15 September 2016, Energy Post, UK government approves Hinkley Point C. The UK Department of Business, Energy and Industrial Strategy announced this morning that the government goes ahead with the Hinkley Point C nuclear power project. This is a very important decision for the nuclear energy sector in Europe, especially EDF, and energy policy in general. Below we give the literal text of the press release put out by the UK Department of Business, Energy and Industrial Strategy, explaining that the government is taking extra precautions to ensure that it is able at all times to control its nuclear industry, after concerns about the Chinese involvement in the project. There is no change in the “strike price” of 92.50 pounds per MWh (inflation-proof, 35 years) that has been agreed with builders EDF, which has been criticized by many as too expensive. “Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the Government has decided to proceed with the first new nuclear power station for a generation. However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley. The agreement in principle with EDF means that: The Government will be able to prevent the sale of EDF’s controlling stake prior to the completion of construction, without the prior notification and agreement of ministers. This agreement will be confirmed in an exchange of letters between the Government and EDF. Existing legal powers, and the new legal framework, will mean that the Government is able to intervene in the sale of EDF’s stake once Hinkley is operational. The new legal framework for future foreign investment in British critical infrastructure will mean that: After Hinkley, the British Government will take a special share in all future nuclear new build projects. This will ensure that significant stakes cannot be sold without the Government’s knowledge or consent. Read More here
Category Archives: Fossil Fuel Reduction
13 September 2016, Renew Economy, Interminable climate argument is costing us solutions for our future. It is fair to say that people are getting fairly tired of the climate change debate in Australia. Whenever the issue emerges, all you see and hear is heated disagreement. Usually name calling then ensues – “environment evangelists”, “big polluters” and political “sell outs” become all too common catch phrases. These are points that avoid addressing the fundamentals of what we are trying to achieve.That is, to make effective, pragmatic decisions and to take action now that will address the economic and safety challenges climate change is confronting us with. It’s not a difficult concept. And we have to play a credible part in assisting the rest of the world to do this.Yet, over the last week or so, we have seen tiresome name calling return after the Climate Change Authority – the Parliament’s climate change advisory group – released a report that suggested a fresh approach to these decisions and actions. It was asked to outline a pathway for the current Parliament to agree on a policy framework that would actually stop Australia’s emissions from continuing to increase, so they would start to fall, in line with the international commitments Australia has made under the Paris climate agreement last year. This is an agreement around 180 countries of the world have entered into in an historic attempt to deliver economic prosperity and safety to all of us. This report was quickly followed by a dissenting report from two of the Authority’s own members, which stated that the Climate Change Authority had not gone far enough and had made compromises for political expediency. They said it had failed in its own mandate to provide rigorous independent science-based advice to the Australian community. The merry go round continued. Once again we fell into discussing the merits of “emissions intensity schemes” and other arcane policy solutions. Read More here
12 September 2016, Renew Economy, Garbage in, garbage out: Why the CCA got it so wrong. If Australia continues to rely on a renewable energy target to help meet its share of the global goal of capping global warming by 2°C, it is likely to result in new coal plants being built in the 2040s. Sound implausible? Does it sound completely crazy? Yes, but this is the advice that was given to the Climate Change Authority and presumably helped them form their controversial stance on climate policies that was delivered to the government last week. The idea that Australia, in a world aiming at cutting missions, would be likely to open new coal plants at a time when it should be hitting a zero net carbon target seems extraordinary. Yet that is what consultancy Jacobs is suggesting, even though its modelling shows that 90 per cent of Australia’s generation by 2040 would come from renewables under an extension of the RET. Here’s the graph above. Under Jacobs’ modelling – apart from the reference case where Australia ignores global warming – coal-fired power becomes extinct in all its policy scenarios in Australia by the mid 2030s. Until suddenly, in the renewable energy target scenario, it makes a comeback in the late 2040s. (That’s the blue uptick on the bottom right). “Fossil generation increases from 2040, largely driven by new CCGTs (combined cycle gas plants), although some supercritical black coal generators are also built,” it says. This is despite the share of renewable energy in generation being at 74 per cent in 2030, and peaking at 91 per cent in 2039. Quite where baseload coal plants, or gas plants for that matter, fit into that high renewables scenario is not clear, given the need for flexible generation. And just who would invest in a new coal plant two decades hence, with 90 per cent renewables, as the world nears the zero emissions target it has locked itself into through the Paris agreement, boggles the mind, but that is what we are told the modelling tells us. Read More here
7 September 2016, Climate Home, EU-sized coal fleet shelved since Paris climate deal. China and India are cracking down on excess projects, but remaining pipeline will still blow the 2C carbon budget, say analysts. The volume of coal plants in planning worldwide fell dramatically in the first half of 2016, as China and India tightened up their policies. That is according to data meticulously gathered by researchers at Coal Swarm from company, media and NGO reporting. Between January and July, more projects were shelved or cancelled than added, shrinking the pre-construction pipeline by 158GW – a change of 14%, equivalent to the EU’s entire coal power fleet. The cooling off follows a landmark climate summit in Paris, where 195 countries agreed last December to phase out greenhouse gas emissions. Coal is the biggest source of emissions from energy worldwide and a prime target for climate policy. “It is very significant,” Coal Swarm director Ted Nace told Climate Home, although he added the remaining 932GW in the works would still blow the 1.5C and 2C carbon budgets. Read More here