TOP

electricity info

environmental news & information about the UK electricity supply industry

News July 2016

Politics

As our one-time columnist (Nick Timothy) has departed for Number Ten, we highlight some of the ideas advanced by the man described in today’s papers as the Prime Minister’s ‘political brain’. Security experts – reportedly inside as well as outside government – are worried that the Chinese could use their role to build weaknesses into computer systems which will allow them to shut down Britain’s energy production at will. “For those who believe that such an eventuality is unlikely, the Chinese National Nuclear Corporation – one of the state-owned companies involved in the plans for the British nuclear plants – says on its website that it is responsible not just for “increasing the value of state assets and developing the society” but the “building of national defence.” MI5 believes that “the intelligence services of…China…continue to work against UK interests at home and abroad.”

Conservative Home 15th July 2016 read more »

Has Government come to its senses by cancelling the champagne party tomorrow? It was arranged to celebrate the giant blunder of a Hinkley decision. Can they have come to their senses? Approving Hinkley would be a decision of monumental stupidity.

Paul Flynn MP 28th July 2016 read more »

“Second thoughts are needed on this expensive hazardous massive spending. There are alternatives especially by investing in tidal and hydro power that are Wales’s ‘North Sea Oil” While power from some renewables is intermittent, the immense power of the Welsh tides are constant, precisely predictable, carbon free, British and eternal. The planned EPR Hinkley reactors are a reckless gamble that have not delivered because all other EPR projects are many years late and suffering vast over-runs that triple their costs. It would be foolhardy to guarantee to two foreign government a strike price that is unfair to UK billpayerss and guaranteed for 35 years’.

Paul Flynn MP 28th July 2016 read more »

Chris Huhne’s ‘performance’ at the memorable Shell/Daily Telegraph Energy Scenarios event in London back in 2010 was impressive. He indicated strong commitment to energy efficiency, renewables in general and in particular a European supergrid for renewables, notably telling the audience – in direct response to a question I put to him on this subject – that he was “completely sold on interconnection”. Equally impressive was his apparently passionate broadside against anti-wind pontificators at the Renewable UK 2011 conference in Manchester, during which he referred to an “unholy alliance of short-termists, armchair engineers, climate sceptics and vested interests … selling the UK economy short by their refusals to acknowledge the benefits that renewables will bring”. Sadly, his performance in an interview about the Hinkley C madness on the BBC Radio 4 Today programme this morning was lamentable. In complete contrast to his previous enthusiasm for renewables, he pontificated about the variability or renewables in a manner one is used to from unenlightened renewables sceptics and about the alleged need for new baseload (which is an outdated concept), verging on enthusiastic support for the Hinkley C white elephant. A classic Victor Meldrew moment! Tom Burke, on the other hand, was in his usual excellent form on the same programme.

Herb Eppel’s Blog 28th July 2016 read more »

Wylfa

Fugro has commenced marine site characterisation works for Horizon Nuclear Power at the proposed Wylfa Newydd power station site on the Isle of Anglesey, UK. The detailed works are carried out during July and August and will assist Horizon to gain a better understanding of the geological conditions offshore the proposed site. Two jack-up barges from Fugro’s fleet have been mobilised to conduct high quality geotechnical drilling and sampling operations on 36 borehole locations, in varying water depths. Taking place around 500 metres out to sea at Porth-y-Pistyll, and more than 800 metres from the Cemlyn Bay nature reserve, the work will support Horizon’s proposal to build its cooling water intake structure, marine offloading facility and breakwater. It will also allow Horizon to reduce the volume of road haulage by bringing in many of the bulk materials and large components needed during construction, by sea.

Hydro International 27th July 2016 read more »

EDF

French utility EDF (EDF.PA) has entered exclusive talks with state-owned bank Caisse des Depots and its unit CNP Assurances to sell them a 49.9 percent stake in power grid unit RTE, it said in a statement on Thursday. EDF said the deal would be done on the basis of an indicative value of 8.45 billion euros for 100 percent of RTE’s equity and that it could close in the first half of 2017, once regulatory approvals have been obtained. Markets have long speculated about a partial sale of RTE, which is complicated by the fact that under a 2004 law, RTE’s capital must be held by EDF or other public entities.

Reuters 28th July 2016 read more »

Utilities

British Gas was abandoned by nearly 400,000 customers in the first half of the year as many switched to cheaper rivals after the expiry of fixed deals. Centrica, the owner of British Gas, brushed off criticism from the boss of the competition regulator that profit margins in the domestic energy supply industry were too high, arguing that its loss of customers was evidence of a “highly competitive market”. The loss helped to contribute to a 13 per cent fall in revenues to £13.4 billion at Centrica. However, overall Centrica hit the City’s expectations, with pre-tax profits rising 35 per cent to £1.6 billion in the six months to June 30, or, on an underlying basis, down 15 per cent at £675 million.

Times 29th July 2016 read more »

Energy Supplies

Nearly half of the UK’s electricity came from renewables and nuclear in 2015, while fossil fuel’s share of energy supplies hit a record low. The latest Digest of UK Energy Statistics (DUKES) from the Department for Business, Energy and Industrial Strategy (BEIS) reveals a nation in the midst of a low-carbon transition. However, it also shows that fossil fuel extraction increased for the first time in 15 years. Carbon Brief has produced five interactive charts to show what happened to the UK’s energy mix in 2015.

Carbon Brief 28th July 2016 read more »

Renewables

Nuclear power advocates are trying a new line of attack on solar and wind energy — it’s too darn cheap! In the real world, however, the unexpectedly rapid drop in the price of cleantech, especially renewable power and batteries, is a doubly miraculous game-changer that is already cutting greenhouse gas emissions globally and dramatically increasing the chances we can avoid catastrophic climate change. The New York Times in particular keeps running slanted articles talking up nuclear and talking down renewables — articles that totally miss the forest for the trees. That culminated in a truly absurd piece last week, “How Renewable Energy Is Blowing Climate Change Efforts Off Course,” which is the exact opposite of reality, as Goldman Sachs has detailed in its recent reports on “The Low Carbon Economy.”

Climate Progress 28th July 2016 read more »

Energy Storage

French energy giant EDF will today give the formal go-ahead for the Hinkley C nuclear power station in Somerset, writes Chris Goodall. But that’s no reason for the UK to sign up to a disastrous deal that will cost us over £1 billion per year for 35 years – money that should be used to support the green technologies of the future. The nuclear power station will proceed not because it is good for Britain or its electricity users but because the French state thinks that maintaining the capacity to export nuclear power stations is a paramount objective. By 2025 the UK will probably have at least 18GW (gigawatts) of offshore wind and perhaps 12GW of onshore wind. My guess is that we might see at least 25GW of solar power, and it could be much more if photovoltaic technologies continue to surprise us with rapid declines in price. (We already have about 12 GW, mostly added in the last two years). The scope for continued improvement in the cost and performance of solar is substantial. Total demand for electricity falls as low as 19 GW in summer compared to the 55 GW of renewables. So there will be many occasions when the UK has too much power and nuclear power will be unnecessary. On other occasions, such as still December evenings, demand will be 50 GW or so and solar and wind will be producing a fraction of the amount required. The 3 GW at Hinkley will be helpful but insufficient. The real opportunity is finding ways of storing large amounts of energy for months at a time. This is where the need is greatest, and the possible return most obvious. More precisely, what we require are technologies that take the increasing amounts of surplus power from sun or wind and turn this energy into storable fuels. In The Switch, a book just out from Profile Books, I explore the best ways of converting cheap electricity from renewables into natural gas and into liquid fuels similar to petrol or diesel so provide huge buffers of energy storage. This sounds like alchemy. It is not. Surplus electricity can be used to split water into hydrogen and oxygen. Carbon dioxide and hydrogen can then be merged by microbes to make more complex molecules, such as methane. Methane is the main constituent of natural gas, so it can be simply stored in the existing gas network. Other microbes take carbon and hydrogen molecules and turn them into liquids that can be kept in the oil storage networks. A few percent of the £30bn+ subsidy for Hinkley devoted to conversion technologies that can take cheap renewable electricity and use it to store energy in gas or liquids could help build British companies that could expand around the world. The UK’s ability in applied biochemistry is acknowledged and the country could become the global research and manufacturing centre. We missed the early opportunity to develop a large onshore wind industry and gave the market to Denmark 20 years ago. Brexit threatens to have the same impact on offshore wind fabrication here. Greg Clark has the chance to support an even larger industry developing chemical transformation technologies for seasonal storage. Let’s not miss this opportunity.

Ecologist 28th July 2016 read more »

Hinkley

Michael Liebreich: Assuming its unions have not succeeded in stopping it, the board of EDF is today expected to wave through a decision on Hinkley C, the first new nuclear power station in the UK for 20 years and, at £18bn, the world’s most expensive power station. The obvious question is why this train-wreck of a project was not killed long ago. To answer this, you have to delve into the politics of the Conservative Party. In 2010, Tory support was being hit by defections to Ukip, whose average member was an older white guy: implacably anti-EU and hence anti-renewable energy, and very keen indeed on nuclear. A strong pro-nuclear position was seen as one way of shoring up the party’s right flank. The irony is that, all the while, the underlying logic for the project was being undermined. As soon as news broke of the Fukushima nuclear accident, the Tory right all but forgot its support for nuclear power, instead adopting fracking as its cause célèbre. The costs of renewable energy were plummeting to the point where wind projects could be built with little or no subsidy. And the cost of natural gas was falling too, driving down wholesale power prices. The National Audit Office this month released an updated calculation of the lifetime value of the subsidy to Hinkley: a mind-bending £37bn.

City AM 28th July 2016 read more »

EDF’s board meets on Thursday to approve the construction of two nuclear reactors in the U.K., which will cost about 18 billion pounds ($23.6 billion). Cosma Panzacchi, a Bernstein analyst, expects EDF to green light the project. He’s probably right, though investors should pray otherwise. When one side — in this case U.K customers — gets a raw deal, you’d assume the other party is getting a good’un. But Hinkley could turn out to be a financial disaster for everyone. Indeed, renewable energy costs are falling fast and battery storage is improving. So one day much of our power might be generated and stored locally and distributed via smart grids, leaving a diminished role for giant nuclear plants. France will be doing both EDF and its nuclear industry a disservice if it bets big on Hinkley with a still unproven technology, and fails spectacularly. Better to wave a white flag now than build a radioactive white elephant.

Bloomberg 27th July 2016 read more »

French energy company EDF is expected to give the go-ahead for an £18bn nuclear power station at Hinkley Point in Somerset.

Guardian 28th July 2016 read more »

Guardian 28th July 2016 read more »

Daily Mail 28th July 2016 read more »

Times 28th July 2016 read more »

A legally-binding contract committing UK consumers to subsidise Britain’s first new nuclear plant in a generation is expected to be signed on Friday, after the board of EDF meets to approve the £18bn project on Thursday. If the Government were to change its mind once the contract is signed, the UK could be liable to pay French state-controlled EDF billions of pounds in compensation. Labour’s shadow energy secretary Barry Gardiner issued an eleventh-hour plea to the Government not to sign the contract in its current form, which gives EDF significant leeway to delay completion of the project for up to eight years. EDF can still secure the full 35-year contract if Hinkley produces first power any time until 2029. Thereafter the contract would be shortened by one year for every year further delay, but could only be cancelled without penalty for the UK if Hinkley was still not generating by 2033. Mr Gardiner said it was “extremely dangerous” of the Government to give EDF “an open-ended cheque” for the construction of the reactors and said it should face penalties for every year of delay beyond 2025.

Telegraph 27th July 2016 read more »

With a €4bn equity fundraising now approved, EDF has the final piece of its Hinkley Point jigsaw in place — requiring only board sign-off for its UK nuclear power plant. And, assuming directors give the go-ahead for the £18bn project on Thursday, attention in France and the UK will quickly shift to whether the company has enough money to pay for its two-thirds share. The share issue that was agreed on Tuesday, which will provide a fairly immediate €4bn. Then, once the final investment decision is taken, CGN, the Chinese state-backed nuclear group, will pay around €800m in funds owed from the €2.4bn that EDF has already spent on the scheme. EDF says these two measures will help secure the money it needs to press ahead with the early stages of the project. Between now and 2018, the company will also raise €1bn from cost reductions, alongside an additional €10bn in asset sales over an unspecified timeframe. A further saving — of an unspecified amount of money — will come from paying the French government the dividends on its shareholding in equity rather than cash. However, it can only do this for two years — meaning the pressure for savings may well return after 2018.

FT 27th July 2016 read more »

Energy giant EDF is set to make its long-awaited final investment decision on the planned nuclear power station at Hinkley Point, ending doubts over the massive £18 billion project.

Belfast Telegraph 27th July 2016 read more »

Today (28 Jul) is Decision-Day for the French EDF nuclear giant (which operates the Scottish nuclear stations) on whether to go ahead with the proposed new UK nuclear power plant at Hinkley Point C – or not. The GMB – the ‘energy workers’ union’ – last night called on the EDF board to go ahead with the atom plan at its meeting in Paris today ‘to reassure workers and investors after Brexit’.

Scottish Energy News 28th July 2016 read more »

The long-awaited final investment Decision (FID) for EDF Energy’s planned 3,200-MWHinkley Point C nuclear power station in western England, scheduled to take place at a board meeting of French utility EDF in Paris July 28, will not only give the go ahead for the first new nuclear plant in the UK since 1995, but could also serve as the starting gun for a total of 16,000 MW of new nuclear capacity due to be built in the country. All this should be taken with a pinch of salt, however. The UK has a history of ambitious new nuclear construction programs that end up as something of a damp squib. The last nuclear plant built in the country, the 1,250-MW Sizewell-B, the UK’s only PWR reactor, was commissioned in 1995. At the same time that this unit was approved, there were also ambitious construction plans for a series of PWRs, including at Wylfa-B, Sizewell-C and, indeed, Hinkley Point C. While these plans were expected to come to fruition by the late 1990s, only Sizewell-B eventually got built. Going further back, the UK’s Minister of Power, Fred Lee, in May 1965 rather melodramatically called the Advanced Gas-Cooled reactor, or AGR, the “the greatest breakthrough of all time,” heralding another ambitious nuclear construction program in the country. The reality is rather different, and while the AGR currently remains the backbone of the UK’s nuclear power industry, the reactor design today is viewed as a rather exotic, technologically-challenged hybrid that is unique to the UK. Looking further back still, the first indigenous UK nuclear reactor design, the magnox reactor, was the subject of large scale construction and export plans, most of which did not come to fruition. Only two reactors were ultimately exported and the design is arguably best known for the worst nuclear disaster in the UK, the 1957 fire at the Calder Hall site, within the present day Sellafield complex. This event resulted in the worst nuclear disaster in the UK’s history and a significant radioactive release.

Platts 27th July 2016 read more »

SEDGEMOOR is “Hinkley ready” as the multi-billion pound nuclear power plant looks set to get the go ahead, according to the district council. After months of delays and rumours, energy giant EDF will hold a board meeting in London today where Hinkley Point C is reportedly set to be given the green light when members make their Final Investment Decision (FID). It is welcome news for the area, with thousands of jobs set to be created and millions of pounds ready to be ploughed into the area if approved.

Burnham & Highbridge News 28th July 2016 read more »

Energy analyst Tom Burke, Chairman of Third Generation Environmentalism, told Sky News it was a waste of taxpayers’ money.”I think it offers expensive solutions and ones that are unreliable. We could probably achieve Hinkley and probably the whole nuclear programme a lot cheaper if we went ahead with investing in renewables and investing in energy efficiency.” The project has also attracted controversy over the likely involvement of Chinese funding – a third of the total cost. Others, meanwhile, worry about the potential risk of a nuclear disaster. Stop Hinkley campaigner Allan Jeffery warned: “If it was to have an accident there would be large amounts of radioactivity going all over the southwest of England.” EDF declined to comment ahead of the meeting but has previously said that the plant meets “stringent safety standards” and is a good deal for consumers.

SkyNews 28th July 2016 read more »

CUMBRIAN businesses stand to benefit if, as expected, EDF announces today that it is pushing ahead with a new nuclear power station in Somerset.

In Cumbria 28th July 2016 read more »

Flamanville

The technology behind the European pressurised reactor (EPR) is meant to be safer than anything that has gone before. But the project is more than three times over budget and years behind schedule, and France’s nuclear safety authority has found weaknesses in the reactor’s steel. Today, not a single EPR reactor operates anywhere in the world. In Flamanville, the first concrete was poured in 2007. Since then costs have more than tripled to €10.5bn, while the project is six years behind schedule. In Finland, the location of another EPR, the picture is even worse: the Olkiluoto reactor is nearly a decade behind and three times over budget, with the added headache of legal battles over who is to blame. Less is known about two EPR reactors being built in China. What might have been just a colourful tale of shareholder angst took a different turn in 2015, when it emerged that weak spots had been found in the Flamanville reactor’s steel, which is made by another French industrial champion, Areva. France’s Nuclear Safety Authority (ASN) said it had found “very serious anomalies” in the reactor vessel. As the regulator deepened its investigation, it warned that the problems could affect other reactors in operation, although it stressed that France’s reactors were safe. In its latest annual report, the ASN described the safety of the country’s 58 nuclear power plants as “satisfactory”, but said it had “significant concerns” for the future as financial pressures build on France’s nuclear industry. The decision on Hinkley Point C may come down to politics. Young at RBC suggests that EDF wants a decision on Hinkley Point C while the UK has a functioning government and before possible Brexit aftershocks complicate the picture. “If you are EDF, why would you want to wait and run the risk of a snap election being called?” he says. A future government could change its mind on the project, Whitehall’s official spending watchdog has said, warning of a “tidal wave” of pressures from an impending Brexit.

Guardian 27th July 2016 read more »

Quick Links & Contact Form

This site relies on individual donations to help cover the costs of maintenance and development.

If you find the resources provided useful, please consider making a contribution to support the site.

Daily News

This site’s Daily News content is provided by Edinburgh Energy & Environment Consultancy. EEE are experts in policy and analysis on energy and environment issues, particularly nuclear power.

Services include: supplying tailored news services, writing reports and briefings, drafting consultation responses and developing political campaign strategies.

Clients have included Greenpeace, Nuclear Free Local Authorities, WWF Scotland and the UK Government’s Committee on Radioactive Waste Management.

Daily News Service

Sign up for our daily energy and environment news service and get the daily news roundup emailed to you every morning. It’s free to sign up, but if you find the service useful and can afford it, please consider making a donation to help us continue the service.

Sign Up

If you find our Energy News useful, please consider supporting it with a donation.