EMR plans threaten offshore wind, warns CCC

9th September 2013


Related Topics

Related tags

  • Energy ,
  • Renewable ,
  • Conventional ,
  • Generation

Author

IEMA

Low support prices for offshore wind in the government's proposals to overhaul the electricity sector could jeapordise investment in the technology, say advisers

The independent committee on climate change (CCC) has urged the government to amend its electricity market reform (EMR) delivery plan, arguing that unrealistic expectations over the cost reductions for offshore wind generation could hamper deployment.

In a letter to the energy secretary, Lord Deben, chair of the CCC, praises much of the EMR delivery plan, but warns that proposed strike prices for offshore wind – the amount to be paid per MWh of electricity generated – fall too steeply after 2016/17.

The CCC describes initial strike prices of £155MWh up to 2015/16, and £150MWh in 2016/2017, as “broadly appropriate”. However, the scale of the planned reduction in 2018/19, to £135MWh, expects cost savings from the sector that are unlikely given current evidence, writes Deben.

Rather, the CCC suggests that a cut of £5MWh (to £140MWh) between 2016/17 and 2018/19 would be more in line with “achievable” savings.

The letter also warns that the wide range of scenarios outlined in the plan for electricity generation post-2020 is introducing doubt when investors require certainty.

It urges the government be clearer on its vision for electricity generation in the long term by reducing the number of scenarios in the delivery plan, introducing a 2030 decarbonisation target and/or publishing commercialisation strategies for the less mature renewable technologies, such as marine and tidal power.

“The delivery plan leaves a high degree of uncertainty about ambition in the 2020s,” writes Deben. “This is despite compelling evidence that a strategy focused on low-carbon investment through the 2020s is a low-regrets option and offers significant cost savings.

“Industry has been very clear that more certainty is required to support supply-chain investment.”


Transform articles

National climate plans could see fossil fuel demand peak by 2025

Demand for fossil fuels will peak by 2025 if all national net-zero pledges are implemented in full and on time, the International Energy Agency (IEA) has forecast.

15th October 2021

Read more

The Green Homes Grant is set to deliver only a fraction of the jobs and improvements intended, leading to calls for more involvement from local authorities in future schemes.

23rd September 2021

Read more

COVID-19 recovery packages have largely focused on protecting, rather than transforming, existing industries, and have been a “lost opportunity” for speeding up the global energy transition.

23rd September 2021

Read more

Half of the world's 40 largest listed oil and gas companies will have to slash their production by at least 50% by the 2030s to align with the goals of the Paris Agreement, new analysis has found.

9th September 2021

Read more

None of England’s water and sewerage companies achieved all environmental expectations for the period 2015 to 2020, the Environment Agency has revealed. These targets included the reduction of total pollution incidents by at least one-third compared with 2012, and for incident self-reporting to be at least 75%.

30th July 2021

Read more

The UK’s pipeline for renewable energy projects could mitigate 90% of job losses caused by COVID-19 and help deliver the government’s ‘levelling up’ agenda. That is according to a recent report from consultancy EY-Parthenon, which outlines how the UK’s £108bn “visible pipeline” of investible renewable energy projects could create 625,000 jobs.

30th July 2021

Read more

Billions of people worldwide have been unable to access safe drinking water and sanitation in their homes during the COVID-19 pandemic, according to a progress report from the World Health Organisation focusing on the UN’s sixth Sustainable Development Goal (SDG 6) – to “ensure availability and sustainable management of water and sanitation for all by 2030”.

30th July 2021

Read more

The oil and gas industry is set to burn through its allocated carbon budget 13 years early unless decisive action is taken immediately, new analysis has found.

22nd July 2021

Read more

The UK will no longer use unabated coal to generate electricity from October 2024, one year earlier than originally planned, the Department for Business, Energy & Industrial Strategy has announced.

2nd July 2021

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert