Solar and Renewable Power in the UK - Literature review Example

Solar Energy and Renewable Power in the UK Literature Review 1. The use of energy in various sectors and the production from various sources The present situation in UK energy sector is rather turbulent. It has a lot of issues to face at the same time. According to the Department of Trade and Industry release (n.d.) named Energy Consumption in the UK, the total energy consumption rose 13% between 1970 and 2001. According to the statistics provided, in 1990, the amount of energy consumed was equivalent to 213.6 million tonnes of oil, and by 2001, this rose to 237.7 million tonnes of oil equivalent (ibid). When an energy source based division is made, it becomes evident that in 1990, 37% of the energy production was from petroleum, followed by 31% from coal and 24% from natural gas. By the year 2001, one can see a slight change in the dependence on various sources. For example, use of petroleum fell by 5%, and that of coal fell by 14%. However, the use of natural gas increased to 40% and of primary electricity rose by 1%. Also, 1% of the total energy came from renewable sources and waste (ibid). Energy consumption by fuel 1990-2001 Percentage of energy from different sources 1990 2001 Petroleum 37% 32% Coal 31% 17% Natural gas 24% 40% Primary electricity 8% 9% Renewable sources 1% The work also provides an overall idea about the consumption of energy in various sectors. According to the information, transport industry is the biggest consumer that accounts for 33% of the total consumption in 1990. It was followed by domestic sector with 28% and industry with 26%. By 2001, there was a rise in energy consumption in transport, domestic and services sectors. To illustrate, in transport and services, the use rose by 1% and in domestic sector, it rose by 2%. On the other hand, industry sector had a decline by 4% (ibid). Now, when the energy consumption is analysed according to the purpose, it becomes evident that in 1999, 38% of the total energy went to space heating and 22% was used for processes. To light appliances, 12% was used, and 8% of the total energy was consumed by water and lighting/appliances. All other purposes take up one fifth of the total energy. By 2000, there was a rise in the use of electricity for water, space heating and lighting. They rose by 1%, and 2% respectively. On the other hand, the process use declined by 7% (ibid). Energy use by sector 1990-2001 Energy consumption by sector 1990 2001 Industry 30% 25% Transport 25% 26% Domestic 29% 31% Services 16% 18% Future of fossil fuel reserve in UK A look into the UK oil reserve and consumption through the Busby Report (2002) provides a picture that is grim. The country has a mere 0.3% of the global oil reserve. In addition, its oil production had peaked in the year 1999, and by 2010, it tailed off by 54%. Though the nation faced a decline in consumption by 12% in the period, it had to import 15.8% of its oil from other nations (ibid). Thus, it becomes evident that the nation is getting more and more dependent on imported oil. Similar is the case of natural gas in UK. The UK gas reserve fell considerably from 0.74 trillion cubic meters to 0.66 trillion cube meters between 2000 and 2001. By the year 2010, the reserve is just 0.25 trillion cubic meters. Thus, the nation’s 57.1 billion cubic meters of gas production is far behind its requirement of 93.8 billion cubic meters. As a result, the nation meets 39% of its gas requirement by import (ibid). Thus, the report points out that as a result of this increased need and decreasing oil and gas reserves, there is a rise in global demand for supplies of coal and oil. As a result, the nation will be forced to reduce its energy consumption by 75% if newer ways are not developed. In order to meet this issue, the article suggests certain solutions. The first one is the increased use of bio-diesel. It is pointed out that producing adequate amount of bio-diesel means utilising 8.5% of the agricultural land in UK for growing rape and beet. Another form of energy is landfill gas. Presently, it provides 1.2% of the national electricity requirements, and an increase in this activity will help improve energy production and decrease waste. Some other forms of energy suggested by the article are geophysical energy like wind, waves, lunar, tidal, and solar energy. Currently, hydropower provides only 0.8% of the national total electricity production. The problem identified with the national system is that it requires more pumped storage systems. This is so because the nation has a random system of wind, rain and sun. Another important area where more attention is to be paid is wind energy. According to John Busby Limited reports (2002), it is calculated that this power could meet up to 20% of the national energy requirements. As a result of its 2011 market reform, the government has decided to stress more on low-carbon forms of energy. As a part of it, there is the introduction of Fee-in-Tariffs for solar PV, Renewable Heating Incentives for wind and nuclear power, and the application of an emission performance standard (ibid). The governmental responses- the challenges identified Admittedly, the government has become more aware about the situation in recent times. As a result, the Parliamentary Office of Science and Technology released the Carbon Footprint of Electricity Generation dated October 2006. This book admits the fact that the biggest challenges for the UK energy sector are two: to meet the increasing energy needs, and to control the environmental impact. When environmental impact is considered, the first point is the reduction of carbon footprint. It is admitted that coal and other fossil fuels are the largest contributors to carbon footprint. Coal-burning in the existing combustion systems results in high carbon emission in the range of more than 1000 gCO2ea/kWh. Though it is possible to utilise technologies like Carbon Capture and Storage (CCS) and co-firing with biomass, it will take considerable amount of time to implement them. Similarly, oil that produces 1% of the energy production is responsible for the creation of carbon footprint in the range of 650gCO2eq/kWh (ibid). However, as the work points out, technologies like biomass and photovoltaic cells, marine technologies including wave and tidal, hydro power, wind power, and nuclear power are all technologies that can considerably cut down carbon footprint. The article also suggests ways to reduce carbon production in all these existing technologies. To illustrate, the existing technology can be improved to increase efficiency from 35% to 50%. 90% of the Carbon dioxide can be captured if Carbon Capture and Storage technology is used in coal and gas fixed plants. Another way is to co-fire fossil fuel and biomass. In this case, as fossil fuel is getting replaced by carbon neutral biomass, the carbon footprint is considerably reduced (ibid). Possibility of Renewable Energy in UK The Network for Alternative Technology and Technology Assessment (NATTA) newsletter named Renewable Energy in the UK: a NATTA Guide for Newcomers looks into the possibility of using renewable energy sources in UK. The study estimates that 20% of the UK’s electricity needs could be met using wind turbines. The proportion could go up significantly if the turbines used are modern with 1000-2000 kilowatts output. Also, the study points out that another 20% of the electricity need could be met if wave energy is harnessed (NATTA n.d ). In addition, tides can be used to run turbines and this could meet 6% of the electricity requirements. Another point is the use of photovoltaic cells to capture solar energy. Two other forms of alternative sources are geothermal energy and waste combustion energy. However, the problem is that the nation, at present, is not utilising the potential and it only meets 2% of its total energy needs through renewable sources (ibid). In order to improve the situation, the government has introduced the Energy White Paper (2011) that sets out the criteria for reform in the field of energy. This White Paper dated May 2011 finds certain important points as ways of reform. They are future investments in low carbon generation, providing additional revenues to existing low carbon production, more efforts to move from coal to gas fired energy generation, and shutting down of the older less efficient plants (EMR White Paper, 2011). The Parliamentary Office of Science and Technology has issued the newsletter The Nuclear energy Option in the UK dated December 2003 in order to clarify its position on the future of nuclear energy in the nation and the reform it intends to bring in. Presently, the nation has three forms of civil nuclear reactors. They are Magnox reactors operated by Magnox Electric, Advanced gas-cooled reactors operated by the British Energy, and Pressurised-water reactors based on a US design. Though the existing nuclear rectors meet 23% of the nations energy requirements, as the nuclear plants are on the verge of closing down, by the year 2020, the nuclear energy production will go down by three quarters (ibid). That means, the production will be only 25% of the present production. The authorities have identified three possible models that can be adopted if the nation builds more reactors, though at present no new reactors are built. As Howes et al (2011), point out, the new models are ACR 700, AP1000, and EPR. However, the problem with nuclear energy in UK is the difficulty to attract new investors. It is estimated that the cost of installing 5 new power stations with a total of 10 reactors will be around 10 billion pounds (ibid). In addition, the maximum operational period of a new reactor is calculated at around 60 years. Thus, the profitability from such plants has become a hurdle that prevents investors. Thus, the question for government at present is how to make the nuclear power field attractive to investors. Some other issues as identified by the government as impacting the nuclear energy programme are waste management and security. The radioactive waste from nuclear power stations is a matter of serious public concern. Another problem is the issue of security. After the September 11 attack, there is an increased concern about the security of such potential installations. This heightened security has a negative impact on the public image of nuclear reactors. The study identifies that UK citizens generally have less trust on nuclear industry and they think it is less transparent (ibid). Thus, in order to identify the possibility of using bio-energy, AEA Forest Research conducted a study. The study named UK and Global Bio-energy Resource- Final Report by Howes et al (2011) tried to identify the supply viability of biomass in UK between 2010 and 2030. The study identified four internationally traded resources for biomass. They are forestry products, agricultural residues, feedstocks for 1G bio-fuels, and woody energy crops. The study reaches the conclusion that by the year 2020, it is possible for the nation to have access to 1,800 PJ of bio-energy supply that will help the nation meet 20% of its current energy needs (ibid). It is also estimated that by 2030, UK will only be able to meet 10% of the feedstock requirements from the domestic front. The rest will have to be secured from the international market (ibid). However, there are a large number of constraints identified; ranging from the rising prices of biomass, location, and terrain issues and so on. Securing the future and its cost Ernst and Young conducted a study in 2008 to identify various ways to secure the energy future of UK. The study named Securing the UK’s Energy Future by Jennings, Marsden & Coneybeare (2009) provides an idea about the incremental capital investment estimates to be made by the UK government. It is pointed out that the incremental expenditure on the nuclear power plants will be 38.4 billion pounds so that the field generates 12.8 GW energy by 2023(ibid). The amount on gas-fired power plants will by 6.4 billion pounds, and it will ensure 13.1 GW of energy in the same period. By 2025, the energy production from coal is to be brought down to 3.2 GW with an expenditure of 7.3 billion pounds. However, the highest expenditure will be on renewable energy generation, and the amount will be around 112.5 billion pounds; and onshore production in 2025 will be 9 GW, followed by offshore 33 GW, tidal 8.6 GW, hydro 1.5 GW, and all other renewable sources 5 GW (ibid). Thus, the total capital investment to achieve this target is calculated at around 234 billion pounds, and this certainly is going to be a matter of serious concern for companies. There are various factors that are going to trouble them in this uncertain market. Firstly, they have to repay the debt interest and loan to the banks and lenders, and secondly, they have to ensure adequate return to their shareholders and investors. Admittedly, the nation is aware about the situation as is evident from the paper presented to the Parliament by the Secretary of State for Trade and Industry by command of Her Majesty in February 2003. The paper named Our Energy Future- Creating a Low Carbon Economy (Energy White Paper, 2003) evidently identifies these issues. According to the paper, the first problem to be addressed in the energy sector is its environmental impact. So, the nation intends to cut down carbon dioxide production by 60% by 2050. Some other targets set are to meet the challenges of declining indigenous energy supply, and to update the existing energy infrastructure. In order to meet these targets, the ways suggested range from carbon dioxide capture, increased oil recovery, cleaner coal technologies, and shift towards renewable sources (ibid). References Department of Trade and Industry & National Statistics n.d, ‘Energy consumption in the United Kingdom’, pp.1-46. EMR White Paper 2011, ‘An energy white paper: A package of reforms to encourage investment in electricity generation’, pp.1-59. Energy White Paper 2003, ‘Our energy future- creating a low carbon economy’, Department of Transport, pp.1-138. Howes, P et al 2011, ‘UK and global bio-energy resources and prices- final report’, AEA Group, pp.1-72. Jennings, S, Marsden, A & Coneybeare, D 2009, ‘Securing the UK’s energy future meeting the challenge’, Ernst & Young, pp.1-8. John Busby Limited 2002, ‘The Busby report: UK survival in the 21st century’, Viewed 12 December 2011, NATTA n.d, ‘Renewable energy in UK: A NATTA guide for newcomers’, Renew on Line, Viewed 12 December 2011, The nuclear energy option in the UK 2003, Parliamentary Office of Science and Technology, Post Note, No. 208, pp. 1-4. Viewed 12 Dec 2011 Parliament Office of Science and Technology 2006, ‘Carbon footprint of electricity generation’, Postnote, no. 268, pp.1-4. Read More