Are the proposed UK feed-in tariffs high enough to stimulate investment in small-scale generation?

After months of deliberation, the UK government has announced a range of illustrative figures for feed-in tariffs (FiTs). FiTs are fixed payments made to the owners of small generating stations for the electricity that they export to the grid. Micro-generators need high payments to justify their expensive investment in buying and installing green generation.

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No sign of break in the link between emissions and higher GDP

An important recent paper looked at the links between economic prosperity and carbon footprint. It compared the average emissions per head in 73 different countries at all different stages in development. Unsurprisingly, it showed that richer countries have much higher greenhouse gas outputs. The interesting and somewhat depressing finding is that a country with 10% higher GDP per head than another will generally have emissions about 8% higher. The correlation is strong – very few countries diverge much from the norm for their level of income.

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Domestic heat pumps: enthusiasm needs to be tempered

(The information in this article has been updated by a more optimistic article that looks at the before and after experience of a ASHP installation in Oxford, Please go to http://www.carboncommentary.com/2010/08/03/1632) Small heat pumps are increasingly used to provide space and water heating in UK homes. This trend is strongly encouraged by policy-makers and the government’s proposed Renewable Heat Incentive will add further financial support. The enthusiasm for this expensive technology should be moderated: for a home on the mains gas network, the savings in money will be small. Carbon benefits are probable but far from guaranteed. Moreover, air source heat pumps are unlikely to be able to heat many older homes effectively. Government, manufacturers, and installers need to be very much more cautious in encouraging the use of heat pumps and should use far more conservative payback assumptions. Heat pumps will eventually be a good investment for homeowners but probably not yet.

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Where are electricity demand reductions coming from? Not from where we hoped

Electricity demand has fallen substantially in the last couple of years and shows no sign of recovery. The cause could be: * The impact of economic slowdown * Better energy efficiency * Demand reduction because of the high prices seen in recent years.

If the cause is the contraction in the economy, then we can expect electricity use to rise again when growth resumes. On other hand if it is energy efficiency, then it is reasonable to expect that the reduction will persist. Electricity demand is usually thought to be insensitive to the price of power. If it is high prices that are driving usage reductions, we have gained important information about how to reduce electricity use, and thus carbon emissions.

The conclusion of the analysis in this short note is that almost all of the reduction in energy demand comes from cuts in usage in big industrial and commercial users. This means that the most likely cause of the cut is the fall in economic activity. Household demand seems to have remained about constant.

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The human brain is made for environmental complacency

Most governments in the developed world were elected on platforms that promised aggressive policies on greenhouse gas emissions. The reality has not matched the commitments made. The reasons for this are multitudinous and no one should ever underestimate the difficulties of weaning advanced societies off the use of cheap and convenient access to fossil fuels. But in addition to the standard reasons for slow progress we can see a large number of obstacles that spring from human psychology. In particular, some of the resistance to aggressive action on climate seems to spring from mental attitudes that may have helped us survive as a species in the past. Perhaps politicians intuitively recognise the existence of these barriers. So they continue to say that climate change is the most important problem facing humanity at the same time as adding new runways to the local airport or sanctioning the development of new coal-fired power stations.

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Biochar adds to food production in temperate climates

Biochar increases crop productivity in many tropical soils. The reasons probably include improved water retention, reduced leaching, and better availability of nutrients to plant roots. In temperate conditions, studies have been fewer in number and haven’t produced results that are as clear. A new study adds usefully to our knowledge.

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How much is it going to cost to decarbonise the economy?

The government wants to emphasise the affordability of climate change mitigation. It produces low estimates of the cost of low-carbon technologies. In the recent 2009 budget documents, the government estimated a cost of 1% of GDP to meet the tough new 2020 targets. In his pronouncement on carbon capture at coal-fired power stations, energy and climate change secretary Ed Miliband later said that his proposals will add 2% to electricity bills. Are these numbers reasonable? Professor Sir David King, the former chief scientific adviser, says no. In a BBC interview of 26 April, he indicates that he thinks that the cost of reducing the UK’s emissions is much higher than the government indicates but also that the financial implications of not dealing with the climate change threat are far higher than even Nick Stern suggests.

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Budget 2009: Has the government begun to recognise the scale of the challenge?

The chancellor may have been inconsistent, but at least the budget has some incentives to encourage renewable electricity, carbon capture and storage, and the switch to low-carbon fuels.

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Trees die quicker in drought when temperatures are hotter

Perhaps this isn’t surprising, but a new piece of research shows that the ability of trees to survive drought is reduced when temperatures are higher. A species of pine that grows in dry conditions was exposed to temperatures 4.3 degrees higher than a control group. Both sets of trees were kept without water. The trees in the hotter atmosphere typically died in 18 weeks compared to the 25 weeks of the control.

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Biochar proponents get spammed

George Monbiot wrote about the carbonisation of organic matter in the Guardian last month ('Woodchips with everything. It's the Atkins plan of the low-carbon world', Tuesday 24 March 2009), saying it was yet another miracle cure for the climate problem. And, like previous miracle cures, he said ‘biochar’ would turn out to be a dangerous delusion. It would deflect attention from taking real action on climate change. Parts of the planet would be turned into vast forest plantations with limited biodiversity to provide feedstock for huge factories. Vital food-growing land would be lost to vast corporations farming wood for turning into biochar. It is a re-run of the biofuels disaster, he said.

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American public opinion

Gallup reports a steep rise in the number of Americans thinking that climate change is exaggerated. Well, that’s how the US newspapers reported the results. A look at the detailed polling responses gives a slightly different view. The change more reflects a decline in the perceived accuracy of news reporting rather than a substantial swing in attitudes towards the threat from global warming.

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Kingsnorth: why does E.ON want to build a new coal plant without CCS?

E.ON’s £1bn plan for a new coal-fired power station at Kingsnorth is waiting for approval from the UK government. Other generators have shifted away from coal. Drax, which owns by far the largest coal power station in the UK, is investing in biomass. Other companies have focused on new gas plants. Why is the world’s largest investor-owned utility pushing ahead with a project to burn coal without carbon capture? The answer, unsurprisingly, is that burning coal to generate electricity is extremely profitable. Very low prices for emissions permits and tumbling coal costs mean that a profit-seeking management team is highly incentivised to try to push for permission to use coal in power stations. This article provides the background calculations for an estimate that the new Kingsnorth will generate an operating profit of about £300m a year if current fuel and carbon prices persist. Additionally, it also tries to show that the cost of fitting CCS equipment and running the plant to capture the large majority of all carbon emissions is likely to add no more than about 1.5p per kilowatt hour to the cost of generating electricity at current coal and carbon prices. This means that a new coal fired power station *with CCS* may have operating costs only marginally above gas power plants

Nevertheless, E.ON has just asked for government subsidy to install CCS at Kingsnorth from day one. The purpose of this article is to offer an estimate of the maximum the government ought to offer E.ON in order to get it to invest in CCS prior to opening the new power station.

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Republic of Maldives: a plan for carbon neutrality

The Maldives will be the first country to be overwhelmed by the effect of climate change. The republic is a collection of coral atolls with maximum heights of one or two metres above sea level. Climate change is increasing worldwide sea levels and the atolls will probably go underwater by the end of the century. The 300,000-400,000 people who live on the Maldives are not responsible for global warming. Their emissions per head (even including aviation fuels for incoming international tourism) are less than a seventh of typical European levels.

Many countries have set ambitious targets for the reduction of carbon emissions. The government of the Maldives seeks to encourage this trend by going one step further with a plan for near carbon neutrality within ten years.

This is an immensely challenging target. Chris Goodall (author of this blog) and Mark Lynas, the prize-winning climate change author, were asked to provide a short outline of how it might be achieved and what it might cost.

In the rest of this note, we show our calculations. We will be the first to acknowledge that this work is incomplete. Although it was tempting to conduct fieldwork in some of the most attractive island resorts, we did our analysis using publicly available information and with help from officials attached to the Maldives government.

Our work shows that near neutrality is possible, but expensive. It will take at least $1.1bn for this small island state. The Maldives imports almost all its fuels in the form of refined oil products. Rates of financial return to the investment therefore depend largely on the price of oil. If expectations of future oil prices exceed $100 a barrel, we judge that the plan is sufficiently attractive to be financeable by international institutions such as the World Bank.

Comments on this work will be very gratefully received.

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Power Station 571 needs to be paid

People like me who buy solar panels tend to become unreasonably fond of them. Many homeowners come to regard these silent blocks of silicon on our roofs as part of the family. I’m also particularly proud that our panels are registered at Ofgem, the utilities regulator, as Power Station 571. The reason for going through the cumbersome process to convince Ofgem that my silicon should be listed alongside Drax and Sizewell B was to benefit from the government incentive scheme for renewable electricity generation.

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Why do global land use patterns matter so much?

George Monbiot rightly observes that the earth's resources of biomass are limited and cannot be simultaneously claimed for multiple uses: liquid biofuels, fuel for heating, biogas, and biochar. This presentation looks at the globe's land and biomass production to assess how much space can be given over to non-food uses and how much energy this can generate. This is one of the crucial questions facing the world: how much energy can we use from biomass before this affects the ability of the world to provide enough food for nearly 7bn people, rising to at least 9bn by 2050?

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What has posterity done for us?

Most governments in the developed world were elected on platforms that included promises to pursue aggressive policies on greenhouse gas emissions. Broadly speaking, the reality has not matched the promises made. The reasons for this are multitudinous and no one should ever underestimate the difficulties of weaning advanced societies off the use of cheap and convenient access to fossil fuels. But in addition to the standard reasons for slow progress we can see a large number of obstacles that spring from human psychology. In particular, some of the resistance to aggressive action on climate seems to spring from mental attitudes that may have helped us survive as a species in the past. Politicians may intuitively recognise the existence of these barriers. So they continue to say that climate change is the most important problem facing humanity at the same time as adding new runways to the local airport or sanctioning the development of new coal-fired power stations.

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Why might nuclear be necessary?

In the Independent newspaper (London, Monday 23 February) I argued that we may need to accept some new nuclear power stations. I put forward the view that the trench warfare between the pro-nuclear groups and those that support renewables means that progress towards 'decarbonising' electricity generation in the UK is too slow. We probably need to invest in many different types of non fossil-fuel generation as rapidly as we can if we are to meet the tough targets for UK emissions reduction so painfully won by groups such as Friends of the Earth. We no longer have the luxury of ruling out nuclear expansion.

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Global temperatures for January

No climate data is without its critics. We do not have the equipment to measure the temperature in every square kilometre of the world’s surface so we cannot be sure that global ‘averages’ are correct. Disputes about the reliability of climate data will continue. But the US Government’s National Climatic Data Center (NCDC) is one of the world’s most authoritative sources of global data.

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