Welsh Firm Wins Turbine Tower Contract
A Welsh firm has won a contract to build 35 wind turbine towers for various sites within the UK.
Mabey Bridge, based in Chepstow, has won a multimillion pound contract to build wind turbine towers for various wind farm sites in the UK. The company signed a deal with the Germany company Nordex and as a result Mabey Bridge has taken on 45 new members of staff and moved 50 to its factory in Chepstow.
The business said the contract was a boost for its staff after a challenging 2011. Fourteen of the towers will go to the Pant-y-Wal wind farm in Rhondda while the rest will go to sites in Scotland.
The company opened in May 2011, creating 240 jobs at the factory in Chepstow which has the capacity to manufacture 300 towers a year.
Staff will work round the clock on the project to build 35 towers, starting in February and 170 staff will be involved in the project.
The towers will be the first to be made by a Welsh company, to be installed in Wales. While 14 of the towers will be erected at Pant-y-Wal wind farm, the rest will go to the Baillie wind farm near Thurso in June.
When operational the turbines will have the capacity to generate enough electricity for around 60,000 homes and small businesses.
Alex Smale, the UK director of Mabey Bridge said “To put this into perspective last year the UK wind market was less than 250 towers so this is a really significant order. All of these towers will be made in Wales. The towers you see around the country have historically been made in northern Europe – not even in the UK at all”.
Cheryl Gillan, the Welsh Secretary, welcomed the announcement and said “This is not only excellent news for the economy in Wales, but for the UK’s renewables and manufacturing industries as a whole. The awarding of this contract is a clear demonstration of the confidence European countries continue to have in the talent, expertise and skills of our workers here in Wales”.
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Businesses Need To Cut Energy Costs
Business energy prices are rising and it’s never been more important for businesses to cut their energy costs.
Businesses are facing both energy price rises and the need to reduce their carbon emissions so it’s no surprise that it’s never been more important for businesses to cut their energy costs.
Average wholesale electricity prices have doubled over the last 10 years but it’s still possible to cut energy costs in a few ways. For example, many businesses are looking at generating their own electricity via sources of renewable energy. Some businesses are having solar panels installed to help reduce electricity costs and any extra electricity generated can be sold to the grid.
Many businesses, if they are unable to generate their own electricity are choosing green energy suppliers such as Ecotricity or Good Energy. Some are choosing to go green even if this isn’t the cheapest option. Policy adviser at the Federation of Small Businesses (FSB) said “The growing importance of ‘being seen to be green’ means that even the smallest of businesses want to demonstrate their green credentials to their customers. We have seen a growing interest in small businesses wanting to source their energy from smaller green energy suppliers”.
However, if you’re a small business and not in a position to install energy generation systems and find green energy suppliers too expensive then the least you should be doing is shopping around for energy suppliers. However, most SME’s are not acting and research suggests that small businesses are wasting £2bn a year by not comparing energy prices.
In addition to comparing business electricity prices and business gas prices small businesses can also cut energy costs through improved efficiency. This is something the smaller energy suppliers are keen on and the CEO of Good Energy, Juliet Davenport, said “Good Energy places a strong emphasis on offering energy efficiency advice and customer service. Our customer care team was the first to be trained in the EST (Energy Savings Trust) endorsed energy efficiency advice standard”.
Ecotricity tries to install smart meters at all of its business customers’ sites as does First Utility. Smart meters ensure businesses only pay for what they have used and mean more accurate billing. They also enable businesses to identify where they could cut down on energy costs.
Monitoring energy usage will help businesses to cut their energy consumption and therefore their energy costs. But it’s still the case that the majority of businesses don’t compare business electricity or gas and therefore are paying far more than they should be for their energy. In the current economic climate can anyone afford not to compare prices and switch if necessary?
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Ofgem Fast Tracks Energy Upgrade
Ofgem has fast tracked plans to update energy networks in the UK and connect Scottish wind farms and other sources of renewable energy to the grid.
Ofgem says it has fast tracked plans by ScottishPower and SSE for improvements on infrastructure and a final decision will be made in April after consultations.
The infrastructure investment from SSE and ScottishPower will be paid for through energy bills. It’s likely to increase energy bills by 35p a year between 2013 and 2021. Ofgem said the proposed upgrades would “deliver essential upgrades to Scotland’s transmission network at the lowest cost to consumers”.
The work, set to cost around £7bn, will see overhead cables replaced with thicker cables to increase capacity. This is just a small part of what needs to be spent on the grid over the next decade. The improvements should see around 1500 jobs created over the next 9 years with both the energy companies and with engineering groups.
ScottishPower said the investment would mean it is able to connect both offshore and onshore wind power in Scotland to the grid. This accounts for around 11GW of electricity which is enough to power around 6m homes. Not only that but it would mean that Scotland would be able to export a larger amount of electricity to England – an increase from 3.3GW to 7GW over the next ten years.
The chief executive of ScottishPower Energy Networks, Frank Mitchell said “This will be the most significant investment in electricity infrastructure to have taken place in the last 60 years”.
National Grid is proposing to invest £30bn in the electricity transmission network in England and Wales but these proposals have not been fast tracked. However, a figure close to this is likely to be approved towards the end of 2012. Ofgem is not able to say at the moment how much energy bills will increase as a result of this increased investment. But the regulator does say that as much as £200bn needs to be spent in the energy industry over the next 10 years to ensure security of supply.
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Opus Energy Poll Finds Cost Deters SME’s From Renewable Energy
Research by Opus Energy has found that many UK small and medium sized businesses (SME’s) would like to buy their business electricity and gas from sources of renewable energy but are deterred by the cost.
A poll of SME’s in the UK found that only 12% of businesses are buying renewable energy and that the rest are put off by the cost. Business electricity prices have increased over the last year but despite this, renewable energy is still more expensive than conventional energy generation.
The survey found that around 75% of small businesses which are not on a green tariff at the moment said they would consider renewable energy in the future. However, around 47% said they would not choose renewable energy because of the cost and the complexity of getting renewable energy. Meanwhile 25% of respondents said they were not interested in renewable energy.
The Managing Director of Opus Energy, Charlie Crossley Cooke, said of the findings “We estimate that around 10% of every customer’s bill is made up of green subsidies and that the proportion of renewable subsidies that all UK businesses pay will rise by around 25% over the next 12 months. SMEs are paying for renewable energy whether it’s clear to them or not”.
He added “There needs to be more transparency for small businesses around the contribution they are already making to renewables – and perhaps then there’ll be greater take up by SMEs”.
Opus Energy said that over the last few years a large percentage of the business electricity it supplies to customers is actually from cleaner and low-carbon energy sources. In fact over the last two years 70% of the energy supplied by Opus comes from low carbon sources with 33% from combined heat and power. Around 37% comes largely from small scale hydro power.
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Facebook To Generate Electricity Using Sources Of Renewable Energy
After a two year campaign by Greenpeace, Facebook has announced it will move from coal fired energy generation to sources of renewable energy.
Greenpeace has been campaigning for two years to persuade Facebook to use clean and renewable energy to power its huge datacentres rather than coal generated electricity.
The co-director of the Greenpeace International Climate and Energy programme, Tzeporah Berman, said “This move sets an example for the industry to follow. This shift to clean, safe energy choices will help fight global warming and ensure a stronger economy and healthier communities”.
A previous report by Greenpeace claimed that 53.2% of Facebook’s electricity was generated by coal. Datacentres are consuming an increasing amount of electricity and it’s estimated that the datacentres Facebook uses in the United States consume as much electricity as 30,000 US homes.
Utility Exchange reported in October that Facebook is to build a new datacentre in Sweden which will be powered largely by electricity from sources of renewable energy. Facebook chose Sweden and in particular Lulea in Sweden, because it has the cheapest business electricity prices in Europe as well as being close to sources of hydroelectric power.
Speaking from Facebook’s sustainability programme, Mary Scott Lynn, said the company was looking forward “to a day when our primary energy sources are clean and renewable, and we are working with Greenpeace and others to help bring that day closer. As an important step, our datacentre siting policy now states a preference for access to clean and renewable energy”.
As business electricity prices increase it seems more businesses are looking at ways to reduce their business energy costs. Moving away from coal fired energy generation to sources of renewable energy may be one way of doing this. For example it may be feasible for companies to generate their own electricity from solar power or wind power by installing solar panels and a wind turbine – depending on the size of the company. While it may not generate all the electricity the company needs it may help to cut business electricity costs.
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CBI Criticises Slash In Solar Electricity Subsidies
The CBI has criticised the decision to slash subsidies for household solar electricity which takes effect at the beginning of December.
People who fit solar panels are paid for the electricity they generate as well as being able to make the most of the free electricity. However, the Government has decided to cut the Feed-In Tariff for solar power by 50%, something which the CBI says will result in cancelled projects and job losses.
Utility Exchange reported recently that the Government had cut Feed-In Tariffs for solar energy. Subsidies for solar panels have been cut from 43.30p per kWh to 21p per kWh. As a result the income homeowners will make from their own source of renewable energy will be cut from around £1,100 a year to £500.
The Government argues that the changes were made to ensure the scheme could continue into the future. It seems they hadn’t expected the scheme to be as popular as it is.
The Director General of the CBI, Jonathan Cridland, said the cut was an own goal by the Government. He said at the CBI East Midlands annual dinner, “Moving the goal posts doesn’t just destroy projects and jobs, it creates a mood of uncertainty that puts off investors and they wonder what’s coming next”.
He added “Some companies have invested heavily in solar photovoltaic systems and in the supply chains needed to install them. That commitment has been undermined by the feed-in tariff decision – and so industry trust and confidence in the government has evaporated. This bodes poorly for investment in future initiatives”.
Solar companies held talks with the Climate Change Minister Greg Barker yesterday to discuss the cuts. The Government is facing around three legal actions over its decision to cut Feed-In Tariffs.
The chief executive of one solar company, Home Sun, Daniel Green, said “This is disastrous and irresponsible decision making by government. The thinking isn’t joined up. Three legal actions against the Government are in process. Today’s meeting will stimulate more”.
Meanwhile a spokeswoman from the Department of Energy & Climate Change said “We appreciate this will be difficult for companies affected but what we want is an enduring future for the industry. If we left things as they are, the feed-in tariff budget would be eaten up entirely, full stop, and that would be even worse for employees in this sector and those working on other technologies too. We believe solar photovoltaic can have a strong and vibrant future in UK and we are proposing changes to ensure a lasting feed-in tariffs scheme to support that future”.
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KPMG Energy Report Criticised By RenewableUK
An energy report by the accountancy firm KPMG has been criticised by RenewableUK, the largest renewable energy trade association in the UK.
The report, “Thinking About The Affordable”, claims that the country can meet 2020 carbon emissions targets simply by building more nuclear and gas fired power stations, something which RenewableUK disputes.
The report not only argues that 2020 emissions targets could be reached with new nuclear and gas fired power stations but adds that it would be cheaper than relying on sources of renewable energy to achieve these targets.
The report assumes that the process of building new nuclear power plants will be quick although many believe there will only be around two new nuclear plants in operation by the end of the decade – if that.
The KPMG report argues that without new nuclear power plants the country will become overly dependent on imported fossil fuels such as gas. Not only that but many of the old fossil fuelled power plants will have to be shut down before the end of 2020.
Charles Anglin, Communications Director for RenewableUK said “The recent rises in electricity bills have been caused by the global increase in the price of gas, not by renewables. DECC’s own Annual Report on Fuel Poverty, clearly states that between 2004 and 2009, “domestic electricity prices increased by over 75%, while gas prices increased by over 122% over the same period”, while the cost of generating electricity from wind, according to Ofgem, is less than £10 per year per household, or less than 1% of the average household fuel bill. So relying heavily on gas will not drive fuel bills down in the future”.
A further criticism of the KPMG report according to RenewableUK is that it only considers the cost of building new nuclear power plants – it doesn’t take into consideration future costs such as decommissioning and fuel costs. RenewableUK also argues that the report doesn’t take into account the fact that wind power has quite low operating costs which act as a balance with the high construction costs.
Renewable UK says that in countries such as Germany and Spain the fact that wind power has such a low operating cost means that it’s used as a first choice power source and as a result helps to reduce domestic and business electricity prices.
Many argue that wind turbines only generate electricity for about 30% of the time and this report is no exception. However, this is disputed by RenewableUK which says that wind farms generate electricity 80-85% of the time but only generate the maximum amount at full speed for 30% of the time.
The debate over renewable energy and nuclear power is set to continue for some time and it seems there’s no easy answer. Rising energy bills are likely to be blamed on either sources of renewable energy subsidies, the cost of building new nuclear power plants or the rising cost of wholesale energy prices, depending on who is talking.
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70,000 UK Farmers To Invest In Sources Of Renewable Energy
Research by Barclays reveals that an estimated 70,000 UK farmers are predicted to invest in renewable energy schemes in the hope that they can generate not just electricity but an income of around £25,000 a year.
Barclays questioned 300 dairy farmers in the UK during August and as a result estimated that 70,000 farmers would invest in sources of renewable energy with the hope that their investment will generate an income of around £25,000 a year.
The results of the survey have been published to come out at the same time as a £100 million renewable energy fund is being launched. This £100m scheme is designed to help fund renewable energy schemes and help them to become reality.
Speaking from accountants, Saffery Champness, Shirley Mathieson said “The loan fund can be accessed for solar, hydro and wind projects throughout the UK and for many landowners and farmers an investment in generating renewable energy now makes good business sense”.
She added “The majority of those investing in renewables expect a pay-back period of 10 years or less, after which they will have many years of lower energy costs, generation tariff and income through selling energy back to the grid. Renewable energy production offers landowners and farmers an opportunity to expand their businesses and add to their traditional role of producing food and managing the countryside”.
At a time when business electricity prices are rising investing in sources of renewable energy generation could not only help to increase a farmer’s annual income but could also help to reduce business energy costs.
However, there’s still some uncertainty regarding Feed-In Tariffs and the rates offered in the future. Some commercial schemes are already under threat after the Department of Energy & Climate Change (DECC) announced cuts in FiTs of between 40% and 70% for solar installations.
Shirley Mathieson therefore added that “further investment may depend on the outcome” of the DECC’s announcement on FiT’s.
A further stumbling block for renewable energy projects is planning permission and the length of time it can take to get approval. If planning permission takes a while then costs are likely to increase and it may then not prove economical to go ahead with the installation.
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Sheffield Tops Solar Energy Installation Table
Sheffield, more famous for its steel than sunshine, now tops the table for installations of renewable energy.
Utility Exchange has reported in the past on the number of solar projects in Sheffield and it’s now confirmed that Sheffield tops the table for renewable energy installations.
More solar power generation schemes per head of population have been completed in Sheffield than in any other city in the UK with northern cities surprisingly joining Sheffield at the top of the table.
Over the last 15 months Sheffield has seen almost 2MW of solar power generation installed in the city closely followed by Leeds which has over 1MW of capacity. These Yorkshire cities are followed by Bristol, Bradford and Birmingham although these cities are quite some way behind Sheffield and Leeds.
London has added over 3.2MW of renewable power generation but when judged per head of population London comes sixth in the UK.
It’s surprising that northern towns and cities have taken to renewable energy so well when it was originally thought that areas in the south would benefit most from installing solar panels. As business electricity prices increase more businesses are looking into installing solar panels to help cut their energy bills. It was once unusual to see a house or business with solar panels but it’s actually becoming increasingly common to see them.
The table was compiled by AEA Group, and energy and environmental consultancy and knowledge leader on renewable energy for the group, Colin McNaught said he expected the boom to increase both domestically and for larger renewable energy projects. He said he thought there would be an increase in the amount of generating capacity registered in the forthcoming months. He added that Barclays Bank had provided a £100m fund to help farmers fund renewable energy projects.
The number of solar panels installed over recent months has increased greatly. There’s been an increase in generating capacity of around 900% although many of these installations had been delayed until the Feed-In Tariffs came into force.
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Solar Generated Electricity Could Cost Same As Traditional Power By 2013
A new study suggests that solar generated electricity could cost the same price as regular electricity in some parts of Europe by 2013.
The study by the European Photovoltaic Industry Association (EPIA) found that electricity generated by solar panels may cost the same as so called normal electricity by 2013 and that by 2020 electricity generated by solar panels will have reached grid parity throughout Europe.
One of the main reasons for a fall in the cost of electricity generated by solar panels is that the cost of technology involved in solar power has fallen significantly over the last twenty years. The study also found that there was the possibility of prices falling another 50% by 2020.
The president of the EPIA, Ingmar Wilhelm said “Already today, PV electricity is cheaper than many people think. In the coming years it is going to get even cheaper thanks to ever-improving technology and economies of scale. As also the price of electricity from conventional sources increases, solar PV will be become a fully competitive part of the energy mix”.
The study looked at the energy markets in Germany, France, Italy, Spain and the UK. It seems Italy is the place where solar generated electricity is likely to cost the same as traditionally generated electricity for the commercial sector of Italy by 2013. Furthermore, from 2014, ground mounted solar PV is likely to become just as attractive to investors as fossil fuel generated energy.
A point made by the report however, is that in order for solar to become competitive across Europe it’s up to governments to commit to regulatory frameworks which support solar energy generation. For example, mechanisms such as the Feed-In Tariff have helped solar power to take hold in many countries. These schemes would eventually be phased out as the technology improves and costs drop further.