The £200 Billion Cost of Huhnatic Policies
Britain's electricity market is braced for its biggest shake-up since privatisation as the Government prepares to unveil a package of measures designed to shore up £200 billion worth of investment in greener sources of energy over the next decade.
Mr Huhne claimed yesterday that the reforms would represent a seismic shift in energy policy.
They are expected to include a carbon floor price designed to penalise investment in fossil fuel power stations and boost the attractiveness of lowcarbon energy. This is expected to rise steeply every year to force energy companies to invest in lower-carbon sources of power, such as wind parks and nuclear reactors. One official said that the rate of increase could be as high as 5 per cent to 6 per cent a year.
This will be accompanied by a mechanism aimed at reducing revenue uncertainty for low-carbon electricity generators by establishing a full system of feed-in tariffs,....
An Emissions Performance Standard will be introduced for fossil fuel power stations that will stop new coal stations being built unless they are equipped with CCS technology to strip out and store carbon emissions.
The measures are intended to ensure that Britain secures sufficient investment to allow it to meet its EU target of generating one third of its electricity from renewables by 2020 — a programme that is expected to cost nearly £200 billion.
Thank goodness the Government has plenty of money to splash about on wonderful green schemes, and we don't really need the lights on in 2020 do we?