Kwarteng insists UK will avoid power shortages as gas crisis worsens. Kwasi Kwarteng, UK business secretary, has insisted there is “no question of the lights going out” this winter.
FT 21st Sept 2021 read more »
Commenting on reports that the Government is considering intervening to bailout gas companies, STUC General Secretary Roz Foyer said: “This crisis has been caused by years of under-investment, a lack of planning, and reliance on a market which is too concerned about profit-making rather than security of supply or climate change. “UK Government intervention is needed but it cannot simply be to bailout companies and prop up private profits. We need fundamental transformation of our energy system – with far greater public control and ownership, and far less reliance on imports – whether that be gas from Norway or turbines from Denmark. “This crisis also makes reports that the Scottish Government intends to abandon their commitment to a publicly owned energy company all the more concerning. A Scottish National Energy Company that prioritises the domestic supply chain is essential to making the energy system work for people and planet.”
STUC 20th Sept 2021 read more »
The Department for Business, Energy and Industrial Strategy (BEIS) said that while the largest single supply source of gas continues to be from domestic production, the UK’s exposure to volatile global gas prices underscores the importance of the government’s ambitions of building a “strong, home-grown renewable energy sector”. Indeed, BEIS said that during calls with industry, Kwarteng was reassured that security of supply was not a cause for immediate concern within the industry. He also stressed that energy security is “an absolute priority for this government”, with Britain benefiting from a diverse range of gas supply sources and a diverse electricity mix.
Current 20th Sept 2021 read more »
With wholesale gas prices in the UK having risen by 250% since January, some green groups are calling on the Government to commit to ending gas-fired electricity generation and give more detail on plans for reducing the nation’s dependence on gas for heating. The (Ember) think-tank has pointed to previous research from the International Renewable Energy Agency (IRENA) which found that generating electricity from existing UK fossil gas power plants is three times more expensive than from new onshore wind and almost twice that from new solar. This is due to technology improvements and rapid scaling in the renewables sectors as well as the challenges with gas. “The soaring cost of imported fossil gas is driving up electricity prices in the UK,” said Ember’s senior electricity analyst Sarah Brown. “A more rapid and committed transition to clean electricity is the only way to avoid the volatility of fossil fuels.” The Nuclear Industry Association (NIA), meanwhile, has called on the Government to outline plans for addressing the impending ‘nuclear gap’ to guarantee energy stability amid the low-carbon transition.
Edie 21st Sept 2021 read more »
Renewable energy and low-carbon heating could do much more to alleviate the gas supply problems of the future – and could have done much to reduce the impact of this winter’s soaring gas prices, if the government had done more to shift the UK’s energy market sooner, industry experts have said. The gas supply crunch has prompted a flurry of government meetings with industry, and reassurances in parliament on Monday from the business secretary, Kwasi Kwarteng, that “there is no question of the lights going out” and that the UK is “highly resilient”. But the supply issue demonstrates that fossil fuels are inherently subject to wild price fluctuations, which happen at least once a decade, according to Roger Fouquet, of the London School of Economics. “Price volatility is an inevitable part of the fossil fuel energy system,” he said. “Renewables do not suffer from these market-related problems.”
Guardian 21st Sept 2021 read more »
Mark Campanale is the founder of the hugely influential think tank Carbon Tracker, a non-profit organisation he helped set up over a decade ago to research and raise awareness of the impact of climate change on financial markets. A pioneer of the sustainable investing movement, Campanale has long promoted the ‘carbon bubble’ hypothesis, which contends the global economy is headed for disaster unless companies align their business models with the climate goals of the Paris Agreement.
Business Green 21st Sept 2021 read more »