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optimising the location of new plant, particularly the location of peak load capacity. Amongst EI members, there were
many concerns about auctioning, from the different characteristics of projects, locations and technologies to the signifi- cant investment which could be exhausted competing for auctions. Only once low carbon generation technolo- gies become more established could competition between different genera- tors make auctioning work. In order to enter auctions, very skilled operators would be needed, which is contradictory to the objective of reducing complexity and encouraging new entrants. It should be noted that consumers are
more interested in the cost of electricity rather than the provider – incumbent or newentrant.However, some EImembers do not see the alternative to auctioning as attractive
either.Negotiation between government and generators is unlikely to produce a good deal for consumers. EI members do agree that further defini- tion as to the roles and responsibilities of the proposed central coordinating body is needed. EI members feel particular attention should be paid to practical issues during
the transitional period from the existing market arrangements to any new ones. For example, there is a need to know how the renewables regime will work after the Renewables Obligation has been phased out in 2017.Unless the tran- sition path is clearly defined, there could be a hiatus in investment as market par- ticipants wait for further clarity. EI members have expressed concerns
that, with the UK market increasingly connected to Europe, gains made in the UK towards reduced carbon, lower costs after decarbonisation has been achieved and enhanced security of supply could simply be ‘exported’ to Europe. This could mean UK electricity prices would not reflect reduced costs but rather the marginal export price to Europe. In summary, there is recognition fromEI
members that investment isneededacross the energy system, not just in low carbon generation technologies. Investment will be needed in demand-side response, user technologies and energy infrastructure – particularly smart meters and networks, distributed energy and combined heat and power to achieve government tar- gets, aswell as training and development of the personnel required. It is hoped the EnergyWhite Paper due to be published in late spring 2011 will
deliver clarity with regard to the details and practicalities of implementing the proposals, particularly concerning the FiT with Contract for Difference (CfD). EI members would also be interested to see further details of the central body designed to allocate capacity mechanism allowances and carry out other responsi- bilities detailed in the consultation docu- ment.
In response to both consultations, the EI has attempted to reflect the views of EI members fromacross the energy industry – from generators, suppliers, consumers, independent consultants and academics. It highlights where consensus has been reached, makes observations about the implications of the reform package and considers the uncertainties that persist. As a learned society, the EI does not pro- mote specific technologies or options and instead seeks to assist the policy process by helping to clarify the key issues and by improving the evidence base onwhich decisions will bemade.
To read the full EI submission or to assist in future energy policy consultation responses, visit
www.energyinst.org/energy-policy or e:
gparkes@energyinst.org
Improving safety in petroleum storage facilities and distribution operations 26May 2011, Hilton Coventry
As part of the Amphora event, held in conjunction with PTF Training, the Energy Institute will be holding a one-day conference on 26May 2011 to discuss ‘Improving safety in petroleum storage facilities and distribution operations’.
The event aims to promote and disseminate key developments and changes in industry good practice, in the fields of distribution, storage facilities, safety operations, and regulatory compliance. Essential information will be provided for safety, health, environment and engineering disciplines.
This seminar is a key date in the calendar for all those involved in the management and operation of petroleum storage and distribution facilities and systems so book early to avoid disappointment.
• •
Chaired by Alec O’Beirne FEI,Managing Director, PTF Training; Chairman, EI Distribution andMarketing Safety Committee Confirmed speakers are:
James Coull, Total Catastrophic failure ofatmospheric storge tanks: A review ofreported events
• Peter Davidson, Process Safety ProgrammeManager, UKPIA A commitment to process safety
• Graeme Ellis, Principal Safety Consultant, ABB Engineering Services Using performance indicators to drive improvement in process safety performance
• Robert Harris, AEC, Secretary SLPS Committee UK Safe Loading Pass Scheme – a terminal safety management system
•
JohnPondMEI, EI Process Safety Survey EI Guidance on a framework for high-level process safety management
• IanTravers,Head of Chemical Industries Strategy Unit,HSEHazardous Installations Directorate Keynote – Be part of the solution: Strategy for health and safety one year on
• Mark Yates,Managing Director, Resource Protection International (RPI) Update to EIModel code of safe practice Part 19: Fire precautions at petroleum refineries and bulk storage installations
To register, or for further programme information, please visit
www.energyinst.org/events or contact GemmaWilkinson on t: +44 (0) 20 7467 7174 e:
gwilkinson@energyinst.org
www.energyinst.org/events PETROLEUMREVIEW APRIL 2011 43
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