Monday, 12 November 2012

The UK's energy investment gap


The Energy Bill has been a long time coming. It has taken a decade of energy reviews, a dozen energy ministers, and three major white papers to reach the obvious conclusion that the current energy market is not fit for purpose. The economic crisis has bought more time, but the investment needs are finally beginning to catch up with the government, as are the dictates of the carbon and renewables targets.

Rising energy bills, falling capacity margins, and the sheer costs of renewables and nuclear have the makings of a perfect energy storm.

As this process of reviews and white papers has gone on, there has been ‘mission creep’. Each successive attempt to solve the energy policy problems has added yet more objectives and proposals for intervention.

The result is an amazingly complex set of proposals that will see interventions in each and every technology. First it was fixing the renewables and the government ended up setting different support levels for each and every renewable technology.

No comments:

Post a Comment