A group of MPs have suggested that the UK should introduce a system of energy rationing to deal with what they view as impending energy and climate crises.
Under the proposed system, a set number of tradeable energy quotas (TEQs) would be issued and used to purchase energy, whether through fuel or electricity.
The amount of energy being used would essentially be capped, and anyone wishing to use more than their personal allowance would have to pay a market rate for that.
Last year was not a good one for investment in green projects and technologies. The combined effect of the recession and the hangover from the failure of the Copenhagen talks saw investment levels drop sharply.
But this year is looking rosier, according to HSBC. Their analysts say in a new report:
Doubts about science have been replaced by the realities of extreme events and rising commodity prices. The shocks to European renewables incentives sparked by the fiscal crisis appear to have run their course, and efforts to drive energy efficiency will be intensified in the EU in the next 12 months.
In this first weekly readers’ Q&A session of 2011, Chris Huhne, the UK energy secretary, answers your electricity-market related questions.
In the second of two posts, he discusses the cost of emissions targets, the chances of another oil shock and what should happen to the “big six” power companies.
Earlier, he addressed the limits of feed-in tariffs, what will happen to the renewables obligation and how to keep green jobs in the UK.
Next in the hotseat is Jack Gerard, the head of the American Petroleum Institute, who will be answering your questions next Friday, January 14th. Send in your questions for consideration by the end of Sunday, January 9th – to email@example.com.
But for now, over to Chris: