This week, the UK government has launched the consultation on the coalition’s revised draft national policy statements on energy, which shows that over half the new energy generating capacity built in the UK by 2025 will come from renewable sources. A significant proportion of the remainder will come from low carbon sources such as nuclear and fossil fuels with carbon capture and storage. In a Department of Energy and Climate Change (DECC) press release, Chris Huhne said a surge of investment in new energy sources will be needed to ensure the UK’s energy security and reduce reliance on fossil fuels in the decades ahead.
The national policy statements on energy confirmed eight sites as potentially suitable for new nuclear power stations and ruled out three sites for the development of new nuclear power by 2025. Unfortunately, the same level of support was not given to the massive tidal power scheme proposed for the Severn Estuary.
A feasibility study into the tidal energy project found that there was no strategic case for major public sector investment in a large-scale energy project in the Severn Estuary at this time. “It would be very costly to deliver and very challenging to attract the necessary investment from the private sector alone,” said the DECC press release.
Down but not out
The Severn Tidal Power feasibility study showed that a tidal power scheme in the Estuary could cost in excess of £30 billion, making it high cost and high risk in comparison to other ways of generating electricity. The report did recommend that a Severn tidal project should not be ruled out as a longer term option if market conditions change, but noted significant uncertainty over complying with regulation and that a scheme would fundamentally change the natural environment of the estuary.
Commenting on the Severn study, Chris Huhne said: “The study clearly shows that there is no strategic case at this time for public funding of a scheme to generate energy in the Severn estuary. Other low carbon options represent a better deal for taxpayers and consumers. However, with a rich natural marine energy resource, world leading tidal energy companies and universities, and the creation of the innovative Wave Hub facility, the area can play a key role in supporting the UK’s renewable energy future”.
The rejection of the Severn tidal project comes as a victory to conservation campaigners, who were concerned that such a massive project would impact dramatically on the Severn estuary’s world-famous wildlife. However, Huhne’s coalition government is now faced with a large gap to fill in meeting the UK’s ever-increasing energy needs over the coming decade.
Despite announcing that the Severn tidal barrage would not be built by his Government, the Energy Secretary insisted tidal power is not being written out of plans to meeting the UK's renewable energy targets. Indeed, in a meeting with reporters yesterday, the energy secretary declared that smaller tidal projects in the Mersey Estuary or the Pentland Firth were still a possibility, especially if they could prove more cost-effective, he said.
Other renewable energy sources have also faired better this week as Huhne announced that ₤400 million had been secured from the Treasury for the proposed renewable heat incentive for small-scale heating systems such as ground source heat pumps.
₤60 million has also been earmarked to upgrade north-eastern ports, which is required to build blade and turbine factories to supply the North Sea’s burgeoning offshore wind industry.
10% less for feed-in tariff scheme
In other areas, however, cuts were announced. The feed-in tariff scheme will receive a 10% cut to the detriment of smalls-scale renewable energy projects such as domestic wind turbines and photovoltaic solar panels.
The Treasury has also squeezed plans for a green investment bank. Huhne had pushed for ₤6 billion to set up a bank to encourage private investment in fledgling green technologies, but this has been watered down to a possible ₤2 billion – much of which comprises cash already pledged by the Government for green projects – which will be channelled through a less robust green fund.
For additional information:
____________________________________________________________________
