Politics News-EU launches reflection on future green policies

The European Union needs to reconcile its growth and jobs objectives with long-term environmental goals, says the European Commission in a report taking stock of the bloc’s decade-old sustainable development strategy.

Background:

The European Union first formulated its Sustainable Development Strategy (SDS) during a 2001 European summit in Gothenburg. Although sustainable development is enshrined in the EU treaties, policy implementation remains a problem.

The European Commission's first stocktaking of the strategy confirmed that a number of unsustainable trends were continuing to worsen. It also highlighted the controversial relationship between the SDS and the Lisbon Agenda for growth and jobs.

A June 2006 summit of EU leaders saw the adoption of a renewed SDS strategyPdf external . It addresses seven main challenges: climate change and clean energy; sustainable transport; sustainable consumption and production; conservation and management of natural resources; public health; social inclusion, demography and migration; and global poverty.


Global demand for natural resources is growing fast, European fish stocks are depleting and forests and soils are increasingly challenged by climate change, says the report published on 24 July.

With its recently adopted climate and energy package, the EU has made a positive contribution to sustainable development, but "unsustainable trends persist in several areas," notes the report,which assesses progress made since the Union launched its sustainable development strategy in 2001. The EU executive estimates the annual loss of ecosystem services equivalent to €50 billion and the cumulated welfare losses are estimated equivalent to 7% of GDP by 2050.

Decoupling transport volumes from economic growth also remains a challenge and freight transport has even grown "faster than GDP", notes the report.


Towards renewed priorities

The report launches a reflection on how the EU Sustainable Development Strategy (SDS) should evolve in the future and how it could be better aligned with other cross-cutting EU strategies.The Commission particularly stresses the need to find greater synergy with the Lisbon Strategy for growth and jobs, which will be reviewed in 2010. The report calls for better coordination and linkage between climate change, energy, financial and social sustainability - policy areas covered by both strategies.

According to the EU executive, the SDS could be reviewed to better contribute to "a rapid shift to a low-carbon and low-input economy, based on energy and resource-efficient technologies and sustainable transport, and shifts towards sustainable consumption behaviour".

The progress report will now be handed to EU leaders, who are expected to review priorities and provide orientation for the future strategy later this year. In parallel, the EU is starting to reflect on revising its 2000 Lisbon Strategy, which sought to turn the EU into the "most competitive economy in the world by 2010". 'Green growth' and environmental sustainability are likely to feature high among the strategy's new priorities.

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Industry News-Government admits marine power fund has run aground

Plans undermined by admissions that it has not handed out any of a £50m marine development fund set up in 2004.

Government promises that it would establish Britain as a global centre for tidal and wave power have been undermined by admissions that it has nothanded out any of a £50m marine development fund set up in 2004.

Companies have often complained that the rules for the Marine Renewable Deployment Fund (MRDF) are so demanding that they have struggled to get money from the Department of Energy and Climate Change (DECC) to develop prototypes.

"As yet there have been no projects which have met the necessary requirements [of the MRDF]," the department told the Observer, but it insisted that changes made in the government's renewable energy strategy, published last week, would transform the situation.

A new Marine Renewables Proving Fund of £22m has been set aside to help marine power companies reach the stage where they would be eligible for MRDF money. The fund requires companies to demonstrate their prototype power systems have operated for at least three months before they can receive money.

Companies argued they needed funding earlier and the DECC has finally agreed. The department has also sought to make up ground by pumping £9.5m into the trial Wave Hub wave power system off Cornwall plus £8m for the European Marine Energy Centre in the Orkneys.

In addition the marine power sector should benefit from £10m being put into the south-west, which is the UK's first low-carbon economic area.

http://www.guardian.co.uk/business/2009/jul/19/utilities-energy-marine-power-uk

Political News-Speculation grows around Miliband energy plans

Green Jobs, Bill Increases, Speed and Clarity are the order of the day

Speculation is growing around the details of Ed Milliband's, renewable energy package which is due to be announced on Wednesday. This will be the third time in five years that the government will attempt to make clear their proposals on cutting green house emissions and their ideas for energy generation in the UK.

The UK government is committed to cutting carbon emissions by 34 per cent by 2020. The UK is also bound by the European Union to produce 15 per cent of the country’s energy needs from renewables by the same year.

The question is how the government intend to fund the estimated £100 billion needed for development of the renewable sector and the upgrade of the national grid to a ‘smart grid’. The fear among politicians is that the costs will and can only be met by an increase in energy bills for the voter.

An increase in bills in economic tight times will do nothing but increase voters ire and is a dangerous move in an election year. Ed Miliband and his advisers will be very aware that discussing bill increases of a pound or two are fine and may go somewhat unnoticed at the end of a heatwave in the summer months. However the political repercussions will be felt in the winter months when demand for energy increases and the prices start to spike again. But if it is not the consumer that will shoulder the burden of the government meeting its renewables target then who will?

The private sector has already claimed that there is not enough available money or investment in bringing new technologies such as marine, biomass and wind to the energy mix at the speed at which is required. Investing in the smart grid, transmission points and further storage all come with a high cost which over time will dwarf the money that was pumped into the banking crisis.

Dieter Helm, an energy expert at New College Oxford was quoted in the Financial Times as saying “the enormous investment needed in renewables would have been hard to finance even when financial markets were strong, and would be even more difficult following the credit crunch” The return to investors would need to come from the public through higher energy bills.

This echoes the opinion outlined early this week by David Milborrow in his paper Managing Variability where he claims that “The UK can meet its targets of generating more than a third of its electricity from wind by 2020 without raising the risk of blackouts at an additional cost of £2 for every £100 electricity bill”.

The uncertainty over returns on investment in wind and solar power has already seen some large energy groups such as BP and Royal Dutch Shell from pulling back from the renewable sector. The government’s former chief scientific adviser, Sir David King, sites this hesitancy by the private sector to invest is a result of the government’s failure to come up with a plan and stick to it.

In the Sunday Times he is quoted as saying “you can’t keep adjusting the energy policy, businesses need a clear signal that any investments they make now in low carbon technology and infrastructure in the UK will pay off in the future”.

On the positive side Miliband is expected to announce the creation of up to 400,000 green collar jobs. These jobs are expected to focus across the renewable sector of wind, solar, marine and biomass. But there will be funding for the nuclear sector also.

Whatever, the finer details of this weeks’ announcement Miliband must make speed and clarity as being the essence for the growth of the sector and creation of green jobs. Earlier this week Dr. Keith Maclean, Head of Policy and Public Affairs, Scottish & Southern Energy in the APPCCG Westminster Debate noted that “the uncertainty that there is around small projects because of issues in relation to transmission charges.

Smaller developers need to be able to show the bank that they can make a return on their investment and for this to be done DECC will need to use their powers under the energy act very quickly to make this happen”. His fear is that unless action is taken in this area soon there will “be no investment for more small to medium generators going into the market”.

If the government are to find a solution to the two challenges of climate change and creating new jobs the time is to act now.

Industry Renewables Report-Managing Variability by David Milborrow

One week ahead of when the UK government is expected to publish its ‘Renewable Energy Strategy’, a new report Managing Variability, by energy analyst David Milborrow, claims that the UK’s grid could cope with the variable energy input generated from wind farms.

The report commissioned by WWF, RSPB, Greenpeace and Friends of the Earth looks at the options already available to manage variability on the system, identifies solutions for the future and assesses ways to minimise costs.


Summary of Findings:
•Wind Power can significantly reduce our climate damaging emissions.

•Fluctuations in wind strength can be managed technically and at modest and declining cost.

•High proportions of wind power in our energy mix are feasible, and are already successfully integrated in other countries.

•A range of technological developments already underway could allow for a steadily increasing use of wind power and the phasing out of conventional carbon based fuels as backup technology.

Conclusions:
•There is no technical barrier to accommodating large amounts of wind power in our energy mix. We can keep the lights on.

•Even at relatively high levels of wind in the energy mix, the need for backup capacity is modest, with most backup needs being met by the existing pool which supports all forms of power generation.

•The cost associated with managing the variable nature of wind power are modest and can be expected to decline as new technologies including a supergrid, smart grid and improved energy storage are developed.

•As other variable renewable technologies are developed, it is expected that these too would be suited to displace conventional power stations.

•Other European countries are already using large proportions of wind power in their energy mix and see no technical barriers to increasing to higher levels.


Recommendations:
•Ensure that the energy market is able to deliver a massive expansion of renewables. This must include ensuring that the energy regulators main task is to cut climate change emissions by prioritising renewables and energy efficiency.

•Grant priority access to the energy market and electricity grid system for renewables ahead of conventional dirty power.

•Deploy continued and substantially increased financial support and regulatory incentives for renewable energy beyond 2020.

•Secure attractive grants and green loans for energy efficiency measures and research and development for renewable technologies.

•Enable better planning for renewabels, including spatially based approaches to ensure timely delivery and facilitate appropriate siting.

•Create an industrial strategy that will establish skills and manufacturing in the UK, addressing shortages in the supply chain for renewables and boosting jobs and the economy.

Click here for the full report Managing Variability by David Milborrow

Client News-Marine Current Turbines Seagen Tidal System First Marine Energy Project to Secure ROCS Accreditation

BUT MORE MUST BE DONE TO ENCOURAGE WAVE & TIDAL ENERGY IN THE UK

Bristol, England: The SeaGen tidal energy system, developed and deployed by Marine Current Turbines, has become the first–ever marine renewable energy project to be accredited by the UK energy regulator OFGEM for ROCs (Renewable Energy Certificates) and so will receive payment for the power it is generating. ROCs are the method by which the UK Government rewards the commercial generation of clean energy.

SeaGen, a 1.2MW twin turbine tidal energy system, was deployed in Northern Ireland’s Strangford Lough in May 2008 and is generating power for the equivalent of about 1000 homes via the local grid.

Martin Wright, Managing Director of Marine Current Turbines said: “Securing ROCs accreditation is a significant step forward as it is the first time that a tidal current system has been officially recognised as a commercial power station. Up until now, marine renewable technologies have not gone beyond the R&D phase. SeaGen has changed all that.”

“SeaGen is now consistently producing full power to the grid and is performing just as we expected. At 1.2MW capacity, it is the world’s most powerful marine energy device of any kind to be grid connected, and has to date generated the most energy from the sea onto the grid.”

“We have had our challenges with the SeaGen project and we know that we still have much to do to ensure that our technology is deployed on a truly commercial basis. However, the ROCs accreditation is a positive signal that tidal energy will play a part in the country’s future energy mix.”

Whilst SeaGen is performing well, Marine Current Turbines is however seriously concerned that the current investment climate threatens the long-term future of the marine energy sector. The company, along with other parts of the marine energy sector, is therefore looking to the UK Government to adopt measures that will encourage new investment into the tidal and wave sectors.

Martin Wright said: “The Government’s forthcoming Renewable Energy Strategy Review is critical to clean-tech companies such as Marine Current Turbines. The current investment climate is the worst in living memory and following the announcement to increase the ROC multiple to 2 for offshore wind, there is effectively no market to pull marine energy forward. It will be vital that the government addresses this is in its Renewable Energy Strategy Review and takes urgent action. If not, there is a significant risk that tidal power will suffer the same fate that befell the British wind industry: no home-grown manufacturing and engineering jobs.”


Notes to Editors:

1. Marine Current Turbines Ltd (www.marineturbines.com) is based in Bristol, England. The company was established in 2000 and its principal
corporate shareholders include BankInvest, ESB International, EDF Energy, Guernsey Electricity and Triodos Bank.

In September 2008, MCT was ranked in The Guardian/Library House Top 10 of European clean-tech firms and in June 2009 won Renewable Energy Developer
of the Year in the UK Renewable Energy Association Annual Awards.

2. SeaGen works by generating power from sea currents, using a pair of axial flow turbines driving generators through gearboxes using similar principles to wind generator technology.

The main difference is that the high density of seawater compared to wind allows a much
smaller system; SeaGen has twin 600kW turbines each of 16m diameter. The capture of kinetic energy from a water current, much like with wind energy or solar energy, depends on how many square meters of flow cross-section can be addressed by the system.

With water current turbines it is rotor swept area that dictates energy capture capability, because it is the cross section of flow that is intercepted which matters. SeaGen has over 400 square meters of rotor area which is why it can develop its full rated power of 1.2MW
in a flow of 2.4m/s (5 knots).

For more information contact

Paul Taylor, Taylor Keogh Communications: Paul@taylorkeogh.com/ +44 (0) 203 170 8465

or Martin Wright, Managing Director, Marine Current Turbines, +44 (0)7785 340671

Click here for more information on Marine Current Turbines