Tag Archive: renewables

In the news today was a proposal to make companies operating nuclear energy in the UK liable for clean-up costs of up to £1.01 billon in the event of a accident, up from only £140 million at the moment. Lib Dem Energy and Climate Change Secretary Chris Huhne also proposes to allow more types of claim to be made in such circumstances. It is absolutely right for the government to make this change and stop distorting the market as it does now.

Huhne: In favour of building more nuclear plants, but raising the insurance costs

I will come clean here: I am a fence-sitter on the issue of nuclear power. The more I look into it the more complicated and unclear it becomes. I tend to conclude that it is not a power source to be dismissed completely, but mostly is not worth the cost. This may, however, change with technological improvements.

It is, however, unhelpful for nuclear power to be given an unfair market advantage. When its maximum liability level is low it has a huge implicit subsidy: government is then effectively agreeing to clear up the mess from any nuclear disaster. If nuclear energy becomes a bigger part of the UK’s (or the world’s) energy supply because its real costs are being covered by the government, then that is due to a misjudgement on the part of policymakers.

This is not to say all energy subsidies should be opposed, quite the opposite. The cards should be stacked heavily in favour of giving renewable energy an advantage, so the technology is developed swiftly. Subsidies to renewable energy sources are essential to develop areas like wind and solar power to a competitive market position. At present they have an unfair disadvantage simply because however good the fundamental ideas are, they haven’t had the years of development that fossil fuel and nuclear industries have. Adopting the most effective and efficient renewable generation is key to developing a sustainable economy in the long-term.

There is another key way of making the energy market better reflect energy production costs, and that is smart grids. At present less predictable sources of energy like wind are effectively discriminated against by a grid that is designed to move energy in a fairly unsubtle way. High-quality smart grids can allow power companies to monitor the electricity going through all of its power lines in real-time and have much greater control of where the power goes. Electricity inefficiency costs the world dearly: according to IBM the world’s current grids “lose enough electricity annually to power India, Germany and Canada for an entire year” This control makes the reliability challenges of renewable energy much easier to overcome: if there isn’t enough power generation in one area, it can be moved from elsewhere. Smart grids would still have benefits for other energy companies, but would level the playing field still further.

Arnold Schwarzenegger has suggested he might devote after the Governorship to climate change work. How? By focusing on the business end and never mentioning climate change by name. And presumably by being very, very quotable.

The Governator may yet lead the way in the business of climate

One of the most interesting analyses of climate change communications out there is buried in a recent Guardian article on Arnold Schwarzenegger’s future. “The Governator” has speculated he could spend his future after the governorship drumming up support and capital for climate-change friendly technology, a path not dissimilar to Tony Blair’s work on climate change since leaving office, including a recent Chinese low-carbon business initiative.

What’s interesting about this is the focus: future technology, business and big money. Hardly the hallmarks of traditional environmentalism, to be sure. What is even more interesting is that he consciously chooses his language to reflect this: he makes it clear that his strategy is to avoid referring to climate change or greenhouse gases, presumably to sidestep the entire climate change debates going on in the US. He also speaks of avoiding the polarised US politics in this issue, so perhaps by talking about “clean tech” and “future energy sources” he can avoid spooking the businessmen out there who shudder at environmentalism but smile on visions of future technology.

He’s certainly crystal clear when he says on climate change groups: “People get stuck and fall in love with their slogans and with their little agendas”. His pragmatic approach may prove just the ticket. It also chimes perfectly with the recommendations of the Hartwell Paper last May, which argues for “an indirect approach, which pulls on the twin levers of reducing the energy intensity of economies and the carbon intensity of energy” to avoid the “hyper-politicised” environment surrounding arguments over the science.

Those who have seen the film “Amazing Grace” about the life of William Wilberforce will know that the British slave trade industry was broken down through the back door by focusing on the trade with Britain’s enemies, reframing it as a patriotic issue and by the usual anti-slave-trade lobbyists keeping their head down so the bill passed unnoticed. The same slight-of-hand could come in useful here if those like Schwarzenegger are able to avoid the overblown battleground of climate science and get on with advancing the technology, in line with the Hartwell Paper’s “indirect approach” thesis.

Schwarzenegger is not the only one choosing his words carefully on this. Reading a typical article on “Renewable Energy News”, like a typically business oriented one on GE’s investment in “clean technology”, there’s a sense of a business community avoiding a guilty secret that renewable energy is associated with this hippie-Guardian-reader-sandal-wearer-tree-hugger stuff. Even after The Stern Review, a UK government cross-bench consensus, campaigning by both presidential candidates from 2008 and big reports by the likes of Deutsche Bank and PriceWaterhouseCoopers, climate change is something some of those business feel a little self-conscious about discussing too openly.

Schwarzenegger also sees himself as a communicator who communicates clearly by simplifying: “I think that I have the talent of speaking the language in such a way so that the world understands it rather than making it complicated,” he said. This was a trait notoriously ridiculed in George W. Bush, but there is little doubt his plain-speaking style won him elections (as well as praise from former sultan of spin Alastair Campbell), and Schwarzenegger shows signs of some of the same talent.

It is well worth browsing Schwarzenegger quotes online. Among my favourites are “Gray Davis can run a dirty campaign better than anyone, but he can’t run a state”  and “One of my movies was called ‘True Lies.’ It’s what the Democrats should have called their convention”. Oh, and the famous “To those critics who are so pessimistic about our economy, I say: ‘Don’t be economic girlie men'”.

I’m looking forward to more of the same on renewable energy.

The Isle of Eigg - left to fry without fossil fuels?

The Isle of Eigg off the west coast of Scotland got into trouble recently when its renewable energy failed to come through at once, reported the BBC and The Telegraph.

There are two ways green groups should respond to this:

1. Point out that the project has had many benefits in both reducing CO2 emissions and achieving energy independence. Both of these achievements provide valuable lessons for the rest of the world. This is the pitch for those interested in the relevant issues to be impressed. It could even be an opportunity to highlight the good work of Eigg (a chance for renewables campaigners to, dare I say it, bring home the bacon. To make toast of their enemies. For renewables campaigning to mushroom…   ok, I’ll stop now)

2. Stress that renewable energy country-wide would accompany development of the national grid to avoid localised power failures. The wind/sun/rain may stop in one area, but is unlikely to grind to a halt country-wide. This is more true in, say, the US and Europe than in the UK, but still has some relevance. It’s not the sexiest message in the world, but someone needs to reassure everyone who is afraid their lights will go out and their TV and laptop will stop working when there’s a drop in the wind.

In both cases some facts and figures would be a valuable way to reinforce the point.