UK’s Wind Power Debacle Threatens to Leave Brits in the Dark
Scrap the Climate Change Act to keep the lights on, says Owen Paterson
The Telegraph
Christopher Hope
11 October 2014
The Climate Change Act 2008, which ties Britain into stringent environmental measures, should be suspended – and then scrapped – if other countries refuse to agree legally binding targets, says Owen Paterson MP
Britain will struggle to “keep the lights on” unless the Government changes its green energy policies, the former environment secretary will warn this week.
Owen Paterson will say that the Government’s plan to slash carbon emissions and rely more heavily on wind farms and other renewable energy sources is fatally flawed.
He will argue that the 2008 Climate Change Act, which ties Britain into stringent targets to reduce the use of fossil fuels, should be suspended until other countries agree to take similar measures. If they refuse, the legislation should be scrapped altogether, he will say.
The speech will be Mr Paterson’s first significant intervention in the green energy debate since he was sacked as environment secretary during this summer’s Cabinet reshuffle.
In his address, he will set out an alternative strategy that would see British homes serviced by dozens of small nuclear power stations.
The Climate Change Act 2008, which ties Britain into stringent environmental measures, should be suspended – and then scrapped – if other countries refuse to agree legally binding targets, says Owen Paterson MP
He will also suggest that home owners should get used to temporary power cuts — cutting the electricity to appliances such as fridges for two hours at a time, for example — to conserve energy.
Mr Paterson will deliver the lecture at the Global Warming Policy Foundation, a think tank set up by Lord Lawson of Blaby, a climate-change sceptic and former chancellor in Margaret Thatcher’s Cabinet.
In the speech, entitled “Keeping the lights on”, he will say that Britain is the only country to have agreed to the legally binding target of cutting carbon emissions by 80 per cent by 2050.
Campaigners fear that this will bring a big increase in the number of wind farms.
They say that to hit the target Britain must build 2,500 wind turbines every year for 36 years.
Mr Paterson will say that the scale of the investment required to meet the 2050 target “is so great that it could not be achieved”. He will warn that Britain will end up worse off than if it adopted less ambitious but achievable targets. Mr Paterson voted for the 2008 Climate Change Act in opposition and loyally supported it when he was in power.
However, since he left office he has considered the effect of the legislation and has decided that Britain has to change course.
He will argue this week that ministers should exercise a clause in the Act that allows them to suspend the law without another vote of MPs.
In his speech, on Wednesday night, Mr Paterson will state that, without changes in its current policy, large-scale power cuts will plunge homes across the country into darkness.
“Blind adhesion to the 2050 targets will not reduce emissions and will fail to keep the lights on,” he will say. “The current energy policy is a slave to flawed climate action.
“It will cost £1,100 billion, fail to meet the very emissions targets it is designed to meet, and will not provide the UK’s energy requirements.
“In the short and medium term, costs to consumers will rise dramatically, but there can only be one ultimate consequence of this policy: the lights will go out at some time in the future.
“Not because of a temporary shortfall, but because of structural failures, from which we will find it extremely difficult and expensive to recover.”
He will say that the current “decarbonisation route” will end with the worst of all possible worlds.
The Government will have to build gas and coal power stations “in a screaming hurry”.
Britain’s energy needs are better met by investing in extracting shale gas through fracking and capturing the heat from nuclear reactors, Mr Paterson will argue.
He proposes a mix of energy generation based on smaller “modular” nuclear reactors and “rational” demand management. This would see dozens of small nuclear power stations, using reactors that are already fitted into submarines, being built around the country.
Home owners would also have to get used to timed power cuts using special switches that would cut electricity used by appliances.
“Let us hope we have an opportunity to put it into practice,” he will say. “We must be prepared to stand up to the bullies in the environmental movement and their subsidy-hungry allies.
“What I am proposing is that instead of investing huge sums in wind power, we should encourage investment in four possible common sense policies: shale gas, combined heat and power, small modular nuclear reactors and demand management.
“That would reduce emissions rapidly, without risking power cuts and would be affordable. What’s stopping this programme? Simply, the 2050 target is.”
Mr Paterson has spent the past few months visiting rural Tory seats — he visited six in the week after he was sacked by David Cameron in July.
He said he was appalled at the damage to the countryside from new pylons to take electricity from remote onshore wind farms.
This week’s speech will be Mr Paterson’s first intervention since he lost his job in the Cabinet reshuffle in the summer. He is to make another speech on Europe before Christmas as he seeks a more active role on the Right.
Mr Paterson has already set up a think tank called UK2020 to consider new policies on personal taxation, immigration and the economy.
However, his intervention was dismissed last night by Edward Davey, the Liberal Democrat Energy and Climate Change Secretary.
Mr Davey said: “Ripping up the Climate Change Act would be one of the most stupid economic decisions imaginable.
“The overwhelming majority of scientists agree that climate change exists while most leading British businesses and City investment funds agree with the Coalition that taking out an ‘insurance policy’ now will protect the UK against astronomical future costs caused by a changing climate.
“The majority of European countries are ready to implement proposals that would see [them] adopt targets similar to our Climate Change Act in a deal the Prime Minister should seal later this month.
“With the USA, China and India also now taking the climate change threat seriously, the global marketplace for green technology is increasingly strong.”
The Telegraph















One of the world’s largest wind turbine manufacturers let loose a bit of truth and self-admission to the Financial Times: We still need help, and that help must come from taxpayers.
The wind production tax credit, a generous $23 per-megawatt-hour tax credit the producer receives for 10 years, expired last year. At that rate, taxpayers are effectively covering half the wholesale price of electricity and, in some areas of the country, the entire wholesale price. The PTC expired at the end of 2013, but several policymakers are pushing for an extension.
Lisa Davis, who leads the global energy business at Siemens, told the Financial Times the wind industry was close to grid parity with conventional sources of electricity such as coal and natural gas, but “we’re not there yet.”
“We’ve not yet got to the point where it’s truly self-sustaining,” she said. “We’ve got to focus on cost competitiveness.”
So the way to become self-sustaining and cost-competitive is to plead for extended reliance on the taxpayer? That is exactly why Congress needs to cut the cord on wind energy subsidies from the federal government. The wind industry cannot focus on lowering costs while it is so heavily subsidized because subsidies enable them to ignore costs. So, rather than trying to achieve the true price point necessary for cost-competitiveness, the wind industry concentrates on securing more subsidies. Eliminating the PTC for good will allow wind producers to become self-sustaining if the technology truly can compete with other sources of energy.
If wind cannot compete, then it doesn’t belong in our energy mix. America has a robust and diverse supply of electricity generation where our energy demands are met through coal, natural gas, nuclear, hydropower and other renewable sources. We don’t need the federal government to create artificial diversity that wastes taxpayer dollars and promotes stagnation. This holds true for all energy sources.
The reality is startups and new ideas and technologies succeed and fail all of the time. Failure should not be a signal for the federal government to come to the rescue; it’s a signal those resources can be put to more productive use in the economy. But the wind industry is no start-up. It’s been more than 22 years since Matthew Wald of the New York Times wrote, “Because of striking improvements in technology, the commercial use of these windmills, or wind turbines as the builders call them, has shown that in addition to being pollution free, they can now compete with fossil fuels in the cost of producing electricity.”
There is no justification for propping up established companies, either. If Chi Chi’s pleaded for handouts to stay competitive with the likes of Applebees, or Microsoft told America it needed support from the taxpayer to sell more Zunes, policymakers rightfully would scoff. Those companies didn’t fail because they weren’t cost competitive; they simply offered a product consumers didn’t want to buy.
Rather than creating a sustainable industry, the PTC artificially propped up an industry, advanced special interests and allocated labor and capital away from more competitive uses in the marketplace. Extending the credit would only exacerbate those problems and complicate opportunities for real tax reform. Congress should hold its ground and keep the sun set on the wind PTC.