Marking a major shift in UK energy policy, the Energy Secretary, Amber Rudd, is today expected to unveil plans to prioritise support for indigenous sources of gas, as she announces the phasing out of coal-fired power stations by 2023.
As part of the Department of Energy & Climate Change’s (DECC) policy “reset”, Amber Rudd is expected to emphasise the importance of affordable measures to boost UK energy security by championing gas as “central to our energy secure future.”
ADBA has continually championed the role that low carbon green gas from anaerobic digestion can play in the energy mix, and is writing to Amber Rudd following her speech to set out the association's view that biogas can meet as much as 30% of domestic gas or electricity demand, reducing gas imports and providing secure baseload power. Green gas will be vital to achieving secure supplies while meeting the carbon budgets the Secretary of State has committed to.
ADBA’s Chief Executive, Charlotte Morton, commented: “There’s often an assumption that the choice facing our country is one between supporting renewable electricity or non-renewable gas stations.
“Baseload gas from anaerobic digestion (AD) is a cost-effective, green solution to the government’s energy security concerns that could match the capacity from coal-fired power – meeting either 30% of UK domestic gas or electricity demand. But much more than that – AD improves: farming resilience; food security; and employment and investment opportunities for rural economies.
“A Parliamentary report released yesterday shows that green gas represented 7% of the UK’s indigenous gas supply in 2014 – a colossal milestone for the biogas industry. The UK still needs 20TWh more renewable heat by 2020 to meet the government’s 12% target – AD could deliver a third of that.
“Ignoring the benefits of supporting renewable electricity growth now creates real risks, however. AD can deliver the same, vital baseload electrical capacity as new nuclear; but cheaper and faster than Hinkley Point C. Just as with new nuclear, however, for AD to achieve this feat it will require support for industry to scale and deliver this potential – we would therefore urge the Energy Secretary to re-consider the ill-advised proposals to severely limit future development under the Feed-in Tariff.”
The Aldersgate Group, an alliance of leaders from business, politics and civil society that drives action for a sustainable economy, welcomed the government’s commitment to phase out the UK’s old coal-fired power stations but stressed that more clarity was rapidly needed on the government’s plan to support future investment in renewables and energy efficiency if the UK was to meet its objectives on carbon emissions, affordability and security of supply.
The Aldersgate Group welcomed the government’s decision to set a clear date for the closure of the UK’s old coal-fired power stations, as this will help modernise the UK’s energy infrastructure and reduce carbon emissions.
Nick Molho, Executive Director of the Aldersgate Group said: “The closure of the UK’s old coal power stations is a pre-requisite to modernising the UK’s energy system. It will help reduce carbon emissions and make clear that modern gas-fired power stations, not coal, are the best complement to increasing amounts of low carbon generation.”
The announcement that three CfD auction rounds for offshore wind will take place during this Parliament was also a positive step forward. However, the Group stressed that more clarity on the funding available to support these auctions and policies to facilitate investment in other forms of low carbon generation such as mature renewable energy technologies was rapidly needed. This was essential to support continued investment in these technologies and secure further cost reductions for consumers and supply chain benefits for the UK economy.
Nick Molho added: “Having provided over 25% of the UK’s electricity in the second quarter of 2015 and demonstrated significant cost reductions in recent years, renewables have an important and growing role to play as part of a secure, low carbon and affordable energy system but the current lack of specific policy has been undermining further investment. Building on today’s positive announcement on offshore wind, the government must rapidly set out its proposals in more detail as to how it will support continued investment and cost reductions in the renewables sector.”
The Aldersgate Group called on the government to clarify as soon as possible the funds that would be available for investment in low carbon power stations under the levy control framework and under what mechanism investors could still develop mature and cost competitive renewable energy technologies such as onshore wind and solar projects.
RenewableUK Deputy Chief Executive Maf Smith responded to today’s speech, “Industry has been looking for clear signals from Government on energy policy to enable the long-term investment in the clean energy infrastructure this country desperately needs.
It’s vital that we have a broad energy mix, and that means ensuring we utilise all our renewable energy resources. Wind power provided almost 10% of the UK’s electricity last year, and that is set to double by 2020. We’re a windy country and we shouldn’t turn our back on this great resource.
Today’s speech provides clarity on where the Government stands on the future of offshore wind, which will give developers the confidence to invest in the British economy. Industry has already shown it can rise to the challenge of reducing costs and offshore wind companies are confident they will be cost competitive with new gas and new nuclear by 2025.
Onshore wind has already achieved the kind of cost reductions needed to be competitive and is now one of the cheapest sources of home-grown power in the UK. If we want to cut emissions and keep bills low, Government needs to show that it won’t stand in the way of subsidy free forms of power, like onshore wind, being able to access our energy market and compete head-to-head with options like nuclear and gas.”
