Lightly seared on the reality grill
August 1st 2008 Tempted to botch it,the government must look long term to meet both energy needs and carbon commitments.But what does that mean? According to the energy industry heads: determining a post 2020 carbon price; introducing mandatory smart metering; and making the UK a leader in Carbon capture & storage.Brendan Coyne reports
Speaking at an Energy Institute forum, Eon UK chief,Dr Paul Golby, said despite hogging column inches, the energy and climate change debate remains polarised.“We talk about climate change or cost.Transparency is lacking from the debate. This isn’t an ‘and/or’ situation. All aspects must be discussed.We need 30 per cent replacement capacity in the next 10 years. It will not be cheap, and the public needs to know.” He claims clarity was the driver behind Eon’s ‘Carbon Cost and Consequences’ report.
When the wind doesn’t blow Golby says enewables and microgeneration are “part of the mix”, but no panacea.“They have a part to play but we need a reality check.The public is led to think renewables equal ‘green’ and ‘cheap’.Well, that’s half right. People need to know renewables will increase their bills.”
While wind power harvests the bulk of renewable investment, both Golby and EDF coo for energy,Martin Lawrence, underlined the obvious: in mid-winter, when most needed, the wind probably won’t blow.Currently, this could be countered by bringing older plant online to cope with the shortfall. But what happens when they shut down?
Long haul, Golby believes nuclear is vital, and says Eon will build UK nuclear plant given sites, planning etc.However, as carbon prices post 2020 remain unknown (without concrete prices, investors won’t fully commit); the manpower issue (Golby reckons the Nuclear Inspectorate only has about a third of the man power it requires); and governmental uncertainty (insert excuse here), Golby says just one possible intermediate solution remains.
Sleepwalking into a nightmare “We need fossil fuels – the only flexible source I know of.We have two options, gas or coal – and we are in danger of sleepwalking into a gas world,” says Golby.“To over invest in gas is a mistake this country would rue for decades.We must deal with the coal issue. It’s the choice for most of the world – China is building one coal station a week.” Therefore, he says the mid-term future “must be Carbon Capture and Storage (CCS).”
In terms of CCS development, Golby thinks ministers, both UK and Euro, are talking too much and doing too little.“We haven’t got time to just talk, nor is it the time for knee-jerk reactions.Government must stick to long term plans and speed investment in CCS and smart metering.”
Perhaps understandably, as energy firms announced (new) record price hikes, he stressed the need to inform customers they must get used to paying more.“We need to make it clear that none of this will be cheap,” he warned.“There will be pain, but it is the only way we will get there.”
EDF:‘Nuclear lights on by 2017’ EDF’s Martin Lawrence echoed much of Golby’s sentiments, and also announced some concrete information: the firm plans to have 1000MW of renewables online by 2012; will build new gas plant and aims to deliver “four or five”new UK reactors.
According to Lawrence, EDF hopes to “turn on the 2017 Christmas lights” with its first kilowatt hours of nuclear energy.However, he too stressed that the price of carbon is vital in driving new nuclear.
“Beyond 2020 we don’t know the cost of carbon. Nuclear plant has a life of 40-60 years.To make an informed investment,we need to know long term the cost of carbon – that is the critical factor.” | 
