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Business throws cold water on gov hot air proposals

Tilting at windmills

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Business lobby group the CBI is calling on the government to reduce its reliance on wind power to hit greenhouse gas targets.

The group is worried that government policy does not offer enough juicy subsidies to nuclear power and so-called "clean coal" technology.

John Cridland, CBI deputy director-general, said: "The Government’s disjointed approach is deterring the private sector investment needed to get our energy system up to scratch, bolster security and cut emissions.

“While we have generous subsidies for wind power, we urgently need the national planning statements needed to build new nuclear plants. If we carry on like this we will end up putting too many of our energy eggs in one basket."

The lobbyists want the government to cut the percentage of energy sourced from wind in targets set for 2020, speed up investment in the electricity grid and get funding in place for Carbon Capture and Storage plants by June 2010.

The study looked at energy investment based on two routes - one following goverment policy and one a "balanced pathway".

The CBI said that following "business as usual" would mean that by 2030 gas would contribute 36 per cent of the UK energy, 24 per cent from wind, 20 per cent from nuclear, 12 per cent form other renewables, eight per cent from clean coal and one per cent from dirty coal. This would mean missing emissions targets - 64 per cent of electricity would come from low carbon sources rather than 78 per cent.

On the other hand a "balanced pathway" would see gas providing only 16 per cent of energy by 2030. Nuclear would take the lion's share with 34 per cent, wind would take 20 per cent, 15 per cent would come from other renewables, 14 per cent from clean coal and two per cent from normal coal. This, we are told, would mean 83 per cent of UK electricity would come from low carbon sources.

The Department of Energy and Climate Change said: "We're on track with our promise to remove costly unnecessary barriers to new nuclear, such as the planning reforms already in train.

"We've said we'll support the construction of up to four clean coal demonstration plants, that's more than any other government in the world. And our analysis suggests that a massive expansion in wind, wave, tidal and other renewables can - and must - sit alongside this."

The CBI report is available here (pdf). ®

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Latest Comments

@JonB

Sorry - do you actually have a point, or are you just being contrarian for the sake of it? Nobody (other than you, as a counterpoint) has suggested a return to 70's-style direct state energy control. I'm certainly not suggesting anything remotely like a "socialist utopia."

With that in mind, perhaps you'd like to clarify your position. Specifically, I'm intrigued to know how you think that the free market will a) maximise the stability of energy supply to the consumer, and b) provide the most carbon-free energy supply possible?

Maybe I'm reading you wrong, but it seems to me like you believe that these will happen naturally, without government interference. I don't see it - care to enlighten me?

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Anonymous Coward

et al.

I'm clearly in the minority here, we can look forward to another glorious socialist utopia.

Again..

It'll be just as good as the '70s one.

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@masterpikey

The jet streams have the same undulation & eddy current issues as the Gulf Stream.

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