Our government claims that we need fracking in order to provide long-term energy security. They are using fear to convince us that we need to drill beneath our homes and areas of outstanding natural beauty in order to ‘keep the lights on’. This is special interest politics in its most malicious and dangerous form.
Fracking makes zero economic sense for the taxpayer. Climate activist and author of The Winning of the Carbon War, Jeremy Leggett said that it costs $3 to buy $1 worth of gas produced by fracking companies in America.
Lessons from America
You don’t have to be George Osborne to understand that this is not a winning economic model for Britain. Fracking is creating uninhabitable ghost towns all along the Marcellus shale, ground-zero for fracking in Ohio. The water is not fit to drink, you can’t grow anything healthy in the soil, animals can no longer graze without ingesting toxins from the grass, and the air is not fit to breathe. There are reports of increasing numbers of people in the US and Australia who live around fracking sites who are becoming gravely ill.
Fracking also uses a lot of water. The State of California decided that there is no reasonable way of dumping the waste water from offshore drilling, so they decided to dump the 8 billion gallons of contaminated fracking water into the Pacific Ocean. This water becomes poisoned by harmful chemicals such as benzene and chlorine. Fracking companies are not required to disclose the chemical composition of the fluids they use.
Hope Not Lost
We are living in an amazing time with incredible technological capabilities. Today in the UK, there are new business models being developed through partnerships between community energy groups, progressively thinking energy suppliers, renewable energy project developers, and local councils. These business models strive to create local energy generation to serve the communities where they are based, as was the case in the UK in the early 1900s.
For a small island nation the UK is lucky to have such an abundance of alternative energy sources available to us; we have Wind, Solar, Ground Source Heat Pumps, Tidal, Wave, and Anaerobic Digestion, to name a few. Additionally, we have new technologies that can improve the ways that we consume energy, like demand response systems, smart grids and energy efficiency measures.
Community Energy = Real Energy Security
BHESCo is part of a network of 20 Community Energy groups across Sussex and Kent that are devoted to creating local energy generation to provide REAL ENERGY SECURITY. We need to end the idea of short term thinking in our energy network and consider that energy generation projects can provide reliable energy sources for 25 to 30 years and longer.
We need to invest in our electricity grid to create the new distributed energy system that is needed to offer the taxpayer REAL ENERGY SECURITY. Fracking most certainly is not going to provide this in the long term, nor will it reduce prices for the 15,000 people in Brighton & Hove who cannot afford to heat their homes.
The current Government’s energy strategy makes no economic or environmental sense, and we say loud and clear No to Fracking! We want to leave behind a long-term legacy of clean, locally owned renewable energy that serves the community and preserves the environment.
15 Oct 2015
In the past few months, we have seen some challenging developments in the renewable energy sector. Two key announcements from the Government have stripped away the stabilising wheels for clean energy, removing some of the incentives on which the industry has relied, making it harder to progress. The reasons were effectively that prices for renewable energy has come down as to no longer require the same level of subsidy that it did five years ago.
The first announcement came in July 2015, when HMRC proclaimed that renewable electricity would lose its exemption to the Climate Change Levy, a tax on the supply of commodities to businesses. Renewables have been exempt from this charge since is was introduced in 2001, providing a subsidy for low margin investments in renewable generation.
The reason given for this change is to “correct an imbalance in the tax system by preventing taxpayer’s money benefitting renewable electricity generated overseas”. However, this logic is refuted by industry insiders who argue that more than 70% of the Levy Exemption Certificates went to UK providers. The removal of this tax exemption could mean a drop in income for some renewable schemes of between 5-6%. Although this may not sound like much, this could mean the difference between sink or swim for some smaller companies, as Dr Gordon Edge of RenewableUK explains:
“Yet again the Government is moving the goalposts, pushing some marginal projects from profit into loss. It’s another example of this Government’s unfair, illogical and obsessive attacks on renewables”
The great irony is that because the renewable industry is nearing price-parity with fossil fuels, and because the Government wants to ensure low energy prices for hard-working families, the requirement of clean energy generators to pay toward the Climate Change Levy will lower their profit margins, meaning they will need to raise prices in order to compensate.
The second measure affecting the renewables industry came from the Department of Energy & Climate Change (DECC), when it announced on 22 July 2015 that it would be removing preliminary accreditation from the Feed-in-Tariff. Pre-Accreditation means giving green energy generators a guaranteed tariff level in advance of a project being commissioned, which is vital for financial modelling and creating investment offers. Removing this guarantee means that energy providers would receive the tariff rate as at the date they apply for full accreditation. In the DECC’s own words, “this will mean that a developer will not be certain of the level of suport they will receive under the scheme until the point at which their application is received by Ofgem”.
According to the DECC, pre-accreditation was introduced to “remove a large degree of risk” and to “offer greater certainty to industry”. The table below illustrates the huge increase of installations deployed under the FiT pre-accreditation scheme since it was introduced in 2012:
So what could be the reason for removing such a successful incentive now? The rationale provided by Amber Rudd, minister of DECC, is that there has been a much greater uptake in renewable energy projects than was forecast. Predictions had been for approximately 750,000 new renewable installations nationwide between 2010-2020, whereas the reality is that there have already been 700,000 installations as of 2015. This has “significantly outstripped expectations”, meaning that budget forecasts for 2020 are no longer workable.
It makes no sense that at the same time we’re told climate change is the fight of our generation, we are being also being told that the UK cannot afford the present pace of renewable growth. Or that energy security is a big national priority, then stop the support for the one area that provides it. It is tragic that just as renewables are challenging fossil fuels for market dominance, their progress has been curtailed. The irony of the green industry being punished for exceeding expectations is absurd, especially at a time when financial incentives for fracking are are on the rise. As David Attenborough said in his recent interview with Barack Obama, to transition to a low-carbon economy all we need to do is make renewables cheaper than fossil fuels, and common sense market mechanisms will do the rest.
However, there is cause for optimism. Given the tremendous advances in the efficiency of renewable technology, as well as the recent growth of solar power in the UK, perhaps Amber Rudd and DECC are right; perhaps the renewable industry is resilient enough to ride without support. And the decision to cut the Feed-in-Tariff has not yet been settled either, with consultations underway (please complete this one by 10:10 here), so if you do feel this is wrong, contact your MP and let them know.
Moreover, even without the subsidies of the past, there are still enormous opportunities to lower our energy bills as well as carbon emissions through energy efficiency measures, such as insulation, draught-proofing, or double glazing.
If the recent developments in the renewable industry have highlighted one thing, its that communities cannot rely on fluctuating external factors if they desire a stable and fair energy supply. To defend our communities against such unexpected changes in the future, we need to take control of our own energy networks, which will ensure resilience and price stability.
And what’s more, we will not be penalised for our successes.
The Conservative budget announcement in July was not good news for the renewables industry, nor for members of the public who are concerned about climate change, rising energy prices and the impact that extreme methods of extracting oil and gas will have on our air, water and soil (1,2). Support for the renewable industry and tackling climate change appears be drying up at a time when we need them more than ever (3).
We see that there are cuts ahead, so that even large coal–fired power stations like Drax, who were seen as the UK’s worst carbon dioxide polluter, are complaining about how their transition to biomass is being undermined(4,5). Instead there is massive funding of taxpayers money pouring into the nuclear industry to support the construction of new nuclear power plants, decommissioning and the long-term management of its toxic waste legacy (6). We know that nuclear is not a solution for climate change or keeping the lights on as the problems are looming and it takes 15 years to build a nuclear power station. Then there’s tax breaks for the shale gas extraction industry(7), although most of us oppose “fracking” which creates numerous problems for local communities, wastes more taxpayers money because the protests against fracking in areas that are precious to us will not abate. Besides the obvious detriment to our environment, the untold clean-up costs after it’s sucked the last drop of ‘fracked’ gas from the ground beneath us (8,9) and the impact on our water supply.
We need to ask some questions; who benefits from these subsidies? How are the investments made by this government going to benefit us, the taxpayer, in the long-term? Are we receiving value for money on governments investment of our taxes and finally – Why aren’t they listening to us? Already we are paying too much for our energy. Even the Prime Minister, has moved on to the former Labour leader’s territory, and is considering a temporary cap on our fuel bills as a result of the monopolising power of just 6 big energy corporations controlling over 90% of the UK energy market (10). Unfortunately, this is only a plaster for the bigger problem, which is that our energy strategy that is not fit for purpose.
There are solutions to these problems. There is a growing movement of local community energy groups across the UK, particularly, social enterprises and co-operatives like BHESCo here in Brighton and Hove. By building our own renewable energy generation and improving the thermal efficiency of our built environment, we can take some of the power out of the hands of the big corporations inflicting price increases and reduce our energy costs, improve the energy efficiency of our homes, stimulate the local economy, tackle fuel poverty and contribute to mitigating the biggest global threat to our existence, climate change. We can join other successful communities across Europe and all across the globe who are turning to more democratic, decentralised, community-owned, renewable energy solutions, controlled by us and for us (11).
After the success of the last 2 years, the Big Energy Saving Network (BESN) BHESCo is part of a consortium of community energy groups that has applied for support for two energy champions starting again this autumn/winter (12). We will be encouraging vulnerable customers to make themselves known to us because we can help them save money by reviewing their energy bills, offering impartial switching advice to the cheapest tariffs, general advice on energy efficiency in the home and how to keep warm this winter. We will also be taking action to help people be more energy efficient through small measures that we will implement in home visits.
We really can reclaim the power. It’s up to us to do it together. That’s what Community Energy is all about.
1. Budget 2015: Key climate and energy announcements: http://www.carbonbrief.org/blog/2015/07/summer-budget-2015-key-climate-and-energy-announcements/
2. Chancellor to push up renewable energy taxes in Budget with ‘climate shaped hole’: http://www.businessgreen.com/bg/news/2416918/chancellor-to-push-up-renewable-energy-taxes-in-budget-with-climate-shaped-hole
3. Former BP geologist: peak oil is here and it will ‘break economies’: http://www.theguardian.com/environment/earth-insight/2013/dec/23/british-petroleum-geologist-peak-oil-break-economy-recession
4. End of climate levy exemption dents Drax: http://nicosiamoneynews.com/2015/07/08/end-of-climate-levy-exemption-dents-drax/
5. End support for Drax: stop subsidies for biomass power and phase out coal! http://www.theecologist.org/campaigning/2840617/end_support_for_drax_stop_subsidies_for_biomass_power_and_phase_out_coal.html
6. County councils sidelined from nuclear waste dump site decisions: http://www.theguardian.com/environment/2013/sep/12/county-councils-nuclear-waste-dump-sites
7. UK’s shale gas revolution falls flat with just 11 new wells planned for 2015: http://www.theguardian.com/environment/2015/jan/19/uk-shale-gas-revolution-falls-flat-just-11-new-wells-planned-2015
8. Fracking plans rejected: Lancashire council throws out Cuadrilla proposal – at it happened: http://www.telegraph.co.uk/news/earth/energy/fracking/11705333/Fracking-decision-Lancashire-live.html
9. No fracking at Balcombe, says energy company Cuadrilla: http://www.independent.co.uk/news/uk/politics/no-fracking-at-balcombe-says-energy-company-cuadrilla-9081875.html
10. PM ‘to consider’ temporary cap on high UK energy bills (July 7th, 2015 5:50 pm): http://www.ft.com/cms/s/0/843585e6-2474-11e5-9c4e-a775d2b173ca.html
11. Tory ‘blue crap’ means UK is falling behind in global switch to clean energy:
12. Big Energy Saving Network 2015/16: https://www.gov.uk/government/publications/big-energy-saving-network-grant-offer-fund
17 Jul 2015
In the last hours of parliament before the general election, a new law was rushed through which means that local communities may have nuclear waste dumps imposed on them without the need for public support.
By classing nuclear waste sites as “nationally significant infrastructure projects”, the decisions for their locations can be made by the Secretary of State for Energy without the support of the local council or communities of residents. Additionally, they will not be bound to recommendations made by the planning inspectorate.
The use of nuclear energy in power stations, weaponry and medicine over the past 50 years has left a legacy of radioactive waste which needs to store somewhere on a long term basis. Radioactive waste can remain dangerous for tens of thousands of years. The UK also has the largest stockpile of plutonium in the world, one of the most toxic, radioactive substances ever created.
There is no long term solution in place for storing nuclear energy as current plans only last for up to two hundred years. Whilst there is a need for a long term strategy for radioactive waste, these decisions cannot be made without the support of local people who will have to co-exist in a potentially dangerous environment.
Local decisions by local residents
The Department for Energy and Climate Change (DECC) stated that they would prefer to work with public support and were willing to take action even if they failed to achieve the needed support from local people.
Following a proposal to develop a deep storage site at Sellafield, local groups have growing concerns. Cumbria County Council rejected the construction of a nuclear waste storage facility in January 2013. There is currently no evidence to support the long term safety of this type of storage, and no evidence to suggest that the geology of this area is suitable. Germany recently put on hold similar plans, and the only existing site in this style, based in New Mexico, has been closed following two accidents.
Whilst a local community can now reject the construction of onshore wind farms, they cannot deny fracking or the storage of nuclear waste. This shows that the government is willing to bypass the decisions of local communities to support unsustainable and potentially dangerous projects, limiting our ability to aid in the generation of sustainable energy.
Local communities should be able to have a decisive say in all matters concerning our energy landscape whether this is dangerous nuclear waste shortage, shale gas or coal bed methane drilling where they live as the quality of their living environment is at stake.