UK offshore wind farm development

The UK government has announced an intention to allow offshore wind farm development around most of the UK. John Hutton suggested that about 33 GW capacity could be added by 2020. This would provide about 25% of current UK electricity demand (which is itself rising by 1 to 2% per year).

Simple calculations suggest that this change may add about 15-25% to UK electricity bills. Offshore wind is more expensive to construct and operate than onshore wind farms. The announcement may suggest that the government believes that offshore wind can be pushed through but that onshore farms are likely to be successfully opposed. The big push for offshore wind seems to mean that the government is losing faith in nuclear.

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Household batteries

Inventions that take the breath away with their simplicity and elegance are rare. The new rechargeable batteries from USBCell qualify for this honour. As their name indicates, they are AA batteries that are recharged by the USB port on a laptop or other powered device. They are not cheap, but will repay the investment by being far easier to recharge than conventional rechargeable AAs. The carbon savings from these batteries are not large. My calculation is that they might save 10kg of CO2 a year in a household full of portable devices. But they will, of course, reduce the waste going into landfill.

The company that makes the batteries has won some important awards for its innovation. More importantly, it also has some extremely interesting views on the evolution of home electricity demand. It correctly points out that a larger and larger fraction of home energy is used in 12V, not 240V appliances. We waste a lot of energy switching 240V AC down to 12V DC. Its next products include a box that will allow all DC devices (phones, handheld consoles, laptops) to be efficiently charged. Eventually, it will be possible to use cheap(-ish) solar power collectors to charge all the battery DC devices in the home. The savings in carbon would be worthwhile (but probably outweighed by the purchase of one extra TV).

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Conservative Party policy on local generation of electricity and heat

The Conservative Party published a policy paper in early December on decentralised production of energy. It argues for heavy subsidy for small-scale generation of electricity. The report is useful in focusing on the need to minimise the finance and administrative burdens on small generators. However, it omits any consideration of the costs of the scheme it proposes. It is woefully ill-informed about developments in other countries. The Conservatives have subscribed to a romantic view about micro-generation and are choosing to ignore the huge costs of subsidising inefficient local generators. If they want large-scale low-carbon generation they should either back nuclear, remove the planning problems with wind, subsidise tidal or biomass power, or invest in CO2 capture.

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CBI/McKinsey report on climate change

The CBI brought out a report on climate change. It argues that the UK can achieve emissions reductions at a sufficiently rapid rate to meet the government’s old target of 60% cuts by 2050. The optimism is underpinned by McKinsey work that assesses 120 different options for reducing carbon dioxide, ranging from domestic solar panels to carbon capture. McKinsey assesses what carbon price is necessary to create the incentives for business and consumers to switch to using these technologies. The McKinsey analysis appears to show that getting the UK on track will need carbon prices in excess of €90 by 2020, though this number will then fall.

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Smart metering

The world understands ‘smart metering’ in many different ways. Gordon Brown used the expression in his first speech on climate change. He meant devices that give visual real-time indication of electricity consumption, largely in homes. To the UK Conservative Party (see this issue of Carbon Commentary) it means conventional meters that can record the export of electricity from a house, as well as its use. Smart meters are much more useful than either of these two definitions suggest. Their primary value will be to adjust the price of electricity depending on the level of demand. This frightens politicians because they fear the backlash from users complaining of the horrendous cost of peak-time electricity use. But if we are to increase the percentage of electricity coming from intermittent and/or unreliable sources, smart meters are a necessity.

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Heathrow expansion

The government announced that it was minded to allow Heathrow to expand. A new runway and sixth terminal will increase capacity from 480,000 to 702,000 flights. The government’s consultation documents – totalling hundreds of pages – did not provide an estimate of the impact on CO2 emissions. In this article, we offer a tentative figure of about 16m tonnes as the potential maximum impact of the proposed expansion. After multiplying by 2.7 to account for the other pollutants created by aviation, the increase takes the total UK emissions from aviation up to 144m tonnes of CO2 equivalent.

Another piece in this newsletter discusses Gordon Brown’s statement in the same week that total UK emissions from all sources may need to fall to no more 155m tonnes by 2050.

The disjunction between government policies on aviation and climate change is startling.

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Community-owned wind farms

In Denmark and Germany, large numbers of individuals own shares in local wind farms. If the government encouraged this in the UK, a large part of the local opposition would disappear. Onshore wind farms in windy locations are good investments which could form an effective part of many people’s pension plans. One of the few co-operatively owned wind farms in the country has almost finished raising its funds. Investors have put up £3m to buy two existing turbines in the Fens. Locally owned wind farms should be encouraged as a cost effective means of cutting emissions.

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Eco housebuilding

After decades of foot-dragging, the UK construction industry has begun to see the importance of good insulation and higher environmental performance. Large housebuilders are beginning voluntarily to build their major developments to a better standard than required by building regulations.

Housebuilders also see the increasing commitment by government to increasing the mandatory standards for home insulation and other environmental characteristics. By 2016, all new homes will have to be ‘zero carbon’.

A report just released by estate agents Knight Frank examines whether buyers are prepared to pay the cost of the eco-improvements. The answer seems to be a cautious ‘yes’.

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Shai Agassi and the big batteries

TeslaShai Agassi, the California-based software superstar who wanted to run SAP but left the company in March when he didn’t get the top job, has come back into the spotlight as the CEO of an electric car start-up. The new company is funded by $200m of venture capital and investment bank money. This makes it one of the best-funded start-ups in history. Agassi does not intend to make electric cars. Wisely, he is leaving this to the auto industry. He is focusing on the batteries. He’ll lease them to anybody with an appropriate car and he’ll develop large networks of ‘filling stations’ where the driver can quickly take out a discharged battery and swap it for a fully charged version on long journeys. By 2010, he wants a hundred thousands electric cars on the roads of California and elsewhere.

The obstacles are huge. Although lithium-iron-phosphate battery technology is improving rapidly, and will continue to do so for decades, full-size car batteries now cost at least €7,000. Getting mainstream manufacturers to build large volumes of electric cars that will take his batteries is another formidable challenge. Third, he has to persuade retailers to install the equipment to swap batteries automatically.

But our weary European scepticism needs to be rested for a moment. The long-run economics favour this idea. My sums suggest that at current UK petrol prices it costs at least six times more to drive a mile on petrol than it does on electricity. Battery prices will fall and performance will improve. At some point it is going to be so much cheaper to power a car with electrons rather than octane that even the slothful auto industry will switch. When the market has tipped it won’t be long before passenger cars are all electric. Agassi may be too early, and his business model may require too much capital, but electric cars are coming soon.

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Hillary Clinton’s climate change plans

Hillary ClintonThe US presidential contenders are laying out their plans for climate change mitigation and adaptation. Mrs Clinton’s proposals are noteworthy for their commitment to re-engage with the global negotiations over future emissions caps and for her ambitious acceptance of the need for an 80% reduction in US emissions by 2050. The 80% target is rapidly becoming the preferred option of world politicians, a more ambitious target than the UK’s 60% figure. (The UK’s Climate Change bill will allow the new Climate Change Committee to recommend an increase to 80% if appropriate.) Mrs Clinton espouses a cap-and-trade system for US emissions. Unlike the EU’s approach, she proposes to auction the permits. She will continue the disastrous US policy of encouraging the conversion of corn to bioethanol. She looks to renewable electricity to provide 25% of US power.

She will add to federal expenditure on R+D, but the number proposed is insufficient to have much effect. She stresses the high cost of energy (gas, motor fuels and electricity) to American citizens but not does mention that the impact of her measures will be to increase energy costs, not reduce them.

Mrs Clinton’s plan is calm and measured. Contrast her statesmanlike tone with David Crane, the CEO of a large electricity generating company, in a 14 October article in the Washington Post. Crane writes, ‘We are not running out of time, we have run out of time’ [his italics]. He argues that the US government should put an immediate price on carbon emissions to incentivise a rapid switch to carbon capture and storage in the US power sector. His tone is desperate: ‘I am a carboholic’ but I want to stop, he writes. We could all do with a similar sense of urgency from Mrs Clinton.

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Public opinion on climate change

BBC World ServiceTwo pieces of market research published in the last week give some more support for the view that opinion is moving towards accepting that climate change will require lifestyle changes. BBC World Service interviewed individuals across the globe. Power company E.ON produced its segmentation of British consumer attitudes. The BBC survey suggested that over 80% of UK people are ‘ready to make significant changes in the way I live to help prevent global warming’. Nearly 90% think that changes in lifestyle will be necessary to address the problem. These numbers are approximately the same as among urban Chinese and only marginally higher than the US.

E.ON’s segmentation has over 20% of the UK already taking serious and possibly costly personal action related to climate change. Less than 15% actively reject any need to act now.

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The rebound effect

Energy efficiency improvements often do not deliver reductions in energy use. For example, when a householder installs better insulation, the energy savings are sometimes much less than would have been predicted. Sometimes this is because the insulation was badly fitted, but it is often because the householder runs the heating at a higher temperature when the house is better insulated. This is called the ‘rebound’ effect: when it becomes cheaper or more effective to use energy, people use more of it. The many studies into this effect have produced a wide variety of different estimates for the size of this effect. Most cluster between 10 and 30%. This means that energy efficiency improvements generally result in a large net benefit. But these studies only capture the direct effect on consumers and businesses. A study from the UK’s Energy Research Centre shows that the economy-wide impact may be much larger. For example, lower heating bills may mean that householders are rich enough to take more flights. At an even higher level of abstraction, better economy-wide energy efficiency (through, say, improvements in steel-making technologies) may encourage more rapid economic growth, which in turn raises energy use.

Some economists think that the economy-wide rebound from energy efficiency gains is very large – perhaps over 100%. A figure over 100% suggests that total energy consumption rises after energy efficiency improvements. The tentatively stated view of a new report by the UK Energy Research Centre is that the true number is somewhat lower than this and may be around 50%, although it could be a great deal higher.

Government projections for the impact of energy saving measures never take the rebound effect into account. Policy-makers trying to reduce global emissions need to adjust their thinking to reflect the much lower than expected efficacy of energy saving programmes.

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Biochar can sequester carbon cheaply

Amazonian topsoil enriched with charcoalOrganic matter, such as agricultural waste, heated in the absence of oxygen splits into two types of material: a charcoal (biochar), and hydrocarbon gases and liquids. When added to soils, the charcoal can provide a powerful fertiliser. The hydrocarbons can be burnt, either to generate electricity or to power an internal combustion engine. Biochar is exciting growing attention around the world. Charcoal’s ability to improve soils can sometimes be spectacular. But more importantly from a climate change perspective, charcoal is almost pure carbon and is strangely stable in soils. It seems to persist for centuries. Charcoal can therefore offer substantial opportunities for long-term sequestration of carbon. The valuable fuels from the biogases and liquids are also carbon-neutral since they contain CO2 previously captured during photosynthesis. As a third major benefit, soils fertilised with charcoal seem to need less artificial fertiliser, thus saving fossil fuels. Fewer applications of fertiliser would reduce the level of emissions of nitrous oxide, a particularly dangerous greenhouse gas.

Biochar manufacture represents a way of productively storing large amounts of carbon. But the carbon in the charcoal could be burnt to generate electricity instead of being stored in soil. Current emissions trading schemes, such as the European ETS, do not allow sequestered carbon to be considered as equivalent to a reduction in greenhouse warming emissions. This is a mistake that will need to be rectified. It make more sense to use agricultural land to make biochar and biogases/bioliquids than to burn the biomass in power stations. Power stations burning wood benefit from buying fewer emissions certificates and from the renewable energy subsidy, but there is no comparable benefit from storing carbon in the soil. This is an anomaly that should be removed.

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China is keeping the UK within the Kyoto limits

Post-industrial countries like the UK import an increasing fraction of their manufactured goods from China. The carbon emissions from the Chinese factories making these goods are not included in the UK’s totals. How much greater would the UK’s emissions be if we included the impact of goods manufactured in China?

In this article, we make some estimates based on a briefing note recently produced by the Tyndall Centre. The numbers I use are imprecise – and I am using them for reasons not envisaged by Tyndall – but I believe that the increase in the imports of Chinese goods has probably reduced UK emissions by about 6% below what it would have been. Perhaps more dramatically, the trade deficit is rising so fast that it is depressing UK emissions by a further 2% a year.

Without the safety valve of Chinese imports, the UK would be very likely to breach its Kyoto targets, which only measure domestic emissions. This is important in itself, but a more striking conclusion is that the trade with China has disguised a failure to cut emissions growth below the growth of British GDP. The UK government, and others around the world, regularly claim that CO2 output has been ‘decoupled’ from economic growth. The analysis contained in this note suggests that the apparent decoupling is actually an artefact of the growing deficit in trade with China.

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Taking risks with the brand

The Goodall household is well-trained. Compostable products get put on the compost heap. Plastic bottles end up in the recycling bin. Where should Innocent’s new smoothie bottles made from bio-degradable corn starch go? Surprisingly, the answer is into landfill. Innocent, the company with one of the purest brands in the UK, has made a mistake. For the last year it has used a new material called PLA for one of its ranges of drinks. It admitted last week that it would cease to use this bio-plastic later this year. But on its website it was still making some surprising claims. It says that the bottles made from this bio-plastic break down in garden compost heaps. They will not. PLA needs to be heated for several days to temperatures far greater than those in a domestic compost bin before it begins to rot. The bottles would break down in a commercial composter, but very few local authorities operate one of these plants. Innocent’s ethical consumers are going to find a large number of plastic bottles at the bottom of their compost heap next spring.

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Peak Oil

The Peak Oil question is beginning to become a central part of the daily debate on energy matters. On one side is an increasing number of independent scientists and oil engineers who note that world oil production is barely rising. Existing fields are running down and new reserves are found rarely. On the other side of the debate are the major institutions of the global oil industry. The International Energy Agency sees world oil supply rising from about 88 million barrels a day now to about 116 million barrels in 2030.

This last week saw another analysis (from Germany’s Energy Watch Group) suggesting that world oil production actually peaked in 2006. From now on, the group says, we can expect rapid declines. Many people worried about climate change see Peak Oil as a good thing. They believe that a shortage of oil and natural gas will slow down the rise in energy consumption and therefore help reduce greenhouse gas emissions.

The argument is actually more complex – it may well be that Peak Oil will tend to increase CO2. We will not be saved from ourselves by running out of oil.

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Video conferencing: at last a good alternative to travel?

Video conferencing has been around for a surprisingly long time. AT&T ran the first call in 1927. Since then, pundits have been consistently predicting that video conferencing was just about to take off. They have been wrong for eighty years. Why should we believe the techno-optimists now?

In the last year, several companies have launched video conferencing products that provide an experience similar to real meetings. The quality is surprising and even sceptics have begun to see the advantages of using a meeting room for an hour rather than spending three days going to Hong Kong and back. Cisco’s Telepresence product is generating enthusiasm that is tempered by the enormous costs of setting up the equipment and providing the bandwidth. But the company says that prices will fall dramatically over the next few years.

Is this going to be enough to get people out of planes? The signs are good. Even low bandwidth alternatives suitable for home use are getting praise from the experts. So if Cisco doesn’t make video conferencing work, Bay Area start-ups like VSee will probably start eating into the market for lower cost products.

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