Today the UK Energy Bill deal has been announced after protracted negotiations between the coalition partners. Reactions have been mixed and quite a good explanation can be found here . As a compromise its got its good and bad points. Essentially an electricity decarbonisation target has been dropped until after the election and we know which side each coalition partner will fight that on… However, the overall climate act carbon budgets still remain. In theory there might be a dash for gas but since Labour is sticking to its total decarbonisation by 2030 investors may not be so keen to build new gas power stations knowing they could not get through their lifetimes. What’s been agreed is generally regarded as pretty good news for renewables and RenewableUK were apparently full of praise. Whether its good news for nuclear remains to be seen. We will know next week when the strike price to be paid for electricity generated by each technology is announced. The current rumour is 10p/units tops for any technology, but I would doubt if new nuclear can be built for anything like that. If there is a dash for gas which succeeds then we will all face much higher bills, but conversely this is good news for renewables, especially micro-generation. Finally this takes us up to 2020- what happens after that is anyone’s guess but by then PV and onshore wind will no longer require subsidy and probably offshore will be the same.
What’s certain is that your bills are going to rise. The more gas and nuclear that’s in the mix the more they will rise. I will be returning to this is a future blog post.