NEWS INDUSTRY
CARBON PRICE FREEZE COULD LEAD TO RISING ENERGY COSTS IN THE UK
in energy schemes as a result of the carbon price floor freeze. That’s the view of energy data
T
specialist EnAppSys, which said the move would create further uncertainty over the country’s energy policies, increasing the cost of capital and potentially deterring vital investment in UK energy projects. The tax, which sets a floor for
the price of burning carbon, came into effect last year with the aim of encouraging new energy-efficient power plants. The move triggered a wave of
he UK could end up having to pay more for vital investment
criticism from heavy manufacturers, such as steelmakers and coal plant operators, who claimed it made their business uncompetitive. Chancellor George Osborne
has tried to appease critics by announcing that the CPF would be frozen at £18 per tonne from 2016-17 until the end of the decade. Under original proposals, the CPF would have increased to almost £30 per tonne by 2020. The freeze is part of a £7bn package of measures designed to cut energy bills for high energy- using manufacturers and encourage them to invest in
schemes in Britain. But EnAppSys said it would trigger fresh confusion over the direction of Britain’s energy policies and force companies to increase the risk premium on investments in power projects in the UK. Crucially, it could also encourage them to consider switching to invest in energy schemes overseas. If anything, the overall effect of the CPF freeze could be to increase the capacity shortfall and delay the investment needed for a low-carbon future. EnAppSyse
jwww.enappsys.com
GUIDANCE NOTES
BRE has published two Information Papers to help non-technical clients and building occupiers specify building controls to provide a comfortable climate for a building’s occupants with the lowest possible energy consumption. Copies of IP 1/14 Understanding
LONG, DIFFICULT JOURNEY FOR SHALE
Sabien Technology has warned that the race for shale gas will be a long and difficult journey, noting that reducing energy demand alongside broadening supply will be crucial to reducing the cost of energy and securing supplies. Talking to The Independent, Sabien CEO Alan O’Brien also suggested that a robust and effective shale
gas production programme could conflict with the Government’s current renewable energy target. While it is all very well being bullish about the creation of thousands of new jobs and adding billions of
pounds to the UK economy, in our view David Cameron runs the risk of ‘biting off his nose to spite his face’. “If shale gas production takes off and recoverable yields fill the declining gap in domestic production
while delivering a substantial surplus, we feel this will present a very real threat to renewables. In the past gas was seen as a bridge to renewables. Now, with the UK’s commitment to shale exploration, gas is being described as a ‘destination’ fuel. When given the right market dynamics and conditions, this would leave the 2020 Renewables target completely stranded. "The major stumbling block at the moment is the international wholesale ‘spot prices’ for gas.
Whichever way you look at it, the UK cannot ring-fence itself from wider international market conditions. And in our view other countries with large shale reserves - like France and Poland – will also need to drill if supplies are to significantly swell and influence international wholesale spot prices," he continued. Alan O’ Brien also cited the views of Fatih Birol, Chief Economist and Director of global energy economics
at the International Energy Agency. "The UK has significant shale gas resources but people shouldn't expect a US scale energy revolution in the UK – the conditions are not as favourable as in the US," said Mr Birol in an interview with The Daily Telegraph (30 January 2014).
Sabien Technology
www.sabien-tech.co.uk
ISD SOLUTIONS is to work on new cold storage facilities for Waitrose, providing walk in chilled and frozen storage for meat, dairy and vegetables. The UK based contractor for composite panel-based structures for cold stores, advises it has completed 25 cold store projects for Waitrose stores and e- commerce centres across the UK during 2013 and has a further fourteen scheduled for 2014. These include a mix of new stores, e-commerce facilities and store improvement project
ISD Solutions
www.isd-solutions.co.uk
the Choices for Building Controls and IP2/14 Operating BEMS: A practical guide to building energy management systems are available to order or download from the BRE online bookshop.
BRE
www.brebookshop.com
GLASGOW TO GET LED STREETLIGHTS Experts in LED lighting at Visible Lighting have
welcomed news that Glasgow City Council have decided to replace their existing street lighting with LED alternatives. According to Business Green, the council has
become the first to use a new loan scheme from the Green Investment Bank (GIB), using the funds to make the switch to energy efficient lighting. It is expected that the city will replace 70,000 of its current street lights with LED street lights in an attempt to reduce energy consumption, light pollution, and costs. There are a reported 7 million street lights installed in the UK, costing over £300 million
/ ENERGYMANAGEMENT
each year for electricity alone. Producing over 1.3 million tonnes of CO2 emissions and accounting for 40% of authorities’ energy use, LED street lights offer a more cost-effective, energy efficient alternative. The Green Investment Bank reports that the cost of switching to low energy streetlights can be made up between 5 and 15 years, while councils could see their electricity bills reduced by as much as 80%. Visible Lighting was established with a view to providing high quality lighting at affordable prices.
Visible Lighting
www.visiblelighting.co.uk
ENERGY MANAGEMENT | SPRING 2014 5
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