There has been growing concern that Britain is facing an energy crunch over the next decade. As reported in the WSJ, today Ofgem announced that 'Britain will need to invest up to £200 billion ($321.5 billion) over the next decade and a half to ensure the country can meet its carbon targets and secure adequate energy supplies'. It's also the same week that plans for a new coal power plant at Kingsnorth were shelved.
So, energy prices are expected to increase for consumers in the UK. Whilst managing fuel poverty is a real issue, it also provides an aligned incentive for fuel efficiency and emissions reductions which is less evident in other countries, such as those in North America. In effect, it is helping to create a 'sufficient price for carbon' that business leaders are calling for.
Necessity is the mother of invention!
Energy prices rises will likely help increase British consumer interest in improving the energy efficiency of their homes.
And the British renewable energy sector does seem to be showing activity! On 30 September 2009, Renewable Energy Generation announced the planned sale of its Canadian assets since 'The Company has taken the strategic decision to focus on the UK onshore wind market where it sees significant growth opportunities over the next few years'. And on 7 October 2009, Novera, 'one of the leading quoted independent renewable energy companies in the UK' rejected an offer for its remaining shares by Infinis Energy.
