Invest in Green Energy or Suffer, U.K. Regulator Says
The U.K. needs to promote investment in green energy or potentially face a catastrophic rise in domestic energy prices, the country’s energy regulator.
The report from Ofgem, released this morning, predicts that the country will need to plow 200 billion into the energy sector over the next 15 years to secure energy supplies and meet climate change targets.
The regulator has drawn up four energy scenarios for the next 10-15 years: in two of them, an investment in green energy limits hikes in consumer energy bills by 2020 to 23 percent over 2009 levels if the economy rebounds and 14 percent if growth is slow.
Without an investment in green energy, bills will skyrocket to 60 percent by 2016, but fall back by 2020 again, if the economy rebounds and 22 percent if growth is slow.
The scenarios make it clear, consumers will feel the hurt if the government does not act to promote green energy.
However, the country will need to import significant levels of gas to replace lost nuclear and coal-fired capacity under any scenario. But with investment in green energy, the imports will stabilize in the middle of the next decade.
FT Energy Source , who see the news as confirming their own positions: the opposition blames the government for failing to prepare, Greenpeace harps on the 60 percent number and energy retailers say “don’t blame us.”
We tend to side with the business lobbyist, CBI, for clear rules and regulatory frameworks so they businesses can invest with confidence.