As the UK government prepares to announce its proposed “radical” reforms to the energy market, it is worth recapping on some advice meted out by the Committee on Climate Change a few days ago.
The Committee on Climate Change has calculated that, over the period from 2023 to 2027, the UK must reduce its carbon dioxide emissions to about 390m tonnes a year, compared to annual emissions of about 570m tonnes at present.
In order to achieve this the UK will need to generate low-carbon energy – from renewables, nuclear reactors and coal and gas-fired power stations equipped with carbon capture and storage technology – equivalent to the output of about 25 large-scale fossil fuel power stations.
Chris Huhne, the UK energy secretary, will tomorrow announce the details and scope of the government’s consultation on electricity market reform (EMR). The bill will come before parliament in the spring, but tomorrow’s announcement is expected to give some indications of the direction of government thought on certain key issues.
Huhne will be answering your EMR-related questions on this blog next week – email email@example.com by Friday, December 17th to pose your question. Meanwhile, here is what the energy industry wants to see ahead of the tomorrow’s release:
At a year-end breakfast in Rio de Janeiro this morning, Petrobras announced a bit of pre-holiday housekeeping to help set the stage for the expansion planned over the next few years. The Brazilian state-controlled oil company will pay $850m to buy back complete control of the Refap refinery, Brazil’s fifth-largest, from Repsol.
The Spanish group is selling back its 30 per cent stake in the refinery to Petrobras for $350m, who will also take on $500m of debt to acquire full control. The purchase will allow Petrobras to press forward with new investments, as well as increase synergies, said Paulo Roberto Costa, supply director at Petrobras.