• 1 hour Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 6 hours British Utility Companies Brace For Major Reforms
  • 10 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 12 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 13 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 14 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 15 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 16 hours Rosneft Signs $400M Deal With Kurdistan
  • 19 hours Kinder Morgan Warns About Trans Mountain Delays
  • 1 day India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 1 day Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 8 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
Alt Text

Aggressive OPEC Pushes Oil Prices Up

Oil prices are once again…

Alt Text

Why U.S. Crude Exports Are Booming

U.S. crude oil exports are…

Alt Text

The Geopolitical Consequences Of U.S. Oil Exports

The United States has ramped…

Environmental Finance

Environmental Finance

Environmental Finance is still the only independent global magazine offering comprehensive coverage of the financial impact of environmental issues on the business community.  Leading industry…

More Info

Department of Energy & Climate Change Win Battle with Treasury

Department of Energy & Climate Change Win Battle with Treasury

The UK’s Department of Energy & Climate Change (DECC) has succeeded in holding cuts to onshore wind subsidies at 10% – winning a battle with the finance ministry, which wanted deeper cuts.

However, DECC has signalled a greater role for natural gas in the UK’s energy mix – as reportedly demand by the Treasury – worrying environmental groups who see a weakening of the UK’s government’s medium-term emissions reduction objectives.

“Renewable energy will create a multi-billion pound boom for the British economy, driving growth and supporting jobs across the country,” said Secretary of State for Energy & Climate Change Ed Davey, who claimed that the changes to the Renewable Obligation (RO) rebanding will trigger between £20 billion ($31 billion) and £25 billion of investment into the UK economy over 2013-17.

“The support we’re setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues, and shows the key role of renewables for our energy security,” he said.

From next year, new onshore wind farms will receive 0.9 Renewable Obligation Certificates (ROCs) for each megawatt hour of power they produce, down from 1 ROC at present. These ROCs, which electricity suppliers are required to buy, are currently worth around £42 each.

Levels of support for offshore wind – at 2 ROCs/MWh – will gradually be reduced as the cost of the technology falls during the decade, while support for certain marine energy technologies will more than double from two to five ROCs per MWh, subject to a 30MW installed capacity limit per generating station.

There will be a new band to support existing coal plants converting to sustainable biomass fuels, which the giant Drax coal-fired power plant says will underpin its shift to become predominantly biomass powered.

There will be no immediate reduction in support for large-scale solar, but there will be a consultation this year on reducing support levels given recent falls in costs, DECC said.

The department said the package is expected to lead to 11 TWh more renewable energy in 2016-17 than under current bandings, and the reforms would ensure that, in 2017, the UK will generate as much as 79 TWh of renewable electricity – almost three-quarters of the 108 TWh of electricity needed to meet the UK’s 2020 renewable energy target.

The renewable energy lobby has met today’s announcement with relief. “We welcome the government’s decision to set its financial support for onshore wind energy at a level that will enable the industry to continue to grow,” said RenewableUK chief executive Maria McCaffery.

“Although it has been a long time in coming, the final decision was based on hard economic evidence, and was not derailed by short-term political considerations. We recognise that these are difficult economic times and we have been trying to drive costs down.” 

Offshore wind cuts 'carefully phased'

On offshore wind, McCaffery described the planned cuts in ROC levels – to 1.9 ROCs in April 2015, and 1.8 ROCs a year later – as “carefully phased”, showing that “the government is committed to the development of the UK’s world-leading offshore sector as a key part of our energy mix.”

Meanwhile, the CBI, a broader business lobby group, supported the signal from DECC promoting gas. “The government is right that gas should play a crucial role in any future energy mix. We have argued that there is no need for a false choice between renewables, nuclear, gas, and carbon capture and storage,” said John Cridland, CBI Director-General. “It’s clear from the evidence that we need a diverse supply.”

However, environmental groups were less sanguine.

“The [Parliamentary] Committee on Climate Change has made clear that the power sector needs to be nearly carbon free by 2030, and that a new dash-for-gas is neither economically sensible nor compatible with our legal carbon budgets,” said Keith Allott, head of climate change at WWF-UK.
“The Treasury is forcing DECC to take a massive gamble that gas prices will come down, on the basis of no credible evidence, while subjecting renewable energy technologies to continual review and uncertainty.”

By. Mark Nicholls

Source: Environmental Finance




Back to homepage


Leave a comment
  • Mel Tisdale on July 27 2012 said:
    According to the Prime Minister, David Cameron, this was supposed to be the greenest government, ever. Does he think the problem of climate change has gone away? If only!

    I wonder if ex-Chancellor Nigel Lawson, who is one of the Denialati, has been talking the the current holder of the position, one George Osborne.

    They all need to bear in mind that Old Mother Nature's laws are immutable. Burn nature gas and you pump greenhouse gases into the atmosphere. Have a leak of natural gas and you pump a very potent greenhouse gas into the atmosphere. Pump greenhouse gases into the atmosphere and Old Mother Nature will turn up the thermostat, no matter what these out of touch, born to rule, individuals were taught at Eton.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News