As the UK emerges from the grip of its coldest winter for 30 years, growing fears about the spiralling costs – both financial and environmental – of burning fossil fuels to generate power are causing people to look increasingly at renewable methods to generate green power.
Energy bills have soared around the world, as demand for oil and gas has skyrocketed. The average price paid by UK household consumers for gas more than doubled between 1999 and 2009, while the cost of electricity has risen by more than 70%, according to government data.
Energy companies have blamed the volatile price of oil, gas and coal on the global markets for the rising price to consumers. But prices continued to increase throughout 2008 and early 2009 despite wholesale prices falling, leading consumer groups to accuse energy suppliers of making high profits from domestic customers.
Price rises likely
Energy firms have defended themselves, arguing that they make little or no money from domestic customers. The cost of buying energy only makes up around half of a customer’s bill, they contend, so even if wholesale prices fall customers are unlikely to see a big impact on their own bills. Fixed costs are responsible for the other half of their bills, including a growing number of social and environmental obligations placed on energy firms by law.
But there are gloomy predictions that energy prices are likely to head higher. In December, energy regulator Ofgem warned that its prediction made last October that prices may rise by as much as 60% above the inflation rate by 2020 may have been too optimistic.
Increasing demand for energy, a growing reliance on energy imports from uncertain sources overseas, a lack of storage facilities and too many outdated coal-fired power stations are set to push up prices in Britain. But delays to getting new, more efficient power stations on stream and rising green taxes – which fund energy companies’ obligation to cut greenhouse gas emissions – could make energy bills even more expensive than Ofgem had previously forecast, it said.
People power
Some communities are taking matters into their own hands, by setting up their own schemes to generate power. Not only are they environmentally friendly, some may actually produce surplus power that they can export to the National Grid.
The Green Valleys project in the Brecon Beacons is looking to become the UK’s first carbon-negative area. Part of its plan involves generating electricity using micro-hydro schemes on fast-flowing mountain streams. It has predicted that by installing a series of similar projects the valley can produce five times more energy than it needs.
Another scheme is on the Hebridean island of Eigg, whose community has set up its own electricity company to provide power for residents through a combination of water, sun and wind-powered generators. To ensure there is enough power to go round, each household can use a maximum of 5 kilowatts (kW) of electricity at any one time. That’s equivalent to a washing machine and kettle being used at the same time. Meanwhile businesses on the island are limited to using 10kW. During periods when the island produces too much electricity, it is stored in batteries.
Both schemes were winners of this year’s £1m “Big Green Challenge Fund”, run by the National Endowment for Science, Technology and the Arts (NESTA). Chairman of the NESTA panel of judges, Lord Puttnam said: “Whilst Copenhagen showed just how difficult it is to reach consensus amongst governments, the Big Green Challenge shows how local efforts can triumph. When people are empowered and are given intelligent support they can make the world of difference in the fight against climate change.”
Radical schemes needed
Although applauding schemes such as these, climate campaigners and energy experts point out that the UK needs to embrace much more radical plans for cleaner and renewable power generation to meet its target of cutting its greenhouse gas emissions by 80% by 2050.
January’s announcement of new licences to establish nine massive wind farms off the British coast is the kind of project that could help the UK hit that target. Turbines in the nine farms could produce up to 32 gigawatts of power, equivalent to a quarter of the UK’s electricity needs.
