Where's the break point?
The UK's assumption about carbon costs underpins some huge programmes - not least the smart meter rollout. It has to reflect assumptions about how costs will change over the long term and can't swing on the whim of today's market.
But the European Investment Bank raised about €8 per allowance - about £6.50 - when it sold allowances in the Emissions Trading Scheme to fund carbon capture and storage projects. It was thought lucky to get it. Meanwhile, the government's nominal carbon price in the CRC Energy Efficiency Scheme stands at £12. At what point does the current, real, carbon price begin to affect our long-term assumptions?
This article first appeared in Utility Week's print edition of 20 January 2012.
Get Utility Week's expert news and comment - unique and indispensible - direct to your desk. Sign up for a trial subscription here: http://bit.ly/zzxQxx
- Independent renewable generators provide 7.6 per cent UK demand A new report has revealed that independent renewable generation now supplies 7.6 per cent of the UK’s power demand, despite...
- Construction starts on Scottish Water's Ayrshire East Renfrewshire main Scottish Water has announced that preparatory work on a 13-mile-long strategic water main from near Newton Mearns to the...
- ‘Too late’ for UK to meet renewable heat targets, warns Energy Saving Trust It could already be “too late” for the UK to meet its renewable heat target by 2020, the Energy Saving Trust has warned.