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Energy storage has long been regarded as something close to a holy grail. Of course, there are ways of storing some forms of energy – using pumped water or compressed air for instance. There are conventional batteries – and there have been advances in their capacity over the last few years. But the search for storage systems which are simultaneously economic and practical for use at scale in the modern energy market has long been a source of frustration.

Recent advances made by scientists in the US suggest, however, that real progress is now being made and that major breakthroughs are close. The whole of the energy sector should be watching because any such breakthrough could transform the economics of the whole industry. Read more

Week by week Scotland seems to slip away. The reaction to the fiasco at the CBI demonstrates just how sensitive business is to involvement in politics. But the future of the United Kingdom is a matter on which business should have a strong and clear voice. In its absence the momentum behind the cause of independence will grow. Read more

The subtle redesign of Germany energy policy agreed by the government in Berlin last week sends some important signals not for the German market but for the rest of Europe. Far from damaging the renewables business the move could be the salvation of the sector. Other countries, the UK included would do well to adopt similar measures. This would be the most effective way of responding to the urgency expressed in the latest IPCC report. Read more

Energy is a business where success and failure are determined by technical skills and deep commercial expertise. That is true – up to a point. But consider the range of issues facing the world’s largest energy companies in 2014:

  • how to handle the deterioration of relations between Russia and the west;
  • how to build businesses in the world’s growth markets such as China and India;
  • how to manage the complexities of working in areas such as north Africa where physical security is being compromised by the presence of terrorists groups and the absence of effective governments;
  • how to manage the very different attitudes to energy in different markets such as the German opposition to nuclear or the French opposition to oil and gas which happens to come from shale rocks.

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George Osborne in his Budget speech on Wednesday talked, correctly, about US industrial energy costs being half those of the UK. The situation has deteriorated rapidly over the past five years. His proposed response is worth quoting directly:

“We need to cut our energy costs. We’re going to do this by investing in new sources of energy: new nuclear power, renewables, and a shale gas revolution.”

This must be a speechwriter’s joke. A line written in where the content bears absolutely no relationship to reality. New nuclear at £92.50 a megawatt hour will double the current wholesale price of electricity. New offshore wind on the Department of Energy & Climate Change’s own figures, which many feel are too low, will cost more than £120/Mwhr. These are not secret figures. They are well known in the Treasury, as is the risk of generating capacity failing to meet demand. There was no mention of that little problem. Read more