. We need to be using less energy overall, and less carbon energy within the eventual envelope of energy consumption. So the energy sector needs to move away from maximising sales of energy to optimising sales of energy services and selling low carbon energy systems, power and fuels.
You would be wrong to dismiss me as an “eco warrior” – I’m an engineer – and I’ve always believed in co-operation, expertise, professionalism, technology and industrial prowess. What impresses me is low carbon energy deployment and zero carbon energy research. Progress is in evidence, and it is showing the way to the future. Realistically speaking, in 20 years’ time, nobody will be able to dismiss the risks and threats of climate change and energy insecurity – the evidence accumulates. We, the zero carbon visionaries, are not going to stop talking about this and acting on it – as time goes by, the reasons for all to engage with these issues will increase, regardless of efforts to distract.
Nothing is perfect. I no more believe in a green utopia than I do in unicorns. But without reacting to climate change and energy insecurity, the stock market will not carry you, even though the governments must for the mean time, until clean and green energy engineering and service organisations rise up to replace you. Lobbying for pretences will ultimately fail – fail not only governments or peoples, but you. You, the energy industry, must start acting for the long-term or you will be ousted. As your CEOs retire, younger heads will fill leadership shoes – and younger minds know and accept the perils of climate change and energy insecurity.
This is the evolution, not revolution. It is time to publicly admit that you do know that economically recoverable fossil fuels are limited, and that climate change is as dangerous to your business models as it is to human settlements and the biosphere. Admit it in a way that points to a sustainable future – for you and the climate. The pollution of economically borderline unconventional fuels is wrong and avoidable – what we need are renewable energies, energy conservation and energy efficiency. One without the others is not enough.
How can your business succeed ? In selling renewable energy, energy conservation and energy efficiency. You have to sell the management of energy. You have to be genuinely “world class” and show us how. No more spills, blowouts and emissions. No more tokenistic sponsorship of arts, culture and sports. The veneer of respectability is wearing thin.
As an engineer, I understand the problems of system management – all things within the boundary wall need to be considered and dealt with. One thing is certain, however. Everything is within the walls. And that means that all must change.
http://houstonfeldenkrais.com/tag/cross-motivation/ “…Of course, the money would be great. But adding in the reward/punishment dimension is a sure way to sabotage brilliant performance. Moshe Feldenkrais observed that when one is striving to meet an externally imposed goal, the spine shortens, muscles tense, and the body (and mind) actually works against itself. He called this “cross motivation,” and it occurs when one forsakes one’s internal truth to maintain external equilibrium. There are lots of examples of this: the child stops doing what she’s doing because of the fear of losing parental approval, love, protection. The employee cooks the books to keep his job. The candidate delivers the sound bite, and dies a little inside. Feldenkrais attributed most of our human mental and physical difficulties to the problem of cross motivation. If you watch Michael Phelps swim, you can’t help but notice that he makes it look easy. He is clearly strong and powerful, but all of his strength and power are focused on moving him through the water with the greatest speed and efficiency. There’s no wasted effort, no struggle, no straining. He is free of cross-motivation! Would straining make him faster? Of course not. Unnecessary muscular effort would make him less buoyant, less mobile, less flexible. Will dangling a million dollars at the finish line make him swim faster? Probably just the opposite, unless Michael Phelps has some great inner resources to draw upon. The young Mr. Phelps has already learned how to tune out a lot of the hype. He’ll need to rely on “the cultivation of detachment,” the ability to care without caring…”Academic Freedom, Assets not Liabilities, Big Picture, Big Society, Carbon Capture, Climate Change, Climate Chaos, Climate Damages, Corporate Pressure, Delay and Deny, Demoticratica, Direction of Travel, Divide & Rule, Dreamworld Economics, Efficiency is King, Emissions Impossible, Energy Autonomy, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Energy Socialism, Engineering Marvel, Evil Opposition, Fair Balance, Financiers of the Apocalypse, Fossilised Fuels, Freemarketeering, Gamechanger, Geogingerneering, Global Warming, Green Investment, Green Power, Hide the Incline, Human Nurture, Hydrocarbon Hegemony, Incalculable Disaster, Insulation, Low Carbon Life, Major Shift, Mass Propaganda, Money Sings, National Energy, National Power, Near-Natural Disaster, Neverending Disaster, Nuclear Nuisance, Nuclear Shambles, Oil Change, Optimistic Generation, Paradigm Shapeshifter, Peace not War, Peak Coal, Peak Emissions, Peak Energy, Peak Natural Gas, Peak Oil, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Pure Hollywood, Regulatory Ultimatum, Renewable Gas, Science Rules, Shale Game, Social Change, Social Democracy, Solar Sunrise, Solution City, Stirring Stuff, Sustainable Deferment, Technofix, Technological Fallacy, The Data, The Power of Intention, The Science of Communitagion, The War on Error, Unconventional Foul, Ungreen Development, Unnatural Gas, Wind of Fortune, Zero Net
Posted on September 30th, 2012 No comments
Allegedly, the United Kingdom is about to break free from the Dark Ages of subsidies, and enter the glorious light of a free and light-touch regulated, competitive electricity market.
The Electricity Market Reform is being sold to us as the way to create a level playing field between low carbon electricity generation technologies, whether they be established or new, baseload or variable, costly-up-front or cheap-and-quick-to-grid.
Personally, I do not accept the mythology of the Free Market. I do not accept that a fully competitive, privatised energy sector can be delivered, regardless of the mechanisms proposed. The Electricity Market Reform is less Englightenment and more Obscurantism, in my view – the call of the Magic Flute is going to fall on deaf ears.
Who will play the pipe ? Who will call the tune ? Who will be the Counterparty ?
At the National Grid’s Future Energy Scenarios day conference-seminar on Thursday 27th September 2012, I listened carefully to several spokesmen from the companies, quangos and agencies deny that they would have anything to do with determining, underwriting or administering deals for the EMR’s proposed “Contracts for Difference” (CfD) – essentially setting a guaranteed lowest price for selling electricity to the grid, regardless of market movement. Mark Ripley of the EMR team at National Grid was very clear “National Grid will not be the contractual counterparty for the CfD”. I asked Jonathan Brearley of the UK Government Department of Energy and Climate Change (DECC) at a break who would be independent enough to set the “strike price” – the minimum price for which electricity generators could expect to sell electricity ? He suggested that perhaps the UK Government would set up an independent governing body – gesturing at arm’s length. I asked him rhetorically who could reasonably be expected to be seconded to this new quango – how could they be truly independent…I did not get an opportunity to ask how the CfD revenues and payouts would be administered. I didn’t know at that time about the rumours that Ofgem – the current electricity generation quango regulator – could be closed down under a new Labour Government.
The shadow cast by the nuclear industry
During the presentation by Jonathan Brearley of DECC, he indicated that back room discussions are going on between large potential electricity generation investors and the UK Government. Even before the ink has hit the paper on the EMR draft, it seems the UK Government is inviting large investors to come and talk to them about deals for guaranteed generation sales prices. As far as my notes indicate, he said “The first nuclear project has already approached us for a contract.” I asked him directly in the break if this kind of pre-legislation arrangement was going to allow the nuclear industry to cream off subsidies. He denied that Contracts for Difference would be allocated for current nuclear power plants. He did not admit that there are strong indications that the so-called Capacity Mechanism of the EMR could be applied, propping up the profits of the nuclear power plants already running, and encouraging them to apply for extension licences for their cracked reactors to keep running after they should have been shut down for safety reasons.
After the National Grid meeting, I went to an EcoConnect meeting, where Eric Machiels of Infinis said, in reference to the strong influence of EdF (Electricite de France) in proposing new nuclear reactors in the UK, “The EMR was set up to meet two requirements. [First] to justify incredibly high investments. [And] nuclear – if you need to invest £10 billion or more, 10 years away, you need regulatory certainty…[But you have to know, decisions on nuclear development] will rely on decisions made in the Elysee Palace and not in Number 10.”
Well, it seems clear that the steer is still towards the UK taxpayers and billpayers stumping up to support the ailing French atomic power fleet.
A bit of a big fudge
There is no reason to believe that the Curse of Enron will not haunt the UK energy trading halls if the EMR goes ahead with its various microeconomic policies. Everybody will play for profits, and the strength of over-competitive behaviour between the current market actors will not encourage or permit new market entrants.
At the EcoConnect meeting, Diane Dowdell of Tradelink Solutions warned of the risks of going back to the kind of electricity markets of former decades, “Unless you worked under the Pool, you wouldn’t know how it works. It is a derivative…DECC need to look at Ireland – their Pool system has been utterly destroyed. Please don’t follow in the footsteps of Ireland – get the balancing right.”
The big issue is the macroeconomic need to incentivise investment in new electricity generation plant and infrastructure – something that will not be achieved by flipping microeconomic market trading conditions to benefit low carbon generators. How can new low carbon generators come onto the grid ? By placing focus on investment decisions. New generation has to clear a higher hurdle than how much it can sell green power for on the half-hourly market. Funds and financing are not going to be directed to choose low carbon investment just because marginal costs (the Carbon Floor Price and the European Union Emissions Trading Scheme) are applied to high carbon players already in the market. The guarantees of profits into the future from the institution of Contracts for Difference (Feed in Tariff) and the Capacity Mechanism will maybe trigger a slice of investment in new nuclear power, but it won’t ensure that new gas-fired power plants are built with Carbon Capture and Storage.
At the EcoConnect meeting later on, another DECC man reported back on the UK Government’s call for evidence on the EMR. DECC’s Matt Coyne said that amongst the conclusions from the consultation with industry there were concerns about the conditions for Power Purchase Agreements (PPAs) under the EMR. (Securing a PPA is the guarantee that investors need to be able to commit to backing new electricity generation capacity). He said that developers are finding it hard to secure finance for new generation investment and that it was a widely-held view that the EMR would not improve that, although he said that “it is our view that the Contracts for Difference will improve things.” Other people at the meeting were not so sure. Diane Dowdell said, “I desperately hope the EMR works. It’s got to work. [Conditions] seem to be edging out the small- and mid-sized players.” Eric Machiels said, “The Big Six vertically integrated energy suppliers are in the best position to retain their position.”
In my notes, I scribbled that Michael Ware, a dealmaking matchmaker for renewable energy projects, offered the view that “Government does resemble toddlers driving a steam train – there are lots of buttons to push…[The UK is] just a rainy little island at the edge of Europe. Capital is truly international. It all feels much easier to do business elsewhere. [The EMR looks] almost designed to turn off investors.”
There were several calls to retain the Renewables Obligation – to oblige energy suppliers to keep signing up new clean power from smaller players if they couldn’t make it themselves.Assets not Liabilities, Burning Money, Carbon Commodities, Carbon Pricing, Conflict of Interest, Corporate Pressure, Cost Effective, Dead End, Deal Breakers, Design Matters, Dreamworld Economics, Electrificandum, Emissions Impossible, Energy Insecurity, Energy Revival, Energy Socialism, Fair Balance, Financiers of the Apocalypse, Freemarketeering, Fuel Poverty, Gamechanger, Green Investment, Green Power, Insulation, Libertarian Liberalism, Low Carbon Life, Major Shift, Money Sings, National Energy, National Power, National Socialism, Non-Science, Nuclear Nuisance, Nuclear Shambles, Nudge & Budge, Optimistic Generation, Policy Warfare, Political Nightmare, Price Control, Regulatory Ultimatum, Revolving Door, Social Democracy, The War on Error, Unutterably Useless, Utter Futility, Vain Hope, Western Hedge, Wind of Fortune
Posted on September 9th, 2012 1 comment
Image Credit : epeigne37
Yesterday evening, I was caught by the intensity of the London Sky – there was little air movement in most of the lower summer-heat space above the city, and virtually no cloud except very high strands and sprurls and bones and smears.
Most of the cloud was clearly the result of aeroplane contrails – numerable to small children and their educational grandparents on various buses.
As the sun began to set, or rather, as the Earth rolled to curve away from facing the sun, the sky took on the colour of bright duck egg blue with a hint of pale green, and the sprays of high contrail-cloud took on a glorious orange-fuchsia colour with flashes of gold, bronze and vanadium reds, fading slowly to chromium reds as twilight approached.
At a certain moment, I understood something – as I watched an aeroplane high up, make its way west to Heathrow, the angle of the sunset showed its contrail as a murky ink, messing up the rest of the clouds as it brushstroked its way along, with its slate and muddy hues. As I watched, other parts of the clouds began to appear brown and grey, and since I knew that most of the cloud was jet engine exhaust that hadn’t moved because of the lack of high winds, I finally realised I was watching dirt, high up in the troposphere – careless, unthinking toxic waste. Read the rest of this entry »Academic Freedom, Breathe Easy, Burning Money, Corporate Pressure, Demoticratica, Direction of Travel, Disturbing Trends, Drive Train, Emissions Impossible, Extreme Weather, Freshwater Stress, Gamechanger, Hydrocarbon Hegemony, Major Shift, Neverending Disaster, Optimistic Generation, Paradigm Shapeshifter, Petrolheads, Policy Warfare, Political Nightmare, Regulatory Ultimatum, Social Capital, Stirring Stuff, Technomess, The Data, The Power of Intention, Toxic Hazard, Transport of Delight, Tree Family, Ungreen Development, Water Wars
Posted on September 4th, 2012 1 comment
You would have thought that people would be pulling together to get something done about Climate Change, but no. For example, whilst the UK Government Treasury and its Chancellor continue to fight a running battle with their Climate Change Department, the Prime Minister has just replaced a knowledgable Energy Minister (albeit with a Public Relations rather than an Engineering background) with somebody who seems to be against wind power – one of the only successfully deploying electricity technologies currently. And hired a relative of a rich and powerful Climate Change denier as Environment Minister.
Great.Assets not Liabilities, Big Picture, Big Society, Climate Change, Climate Chaos, Demoticratica, Dreamworld Economics, Energy Denial, Energy Insecurity, Fossilised Fuels, Hydrocarbon Hegemony, National Energy, National Power, Policy Warfare, Political Nightmare, Screaming Panic, Social Democracy, The Power of Intention, The War on Error, Vote Loser
Posted on August 27th, 2012 No comments
The human race – we have to solve energy together. And to do that, we need to harness all our personal, purposeful, positive energies, and let me tell you, personally, I feel electric – and I’m only just getting warmed up.
So let’s hear less of the nonsense from authoritatively-accredited people who want to put a dampener on green energy, who say that saving energy cannot, simply cannot be done, sigh, sigh, sigh, collective groan. We have so much energy together, we can do this.
We have the will power, the staying power, the investment power, and we will navigate the obstacles in our path.
Let’s not waste any more time on expensive trinkets, and iddy-biddy fancies with high unit costs and low compatibility to the future. Yes, I’m talking nuclear power. I’m talking the nobody-really-wants-to-do-it-and-nobody-thinks-it-can-be-cheap-enough-to-work-at-scale Carbon Capture and Storage. And yes, I’m talking carbon markets – tell me again, where are they now ? Oh yes, still in the starting blocks.
And don’t even start to talk about pricing carbon to me – in this world of rollercoaster, highly volatile energy prices, what on Earth could costing or taxing carbon actually achieve ? And fusion power ? Nah, mate, forget it. It’s been 50 years away for the last 50 years.
Shale gas, oil from shales, tar sands, coal bed methane collection and underground coal gasification are once-abandoned messy ideas from way back. They’re still messy, and they’re still retro, and they’re not going to get us anywhere. If the United States of America want to completely ruin their lithosphere, well, that’s up to them, but don’t come around here toxifying our aquifers and poisoning our European trees !
What we need is marine energy, geothermal energy, hydropower, solar power, wind power, and Renewable Gas, because gaseous fuels are so flexible and store-able and can come from many, many processes. And we need the next optimistic generation of leaders to push through the administration ceiling and get green energy policy really rolling, attracting all the green investment will.
If I were a power plant, I would be cranking out the current and making everything shine very, very brightly just now.
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Posted on August 13th, 2012 1 commentAcademic Freedom, Assets not Liabilities, Bad Science, Bait & Switch, Be Prepared, Climate Change, Climate Chaos, Conflict of Interest, Corporate Pressure, Delay and Deny, Disturbing Trends, Divide & Rule, Dreamworld Economics, Economic Implosion, Emissions Impossible, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Fossilised Fuels, Freshwater Stress, Gamechanger, Growth Paradigm, Hydrocarbon Hegemony, Major Shift, Mass Propaganda, Neverending Disaster, Non-Science, Nudge & Budge, Paradigm Shapeshifter, Peak Emissions, Peak Energy, Policy Warfare, Political Nightmare, Public Relations, Realistic Models, Regulatory Ultimatum, Renewable Resource, Resource Curse, Science Rules, Social Capital, Social Change, Sustainable Deferment, The Data, The Power of Intention, The War on Error, Voluntary Behaviour Change, Wasted Resource
Posted on August 5th, 2012 No comments
Disobedience only gets you so far. Resistance can be fertile, but intellectual ghettos can be futile. The human tendency to generalise creates too much negativity and prevents us from being constructive. We complain about the “evil” oil and gas companies; the “greedy” coal merchants and their “lying” bankster financiers; but refuse to see the diamonds in the mud.
We should obey the future. In the future, all people will respect each other. There will no longer be war propaganda carried by the media, demonising leaders of foreign countries, or scorn for opposing political parties. In the future, human beings will respect and have regard for other human beings. So we should live that future, live that value, have care for one another. I don’t mean we are obliged to give money to charity to help needy people in poor countries. I don’t mean we should campaign for our government to commit funds to the Climate Finance initiatives, whose aim is to support adaptation to climate chaos in developing countries. No, charity is not enough, and never matches the need. Philanthropy will not answer climate change, and so solutions need to be built into the infrastructure of the global economy, sewn into the design, woven into the fabric. There should be no manufacture, no trade, no form of consumption that does not take account of the climate change impacts on the poor, and on the rich, on ecosystems, on ourselves.
Yes, it’s true that corporations are destroying the biosphere, but we cannot take a step back, grimace and point fingers of blame, for we are all involved in the eco-destructive economy. We are all hooked on dirty energy and polluting trade, and it’s hard to change this. It’s especially hard for oil, gas and coal companies to change track – they have investors and shareholders, and they are obliged to maintain the value in their business, and keep making profits. Yes, they should stop avoiding their responsibilities to the future. Yes, they should stop telling the rest of us to implement carbon taxation or carbon trading. They know that a comprehensive carbon price can never be established, that’s why they tell us to do it. It’s a technique of avoidance. But gathering climate storms, and accumulating unsolved climate damages, are leading the world’s energy corporations to think carefully of the risks of business as usual. How can the governments and society of the world help the energy companies to evolve ? Is more regulation needed ? And if so, what kind of political energy would be required to bring this about ? The United Nations climate change process is broken, there is no framework or treaty at hand, and the climate change social movement has stopped growing, so there is no longer any democratic pressure on the energy production companies and countries to change.
Many climate change activists talk of fear and frustration – the futility of their efforts. They are trapped into the analysis that teaches that greed and deceit are all around them. Yet change is inevitable, and the future is coming to us today, and all is quite possibly full of light. Where is this river of hope, this conduit of shining progress ? Where, this organised intention of good ?
We have to celebrate the dull. Change is frequently not very exciting. Behind the scenes, policy people, democratic leaders, social engineers, corporate managers, are pushing towards the Zero Carbon future reality. They push and pull in the areas open to them, appropriate to their roles, their paid functions. Whole rafts of national and regional policy is wedded to making better use of energy, using less energy overall, displacing carbon energy from all economic sectors.
And then there’s the progressive politics. Every leader who knows the shape of the future should strive to be a Van Jones, or a Jenny Jones, any green-tinged Jones you can think of. We should enquire of our political leaders and our public activists what flavour of environmental ecology they espouse. We should demand green policies in every party, expect clean energy support from every faction. We should not only vote progressive, we should promote future-thinking authority in all spheres of social management – a future of deeper mutual respect, of leaner economy, of cleaner energy.
The future will be tough. In fact, the future is flowing to us faster than ever, and we need resilience in the face of assured destructive change – in environment and in economy. To develop resilience we need to forgo negativity and embrace positivity. So I ask you – don’t just be anti-coal, be pro-wind, pro-solar and pro-energy conservation. Where leaders emerge from the companies and organisations that do so much harm, celebrate them and their vision of a brighter, better, lower carbon future. Where administrations take the trouble to manage their energy use, and improve their efficiency in the use of resources, applaud them, and load them with accolades. Awards may be trite, but praise can encourage better behaviour, create exemplars, inspire goodly competition. Let us encourage the people with good influence in every organisation, institution and corporation. Change is afoot, and people with genuine power are walking confidently to a more wholesome future.
Protect your soul. Don’t get locked into the rejection of evil, but hold fast to what is good. Do not conform to the patterns of this world, but be transformed by the renewing of your minds. Be strong for goodness, even as you turn your back on a life of grime.
Live the Zero Carbon future, and make it come as soon as it can.Academic Freedom, Be Prepared, Behaviour Changeling, Big Picture, Big Society, Burning Money, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Climate Change, Climate Chaos, Climate Damages, Coal Hell, Conflict of Interest, Corporate Pressure, Cost Effective, Delay and Deny, Demoticratica, Design Matters, Divide & Rule, Dreamworld Economics, Eating & Drinking, Economic Implosion, Efficiency is King, Emissions Impossible, Energy Autonomy, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Environmental Howzat, Evil Opposition, Extreme Weather, Faithful God, Feed the World, Feel Gooder, Financiers of the Apocalypse, Food Insecurity, Fossilised Fuels, Freemarketeering, Fuel Poverty, Global Heating, Global Singeing, Global Warming, Green Investment, Growth Paradigm, Hide the Incline, Human Nurture, Hydrocarbon Hegemony, Incalculable Disaster, Low Carbon Life, Mass Propaganda, Media, Money Sings, National Energy, Near-Natural Disaster, No Pressure, Not In My Name, Nuclear Nuisance, Nuclear Shambles, Nudge & Budge, Optimistic Generation, Paradigm Shapeshifter, Peace not War, Peak Emissions, Peak Oil, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Regulatory Ultimatum, Renewable Resource, Resource Curse, Revolving Door, Social Capital, Social Change, Social Democracy, Solar Sunrise, Solution City, Stop War, Technofix, Technological Fallacy, Technomess, The Data, The Power of Intention, Unqualified Opinion, Unsolicited Advice & Guidance, Unutterably Useless, Utter Futility, Vain Hope, Voluntary Behaviour Change, Vote Loser, Wasted Resource, Western Hedge, Wind of Fortune, Zero Net
Posted on August 4th, 2012 1 comment
Kofi Annan has thrown up his hands and backed away from his role as UN-Arab League special envoy to Syria tasked with a peace mission. In one sense it is all too predictable. The United Nations Security Council is divided, reflecting deep faultlines in the policy positions of the main body of the UN.
It is probably too early in the evolution of global human governance to expect military violence to be declared illegal, but at least there are voices starting to speak up demanding that there be no armed foreign intervention in Syria. The trouble is that although warfare by foreign parties in Syria has not been publicly declared, there are, by many accounts, military and security operatives of a number of external country administrations already in play inside its borders. Foreign ministers in several major countries have pledged support to either the Syrian “regime” – you know – its “ruling government”, or to the “opposition” “rebels” – otherwise known as gangs of armed thugs. Or quite possibly people from a nebulous ill-defined shadowy organisation known as “Al-Qaeda”.
There are some reports that foreign involvement was behind the bombing of members of President Bashar al-Assad’s government in July, a near “decapitation” – as Assad himself could have been easily killed in the incident, and that a reprisal attack took place several days later – possibly severely injuring or even killing Prince Bandar, newly recruited chief of intelligence in the Kingdom of Saudi Arabia – recently drafted in – apparently with a mission to topple Syria’s “regime” – you know, Syria’s “legitimate administration” – a former ambassador to the United States of America. Although this is not yet confirmed. Or denied.
Despite conciliatory moves, countries of stern influence in the United Nations continue to call for Assad to quit, for reasons that nobody really delves into. Oh yes, as a mild-mannered London-trained ex-ophthalmologist, he’s supposed to be some kind of Hitler character, killing thousands of “his own people”. This story clearly doesn’t stick very well to the man, particularly since this narrative was also recently falsely used against the former leader of Libya. Another story that hasn’t been washing is that the Syrian “regime”, you know, the “proper authorities of administration”, has been responsible for starting all the violence in Syria – but there is now plenty of evidence to the contrary. So why has it been necessary to demonise Assad ? Why has it been that – allegedly – various governments have decided to get dirty hands and stir up violence in Syria in means overt and covert ?
And with the risks to global oil supply, why has it been necessary for the United States of America and the European Union to implement and enforce an oil embargo on Syria ? I mean, you would have thought it would be in everybody’s best interests to keep the oil flowing from every source possible. But no, sanctions it is, and Syria’s had to give up a considerable amount of their production. I know, I know, before the embargo Syria’s output was only 10% of Iran’s current production (see below), but it has meant a lot for Syria’s trade balance. According to the CIA Factbook on Syria (under “Economy”), nearly three quarters of all oil produced has been for export (although it was consuming more Natural Gas than it could produce – presumably for power generation). Plus, it’s national debt put it in the bottom ranks of the world’s countries meaning it can ill-afford to become more impoverished.
So remind me again, what was the oil embargo for ? To depose Assad by making him unpopular because of a nosediving economy ? And why does Assad need to go, actually ? Nobody’s saying that the country has been run perfectly. Gruesome tales have been told of what can happen in Syria – but then, horrible things happen in every country, including in the United States of America, and yet the United Nations is not insisting that Barack Obama stand aside.
Several key cities in Syria have existed in tolerant civilisation for thousands of years. Why does war have to come to Syria ? Why is there civil war being conducted in Damascus ? Even stoics are finding this hard to bear. Wikipedia notes despairingly and ungrammatically “In the second decade of the 21th century Damascus was damaged from the ongoing Syrian Civil War”.
The more I think about it, the more I come circling back to the same theory – that the economic attack on Syria, and the now almost indisputable accounts of outside meddling that is provoking the conflict (and may have even instigated it in the first place), is simply part of a plan to make the oil and gas resources of all Middle Eastern countries available to global markets at reasonable prices. I mean, look at Iraq, whose oil production was severely hit as a result of military destruction by the international warfare community, but which is now making a splendid recovery (see below) and most of the profits are pouring into the coffers of the multinational oil and gas companies, and diesel and petrol stay relatively inexpensive. Or not, as the case may be. The plan for countries across the Middle East is probably the along the same general line – first accuse the country’s government of heinous crimes, then apply economic sanctions or energy sanctions of some kind, then apply diplomatic and media pressure, (and then, these days, send in the spooks to kick up an “Arab Spring”) and then send in the gunships or gunchoppers – attack helicopters. This narrative has been successfully applied to bring Iraq to heel, and then Libya, and now it seems Syria is being talked down the same blood-paved road, and Iran is being pushed along a parallel track.
Iran. Now there’s an interesting case. Iran is not a pushover. It has taken nearly seven years of manoeuvring to make the completely unfounded case that Iran is building (or planning to build) nuclear weapons. Iran has been enriching uranium for its stated aim of developing a civilian nuclear power program, and this has been used as the justification to impose sanctions against Iran, including an oil embargo, which is having an impact on their production (see below). Besides painting the leader of Iran as an evil dictator, the propagandists of this world also seem to be trying to wield a new stick to beat Iran with – in the form of the call to end fossil fuel subsidies. Billed as a climate change policy by the G20, it is more a punitive measure against developing countries who have been using fossil fuel subsidies to make sure their citizens can get cheap energy. If Iran is no longer permitted to subsidise energy for citizens it will be forced to sell the oil and gas abroad – a buyer’s market only too pleased to suck dry the world’s second largest oil and Natural Gas producer. That volume of oil and gas being made available on the world’s markets would definitely keep global prices of oil and gas as low as possible.
Anyway, back to Syria. Clearly, there are problems, although reports of enormous and desperate increases in violence are probably not accurate. Painting the story as increasingly agitated is a common media device to engage the readers with the situation – but if it gets too sensationalised the narrative could start to affect decisionmakers, and may lead to illegitimate and inappropriate influence being exerted from abroad. Instead of William Hague MP, British Foreign Secretary for the United Kingdom, offering tactical support to the Syrian “rebels”, he should announce an immediate diplomatic mission to the Syrian government, and the various rebel groups, offering the undoubted skills of his secret service personnel in mediating a ceasefire between the authorities and the opposition. Otherwise we could end up with NATO committing to tens of thousands of weaponised air sorties over Syria and destroying a large part of this ancient culture, just as they did with Libya. All economic and energy sanctions and embargoes against Syria should be dropped, as they are aggravating the conflict. If the international community uses the language and action of peace, then perhaps Syria can be encouraged back to the ways of peace.
In the words of Russian Foreign Minister Sergey Lavrov, “Regime change is not our profession.”Babykillers, Big Society, Carbon Army, Carbon Capture, Corporate Pressure, Demoticratica, Direction of Travel, Disturbing Trends, Energy Autonomy, Energy Disenfranchisement, Energy Insecurity, Evil Opposition, Foreign Interference, Foreign Investment, Incalculable Disaster, Mass Propaganda, Media, Military Invention, Money Sings, National Energy, No Blood For Oil, Not In My Name, Obamawatch, Peace not War, Peak Oil, Policy Warfare, Resource Curse, Resource Wards, Screaming Panic, Stop War, The Power of Intention, The Price of Gas, The Price of Oil, The War on Error, Western Hedge
Posted on July 23rd, 2012 No comments
After addressing the Stop Climate Chaos coalition Annual General Meeting on Friday 20th July 2012, Tony Juniper, sustainability consultant, and Colin Butfield of WWF, responded to questions from the audience. There was a sense of unease in the room, dissatisfaction with the UK Coalition Government appearing to roll back commitment to the Climate Change Act, and their failure to enact their manifesto declaration of being “the greenest government ever”.
People expressed doubts about the design of climate change communications, about collaboration with companies over climate change action, and what would be suitable campaign actions for protest groups and charities. Several groups found their ongoing campaigns disparaged, in effect, by dismissive comments from others. It wasn’t altogether a pleasant experience. Here are just a few paragraphs attempting to summarise the question-and-answer session from brief notes made at the time.
One of the attendees proposed that climate change communications going forward should make use of the fact that people are questioning the legitimacy of the current economic system, and said that there was a failure to offer a programmatic response. He said that if people were given a systemic critique, they would “get it” – and that the Green New Deal formulation was ideal. He projected that if climate change communications campaigns don’t go against the corporations, that it will be less and less likely in future that governments will respond to corporate abuse of the environment.
Tony Juniper responded by saying that he didn’t see the backing for that level of challenge to the current system. He said that even though there is an economic meltdown in progress – it’s been shown that “a pack of bankers are nicking the peoples’ money” – there has been no revolution. The Non-Governmental Organisations have carried on as normal. At the General Election, people voted for the party of the financial system. The Green New Deal, he said, simply hasn’t got the backing it should have. It suffers from the same lack of attention that faces any different economic formulation that is put in front of people. Time is so short that we have to have something more pragmatic – plausible decisions about realistic proposals. He said it was down to the NGOs to formulate this – and that emphasising jobs was essential.
Another questioner put it to the speakers that the cost of deploying wind turbines was cheaper than not doing it and that contrary to the myths they were actually rather beautiful – and that even the pylons carrying new power lines to connect new wind generation to the grid could be made to be beautiful too. New technology is something to embrace rather than fear.
Tony Juniper replied that a small minority of people have managed to poison the debate on wind power, and that they are part of the Conservative Party core backing. He said that there is lots of support for renewable energy, and that this needs to be reflected back to the media. He said that the media is “pretty poisoned”, too – the Daily Telegraph for example, although The Guardian and The Independent were more open. He suggested that industry players start talking more to the Government and get more organised. He said that Government Ministers find it easier to deal with the nuclear lobby as they have one [professional] body and one message. After the failure of Copenhagen – where the Government predicted they would come away with a successful, positive outcome and didn’t – the atmosphere as a whole has been poisonous. The NGOs didn’t react to this disappointment.
Phil Thornhill, the National Co-ordinator of the Campaign against Climate Change, criticised the NGOs who he said have stopped focusing on climate change. He said it hard to find the next “really sharp point” – the really unifying thing – the way we did with the Climate Change Act. He said that action had to be more than just signing the odd letter, and questioned the approach where action has been fixed to a time or an event – with the obvious risk of collapse. He suggested that climate action should be a continuning goal.
Colin Butfield of WWF responded to the questions – he said that the problem with promoting renewable energy was the peril of ignoring NIMBYism – people may be generally positive about wind farms, but not want one in their own back yard. He said people wanted a genuine local conversation about renewable energy development. He said that on economic proposals, that people need to be presented with solutions they can easily adopt. He suggested one call to action that could easily draw people would be to ask “do you want your pension going into that ridiculous investment ?”, and then asking people to choose more sustainable investments and funds. He said that “normal” people are a “bit terrified” by the idea of collapse of the current economic system [and so may not react well or buy into the ideas]. He said that many pensions were a “climate bad”. He said that in the current economic situation, people could be brought to think about the link between the way banks invest money and climate change – as people are very unhappy with the existing system – “a blindside force for bad”. He said that an example of positive change had been in the campaign to demand buisiness carbon reporting.
Herbert Williams, Chief Executive Officer of A Rocha UK, holding up a credit card, said that positive investment change in the economy was unlikely to form a groundswell as people are in thrall to the current financial system, and that most public communications were advertising to direct the flow of money. He said that there was a danger in repeating the styles and actions of the past.
Peter Robinson of the Climate Alliance said that people are very demoralised about the economic situation – and that climate change arguments have to be involved in any policy proposals.
Tony Juniper said that a suitable goal for campaigning would be shifting anger about the economic situation to a call for green jobs. He asked whether this would still require “grassroots” activism and answer this with a qualified “yes”, because he said it would require different strategies. He said that the key requirement was to work out how to engage people and get them involved. He said that a different body of expertise would be needed in these campaigns. He mentioned that he has been considering employing psychologists – people from public relations companies – and said “we need to get some of these helping us.” He asked how many people would be a significant number to sign up to a campaign. He mentioned that the Climate Change Act campaign had got 200,000 people to urge their MPs to sign the Early Day Motion in Parliament, but that it was only successful because there had been more political jigsaw pieces in place. The 200,000 would not be enough to move to the next phase. To get real action on the Climate Change Act he suggested that the campaign would need to broaden the base – and that would need more people than just those from campaign organisations to be involved. He said that he was still seeing a lot of the same faces – even though it was “lovely to see you all”, but that the campaign needs to go wider. He said that there are difficulties with anything that involves infrastructure, as the Government has just ripped up the planning system in Local Authorities – 50 years of accumulated wisdom on how to do development.
Phil Thornhill said that Martin Luther King didn’t have a communications expert or a consultant psychologist. He had passion to get his views across. Climate change is perhaps less tangible that civil rights – therefore needs more passion. The idea that psychologists or public relations techniques can give you a shortcut to understanding your audience better was not helpful. Advertising and public relations are mostly about selling things to people. Climate change communications have been shown to not be getting through to people – the message to change can be unappetising.
It was asked if it is possible to hold together progressive politics and the traditional NGO approach.
It was noted that the think tank battle is very important – and their public relations. This style was planted 60 years ago – fundamentally anti-state – based on the Austrian school of economics – it’s very easy for them to point at any efforts by governments and claim “the faceless state is coming to take your money”.
Colin Butfield answered to a question about social media – could we get millions of young people to join in ? He said you can’t, but that we’d nearly got there with the Green Deal on loans. In regards to the 200,000 mentioned for the Climate Change Act he said that in the current less urgent political atmosphere, those numbers are always going to be ignored. By contrast, he’d had millions of people on the Facebook page for Earth Hour – and that was sufficient to get David Cameron to talk about it.
A questioner raised issues about coopting NGOs and the social movements to enact policy goals. Energy goals can’t be simply about deploying renewable energy, but must also answer questions on access to energy, land rights, food versus fuel, fuel versus forests. You cannot leave questions of justice aside.
Tony Juniper, in replying to a warning that it is important to keep vigilant about the dubious underbelly of corporate public relations agendas, said that although one could damage their brands for a while, and companies and campaigns could have battles to capture each others’ agendas, that we are not going to get anywhere without all sorts of compromise – finding shared values.
Later, over a spiffing Marks & Spencer buffet outside in the Westminster School walled garden, I spoke with a campaigner about the rationale and purpose of campaigning. I asked whether it could be seen as rather patronising to assume that we are the ones with the better ideas and information, and that we have to “engage” other people with a view to them adopting our position and taking our recommended actions. The campaigner asked what we would do if we didn’t do campaigns – how would we involve people in these issues ?
I thought to myself – therein lies the problem. A campaign should not be about keeping people running around like headless chickens trying to put across messaging and persuading other people to take action. Keeping concerned people busy with communications tasks is not a genuine achievement, I would suggest. It certainly doesn’t appear to be resulting in genuine, widescale political, economic and social change. There was a brief flicker of purpose when the previous Labour Government had promoted climate change communications (although they alienated a good portion of the population with their strategy and messaging), but now there’s no political lever.
We don’t got no revolution, and a new round of consultation with communications specialists is not going to change that.Bait & Switch, Behaviour Changeling, Big Picture, Big Society, Carbon Capture, Climate Change, Climate Chaos, Corporate Pressure, Deal Breakers, Demoticratica, Direction of Travel, Divide & Rule, Dreamworld Economics, Energy Change, Evil Opposition, Financiers of the Apocalypse, Freemarketeering, Green Investment, Green Power, Human Nurture, Hydrocarbon Hegemony, Libertarian Liberalism, Mass Propaganda, Media, Nudge & Budge, Paradigm Shapeshifter, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Regulatory Ultimatum, Social Capital, Social Change, Sustainable Deferment, The Myth of Innovation, The Power of Intention, The War on Error, Unqualified Opinion, Unsolicited Advice & Guidance, Voluntary Behaviour Change, Vote Loser
Posted on July 21st, 2012 No comments
At the annual Stop Climate Chaos coalition chin-wag on Friday 20th July 2012, I joined a table discussion led by Tony Bosworth of the environmental group Friends of the Earth.
He was laying out plans for a campaign focus on the risks and limitations of developing shale gas production in the United Kingdom.
During open questions, I put it to him that a focus on shale gas was liable to lay Friends of the Earth open to accusations of taking the pressure off high carbon fuels such as coal. He said that he had already encountered that accusation, but emphasised that the shale gas licencing rounds are frontier – policy is actively being decided and is still open to resolution on issues of contention. Placing emphasis on critiquing this fossil fuel resource and its exploitation is therefore timely and highly appropriate. But he wanted to be clear that “we are not going soft on coal”.
I suggested that some experts are downplaying the risks of shale gas development because of the limitations of the resource – because shale gas could only contribute a few percent of national fuel provision, some think is is unwise to concentrate so much campaign effort on resisting its development. Bosworth countered this by saying that in the near future, the British Geological Survey are expected to revise their estimates of shale gas resource upwards by a very significant amount.
He quoted one source as claiming that the UK could have around 55 years of shale gas resource within its borders. I showed some scepticism about this, posing the question “But can it be mined at any significant rate ?” It is a very common public relations trick to mention the total estimated size of a fossil fuel resource without also giving an estimate of how fast it can be extracted – leading to entirely mistaken conclusions about how useful a field, well or strata can be.
Tony Bosworth said that shale gas reserve estimates keep changing all the time. The estimate for shale gas reserves in Poland have just been revised downwards, and the Marcellus Shale in the United States of America has also been re-assessed negatively.
Bosworth said that although campaigners who are fighting shale gas development had found it useful to communicate the local environmental damage caused by shale gas extraction – such as ozone pollution, traffic noise, water pollution and extraction, landscape clearance – the best argument against shale gas production was the climate change emissions one. He said academics are still being recruited to fight on both sides of the question of whether the lifecycle emissions of shale gas are higher than for coal, but that it was becoming clear that so-called “fugitive emissions” – where gas unintentionally escapes from well works and pipeline networks – is the key global warming risk from shale gas.
Opinion around the table was that the local environmental factors associated with shale gas extraction may be the way to draw the most attention from people – as these would be experienced personally. The problem with centring on this argument is that the main route of communication about these problems, the film Gasland, has been counter-spun by an industry-backed film “Truthland”.
The Royal Society recently pronounced shale gas extraction acceptable as long as appropriate consideration was paid to following regulatory control, but even cautious development of unconventional fossil fuels does not answer the climate change implications.
There is also the extreme irony that those who oppose wind farm development on the basis of “industrialisation of the landscape” can also be the same group of people who are in favour of the development of shale gas extraction – arguably doing more, and more permanently, to destroy the scenery by deforestation, water resource sequestration and toxification of soils, air and water.
Tony Bosworth told the group about the Friends of the Earth campaign to encourage Local Authorities to declare themselves “Frack-Free Zones” (in a similar way to the “Fair Trade Towns” campaign that was previously so successful). He said that FoE would be asking supporters to demand that their local governments had a “No Fracking” policy in their Local Plans. It was suggested in the discussion group that with the current economic slowdown and austerity measures, that Local Authorities may not have the capacity to do this. Tony Bosworth suggested that in this case, it might be worth addressing the issue to church parish councils, who can be very powerful in local matters. It was pointed out that frequently, parish councils have been busy declaring themselves “Wind Free Zones”.
It was considered that it would be ineffective to attempt to fight shale gas production on a site-by-site direct action basis as the amount of land in the UK that has already and will soon be licenced for shale gas exploration made this impossible. Besides which, people often had very low awareness of the potential problems of shale gas extraction and the disruption and pollution it could bring to their areas – so local support for direct action could be poor.
One interesting suggestion was to create a map of the United Kingdom showing the watersheds where people get their tap supplies from superimposed on where the proposed shale gas exploration areas are likely to be – to allow people to understand that even if they live far away from shale gas production, their drinking water supplies could be impacted.
In summary, there are several key public relations fronts on which the nascent shale gas “industry” are fighting. They have been trying to seed doubt on low estimates of actual shale gas production potential – they have been hyping the potentially massive “gamechanging” resource assessments, without clear evidence of how accessible these resources are. They have also been pouring scorn on the evidence of how much damage shale gas could do to local environments. And they have also been promoting academic research that could be seen to make their case that shale gas is less climate-damaging than other energy resources.
Shale gas, and the issue of the risks of hydraulic fracturing for unconventional fossil fuels, is likely to remain a hot ecological topic. Putting effort into resisting its expansion is highly appropriate in the British context, where the industry is fledgeling, and those who are accusing Friends of the Earth and others of acting as “useful idiots” for the ambitions of the coal industry just haven’t taken a look at the wider implications. If shale gas is permitted dirty development rights, then that would open the gateway for even more polluting unconventional fossil fuel extraction, such as oil shale and underground coal gasification, and that really would be a major win for the coal industry.Bait & Switch, Breathe Easy, Climate Change, Climate Chaos, Corporate Pressure, Dead End, Delay and Deny, Demoticratica, Disturbing Trends, Divide & Rule, Eating & Drinking, Emissions Impossible, Energy Autonomy, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Environmental Howzat, Forestkillers, Freemarketeering, Freshwater Stress, Gamechanger, Global Warming, Health Impacts, Hydrocarbon Hegemony, Major Shift, Mass Propaganda, Money Sings, National Energy, National Power, Nudge & Budge, Paradigm Shapeshifter, Peak Emissions, Peak Natural Gas, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Pure Hollywood, Regulatory Ultimatum, Resource Curse, Shale Game, Social Capital, Social Change, Social Chaos, Social Democracy, Stirring Stuff, Sustainable Deferment, Tarred Sands, Technofix, Technomess, The Data, The Price of Gas, The War on Error, Toxic Hazard, Unconventional Foul, Unnatural Gas, Vote Loser, Water Wars, Western Hedge
Posted on July 14th, 2012 No comments
Rex Tillerson, Chief Executive Officer of ExxonMobil, was recently invited to talk to the Council on Foreign Relations in the United States of America, as part of their series on CEOs.
His “on the record” briefing was uploaded to YouTube almost immediately as he made a number of very interesting comments.
The thing most commented upon was his handwaving away the significance of climate change – a little change here, a little change over there and you could almost see the traditional magician’s fez here – shazam – nothing to worry about.
In amongst all the online furore about this, was discussion of his continued Membership of the Church of Oil Cornucopia – he must have mentioned the word “technology” about seventy-five times in fifteen minutes. He clearly believes, as do his shareholders and management board, that his oil company can continue to get progressively more of the black stuff out of tar sands, oil shales or oil-bearing shale sediments and ever-tighter locked-in not naturally outgassing “natural” gas out of gas shales. At least in Northern America.
As numerous commentators with a background in Economics have claimed, well, the price of oil is rising, and that creates a market for dirtier, harder-to-reach oil. Obviously. But missing from their Law of Supply and Demand is an analysis of how oil prices are actually determined in the real world. It’s certainly not a free market – there are numerous factors that control the price of the end-product, gasoline, not least state sponsorship of industries, either through direct subsidies, or through the support of dependent industries such as car manufacture. At least in North America.
In the background, there is ongoing shuttle diplomacy between the major western economies and the assortment of regimes in the Middle East and North Africa (MENA) who still have the world’s largest pool of cleaner-ish petroleum under their feet. That, naturally, has an impact on supply and pricing : even though the strength of this bonding is not as tight-fast as it historically was, there appears to have been more of it since around 2005. Or at least, that’s when I first started monitoring it consciously.
In addition to that, there are only a limited number of players in the oil industry. It is almost impossible to break into the sector without an obscene amount of capital, and exceedingly good buddy-type relationships with everybody else in the field – including sheikhs you formerly knew from when you attended specialty schools. So, no, the market in oil is not free in any sense. It is rigged – if you’ll excuse the pun.
And then there’s foundational reasons why oil prices are artificial – and may not cause a boom in the “unconventional” production that Rex Tillerson is so excited about (in a rancher-down-the-farm kind of way). Oil is still fundamental to the global economy. In fact, the price of oil underpins most business, as oil is still dominant in the transportation of goods and commodities. Despite all the techno-wizardry, it is fundamentally more costly to drill for fossil fuels in shale, than from pressure wells where oil just gloops out of the ground if you stick a pipe in.
It’s not the drilling that’s the major factor – so the technology is not the main driver of the cost. It’s the put-up, take-down costs – the costs of erecting the infrastructure for a well, or putting underground shale heating or fracturing equipment in place, and the cleaning up afterwards. Some of the technologies used to mine shales for oil use an incredible amount of water, and this all needs to be processed, unless you don’t mind desecrating large swathes of sub-tropical scenery. Or Canada.
The price of oil production has a knock-on effect, including on the very markets that underpin oil production – so increasing oil prices have a cyclic forcing effect – upwards. It also has an impact on the prices of other essential things, such as food. One can see a parallel rise in the price of oil and the price of staple crops in the last few years – and the spiralling cost of grain wheat, rice and corn maize is not all down to climate change.
Oil companies are in a quandary – they need to have higher oil prices to justify their unconventional oil operations – and they also need good relationships with governments, who know they cannot get re-elected if too many people blame them for rising costs of living. Plus, there’s the global security factor – several dozen countries already have economies close to bust because of the cost of oil imports. There are many reasons to keep oil prices depressed.
Let’s ask that subtle, delicate question : why did Rex Tillerson espouse the attitudes he did when asked to go on the record ? Why belittle the effects of climate change ? The answer is partly to soothe the minds of American investors, (and MENA investors in America). If such a powerful player in the energy sector believes “we can adapt to that” about climate change, clearly behind-the-scenes he will be lobbying against excessive carbon pricing or taxation with the American federal administration.
And why be so confident that technology can keep the oil flowing, and make up for the cracks appearing in conventional supply chains by a frenzy of shale works ? Well, logically, he’s got to encourage shareholder confidence, and also government confidence, that his industry can continue to deliver. But, let’s just surmise that before he was shunted onto the stage in June, he’d had a little pre-briefing with some government officials. They would be advising him to show high levels of satisfaction with unconventional oil production growth (in America) – after all, this would act against the rollercoaster of panic buying and panic selling in futures contracts that has hit the oil markets in recent months.
So Rex Tillerson is pushed awkwardly to centre stage. Global production of oil ? No problem ! It’s at record highs (if we massage the data), and likely to get even better. At least in America. For a while. But hey, there’s no chance of oil production declining – it’s important to stress that. If everyone can be convinced to believe that there’s a veritable river of oil, for the forseeable future, then oil prices will stay reasonable, and we can all carry on as we are. Nothing will crash or burn. Except the climate.
Rex Tillerson’s interview on global (American) oil production may have been used to achieve several propaganda aims – but the key one, it seems to me, was to talk down the price of oil. Of course, this will have a knock-on effect on how much unconventional oil is affordable and accessible, and maybe precipitate a real peak in oil production – just the thing he’s denying. But keeping the price of oil within a reasonable operating range is more important than Rex Tillerson’s impact on the American Presidential elections, or even Rex Tillerson’s legacy.Bait & Switch, Big Picture, Burning Money, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Climate Change, Conflict of Interest, Corporate Pressure, Delay and Deny, Demoticratica, Disturbing Trends, Divide & Rule, Dreamworld Economics, Emissions Impossible, Energy Insecurity, Engineering Marvel, Environmental Howzat, Feed the World, Financiers of the Apocalypse, Food Insecurity, Foreign Interference, Foreign Investment, Fossilised Fuels, Freemarketeering, Gamechanger, Growth Paradigm, Hydrocarbon Hegemony, Landslide, Mass Propaganda, Media, Near-Natural Disaster, No Blood For Oil, Not In My Name, Nudge & Budge, Obamawatch, Paradigm Shapeshifter, Peak Oil, Policy Warfare, Political Nightmare, Price Control, Public Relations, Pure Hollywood, Resource Wards, Revolving Door, Shale Game, Sustainable Deferment, Tarred Sands, Technofix, Technological Fallacy, Technological Sideshow, Technomess, The Myth of Innovation, The Power of Intention, The Price of Oil, Toxic Hazard, Unconventional Foul, Ungreen Development, Unnatural Gas, Vote Loser, Water Wars, Western Hedge
Posted on July 7th, 2012 1 comment
My electronic mail inbox and Twitter “social media” timeline are full of people sparking and foaming about George Monbiot’s latest kow-tow to American academia. Apparently, he has discarded the evidence of many, many researchers, energy engineers and market players and poured luke-warm, regurgitated scorn on the evidence and inevitability of “Peak Oil”.
The level of agitation contradicting his stance has reached a new peak – in fact, I think I might claim this as “Peak Agitation”.
Here is just one example from Paul Mobbs, author of “Energy Beyond Oil”, and a multi-talented, multi-sectoral educator and researcher.
I initially read it in my inbox and nearly fell of my chair gobsmacked. When I had recovered from being astonished, and asked Mobbsey if I could quote him, perhaps anonymously, he wrote back :-
“No, you can quite clearly and boldly attach my name and email address to it ! And perhaps ask George for a response ?”
Sadly, George Monbiot appears to have jammed his thumbs in his ears as regards my commentary, so he is very unlikely to read this or become aware of the strength of opposition to his new positioning. But anyway – here’s for what’s it’s worth (and when it comes from Paul Mobbs, it’s worth a great deal) :-
Re: Peak oil – we were wrong. When the facts change we must change.
I’ve sat patiently through the various emails between you all — mainly to
take soundings of where you’re all at on this matter. In addition, over the
last few days I’ve separately received four dozen or so emails all asking
to “take on” Monbiot. I wasn’t going to reply because I’ve so many more
pressing matters to take care of, but given the weight of demands I can’t
I don’t see any point in “taking on” Monbiot; the points he raises, and the
debate that he has initiated, are so off beam compared to the basis of the
issues involved that it there’s no point proceeding along that line of
thought. You can’t answer a question if the question itself is not
Let’s get one thing straight — present economic difficulties are not simply
to do with “oil”, but with the more general issue of “limits to growth”.
That’s a complex interaction of resource production, thermodynamics,
technology, and relating all of these together, economic theory. Reducing
this just to an issue of oil or carbon will fail to answer why the trends
we see emerging today are taking place. Instead we have to look towards a
process which sees energy, resources, technology and human economics as a
The problem with this whole debate is that those involved — Monbiot
included — only have the vaguest understanding of how resource depletion
interacts with the human economy. And in a similar way, the wider
environment movement has been wholly compromised by its failure to engage
with the debate over ecological limits as part of their promotion of
alternative lifestyles. Unless you are prepared to adapt to the reality of
what the “limits” issues portends for the human economy, you’re not going
to make any progress on this matter.
Monbiot’s greatest mistake is to try and associate peak oil and climate
change. They are wholly different issues. In fact, over the last few years,
one of the greatest mistakes by the environment movement generally (and
Monbiot is an exemplar of this) has been to reduce all issues to one
metric/indicator — carbon. This “carbonism” has distorted the nature of
the debate over human development/progress, and in the process the
“business as usual” fossil-fuelled supertanker has been allowed to thunder
on regardless because solving carbon emissions is a fundamentally different
type of problem to solving the issue of resource/energy depletion.
Carbon emissions are a secondary effect of economic activity. It is
incidental to the economic process, even when measures such as carbon
markets are applied. Provided we’re not worried about the cost, we can use
technological measures to abate emissions — and government/industry have
used this as a filibuster to market a technological agenda in response and
thus ignore the basic incompatibility of economic growth with the
ecological limits of the Earth’s biosphere. As far as I am concerned, many
in mainstream environmentalism have been complicit in that process; and
have failed to provide the example and leadership necessary to initiate a
debate on the true alternatives to yet more intense/complex
industrialisation and globalisation.
In contrast, physical energy supply is different because it’s a prerequisite
of economic growth — you can’t have economic activity without a
qualitatively sufficient energy supply (yes, the “quality” of the energy is
just as important as the physical scale of supply). About half of all
growth is the value of new energy supply added to the economy, and another
fifth is the result of energy efficiency — the traditional measures of
capital and labour respectively make up a tenth and fifth of growth. As yet
mainstream economic theory refuses to internalise the issue of energy
quality, and the effect of falling energy/resource returns, even though this
is demonstrably one of the failing aspects of our current economic model
(debt is the other, and that’s an even more complex matter to explore if
we’re looking at inter-generational effects).
The fact that all commodity prices have been rising along with growth for
the past decade — a phenomena directly related to the human system hitting
the “limits to growth” — is one of the major factors driving current
economic difficulties. Arguably we’ve been hitting the “limits” since the
late 70s. The difficulty in explaining that on a political stage is that
we’re talking about processes which operate over decades and centuries, not
over campaign cycles or political terms of office. As a result, due to the
impatience of the modern political/media agenda, the political debate over
limits has suffered because commentators always take too short-term a
viewpoint. Monbiot’s recent conversion on nuclear and peak oil is such an
example, and is at the heart of the report Monbiot cites in justification of
his views — a report, not coincidentally, written by a long-term opponent
of peak oil theory, working for lobby groups who promote business-as-usual
solutions to ecological issues.
Likewise, because the neo-classical economists who advise governments and
corporations don’t believe in the concept of “limits”, the measures they’ve
adopted to try and solve the problem (e.g. quantitative easing) are not
helping the problem, but merely forestall the inevitable collapse. For
example, we can’t borrow money today to spur a recovery if there will be
insufficient growth in the future to pay for that debt. Basically, whilst you
may theoretically borrow money from your grandchildren, you can’t borrow
the energy that future economic growth requires to generate that money if
it doesn’t exist to be used at that future date. Perhaps more perversely, a
large proportion of the economic actors who have expressed support for
limits are not advocating ecological solutions to the problem, they’re
cashing-in by trying to advise people how to make money out of economic
Carbon emissions and resource depletion are a function of economic growth.
There is an absolute correlation between growth and carbon emissions. I
don’t just mean that emissions and the rate of depletion fall during
recessions — and thus “recessions are good for the environment”. If you
look at the rate of growth in emissions over the last 50 years, the change
in energy prices has a correlation to changes in carbon emissions as the
price of fuel influences economic activity. That’s why carbon emissions
broke with their historic trend, halving their previous growth rate, after
the oil crisis of the 1970s; and why they then rebounded as energy prices
fell during the 90s.
The idea that we can “decarbonise” the economy and continue just as before
is fundamentally flawed. I know some of you will scream and howl at this
idea, but if you look at the research on the interaction between energy and
economic productivity there is no other conclusion. Due to their high
energy density and relative ease of use, all fossil fuels have an economic
advantage over all the alternatives. That said, as conventional oil and gas
deplete, and “unconventional” sources with far lower energy returns are
brought into the market, that differential is decreasing — but we won’t
reach general parity with renewables for another decade or two.
Note also this has nothing to do with subsidies, or industrial power –
it’s a basic physical fact that the energy density of renewables is lower
than the historic value of fossil fuels. On a level playing field, renewable
energy costs more and has a lower return on investment than fossil fuels.
We do have the technology to develop a predominantly renewable human
economy, but the economic basis of such a system will be wholly different to
that we live within today. Unless you are prepared to reform the economic
process alongside changing the resource base of society, we’ll never
see any realistic change because all such “ecological” viewpoints are
inconsistent with the values at the heart of modern capitalism (that’s not
a political point either, it’s just a fact based upon how these systems
must operate). E.g., when the Mail/Telegraph trumpet that more wind power
will cost more and lower growth/competitiveness, they’re right — but the
issue here is not the facts about wind, it’s that the theory/expectation of
continued growth, which they are measuring the performance of wind against,
is itself no longer supported by the physical fundamentals of the human
The present problem is not simply “peak oil”. Even if volumetric production
remained constant, due to the falling level of energy return on investment
of all fossil fuels the effects of rising prices and falling systemic
efficiency will still disrupt the economic cycle (albeit at a slower rate
than when it is tied to a simultaneous volumetric reduction). Allied to the
problems with the supply of many industrial minerals, especially the
minerals which are key to the latest energy and industrial process/energy
technologies (e.g. rare earths, indium, gallium, etc.), what we have is a
recipe for a general systems failure in the operation of the human system.
And again, that’s not related to climate change, or simple lack of energy,
but because of the systemic complexity of modern human society, and what
happens to any complex system when it is perturbed by external factors.
The worst thing which can happen right now — even if it were possible,
which is entirely doubtful — would be a “return to growth”. The idea of
“green growth”, within the norms of neo-classical economics, is even more
fallacious due to the differing thermodynamic factors driving that system.
Instead what we have to concentrate upon is changing the political economy
of the human system to internalise the issue of limits. At present, apart
from a few scientists and green economists on the sidelines, no one is
seriously putting that point of view — not even the Green Party. And as I
perceive it from talking to people about this for the last 12 years, that’s
for a very simple reason… it’s not what people, especially the political
establishment, want to hear.
Rio+20 was an absolute failure. In fact what annoyed me the most was that
the media kept talking about the “second” Rio conference, when in fact it
was the third UNCED conference in the Stockholm conference in ’72. If you
contrast 1972 with 2012, the results of this years deliberations were worse
than the policies sketched out in the 70s ! Seriously, the environment
movement is being trounced, and as I see it that’s because they have lost
the intellectual and theoretical rigour that it possessed in the 70s and
80s. Rather than having a clear alternative vision, what they promote is
“the same but different”. Once environmentalism became a media campaign
about differing consumption options, rather than an absolute framework for
evaluating the effects of consumption, it lost its ability to dictate the
agenda — because its the ability to look forward and observe/anticipate
trends unfolding, however unwelcome those truths might be, which gives
groups political power.
Politicians have lost control of the economy because their materialist
ambitions no longer fit to the extant reality of the economic process. This
outcome was foreseen over 40 years ago by economists like Georgescu-Roegen
and Boulding but ignored, even amongst many liberals and especially the
left, for political reasons. These same principles, based around the issue
of limits, were also the founding reality of the modern environment
movement — but over the last 20 years the movement has lost this basic
grounding in physics and economics as it has moved towards an
aspirationally materialist agenda (green consumerism/sustainable
Unless you’re prepared to talk about limits to growth, and the fact that
the economic theories developed over two centuries of unconstrained
expansion now have no relevance to a system constrained by physical limits,
then you will not solve this problem. Just as with Monbiot’s “change” on
the issue of nuclear, his failure is a matter of basic theory and
methodological frameworks, not of facts or data. Unfortunately people keep
throwing data at each other without considering that the framework within
which those facts are considered and understood has changed, and that
consequently their conclusions may not be correct; and until the movement
accepts that the rules governing the system have changed we’ll not make
progress in advancing viable solutions.
To conclude then, Monbiot’s mistake isn’t about peak oil, or climate
change, it’s a failure to internalise the physical realities of the
“limits” now driving the human system. Unless you consider the interaction
of energy, economics and pollution, any abstractions you draw about each of
those factors individually will fail to tell you how the system as a whole
is functioning. Those limits might dictate the end of “growth economics”,
but they DO NOT dictate the end of “human development”. There are many ways
we can address our present economic and environmental difficulties, but that
cannot take place unless we accept that changing our material ambitions is
a prerequisite of that process.
Let’s be clear here. The principles which drive the economy today would be
wholly alien to Adam Smith, John Stuart Mill and others who first laid down
the rules of the system two centuries ago. Likewise Marxism and similarly
derived ideas have no validity either because they were generated during an
era when there were no constraining limits. There is no “going back” to
previous theories/ideologies on this issue because we face a scenario today
which humans society — with the exception of those ancient societies who
experienced ecological overshoot (Rome, Mayans, Easter Islanders, etc.) –
have never had to face before.
We have to move forward, to evaluate and understand is the role of
ecological limits within the future human economic process and how this
changes our advocacy of “solutions”. That debate should be at the heart of
the environment movement, and the issue of limits should lead all
discussions about all environmental issues — not green/sustainable
consumerism and other measures which seek to reassure and pacify affluent
consumers. That said, especially given the demographic skew within
membership of the environment movement, we have to begin by being honest
with ourselves in accepting the “limits agenda” and what it means for the
make-up of our own lives.
In the final analysis, you cannot be an environmentalist unless you accept
and promote the idea of limits. That was at the heart of the movement from
the early 70s, and if we want to present a viable alternative to disaster
capitalism then that is once again what we must develop and promote as an
Peace ‘n love ‘n’ home made hummus,
“We are not for names, nor men, nor titles of Government,
nor are we for this party nor against the other but we are
for justice and mercy and truth and peace and true freedom,
that these may be exalted in our nation, and that goodness,
righteousness, meekness, temperance, peace and unity with
God, and with one another, that these things may abound.”
(Edward Burrough, 1659 – from ‘Quaker Faith and Practice’)
Paul’s book, “Energy Beyond Oil”, is out now!
For details see http://www.fraw.org.uk/mei/ebo/
Read my ‘essay’ weblog, “Ecolonomics”, at:
Paul Mobbs, Mobbs’ Environmental Investigations
email – firstname.lastname@example.org
website – http://www.fraw.org.uk/mei/index.shtmlAcademic Freedom, Advertise Freely, Bait & Switch, Be Prepared, Big Picture, Big Society, Carbon Army, Carbon Capture, Climate Change, Conflict of Interest, Contraction & Convergence, Corporate Pressure, Dead End, Dead Zone, Deal Breakers, Delay and Deny, Demoticratica, Disturbing Trends, Divide & Rule, Dreamworld Economics, Emissions Impossible, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Financiers of the Apocalypse, Fossilised Fuels, Freemarketeering, Gamechanger, Global Warming, Green Investment, Growth Paradigm, Human Nurture, Hydrocarbon Hegemony, Incalculable Disaster, Landslide, Libertarian Liberalism, Low Carbon Life, Major Shift, Mass Propaganda, Media, National Energy, National Power, Neverending Disaster, No Blood For Oil, No Pressure, Not In My Name, Optimistic Generation, Paradigm Shapeshifter, Peak Emissions, Peak Energy, Peak Oil, Petrolheads, Policy Warfare, Political Nightmare, Protest & Survive, Realistic Models, Regulatory Ultimatum, Renewable Resource, Revolving Door, Social Capital, Social Change, Social Chaos, Solution City, Stirring Stuff, Sustainable Deferment, The Data, The Power of Intention, The War on Error, Wasted Resource, Western Hedge
Posted on July 4th, 2012 1 comment
Here is the second part of the transcription from the notes I took this morning in a seminar in the UK House of Commons. The meeting was convened by PRASEG, the Parliamentary Renewable and Sustainable Energy Group.
This transcription is based on an unverified long-hand paper-based recording of the words spoken. Items in quotation marks are fairly accurate verbatim quotations. Items in square brackets are interpolation, or explanation, and not the exact language the person used to present their thoughts.
[AW] How it [the Green Deal] hits the ground matters…
[Joanne Wade, Independent Consultant, UKERC]
The Green Deal is a very useful framework – a move to encourage people to pay for their own energy efficiency. The finance offering may be interesting to some. The quality [of the workmanship ? Guarantees under the Green Deal ?] is “utterly vital”. I don’t think it’s quite there. Outlining four areas (1) How the Green Deal engages (2) The low cost finance (3) Generally mainstreaming energy efficiency in peoples’ minds and (4) Fuel Poverty.
(1) Most people don’t care if they have energy efficiency [in their homes]. If we were really serious about this [our appeal would be along the lines of] you can’t sell a car with brakes that don’t work, but you can sell a house that kills you. [I just wanted to get that in up-front]. Nobody’s really cracked this yet [the messaging] is [still only] “reaching the usual suspects”. Trust is vital. Salience is key. We want people to understand this is not an add-on to all the other things they do. Community-based organisations fit the bill [we tend to trust these groups as members]. [We need to be asking] how does the Green Deal work with that ? The Green Deal providers – small to medium sized enterprises (SMEs) want to use their own brand – they are very good at marketing [and will be good at marketing the Green Deal as well]. But will that be enough to convince people ? The Assessments [that people will get at the start of the Green Deal process] will be detailed on what they can do. Some people are concerned about how much energy they use. Is that enough to go from a standing start to [...] ? Are enough people going to be committed enough by the time [Green Deal is available] ? What I think we need – to prime people to be ready to accept [the Green Deal]. [The message would be] appropriate to come from local community groups. The Government is hoping for it – but no real drivers. There are examples – but how are they going to be copied ? The CERT / CES(P) results show that Local Authorities are key. Now that National Indicators 186 and 187 [From the Performance Framework - annual reporting requirements of direct and indirect emissions as a result of Local Authority operations] have been cut – there is no driver. The amount of attention has dropped. [Local Authorities are facing other problems] reducing staff and budgets.
(2) Access to low-cost finance. [The work to make this available from the Green Investment Bank is going ahead but] what about other soruces – for example mortgage providers ? In Switzerland for example, they are lending 114 billion euro every year to homeowners at low interest rates. We need to look at how to convince people. In Switzerland, people will pay more for energy efficient homes. The Green Deal needs to accept alternative forms of finance. Need to be able to access ECO [Energy Company Obligation - part of the Energy Bill - obligation energy suppliers to supply not only energy, but energy services such as energy efficiency and energy conservation] providers. We don’t know if the market will deliver [there are already grants/finance in this sector that people are not using].
(3) Can’t see the Green Deal mainstreaming. My builder – I did an [extension] and asked for 50% extra insulation and LED [Light Emitting Diodes - a very energy efficient form of lighting] – he thought I was slightly mad but now recommends LED lighting on all builds. Here’s the Green Deal. He would say – “Why should I tell people about that ?” Typical small builder. It should be that whenever anyone is doing a refurbishment they should just do it [extra insulation etc] – and so we’re back to [the big R] – regulation. [But look at the public outcry when the media considered] consequential improvements [the "Conservatory Tax"]. [Energy efficiency] “We need to make it the thing that people do.”
(4) Fuel Poverty. The money that can be coming through the ECO is £ 350 million per year (before VAT). Let’s not kid ourselves – the householders in fuel poverty are not going to take Green Deal finance. [The Climate Change Committee says] £4 billion a year is what we need to tackle fuel poverty. The Government needs to make sure that Green Deal finance is available the fuel poor (in an appropriate form) (overcoming the small potential).
[Alan Whitehead MP] How to address the LED enthusiast who isn’t a Green Deal enthusiast ? Helping “Jeff” [representative small builder in a sketch by the Secretary of State ?] getting sorted out – taking him from a sceptic to an advocate.
[Nigel Banks, Head of Energy and Sustainable Solutions, Keepmoat]
There are glass half empty people and glass half full. How can we be filling the glass ? Retrofitting communities via the Green Deal ? We do a lot of community regeneration – we’ve build [some of the] Zero Carbon homes. We renovate rather than demolish and rebuild. We get through to RP [registered providers of social housing] and Local Authorities. There has been the “boom and bust” of FiT [solar photovoltaic feed-in tariff] – Local Authorities are reticent to get involved [with the Green Deal].
With solid wall insulation [SW] we need to take up a gap. Currently, 80,000 per year are being driven by CES(P) – 94% of these are external wall. Under the Green Deal only 10,000 are projected next year – major concern.
How many measures meet the Green Deal ? The Golden Rule [the rule o Green Deal finance that the loans should come at no extra cost to the householder because the repayments are balanced by energy savings] ? [With some solid wall insulation, meeting the Golden Rule is easy, but...]
Problems with the Green Deal include : [no Green Deal finance generally available ?]. The cooling off period of 20 – 28 days. People now expect their insulation for free. How many [of the institutions of surveyors including] RICS [will value] properties with Green Deal ?
ECO is a big target – at least £540 million per year for affordable warmth. [However, this does not compare with what we have been able to offer up to now] – entire streets – entire communities [upgraded] for free at the moment – easier than under the Green Deal.
The £200 million cashback [is welcome]. Some of the Green Deal pilot schemes have been positive. It should be able to unlock private landlords [to making energy efficiency retrofits].
The Green Deal [is currently appropriate only to] a small proportion of society – it is vital to apply through communities – churches and so on – and it can tackle long-term unemployment problems.
The Green Deal [is not going to achieve major change] on its own.
[David Robson, Managing Director, InstaGroup] We do insulation, represent over 100 SMEs. How can we make the Green Deal work ? Provide employment in local communities ? 15 years of history of energy efficiency : in the early 1990s – no funding – we were doing 300,000 installs a year. Now we are doing 500,000 this year. “If anyone says subsidies haven’t worked, it’s not true.” It has got money out onto the ground quickly. The Green Deal has huge potential – removes capital barriers pre- energy efficiency [measures] – ome of the more expensive things are covered – anyone can access low cost finance – as long as it [the Green Deal] is given an opportunity to work. It also creates a framework to cover the non-domestic sector – and [landlord-owned] private domestic sector also. The Government…. [the Green Deal is] not ready. “Whatever any politician says, the legal framework is not in place until January next year.” The insulation installers and other companies are feeling they are being told “if you want to lead on the Green Deal, take it on your [own] balance sheet.” Everyone wants the Green Deal to work. We’ve invested. Our system is in place. The work we put into Green Deal finance – low cost – we think it’s important – the lower we can keep the costs of it. “If we can’t keep it [the Green Deal finance loan interest rate] below 6% we as an industry have failed.” The Green Deal is going to take time to build. Solid wall insulation – takes time to develop this industry. Hugely innovative concept. The man on the street will take some convincing “Will I be able to sell my house ?” [But] we can’t even give away insulation at the moment – then convincing people to borrow… 2013 is a real issue – how you bridge that cliff edge. Could [limit] the Green Deal getting off the ground. “For the Green Deal to be effective it needs to take the [energy efficiency] industry with it.” Small businesses are looking to us to guide them through the Green Deal. They can’t survive 6 months of losing money. Need to have some more continuity. The Green Deal does need something to help it through the transition process. How is the Green Deal good ? A robust framework. Belief in the Golden Rule – sacrosanct. Trying to sell the Green Deal will be a challenge for all of us. The Green Deal is very much underpinned by the ECO – but if the ECO is the only thing pushing, the Green Deal won’t work – constrained by the amount of money available. Regulation is key. If consumers are given sufficient time to do things it’s OK. Low cost finance is key. Access to low rates has to be competitive or the biggest players will take all the low cost finance. I’m concerned about a continuing level of political will. Generally the media are coming on-side over the Green Deal – but you only need to look at the media coverage of “consequential improvements”… It’s important that the Government recognise concerns about the Green Deal – [coming] from people who do want it to work.
[Alan Whitehead MP] Nice chance – ought to look at carbon taxes for the future – declaring part of that “tax foregone” and use that for the Carbon Reduction Commitment [CRC] : taking from the EU ETS [European Union Emissions Trading Scheme revenue] and the carbon floor price and using that to underpin the Green Deal – get that finance interest level down – a proper green tax – taxing bads and rewarding goods. “There can be no more good than making sure that everyone’s house is energy efficient” That’s all solved.
QUESTIONS FROM THE FLOOR
[Terry ? David Hunt, Eco Environments] Concerned that microgeneration is not to benefit. Concerned about companies self-marketing – as there have been misleading advertising (such as solar photovoltaic [PV] installers advertising old FiT rates). They should not mislead the public. Regulation – compared to the MCS scheme [all solar PV installers have to be registered for MCS] but still seen some awful installs. As soon as things get sold and are bad – this leads to media stories and a loss of confidence.
[Tim ? Tony Smith, Pilkington Glass] The statutory instrument that relates to double glazing and other measures – I’m looking for sunshine on a very gloomy day – double glazing in [some cases] will get no help from the Golden Rule [some discussion about the ratings of windows and replacement windows] – reduces the attraction to our industry in terms of reducing carbon emissions.
[ X from "London Doctoral Training Centre"] Homeowners… [The success of the Green Deal is] down to how people use their homes. No-one’s talked about education and how installers talk to householders…
[ X from Association for the Conservation of Energy] I’d like to hear the panel’s views on DG TAX [the European Commission Directorate Generale on Tax matters for the European Union] that the 5% VAT rate under the Green Deal is not compliant.
[Tracy Vegro] For the 5% VAT rate, “we are ready to defend that” – as it impacts on our ability to offer other options. It’s weird since we’ve just signed a very strong [European Community] Energy Efficiency Directive. Behaviour change – that’s vital. The [Green Deal loan] Assessment will require heating controls turned down and relevant behaviour. Effectively, you’re not going to pay the interest on the loan if you change your behaviour and you will see the savings increase over time. The “conversion rate” [from Green Deal pilot schemes] was 98% “saved more than I thought” – community projects. The Ombudsman will be able to strike off poor installers. “The Consumer Protection on the Green Deal is the highest in the market.” Stringent. “If it’s proved we’re too draconian, it will come down.” [Re the question from Pilkington] You are slightly misinterpreting – this is not a barrier to that [kind of upgrade to windows] – it depends on the state of the property [for example the carbon saved is less if going from an F to and E than...] It may just be your interpretation – happy to go over that with you.
[David Robson] The MCS based accreditation is only checked once a year – a real issue. The hardest thing about MCS is – is your paperwork in order ? Not if you can do the job…
[Joanne Wade] The conversation about energy use – how to get people involved. We need more messaging – this is what this really is. If all levels of government [do the messaging] more effective.
[John Sinfield] The Minister mentioned turning up the heating and hoovering [vacuuming] in your underpants. The industry is responsible to [address that in the] owner’s manual. This is how you need to treat your house differently. The tax issue – madness. If the HMRC can’t do it [convince the EC/EU] then ignore them.
[Nigel Banks] Behaviour change is vital. The Green Deal providers who don’t put that in their package will come unstuck. Not as confident about carding [system of accreditation based on individual trades persons by trade] [not relevant to your particular skill] [skill specific ?]
[Alan Whitehead] I assume the Minister meant thermal underwear.
[Colin Hines, Green New Deal Group] Trust [is important] when the finance people are having fits over FiTs. What [are you] trying to do to the market ? Is the Green Investment Bank going to kick up some money for the Green Deal ? What about the drop in the Impact Assessment from £10 billion to £ 5 billion for the Green Deal [some confusion about what this refers to]
[Roger Webb, The Heating and Hotwater Industry Council] How do we bring “Jeff” to the party ? We are keen to see heating as part of the Green Deal. There are 90,000 small tradesmen working for 60,000 small companies. Will they think the Green Deal is rubbish ? They are the leads for the Green Deal – they need training. We need to incentivise them. A voucher scheme ? Use a little of the £200 million… I really welcome the work and [interest in] bringing microgeneration [?] business into the scheme.
[Neil Marshall, National Insulation Association] Regarding solid wall insulation – the IWI / CWI confusion [Internal Wall Insulation, Cavity Wall Insulation] – what solution is proposed for hard-to-treat cavities ? The hard-to-treats we are not able to do for another year. Need to drive more cavities and lofts. The Committee on Climate Change [CCC] have reported on a need for additional incentives outside the Green Deal – driving the uptake of the Green Deal – talk of incentives and fiscals. Gap-filling. The Green Deal [should be able to cover] able-to-pay loft insulation installations, able-to-pay cavity wall insulation, hard-to-treat cavities and solid wall insulation. If we are doing 1 million in 2012 under CERT / CES(P)…if there is no Green Deal finance we can’t sell anything [after 2012]. “There is a critical need for a transitional arrangement.” We have had high level discussions with DECC that have been very useful…
[ X from Honeywell ? ] The in-situ factors. [For example, father [in law] isn’t going to replace his boiler because the payback will be after he’s dead]. Multiple length of payback [period] for any measure that’s put in – old antiquated evaluation tool. The householder asks what’s in it for them [what they can put some energy into doing] – is the longer payback [period] less attractive ?
[ X from "Shah" ? ] Not much on solar / microgeneration. [Will the Green Deal become certified ?]
[Nigel Banks] How do we do Green Deal for a boiler ? On 3rd January  will the big energy companies do it themselves ? Some measures won’t perform as predicted.
[John Sinfield] “If the Green Investment Bank doesn’t provide finance for the Green Deal we are in a world of hurt”. We need to engage with “Jeff” the trusted installed. The Government needs to drive consequential improvements through – if you have a new boiler, you will have wall insulation [crazy otherwise, as all that heat will be lost through the walls]. Not seeing where my £ 1 million invested in solid wall solutions is going now. The job is not done [cavities and lofts].
[Tracy Vegro] A lot of Local Authorities don’t distinguish between good debt and bad – money is there for them – but they aren’t borrowing to invest. We are retaining HECA [Home Energy Conservation Act]. [Mentions poor opinion about the Green Investment Bank] – talking the “jib” [GIB] down. The biggest risk is the lack of confidence in the Green Deal. [Working on the terms of the] Green Deal Finance Companies [GDFC] – still see if…. [Important to take the attitude of] not talking it down. If another equity slice [is added...] We are a broad church – open to new entrants. Most work will be done [under the Green Deal] – most retrofits. [With the ActonCO2 and other Government paid communications campaigns on climate change and energy efficiency] We didn’t really get the message across – our millions spent [on advertising and public relations]. [We will] do better – more and more things will meet the Golden Rule. Come and meet our scientists.
[David Robson] Heating – a huge opportunity – not a loan with British Gas – the boiler you want – add on solar [with a Green Deal loan] linking creatively.
[ X from ? ] [Brings up the thorny problem of which technologies and measures are possible under the Green Deal's Golden Rule] 45 points [of requirements] to meet criteria. In the future, what technologies will be viable ?
[Tracy Vegro] The RHI [Renewable Heat Incentive] is not eligible – does not meet the [Golden] Rule.
[Further exchanges - becoming somewhat stressed]
[Alan Whitehead MP] Just as things were getting exciting…[we have to close] an interesting period over the next 18 months.Advertise Freely, Be Prepared, Behaviour Changeling, Big Number, Big Picture, Big Society, Burning Money, Carbon Army, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Conflict of Interest, Corporate Pressure, Cost Effective, Dead End, Deal Breakers, Delay and Deny, Demoticratica, Direction of Travel, Disturbing Trends, Divide & Rule, Efficiency is King, Emissions Impossible, Energy Autonomy, Energy Change, Energy Disenfranchisement, Energy Insecurity, Energy Nix, Energy Revival, Energy Socialism, Feel Gooder, Financiers of the Apocalypse, Freemarketeering, Fuel Poverty, Gamechanger, Green Investment, Growth Paradigm, Human Nurture, Hydrocarbon Hegemony, Insulation, Low Carbon Life, Major Shift, Mass Propaganda, Media, Money Sings, National Energy, National Power, No Pressure, Nudge & Budge, Optimistic Generation, Paradigm Shapeshifter, Peak Emissions, Peak Energy, Policy Warfare, Political Nightmare, Price Control, Public Relations, Realistic Models, Regulatory Ultimatum, Social Capital, Social Change, Social Chaos, Social Democracy, Solution City, Sustainable Deferment, Technofix, Technomess, The Power of Intention, Voluntary Behaviour Change, Vote Loser, Wasted Resource
Posted on July 4th, 2012 No comments
Here is a transcription of part of the notes I took this morning in a seminar in the UK House of Commons. The meeting was convened by PRASEG, the Parliamentary Renewable and Sustainable Energy Group.
This transcription is based on an unverified long-hand paper-based recording of the words spoken. Items in quotation marks are fairly accurate verbatim quotations. Items in square brackets are interpolation, and not the exact language the person used to present their thoughts.
[Alan Whitehead MP]
Will the Green Deal deliver ? In the last few days, in 140 character statements [Twitter], the Government have been telling has “all the hurdles have now been overcome.” But “is it really all systems go ?” What effect do we think the Green Deal will have on sustainability ? On carbon reduction goals ? Tracy Vegro from the Department of Energy and Climate Change (DECC) has been key in setting up the Green Deal.
[Tracy Vegro, DECC, Director, Green Deal]
“It’s been a busy old time for us.” We are in the final stages of passing the framework [of the Green Deal]. Just have the laws now [the legislation that is needed]. Those orders will come into force in October . There will be some parallel working – not a switch to the Green Deal all at once. I think it will open up a wider market in energy efficiency. We’ve been getting out and about [for the consultation process] – a women’s panel, an industry panel. We did it with an awful lot of help. “We’ve got to get energy efficiency moving in this country.” The CERT [Carbon Emissions Reduction Target - an energy supplier obligation] at the end of this year there will be “not an unlagged loft” [internal roof insulation over the top of ceilings]. There have been some gaps – with solid wall insulation numbers for example. “Whole swathes got nothing under CERT.” We have to to start delivering. I hope the Green Deal will drive it – with many more entrants into the [energy efficiency] market. Our roadshows with small businesses were encouraging. Beyond the framework we are trying to ensure a lot of choice. The Green Deal is going to have accredited goods and services in the whole thing. The [Office of Fair Trading] has been doing research to ensure [quality and competence] – “because at the end of the day it’s the bill payer who’s paying”. There’s a new oversight body. There will be a lot more data [coming back]. You know under the CERT, 300 million energy efficient lightbulbs were distributed [and we don't know where they all went and whether they were all used]. We need to build confidence. Have the Local Authorities get behind the Green Deal assessments [process], and [capitalised on] community aspects. [We hope/aim to] see the market grow much faster. So far we can see that a lot of cavities got filled but [that's only the beginning]. [We hope/aim that the Green Deal will be] driving demand. People will see their neighbours do this [and want to do it for themselves.] There’s the £200 million incentive scheme – that’s money in the bank. [Need to drive] confidence [not having people saying it's just the] new FiT [Feed-in Tariff scheme - intended to drive solar photovoltaic uptake, but poorly managed]. The Green Deal is going to be conditional on minimum energy efficiency standards being undertaken [by those taking up the offer]. [This will determine] the order in which you do these [energy efficiency] technologies – “we need to get energy efficiency into peoples’ heads” – [where they may have been deterred previously by] mostly upfront capital. We have a new helpline. We need to make it a “no-brainer solution”. How are we going to ensure training ? People will be coming out of loft and cavity wall insulation into a new sector. These are asset skills, and a lot of money is committed. to funding [re]training and assessors. There are implications on people in existing roles – but “this is a finite market”. We’re confident in this business model – for the first time there will be competition – not just the Big 6 [energy companies : British Gas, Electricite de France (EdF), E.On, npower, Scottish Power (Business), Scottish & Southern (SSE) - companies that collectively supply 99% of the UK's heating and lighting] delivering. It is slightly easier to explain [than other schemes]. We do need an awareness campaign – people in the industry don’t want this – they want to do their own communications to customers – to ensure demand is right. The [big] energy companies are to be mandated a lot. If the scheme is ECO (Energy Company Obligation) only – it would only guarantee a steady state [no growth in uptake of energy efficiency products]. The Impact Assessment has only been done for pure Green Deal.
[John Sinfield, Managing Director, Knauf Insulation]
CERT helped, but there is still a huge amount to deliver – need to approach the market in a different way. The deep retrofit of our housing stock – the only way to deal with Fuel Poverty and other problems. My early reaction to the Green Deal was hope, excitement, and confusion, followed by more confusion. It could deliver what no scheme has done before to 14 million homes [untouched so far]. We have to deal with the fabric [of the building] first – then deal with the occupant. The occupant is sometimes the barrier to energy efficiency. Could we use private money to leverage 20 times the amount put forward [for the Green Deal and Green Investment Bank] ? We could stop shifting 40 billion euro to the Middle East (and elsewhere) for our energy. Can we create ethical investment for pension funds ? Then I got to depression and confusion. In the draft Impact Asssessment, there would be a 93% drop in loft insulation installations and 73% drop in cavity wall insulations from Day One of the Green Deal. What’s going to happen to existing companies ? [I obviously have an interest here] I’ve invested in four factories. But it’s not only me, the Climate Change Committee (CCC) wrote to Government on the trajectory resulting not meeting our carbon cap. It’s not just insulation manufacturers and installers. I’m trying to understand where the policy’s going. Why are DECC against cheaper measures ? The Minister says that the “loft job” is nearly done. But DECC themselves say that 9 million lofts have inadequte insulation. Frankly, I doubt I’ll see that by the the end of the year. There are 7.5 million cavities to fill. The consultation on the Green Deal came back with good changes – but little to address the cliff edge – the significant drop in lofts and cavities [at the changeover to the Green Deal]. I’m veering between hope and despair. I hope the Government, deep down, really want this. They need to do more to drive this programme. I wouldn’t invest money if I didn’t think [they were really behind this.] What about other options ? Stamp Duty [on sale of properties], a carbon tax, a Local Authority mandate ? If the Government can drive the value of the Green Deal up – it makes it more attractive [to engage in the sector]. My hope is balanced off by a sense of despair – the mechanism will not be ready in time. The so-called “soft launch” of the Green Deal [is inadequate] – really has to be up and running by 1st January . The Green Deal loans have to have affordable interest rates. The Green Deal finance company is 9 months away from offering comprehensive finance – and how are they going to receive the money from the Green Investment Bank ? If the interest rate of the Green Deal loans are 7.5% (6% – 8%) then only 7% of the population will take them up. Where’s the market ? What’s going to drive the market ? Where we are challenged – the Green Deal doesn’t feel ready. The environment to work within – sorted. But the mechanism – for example the Green Deal finance – not ready. Need to bridge the gap. Do we need to extend the CERT / CES(P) (Community Energy Saving Programme) ? A bridge until a competitive rate of interest is available. If the Government is going to drive the deep retrofit, it needs to drive the take up. Putting in place the framework is not going to sell this scheme. Some [companies] here are ready to market this scheme – but all parts need to be there. If the Green Deal is not ready – when ?
Alan Whitehead MP
“So, an amber light there…”Be Prepared, Behaviour Changeling, Big Society, Burning Money, Carbon Army, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Conflict of Interest, Corporate Pressure, Cost Effective, Demoticratica, Design Matters, Direction of Travel, Economic Implosion, Efficiency is King, Emissions Impossible, Energy Socialism, Financiers of the Apocalypse, Foreign Investment, Freemarketeering, Fuel Poverty, Global Heating, Green Investment, Green Power, Growth Paradigm, Human Nurture, Hydrocarbon Hegemony, Insulation, Low Carbon Life, Major Shift, National Energy, Optimistic Generation, Peak Emissions, Policy Warfare, Political Nightmare, Price Control, Realistic Models, Regulatory Ultimatum, Revolving Door, Social Capital, Social Change, Social Chaos, Social Democracy, Solution City, The Data, The Power of Intention, Voluntary Behaviour Change
Posted on June 20th, 2012 1 comment
This is a story about jaded doubt, through which shines a skinny, pale, wavering ray of hope – a tale of ordinary folk not believing Government policy will “work”, yet trying to make the best of the poor situation all the same. This is the account of a Parliamentary Reception for The Energy Bill Revolution. The nice young man with the thoroughly Welsh name, Rhys Williams, who’s been in the job for the Parliamentary Renewable and Sustainable Energy Group (PRASEG) for a sum total of 10 working days, if I’ve counted that right, sent me a shiny email invitation to a Summer Reception in The House of Commons, organised by the All Party Parliamentary Fuel Poverty & Energy Efficiency Group (FPEEG) and PRASEG. So orf I trotted to a feast of miniature canapes covered with dead things and a veritable sea of state-provisioned wine – which I didn’t touch a drip of. It was Summer, and very sunny and hot, and nationally-funded alcohol would have given me a migraine.
I took in the cool breeze of The Thames from the Terrace Pavilion – it seemed at high tide as there was lots of debris sloopily bobbing past. A Good Year blimp buzzed like a jar of wasps overhead – “Safety Together”, it read. I questioned, as a matter of national security, whether anything was supposed to be flying directly over the Houses of Parliament. It was pointed out to me that the wind was quite strong up there and the dirigible motors probably couldn’t keep it on a straight course over the river. Whilst I was supping my iced orange juice, I was buttonholed by Jimmy Devlin of the North West Tenants and Residents Assembly. We discussed a number of things, including : revolution (he thinks people are going to rise up and get their share, and I think people are too poor and busy to get political); fuel poverty and carbon savings (I agree with him that carbon taxation is going to create extra expenses for the poor, but I disagree with him over climate change, because I’ve studied the science); non-hierarchical community leadership (the old models are failing) and Freemasonry in the Police (he’s ex). We did agree that democracy is suffering from a lack of engagement, and that social breakdown in some cases is becoming violent. We also agreed that it seems that the Occupy movement has been infested or even misdirected (he said fragmented) by covert agents of the state. He indicated that a number of former environmental activists that he’s known are now strongly protagonist for the social justice agenda. He became scathing about UK Government policy on renewable energy, saying that it was astonishing that it had been recently announced that all subsidies for wind power and solar power would be gone by 2020.
Anyway, then we were both buttonholed by Geoffrey Beacon of Beacon Dodsworth. He’d been earwigging, and he wanted to know why I was against carbon pricing and taxation. I said, well, carbon dioxide is a virtual, negative commodity that nobody wants to pay for, so it will always get paid by the most vulnerable – so we would be better spending money in a positive, economy-stimulating way, such as investing in renewable energy and energy conservation. He said that a carbon tax of £400 per tonne would do the trick. I said that carbon will never be permitted to be priced at £400 a tonne – there are too many forces against it.
Well then, before any further debate could take place we were called in for the speeches. Up at the podium is Alan Whitehead MP. He says he’s not going to give a speech, but then outlines his support for the campaign in a number of points, which he then admits was rather like a speech, in fact, and then introduces Caroline Lucas MP (everybody has to keep biting their lips to stop themselves from saying “Leader of the Green Party”). As usual, Caroline cuts the situation down to the bones – the social elements of the Energy Bill are going to be the Green Deal (cheap loans for householders to do energy efficiency and renewable energy, financed by the new partly state-funded Green Investment Bank) and the Energy Company Obligation (ECO – an obligation on energy companies to enable transformation of “hard to treat properties” and provide affordable warmth, which will be funded out of energy consumers’ bills).
She said that the ECO Carbon Saving Obligation (CSO) will quite probably benefit rich property owners – and yet be paid for by bill increases for the poor.
Next up was Dr Hilary Emery, Chief Executive Officer of the National Children’s Bureau (NCB), and she talked about the impact of fuel poverty on the young poor – as this is not often mentioned – whereas older people in fuel poverty often are. She said it wasn’t right that people have to choose between “eat” and “heat”. She invited two children from the NCB to speak – they were amazing.
Then we got to hear from Adam Scorer of Consumer Focus. He said that the Carbon Price Floor proposed for the Energy Bill (Electricity Market Reform) was “not my favourite choice of policy”, but that with the extra billions of revenue it could generate, a lot could be done to truly tackle Fuel Poverty.
Then, up last, was “Mr Energy Bill Revolution” Ed Matthew, who tried not to be too technical, but laid out a vision of energy efficiency being the basis on which the British economy could be resurrected – through addressing energy cost increases and providing employment. Ah, the sweet smell of new jobs.
I spoke to Adam Scorer after the speeches, and tried to clarify what he meant by showing distaste for the Carbon Floor Price proposals. I asked how realistic it was to ask the Government to give up all that juicy carbon revenue to social projects – given that a range of organisations and causes will be after the same pot of money – including the nuclear power bunch. He said that everything is impossible until it happens – and that despite support, the Energy Bill Revolution could be blocked so easily by a “Treasury says no” statement. He did say though, that without “wilful bloodyminded individuals” like Ed Matthew, “nothing would ever happen”.
I spoke to Ed Matthew – ex Friends of the Earth, and now with his own group Transform UK. He’s done some stuff on the Green Investment Bank and now he’s pushing the Energy Bill Revolution. We agreed that if we’re going to have carbon taxation or pricing of some sort, then we do need to make sure that we speak up for using at least some of this money for Fuel Poverty alleviation. With approximately (depending on how you count it) 11.5 million people in poverty (and approximately 2.5 million children), putting a carbon tax or price in place will only hurt the poor harder by increasing energy costs. There needs to be a mechanism that stops this from depressing economic activity any further than it is already squelched – a mechanism to address energy demand, create jobs and solve social issues is what’s required. He said that if there’s no carbon price floor, we would have to rely on revenue from the Emissions Trading Scheme – which will fluctuate more – and jeopardise investment confidence. We should be demanding carbon revenue for the right purposes – there’s a report they did with Cambridge Econometrics saying the same kind of thing.
I then went on to speak with people from Carillion – who were quite sceptical about the Green Deal – that many people could be ripped off by the fact that there will be multiple agencies involved in any one project – with each firm wishing to do their own assessments and possibly doing work the householders don’t need. The view was expressed that what needs to happen is that the Government stops wasting money on consultations, reports and consultancy and just invests in energy efficiency and energy conservation projects directly. We discussed how Local Authorities are expected to be handling the social aspects of the new Energy Bill – but that with shrinking budgets and ever-smaller staffing, energy conservation – such things as the Green Deal and fuel-saving Combined Heat and Power projects – are likely to never make it off the ground.
I went on to speak to Karen Klomp, Energy Strategy Officer at the London Borough of Lambeth. We discussed the primeval problem – that energy companies want to sell as much energy as they can, whilst climate change legislation requires effectively (until renewable energy is more prevalent) that total energy demand is reduced. We talked about which energy companies are evolving into Energy Service Companies (ESCOs) – which are training their own insulation, draught-proofing and renewable energy installers, and which are contracting this out (with all the problems this could entail).
I took the opportunity to mention to her that I am researching Renewable Gas (whilst being in the in-between phase of having completed a Masters degree and now wondering what to do with the rest of my life). I said I’m about to launch a survey to engineering and energy firms asking them about how much Renewable Gas they are making, and the trends. I said I was trying to raise this subject because some people are discussing the upcoming UK Government “Gas Strategy”. We disussed where gas in the UK economy is going to come from in future.
She spoke of various projects she is running – how they are trying to make the best use of various schemes and grants before they run out. She projected that she would be selling the idea of the benefits of the Green Deal to her local authority and related organisations. She and I agreed that policy as a whole was quite weak and compromised – but that this is what we’ve got to work with – so we need to run with it (or ice-skate – she is originally from The Netherlands, after all).
As I was leaving, I exchanged a wave and a nod with Jim Devlin. I asked him what he was going to do to promote the Energy Bill Revolution and his answer was : “wind 6.8 million residents up – and let them do the work”.
This is the briefing from The Energy Bill Revolution :-
“Families are suffering huge financial hardship, and one in four households can’t afford to heat their homes. Cold homes are damaging the health of our most vulnerable citizens, including children and older people. The Energy Bill Revolution is an alliance of more than 80 children’s charities, environment groups, unions, health & disability groups, consumer groups and businesses, calling on the Government to use the money it gets from carbon taxes to make our homes super-energy efficient. This is the only permanent solution to end fuel poverty and drive down energy bills. The Energy Bill Revolution could quadruple carbon emission savings compared to the Government’s new energy efficiency policies, and create up to 200,000 more jobs – exactly what we need to support the UK’s economic recovery.”
I am fully aware that this campaign could have been launched by Coalition empathisers to prop up the Energy Bill – which is widely being criticised (Greg Barker MP was supposed to attend but I don’t think I saw him. Maybe he was avoiding me. However, Chris Huhne MP did flit past at one point, and I saw John Prescott MP (with a walking stick) on the baize-green carpet stairs on the way out.)
Considering that some of the people in the room supporting the Energy Bill Revolution campaign could stand to benefit from the success of the Green Investment Bank, their motives might not be entirely charitable.
On the other hand, Fuel Poverty is a genuine social need, and addressing it could avoid people being driven further into deprivation. So, despite the fact that I think carbon pricing and taxation is entirely the wrong thing to do (instead we should invest positively in renewables and conservation), if this is the card we are dealt in the Energy Bill, then I think we should definitely “hypothecate” some of the revenue towards the alleviation of economic depression – for the sake of the kids.
More of a grudging acceptance to work with what we’re given rather than a “revolution”, though.
Big Society, Carbon Pricing, Carbon Taxatious, Demoticratica, Efficiency is King, Energy Disenfranchisement, Energy Socialism, Feel Gooder, Fuel Poverty, Green Investment, Human Nurture, Low Carbon Life, Mass Propaganda, Nudge & Budge, Policy Warfare, Political Nightmare, Public Relations, Regulatory Ultimatum, Renewable Gas
Posted on June 14th, 2012 1 comment
Bursting the Nuclear Bubble
The UK Government appear to have seen the light about their, frankly, rubbish plan to covertly invest in (by hidden subsidies) a spanking new fleet of nuclear power reactors.
Dogged by Electricite de France (EdF) as they have been, with Vincent de Rivaz continuing to proffer his begging bowl with outstretched pleading arms, it just might be that before the Energy Bill is finally announced –
when the Electricity Market Reform (EMR) dust has settled – that this new thinking will have become core solidity.
After all, there are plenty of reasons not to support new nuclear power – apart from the immense costs, the unclear costs, the lack of immediate power generation until at least a decade of concrete has been poured, and so on (and so forth).
Gas is Laughing
It appears that reality has bitten – and that the UK Government are pursuing gas. And they have decided not to hatch their eggs all in one basket. First of all, there’s a love-in with Statoil of Norway :-
Then, there’s the new “South Stream” commitment – the new Azerbaijan-European Union agreement, spelled out in a meeting of the European Centre for Energy and Resource Security (EUCERS) on 12th June at King’s College, London :-
Meanwhile, the “North Stream” gas pipeline is going to feed new Russian gas to Europe, too (since the old Siberian gas fields have become exhausted) :-
And then there’s the amazing new truth – Natural Gas is a “green” energy, according to the European Union :-
The UK will still be importing Liquified Natural Gas (LNG) from our good old friends in Qatar. Never mind the political interference in the nearby region and the human rights abuses, although NATO could be asked to put a stop to that if Europe needed to bust the regime in order for their energy companies to take ownership of the lovely, lovely gas. I mean, that’s what happened in Iraq and Libya, didn’t it ?
A Fossilised Future
So, despite all the green noises from the UK Government, the underlying strategy for the future (having batted away the nuclear buzzing insects around the corpse of British energy policy), is as Steve Browning, formerly of National Grid says – “gas and air” – with Big Wind power being the commercialisable renewable technology of choice. But not too much wind power – after all, the grid could become unstable, couldn’t it, with too much wind ?
There are several problems with this. First, the commitment to fossil fuels – even Natural Gas with its half the emissions profile of coal – is a risky strategy, despite making sure that supplies are secure in the near term. The reasons for this are geological as well as geopolitical. Natural Gas will peak, and even the UK Government accepts that unconventional gas will not keep fossil gas going forever – even with the “18 years” ultimate recoverable from under Lancashire of shale gas (that’s “18 years” of current gas annual demand – but not all drilled at once – perhaps amounting to about 1.5% of current UK gas supply needs per year, stretched out over 40 years) , and the billion tonnes of coal that can be gasified from under the sea off the east coast of England. As long as Carbon Capture and Storage can work.
Not only will Natural Gas peak and start to decline in the UK, it will also peak and decline in the various other foreign resources the UK is promising to buy. By simple logic – if the North Sea gas began depletion after only 30 years – and this was a top quality concentrated resource – how soon will poorer quality gas fields start depleting ?
Whilst I recognise the sense in making Natural Gas the core strategy of UK energy provision over the next few decades, it can never be a final policy. First off, we need rather more in terms of realistic support for the deployment of renewable electricity. People complained about onshore wind turbines, so the UK Government got into offshore wind turbines, and now they’re complaining at how expensive they are. Then they botched solar photovoltaics policy. What a palaver !
Besides a much stronger direction for increasing renewable electricity, we need to recognise that renewable resources of gas need to be developed, starting now. We need to be ready to displace fossil gas as the fossil gas fields show signs of depletion and yet global demand and growth still show strength. We need to recognise that renewable gas development initiatives need consistent central government financial and enabling policy support. We need to recognise that even with the development of renewable gas, supplies of gas as a whole may yet peak – and so we need to acknowledge that we can never fully decarbonise the energy networks unless we find ways to apply energy conservation and energy efficiency into all energy use – and that this currently conflicts with the business model for most energy companies – to sell as much energy as possible. We need mandates for insulation, efficient fossil fuel use – such as Combined Heat and Power (CHP) and efficient grids, appliances and energy distribution. Since energy is mostly privately owned and privately administered, energy conservation is the hardest task of all, and this will take heroic efforts at all levels of society to implement.Academic Freedom, Assets not Liabilities, Big Number, Big Picture, Big Society, British Biogas, Burning Money, Carbon Capture, Corporate Pressure, Direction of Travel, Dreamworld Economics, Efficiency is King, Electrificandum, Emissions Impossible, Energy Change, Energy Insecurity, Energy Revival, Energy Socialism, Foreign Interference, Foreign Investment, Fossilised Fuels, Freemarketeering, Green Investment, Green Power, Hydrocarbon Hegemony, Insulation, Low Carbon Life, Marine Gas, Methane Madness, Methane Management, Money Sings, National Energy, National Power, Not In My Name, Nuclear Nuisance, Nuclear Shambles, Optimistic Generation, Paradigm Shapeshifter, Peace not War, Peak Coal, Peak Emissions, Peak Energy, Peak Natural Gas, Policy Warfare, Political Nightmare, Price Control, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Resource Wards, Shale Game, Solution City, Stop War, The Power of Intention, The Price of Gas, Unconventional Foul, Ungreen Development, Unnatural Gas, Wasted Resource, Western Hedge, Wind of Fortune, Zero Net