Last month it emerged that George Osborne had ordered the energy department to carry out deeper cuts to onshore wind subsidies in a move designed to appeal to Tory backbenchers – 100 of whom have signed a petition to that effect.
While Decc is already planning a 10 per cent cut to “Rocs” (renewable obligation certificates) the Treasury was seeking cuts of up to 25 per cent, it was widely reported.
But I have been handed a letter from the chancellor to Ed Davey, energy secretary, which suggests that the wind subsidies are only a microcosm of a wider battle over the green agenda raging in Whitehall. Read more
It’s a striking headline on the front of today’s Daily Telegraph: “Greener energy will cost £4,600 each a year.” And no doubt it will fuel any incipient hositility to renewables among the broadsheet’s large readership. But is it accurate?
Technically, yes. Professor David MacKay, a government adviser on climate change, has done the calculations on how much it will cost on sustaining and replacing the nation’s entire energy system. The resulting figure – which is not synonymous with energy bills – is the total investment in energy needed (£2.4 trillion) over the next four decades. That is then divided by population to come up with the figure.
But as the article makes clear a few paragraphs further down, it could cost even more to rely on traditional sources of power such as fossil fuels and nuclear. (It also suggests we are already spending £3,700 a year already).
MacKay, who is a professor of physics at Cambridge – and has written a highly regarded book on the future of energy – has (with DECC officials) produced a “cost of energy calculator” setting out what Britain will need to spend in the coming years.
Key to this is his assumption that energy already costs us an average of £3,700 a year per person in Britain.
There are several future options including:
* “Do nothing” to develop low-carbon energy systems: this would cost £4,682 a year, Read more