Outdated Energy Policy Will Cost Britain Billions

Onshore Wind Ban Outdated

The Energy and Climate Intelligence Unit (ECIU) is committed to supporting the UK in an informed debate on energy and climate change issues. Now, however, the non-profit organization is putting its finger in the wounds of the already shattered government, which is currently wrestling in trench warfare and Brexit talks with Europe. The organization is sharply critical of its home front: an outdated energy policy is blocking the development of the cheapest new power generation technologies in the UK, according to a recently published report. This would have an impact on consumers' electricity bills, the UK climate change targets and the UK economy as a whole.

The main focus of criticism is the renunciation of further financial support for onshore wind energy, which was decided by the then Conservative government in 2015. Former Prime Minister David Cameron explained at the time that "we will stop the spread of onshore wind farms" on the grounds that people have had enough of onshore wind energy. Even then, however, surveys pointed out that this did not correspond to the majority of public opinion. Industry representatives also pointed out that this policy would make it difficult to meet climate protection targets in the future. Conservatives, however, only wanted to rely on offshore wind energy – with the UK as world leader.

£1 Billion of Extra Costs

The ECIU's recent report, called 'Blown Away', follows on from this and shows that Britain is suffering massive disadvantages as a result of this one-sided policy. The intensive worldwide expansion of onshore wind has in the meantime drastically reduced its electricity generation costs, making it the cheapest energy source among renewables. This is supported by the ECIU's figures: electricity from 1 gigawatt of new onshore wind farms would currently cost 30 million pounds less per year than the same electricity from new offshore wind and even 100 million pounds less than from new nuclear power or biomass plants. In addition, this form of energy generation is more cost-effective than the production of high-carbon gas. Overall, a continuation of the onshore wind ban over a period of another four to five years compared with other technologies could cost the state and its citizens up to £1 billion.

The report comes at a very bad time for the current British government under Theresa May: recently, it announced a review of energy costs to reach the "lowest energy costs in Europe" for its citizens. The new 'Clean Growth Strategy‘ also provides for a new policy direction that focuses on reducing CO2 emissions in order to achieve legally binding climate protection targets. What the strategy paper lacks, however, is the expansion of onshore wind energy.

Government in the Crossfire

Richard Black, director of the ECIU, criticizes the government sharply: “The effective ban on the cheapest form of new power generation looks increasingly perverse. For a Government committed to making energy cheaper, this risks not only locking people into higher bills, but also runs contrary to its aim of having the lowest energy costs in Europe.“

The British Isles have no shortage of wind, but "while other European nations are going large on onshore wind the UK is starting to fall behind by not making the most of our natural resource,“ Black said.

The current UK energy policy does not consider that onshore wind power no longer needs subsidies. Instead, a lucrative industry is simply dispensed with, as Dr. Jonathan Marshall, ECIU energy analyst, points out: "The opportunity of repeating the British success story on offshore wind should also be a powerful motivator, and there would be added benefits in diversifying the UK’s energy mix. A policy rethink on onshore wind looks increasingly overdue.”

The UK is leader in offshore wind energy, but the costs are significantly higher than for onshore wind expansion (Image: Windfair)

Alternative Plans Detrimental to Economy

Instead, the government continues to focus on offshore wind development – and nuclear energy. Despite all the protests – also on the part of the EU – the controversial Hinkley Point C nuclear power plant is to be built. Despite the fact that it is already clear today that this form of energy production is uneconomical and definitely no longer competitive with the costs of energy production from renewable sources.

But also in the area of wind energy, however, there is a threat of hardship. The ECIU warns that the UK will soon fall behind all comparable EU countries in terms of wind farm efficiency without investing in new technology. Without the support of a domestic market, the UK will lose its place as one of the world's leading onshore wind power centers for manufacturing, installation, financial and legal services. This entails job losses and loss of economic strength.

News that are not to be taken lightly in London in times of Brexit and its unpredictable economic consequences.