Energy Experts Say the Sooner the UK Invests in Renewable Energy the Quicker They Can Save Money

May 24th, 2013

Energy StorageWith the energy industry in its current state, it is a hot topic all across the UK. People from all walks of life are chiming in to give their two cents on the matter. However, it now seems that the Committee on Climate Change is saying that the UK government needs to invest more money into renewable energy. They said that doing this will save the government more money than if it takes part in the dash for gas.

David Kennedy, who is the current chief executive of the Committee on Climate Change, said that the sooner the UK starts investing more money in low-carbon technology, the quicker it starts saving money. Investing in this kind of technology will actually save the UK more money than investing in other forms of energy, like gas. These low-carbon energy alternatives include nuclear power, energy from waste and onshore and offshore wind farms.

Kennedy went on to point out that a new dash for gas would actually require the UK to invest a ton of money. That is because they would have to invest in shale technology. This would cost tens of billions of pounds. Not only that, investing in this kind of technology only helps the country for so long. Once shale gas depletes itself, the UK will find itself right back in the same situation.

The pursuit for shale gas, however, is working in other countries. For example, in the United States they have started an aggressive pursuit for shale gas. In turn, this has kept energy prices down and the United States is now a major export of natural gas. The United States is hoping to use this extra money to invest in more renewable energy.

Mr Kennedy added that investing in renewable energy makes sense. However, it only makes sense if people want to meet the emissions targets. If the government wants to honor the Climate Change Act, they will invest more in renewable technology. The targets on emissions set by the Climate Change Act need to be enforced. This is the only way the government is going to be able to spur on low-carbon investments in the UK. Companies need to know the path the UK is going to go down, and they need to know that this path is renewable energy.

SSE Warns People That Energy Bills Will Jump Again

May 23rd, 2013

SSE LogoAlthough people want to believe that energy bills have reached their max, SSE begs to differ. In fact, this UK energy giant has said that energy bills are likely to increase yet again. This announcement comes after the company announced a huge 27.5 percent increase in profits.

SSE was the same company that increased its gas and electricity prices by nearly 10 percent back in October. It now says bills are going to increase unless there is some kind of reduction in the costs of wholesale electricity and gas prices. Unless this happens it is very likely that the cost of bills in the UK will continue to increase. This will lead to higher household energy bills for consumers all over the UK, regardless of what company they are with.

That being said, SSE did try to play the good guy. It said that it wants to resist the current trend of increasing energy prices and to protect consumers for as long as possible. However, at some point, it will have to increase its prices again. SSE says that it cannot be forced to suffer the wrath of increasing prices.

Currently, SSE actually supplies energy to more than 9.6 million homes in the UK. This is significant when thinking that SSE also said that the amount of gas used in the UK increased by 21 percent due to the cold weather this past winter.

The director of consumer policies for uSwittch, Ann Robinson, said that profits are nothing more than a “smoking gun.” It is making it very difficult for suppliers in the UK to justify last winter’s huge price hikes. If they made so much profit last winter, it stands to reason that they could have possibly lowered prices a bit. Despite this fact, SSE did not lower its prices and racked in a good profit. It is no wonder that people are a bit skeptical if the latest price increases that SSE is talking about is really necessary.

So how can SSE fix this problem? According to Ann Robinson, a price cut or some kind of price freeze would be a show of good faith. Although some energy companies have announced price freezes, not all energy companies have jumped on board with this idea. On top of this, some low price tariffs are coming to an end, and this is going to bump more consumers up to higher tariffs automatically.

The World May Be on the Edge of a Solar Revolution

May 22nd, 2013

House with solar panel roofingWhen it comes to renewable energy, there are a lot of different choices out there. Recently it seems as if wind energy has become top dog. However, experts now think that solar energy might be on the edge of a revolution. This is because people are now becoming aware of just how much solar energy comes from the Sun every year.

According to experts, the Earth receives an equivalent of 12.2 trillion watt-hours in solar energy every single year. To put that into perspective, that is about 20,000 times more energy than what all of humanity can consume in a year.

So if solar energy can provide the planet with so much energy, why don’t more companies invest in this form of renewable energy? Most of it has to do with the fact that solar energy costs so much to produce. Due to the high costs, solar energy only accounts for about 0.7 percent of the world’s total energy production.

The U.S. Department of Energy said that solar energy costs about $156 per megawatt-hour to produce. This makes it hard for companies to want to invest in this kind of energy since coal only costs about $99 per megawatt-hour to produce. On top of that, the United States is in the middle of a natural gas boom, which only costs about $65 per megawatt-hour. So obviously, from an economic view, solar energy is just not a great choice.

To make matters worse, experts say that solar energy is still a tough choice because of how difficult it is to store. After all, one can only generate solar energy during the day. Thus, solar energy must be stored so it can be used at night.

However, solar panels are getting more efficient. According to reports, the amount of light that these solar panels can turn into energy has increased from 8 percent when they first came out in the 1970s to 44 percent with the efficient cells of today. Of course, this efficiency is on its way up yet again. Right now researchers are busy with new technology that will be able to turn 54 percent of light into energy. This will, of course, lower the cost of solar energy production.

If this improvement scheme continues in the next eight to 10 years, solar energy in the United States will only cost about $120 per megawatt-hour to produce. This will make it far more competitive with other forms of energy like nuclear and coal.

First Utility says Energy Bills May Soon Overtake Some Mortgages

May 21st, 2013

First Utility logoEnergy bills are still on the rise, and they show no signs of going down. With the UK likely having to import energy from other countries, energy prices are sure to continue to rise. It is because of this why Ian McCaig, who is the current chief executive of supply for energy company First Utility, said that bills could eventually overtake some mortgages in the UK. His firm’s research has shown that dual-fuel bills have already increased by 8.5 percent over the past five years. This means that many homes are paying over £1,420.

McCaig says that interest rates are pretty low right now. This is good for people who have a mortgage. Due to this, over the next five to 10 years, British consumers could see their energy bills overtake the costs of their mortgages. This is a point that most people never thought the country would get to.

Despite reports that energy consumers may soon be struggling, energy companies are reporting amazing profits. In fact, British Gas recently announced a huge boost in profits thanks to the extremely cold winter the UK had this year. With such a huge boost in profits, it would appear that energy companies could afford to come down on prices a bit.

During the cold winter, demand in UK homes for gas and electricity jumped by nearly 20 percent. This means that the average consumer paid an extra £73.80. This is one reason why researchers from First Utility say average bills in the UK will reach £3,761 by 2025. Of course, this is assuming that energy prices continue to rise at this current rate.

Of course, the UK government also predicts that the average energy bill in the UK will continue to rise. Their researchers say that the average bill will jump by £76 by the year 2020. Of course, these assumptions are based on the idea that they stick with energy-saving schemes.

The campaign body for the Energy Bill Revolution, Ed Matthew, said that it was completely impossible to predict how much bills will increase. He said that no one could have predicted that bills would be as high as they are right now years ago. Despite this, it seems certain that bills are going to continue to rise over the next few years.

U.S. Department of Energy Approves the Export of Liquefied Natural Gas

May 20th, 2013

Hydraulic FracturingAccording to reports from the United States, the Department of Energy has approved a proposal that will see a company in Texas export liquefied natural gas to other countries. This approval was given to the Freeport LNG Expansion L.P. They now have the go ahead to export at least 1.4 billion cubic feet of this type of natural gas every day. This gives the company a chance to take full advantage of the huge boom in natural gas production in the United States thanks to shale extractions.

Right now, this agreement allows Freeport LNG the right to ship this natural gas to other countries that do not currently have free trade agreements with the United States. Usually the lack of free trade agreements with certain countries is there to keep public interest in mind.

This is sure to open the door for more companies to ask the government for the same kind of agreement. In fact, energy companies around the United States have been asking for federal permits to export natural gas to other countries. There has been such a huge demand for these permits thanks to the shale natural gas boom in the United States. Companies now see this as a chance to make a huge profit off other countries that are in the middle of a power crunch.

This huge influx of natural gas from the United States does not look like it will be ending any time soon. This is all thanks to a huge increase in natural gas from a process called hydraulic fracturing. This is a technique that involves drilling a hole and blasting water down it to break rocks. These rocks then release the natural gas trapped inside.

Although this method is making the United States a lot of money, it is still a very controversial procedure. Some environmentalists are worried that hydraulic fracturing will only lead to earthquakes and the contamination of groundwater. Despite these fears, there has been no evidence that supports these claims.

Either way, hydraulic fracturing has lowered the price of natural gas in the United States. It is so low, in fact, that the price of energy has been on the decline. This is very different than other places in the world like the UK, where energy prices have been on the rise. The UK will likely start importing extra natural gas from the United States in order to help keep its energy prices stable.

Families Still Struggling in the UK After Harsh Winter Causes Energy Bills to Soar

May 17th, 2013

High Energy BillRight now, millions around the UK are still struggling to pay their energy bills. According to energy experts, this is due to the harsh winter and rather cool spring that people have had to endure. This has caused them to turn up the heat to stay warm. To make matters even worse, most energy companies raised their prices by an average of 10 percent. This means that the average dual fuel energy bill was close to £1,600 last year.

Of course, the bleak outlook isn’t over just yet. Although people won’t be using their heat as much during the summer, experts are saying that this year’s winter is going to be just as bad as last year’s. In some cases, it might be even worse. With no energy relief in sight, it seems as if people are looking at even higher energy bills this coming winter season.

Many families are struggling to pay their bills form last winter. Most families kept turning up the heat despite the fact that they couldn’t pay for it. Now energy giants are demanding that these people pay their overdue payments. In order to do this, they will be increasing how much people pay during the summer and fall months to make sure they get their money. So while some people were hoping for a break in their energy bill this summer, it appears that some are still going to see rather steep prices as they pay for their backlog of payments from last winter.

Mark Todd, who is actually the founder of EnergyHelpline.com, said that people are being punished by these big energy companies. This punishment comes despite the fact that these companies are still making a profit. He went on to say that the Big Six energy companies in the UK are likely to increase their prices again before the end of the year. Most likely, this increase will be between 5 and 10 percent.

He went on to say that consumers have already been hit extra hard this past winter. Now the people who were unable to pay last winter are going to be made to pay their backlog during the summer and fall months. By the time next winter rolls around, people are going to just be paying off last year’s bills. Then they will have to turn around and deal with higher energy bills all over again. Unfortunately, there is not a lot they can do to stop this. It is going to happen, and people just have to find a way to cope with it.

Energy Secretary Ed Davey says Oil Bosses Caught Price Fixing Will Be Jailed

May 16th, 2013

Ed DaveyApparently the UK has no tolerance anymore for oil price fixing. Although the UK has always claimed to have a no tolerance policy for price fixing, Energy Secretary Ed Davey has proved this by saying that any oil executives who are caught doing so will be jailed and held responsible.

Earlier this week, investigators from the European Commission raided offices of many different major oil suppliers. This raid was launched as the European Commission looks to see if it can find any proof to claims that oil companies are fixing their prices. These claims have dated back for more than a decade.

That being said, not all MPs are happy about this raid. In fact, some say that they can’t believe that the European Commission did this after the Office of Fair Trading gave the whole industry its approval. That being said, the European Commission does not believe that the Office of Fair Trading held a very in-depth inquiry into the matter.

In order to address this, Davey issued an urgent statement to all of Parliament. This statement was regarding petrol prices in the UK, as well as the cost of living. He addressed the fears of millions of Brits who have been paying more than they should at the pumps for years.

Davey said that they take all such allegations very seriously in the UK. If it turns out that any of these allegations are correct and consumers have been paying extra at the pumps due to a fixed market, the UK will throw the full force of the law at these companies. There should be no doubt about that in anyone’s mind.

On top of this, Davey defended the Office of Fair Trading. He said that they are a great independent regulator. They are there to rule out the idea that the government is conducting these investigations for its own personal gain.

Robert Halfon, who is a Tory MP against high petrol prices, said that a tough prison sentence would be given to any companies that break price fixing laws. They will also be hit hard with taxes, and they can use all of the money that they took from consumers over the years to pay for it.

That being said, Halfon is not a fan of the Office of Fair Trading. He said that this group carried out a very “limp-wristed” investigation. As everyone can clearly see, this investigation was not up to anyone’s standards. If it was, the European Commission would not have to get involved.

International Energy Agency says U.S. Shale Gas Reshaped the Industry

May 15th, 2013

Gas Shale energy is booming right now in the United States. So much, in fact, that energy prices in the United States have been on their way down. However, this shale energy boom is not just good for the United States. It’s good for the rest of the world as well.

North America is currently in the middle of an oil boom brought on by shale energy. Experts now say that shale energy is actually creating a supply shock for the rest of the industry. In short, the International Energy Agency believes that this new boom is going to reshape the entire industry worldwide.

The biggest problem for many countries may be the fact that they lose the United States as a major importer of energy. In fact, the United States may soon move from the world’s largest importer of energy to an exporter. Not only that, but this huge shift could happen within the next few years.

The International Energy Agency says that shale oil from the United States will be able to meet most of the world’s oil needs for the next five years. This shale energy could even supply enough oil for the whole world even if the global economy continued to improve and people started using more oil.

The executive director of the International Energy Agency, Maria van der Hoeven, said that this huge increase in oil from the United States is nothing short of a game changer for the whole industry. North America has sent a shockwave throughout the whole industry, and its effects can be felt around the world.

This shale gas and oil boom has now sparked a flame in the U.S. oil industry. Experts believe that the United States could make billions in revenue due to this. Not only that, it will actually help to create hundreds of thousands of new jobs for people. This will jump-start the economy and actually help the government make more money.

The International Energy Agency said that the United States has a very mature economy that used to be cradled by the oil industry. However, this economy faded when production declined. Now, suddenly, it finds itself back on top. By the year 2017, the United States will likely be the largest oil producer in the world. All of this is due to shale energy.

That being said, the process behind shale energy is still controversial. Environmentalists are worried that this new technology might trigger earthquakes. This is because shale energy has to be released using a method known as fracking. Others say that no threat is posed at all, and shale energy is going to save the U.S. economy.

Centrica says It Is Freezing Consumer Bills by Dipping Into Its Own Profits

May 14th, 2013

Centrica SignPeople in the UK have been screaming for many years now that energy prices are too high. Despite this fact, energy companies continue to say that energy prices are high because of an increase in wholesale prices. That being said, every year these same energy companies announce huge profits. This leads people to believe that the increase in energy prices is not as high as what these energy companies are leading people to believe. They then turnaround and pocket the extra money.

Centrica, on the other hand, wants to change the way people look at energy companies. At the very least, it wants to change the way people look at it. This company, which is the largest in Britain, said that it will freeze consumer energy bills by dipping into its own profits to cover the difference in energy prices.

The profit that Centrica is going to use was made during the cold weather that was felt in the UK this year. During this time, gas demand was at a high and Centrica pocketed a lot of money. Now Centrica is looking to give some of that back.

The way Centrica will freeze prices is simple. While other companies are in the middle of raising their tariffs, Centrica is going to keep its prices the same. This announcement comes just after residential gas consumption in the UK rose by over 18 percent during the first four months of this year when compared to last year.

During an official statement, Centrica said that is happy to offer any kind of benefit the company could offer consumers after the exceptionally cold months that Britain had to deal with. By keeping prices the same, the company is able to maintain its competitiveness.

Centrica went on to say that it is recognizing that the economic pressures people are facing are too grand to handle alone. In order to fix this, the board has determined that any kind of profits made during the extremely cold weather this winter would be used to lower energy prices now. Hopefully, this will give some households a bit of relief while others see their low cost tariffs come to an end.

Of course, Centrica does believe it will benefit from this deal as well. In fact, the company said that this decision should lead to an increase to its residential energy supply business. Once others see that Centrica is keeping its prices low, more people will want to jump ship and switch to Centrica.

Consumers Are Urged to Take Advantage of Energy Price Wars

May 13th, 2013

npower logoThis month a number of Npower consumers are going to see their fixed energy tariffs come to an end. This is bad because it means that their bills could increase by more than £200 a year. That being said, officials say that consumers who are coming to the end of their energy tariffs are in luck. A number of other customers are coming out of tariffs as well, and energy companies have entered into price wars in order to get these consumers to come to them.

Npower says that consumers who were a part of its Go Fix 11 deal will see this tariff expire as of May 21. Anyone who is on this deal will automatically be switched over to its standard tariff and end up paying more each year.

However, there is some good news. Apparently a number of tariffs for other energy companies are coming to an end at the same time. Due to this, a number of consumers find themselves out of a fixed deal. This has caused energy companies to go into a price war with each other. They all want to have the lowest fixed energy tariff deal to pick up new consumers. Officials are urging consumers to take advantage of this so they can get locked into a lower energy deal.

Right now, the cheapest energy deals that people are going to find are online tariffs. That being said, most people want to get locked into a fixed deal that will keep their prices the same. Uswitch.com says that it looks like suppliers are currently in the middle of a price war. This is very good news for consumers who are looking to be sheltered from any feature price hikes.

Although there are a number of companies offering deals, Npower is the most recent. It is launching the Price Fix September 2016, which is one of the longest fixed energy deals on the market. Usually these kinds of plans come with no early exit penalties. If people take advantage of this, it should keep them from having to worry about price increases for the next 3 years. The average bill will come to about £1,317 a year. Right now, this is only about £25 cheaper than the standard energy tariff. However, the deal savings will come over the next few years as prices start to go up but people on this tariff see their prices stay the same.

Liquid Air Energy Storage Could Be an Economy Saver in the UK

May 10th, 2013

Energy StorageNo matter where people look in the UK, energy is an issue. Everyone is worried about it, and with every passing day, people become more concerned. That being said, some experts believe that liquid air energy storage could be the answer that the UK is looking for. Not only would this technology support the renewable energy market, but it could help produce up to 22,000 UK jobs.

This information was just recently published by the Center for Low Carbon Futures. This report suggested that liquid air storage could help increase the UK’s energy security. The UK could feel free to produce all of the renewable energy it wants, and it would have a way to storage this energy to use during times when demand peaks.

The biggest problem with renewable energy is the fact that energy can only be produced at certain times. If the wind is not blowing or the sun is not out, energy is not being produced. However, the UK still needs energy during these times as well. Thus, experts have been looking for a way to store the excess energy that is produced during times when energy consumption is low so that it can be used during times when it is needed. The problem has been coming up with a way to turn this renewable energy into usable energy later.

Scientists have found that air can be turned into a liquid if it is cooled to -196 degrees Celsius. This can be done using standard industrial equipment. This liquid can then be stored in an un-pressurized vessel. Once more energy is needed, heat can be applied to boil this liquid air. This will then turn it back into a gas, which can be used to drive engines and turbines.

In order to store enough energy for the whole UK, the government would have to launch a nation-wide network of different energy storage plants for liquid air. They can be charged with a surplus of energy at night when energy demand is low. Then when more energy is needed during the day, this surplus of energy can be converted into more energy.

Reports show that one gasometer tank of liquid air would produce enough energy to cover 5GW of lost wind power for close to three hours. This would be the same as saying that it can cover close to 10 percent of the UK’s peak energy needs. In short, this energy could help keep the lights on all across the UK.