Second biomass plant planned by MGT Power Ltd
September 25, 2009 at 1:38 pm
MGT Power Ltd has announced plans to develop a second biomass power plant, this time located at Port of Tyne in North Tyneside. The Tyne Renewable Energy Plant (Tyne REP) will have a capacity of 295MW, which will be enough electricity to power 600,000 homes.
Earlier this year the company was given permission to go ahead with its first biomass power plant in Teesport in North Yorkshire, and this announcement has followed soon after. It looks like the company is predicting great things from this innovative way of creating green energy.
The plant will work by using woodchip from sustainable forests to generate fuel, meaning it will provide a completely carbon neutral method of fuel generation. The idea is that it will start operating in 2014, subject to planning permission.
Chris Moore, the director at MGT Power, said that it will help the government to reach its green energy targets because each plant will “save 1.2 million tonnes of carbon dioxide from being emitted every year”. He also highlighted the advantage the plants will have over wind energy as they are not reliant on temperamental wind and can burn fuel 24 hours a day. The 2.4 million tonnes of fuel required to operate a plant will also come from sustainable forests in the Baltic states and the Americas.
MGT Power has highlighted just how important these plants could be for anti-global warming efforts, saying that each one is capable of 95% savings in greenhouse gas emissions compared to coal and gas. It will also create hundreds of jobs in both the short and the long term.
Ofgem warns consumers to stick with direct debits
September 18, 2009 at 4:19 am
Despite the cost implications, consumers are starting to abandon paying their energy bills by direct debit, prompting Ofgem to remind consumers of the benefits of using this form of payment.
Ofgem believes that over 40% of their customers originally took up the option to pay for their energy bills by direct debit to help reduce their cost. They point out that customers who choose to pay by direct debit are able to utilise cheaper online deals which can make savings of £214 annually when compared to a household on a Standard Plan paying their bill by cash or cheque.
Despite this advice, an estimated 4% of consumers cancelled their direct debit in what uSwitch.com believes is a response to last year’s price increases. To provide for these price increases, energy suppliers have raised direct debit payments by an average of £22 a month and the reaction of some of their customers is to cancel this means of paying.
Those consumers who have panicked after seeing the price increases and have chosen to switch away from direct debit payment plans, risk paying far more in their energy bills in the long term. This especially applies to consumers who have chosen to use prepayment meters, and Ofgem is now coming under pressure to ensure consumers keep faith in direct debit schemes.
Those who are worried about the cost increases and need to discuss the amount they are paying are being urged to contact their supplier to see if their monthly payment can be lowered, shopping around for the best deal and cutting down on the energy they are using. Most of all, consumers must be aware that switching from a direct debit payment scheme will cost more in the long haul, and this therefore should only be considered as a last resort.
French colossus to auction UK grid
September 14, 2009 at 2:58 pm
French nuclear power company, EDF Energy Networks, is preparing to auction its share of the UK power distribution grid, as part of a plan to reduce debts accrued from the purchase of British Energy.
Founded in 2002, EDF Energy is a major proponent of renewable energy sources, delivering both nuclear and wind-generated power to domestic customers.
On 3rd February 2009, EDF bought the UK’s largest electricity provider – British Energy – for £12.5bn. The deal, whilst remaining profitable for both companies, has cost EDF over £21bn in additional costs.
Deutsche Bank, and high-street favourite, Barclays, have acquiesced to oversee the auction, which is expected to fetch over £4bn. With billionaires climbing out of the woodwork, experts believe that a potential suitor will not be hard to find.
The grid, which encompasses three separate networks in London and the southeast, will be sold as a single unit. Morgan Stanley Infrastructure, the Abu Dhabi Investment Authority, and the richest man in Asia, Li Ka-shing, have all expressed an interest in the auction. Barclays have agreed to pay for any additional costs.
Despite the volume of investors lining up outside the saleroom, nobody has yet agreed to form consortia (a pool of resources, usually from two or more companies) to ease the financial burden of buying the grid.
EDF Energy is anticipating the construction of five new nuclear reactors over the next decade, all of which will be based in the UK. At £5bn a pop, the French group is desperate to untie capital from the British Energy deal.
£4 to upgrade ancient grid
September 4, 2009 at 4:21 pm
The average electricity bill is set to increase by £4 a year, as Ofgem prepares to upgrade parts of the national grid for the first time in sixty years.
Ofgem, the office of gas and electricity markets, insinuated that large swathes of the UK power grid are in need of “vital” upgrades: upgrades that will help energy companies cope with new technologies, and reduce the influence of coal- and oil-fired power stations on ‘greener’ distribution networks.
Dubbed ‘smart-grids,’ these upgrades will be sympathetic to renewable energy sources, and allow domestic customers to generate solar or wind power with greater ease.
Under the new scheme, existing UK towns could be chosen to test-drive new power grid configurations. Successful tests will help Ofgem develop environmentally sensitive energy projects, and pave the way for more advanced power plants.
Despite the additional cost of introducing ‘smart-grid cities,’ Ofgem’s mission remains altruistic: “Our eye is on ensuring customers’ needs are met without losing sight of the importance of value for money in difficult times.”
The regulator has refused to allow energy companies to increase domestic bills, choosing instead to focus on flagging customer service.
In July, Ofgem publically humiliated EDF Energy Networks for failing to provide adequate service to new customers. It warned that future infractions could be subject to compensation payments and hefty fines. EDF was quick to apologise for its conduct.
Ofgem plans to invest £6.5bn in network regeneration over the next five years. The new £4 levy will be implemented during 2010. An additional £4 will be added every year – up to a total of £20 – until 2015.
