UK faces ‘blackouts’ without new gas-fired power stations, ministers claim

Published

8 months ago

March 12, 2024

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The UK will face “blackouts” without building new gas power stations, ministers have claimed.

The government has said that while it will continue to move forward with its net zero targets and a focus on renewables, gas was needed as a “back-up” – with Prime Minister Rishi Sunak saying climate goals must be reached “in a sustainable way that doesn’t leave people without energy on a cloudy, windless day”.

Energy Secretary Claire Coutinho will outline the plans for new stations in a speech later today, which include a full review of the electricity market and changes to the law to make the plants ready convert to low-carbon alternatives.

But Greenpeace said the plan would make the country “more dependent on the very fossil fuel that sent our bills rocketing and the planet’s temperature soaring”.

Politics live: UK risks blackouts without new gas stations, minister will warn

Electricity demand is increasing as the UK electrifies things like heating and cars, and the population grows.

Officials have been reviewing how to make sure supply keeps up with demand, is reliable, and reaches the right areas of the country.

Today the Department for Energy Security and Net Zero said it was clear the UK would need new backup gas capacity to provide power that can be fired up on demand, on days when it isn’t windy or sunny enough to get electricity from renewables.

That’s also because some gas plants are due to retire in the coming years.

The commitment to renewed unabated gas was long expected, and the energy industry welcomed the reassurance on how to direct its investment.

But some analysts warned extra gas is the wrong solution to the question of how to meet increasing demand and provide flexibility, and said it was a reflection of failure in other areas of energy security policy.

‘We must be realistic’

In a speech today at Chatham House, Ms Coutinho is expected to say: “There are no easy solutions in energy, only trade-offs.

“And so, as we continue to move towards clean energy, we must be realistic.”

In a statement overnight, Mr Sunak said: “I will not gamble with our energy security. I will make the tough decisions so that no matter what scenario we face, we can always power Britain from Britain.”

Labour’s shadow energy secretary, Ed Miliband, said the plans were only necessary because of “fourteen years of failed Conservative energy policy”, including an effective ban on onshore wind, slow progress on energy efficiency and last year’s failed offshore wind auction.

However, he added that if old capacity needs replacing, Labour would be open to some new gas power generation, too.

Mr Miliband said: “Of course we need to replace retiring gas-fired stations as part of a decarbonised power system, which will include carbon capture and hydrogen playing a limited backup role in the system.”

The government argues the move is in line with its climate commitments to cut emissions from fossil fuels because although gas capacity will increase, overall running hours will reduce, as the gas power would not be not firing all the time, but could be scaled up and down as a backup.

‘The government has missed opportunities’

Juliet Phillips, UK energy programme lead at thinktank E3G, said the UK has been a “clean power leader”, given its “continued exponential growth in renewables”.

But the government’s “policy failures” and “missed opportunities” in offshore wind and grid connections left it having to announce new gas power today.

New gas capacity “must come with strict conditions that new plants can be retrofitted with green hydrogen or carbon capture and storage in the future,” she said.

The government wants to boost gas capacity by tweaking capacity market rules, with the costs being covered by billpayers – who would foot the bill for any backup capacity.

It is also considering broadening existing rules for new plants to be able to convert to lower-carbon alternatives, such as by adding carbon capture technology to catch and store emissions.

However, it did not confirm how much new gas capacity was needed.

Kisha Couchman, deputy director at Energy UK, said the power system is undergoing “significant change” as the sources diversify and flexibility becomes more important.

She added: “The challenge is to bring forward changes to support this aim while also providing the certainty essential to bring forward long-term investment – so it’s also right to look at the role that existing mechanisms can play.”

Need for ‘no regrets’ options

Climate and energy thinktank ECIU said there are cheaper, more climate-friendly forms of backup power that could be used instead, such as using EVs to give power back to the grid and battery storage.

The announcement comes as the government gives an update on its consultation for the Review of Electricity Market Arrangements (REMA).

It has ditched a previous proposal to stop linking electricity prices with gas prices.

It is finessing one proposal to bring in regional pricing of wholesale electricity, which could incentivise industry to build in areas where electricity is cheaper, and attract new power projects where demand is greatest.

However, critics have raised concerns over the fairness of the proposal, and ministers have not yet decided if households would be subject to a “postcode lottery” of different costs in different areas.

Another option for continued regional pricing remains on the table.

Guy Newey, CEO at Energy Systems Catapult, said the only way to green the electricity system “in time and without pushing up bills is to move to a market that reflects local supply and demand”.

“It is an essential step forward to see government proposing stronger locational signals in the wholesale market,” he said.

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Coinbase CEO to meet with Trump to discuss personnel appointments — WSJ

Published

3 hours ago

November 18, 2024

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Coinbase CEO to meet with Trump to discuss personnel appointments — WSJ

Before US Election Day, Brian Armstrong said Coinbase was “prepared to work” with either a Kamala Harris or Donald Trump administration.

Politics

Row over how many farms will be affected by inheritance tax policy – as PM doubles down ahead of farmers protest

Published

4 hours ago

November 18, 2024

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Row over how many farms will be affected by inheritance tax policy - as PM doubles down ahead of farmers protest

Sir Keir Starmer has insisted the “vast majority of farmers” will not be affected by changes to Inheritance Tax (IHT) ahead of a protest outside parliament on Tuesday.

It follows Chancellor Rachel Reeves announcing a 20% inheritance tax that will apply to farms worth more than £1m from April 2026, where they were previously exempt.

But the prime minister looked to quell fears as he resisted calls to change course.

Speaking from the G20 summit in Brazil, he said: “If you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3m before any inheritance tax is paid.”

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The comments come as thousands of farmers, including celebrity farmer Jeremy Clarkson, are due to descend on Whitehall on Tuesday to protest the change.

And 1,800 more will take part in a “mass lobby” where members of the National Farmers’ Union (NFU) will meet their MPs in parliament to urge them to ask Ms Reeves to reconsider the policy.

Speaking to broadcasters, Sir Keir insisted the government is supportive of farmers, pointing to a £5bn investment announced for them in the budget.

He said: “I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.

“They will be affected by the £5bn that we’re putting into farming. And I’m very happy to work with farmers on that.”

Sir Keir’s spokesman made a similar argument earlier on Monday, saying the government expects 73% of farms to not be affected by the change.

Environment, Farming and Rural Affairs Secretary Steve Reed said only about 500 out of the UK’s 209,000 farms would be affected, according to Treasury calculations.

However, that number has been questioned by several farming groups and the Conservatives.

Government figures ‘misleading’

The NFU said the real number is about two-thirds, with its president Tom Bradshaw calling the government’s figures “misleading” and accusing it of not understanding the sector.

The Country Land and Business Association (CLA) said the policy could affect 70,000 farms.

Conservative shadow farming minister Robbie Moore accused the government last week of “regurgitating” figures that represent “past claimants of agricultural property relief, not combined with business property relief” because he said the Treasury does not have that data.

Agricultural property relief (APR) currently provides farmers 100% relief from paying inheritance tax on agricultural land or pasture used for rearing livestock or fish, and can include woodland and buildings, such as farmhouses, if they are necessary for that land to function.

Farmers can also claim business property relief (BPR), providing 50% or 100% relief on assets used by a trading business, which for farmers could include land, buildings, plant or machinery used by the business, farm shops and holiday cottages.

APR and BPR can often apply to the same asset, especially farmed land, but APR should be the priority, however BPR can be claimed in addition if APR does not cover the full value (e.g. if the land has development value above its agricultural value).

Mr Moore said the Department for the Environment, Farming and Rural Affairs (DEFRA) and the Treasury have disagreed on how many farms will be impacted “by as much as 40%” due to the lack of data on farmers using BPR.

Lib Dem MP Tim Farron said last week1,400 farmers in Cumbria, where he is an MP, will be affected and will not be able to afford to pay the tax as many are on less than the minimum wage despite being asset rich.

Politics

Cabinet split over assisted dying as Education Secretary Bridget Phillipson latest to reveal she will vote against bill

Published

4 hours ago

November 18, 2024

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Cabinet split over assisted dying as Education Secretary Bridget Phillipson latest to reveal she will vote against bill

A split is emerging in the cabinet, with Education Secretary Bridget Phillipson revealing she will join several of her colleagues and vote against the bill to legalise assisted dying.

Ms Phillipson told Sky News she will vote against the proposed legislation at the end of this month, which would give terminally ill people with six months to live the option to end their lives.

She voted against assisted dying in 2015 and said: “I haven’t changed my mind.

“I continue to think about this deeply. But my position hasn’t changed since 2015.”

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MPs will be given a free vote on the bill, so they will not be told how to vote by their party.

The topic has seen a split in the cabinet – however, Prime Minister Sir Keir Starmer has yet to reveal how he will vote on 29 November.

Ms Phillipson joins some other big names who have publicly said they are voting against the bill

These include Deputy PM Angela Rayner, Health Secretary Wes Streeting, Justice Secretary Shabana Mahmood and Business Secretary Jonathan Reynolds.

Border security minister Angela Eagle is also voting against the bill.

Senior cabinet members voting in favour of assisted dying include Energy Secretary Ed Miliband, Science Secretary Peter Kyle, Work and Pensions Secretary Liz Kendall, Culture Secretary Lisa Nandy, Northern Ireland Secretary Hilary Benn, Transport Secretary Louise Haigh and Welsh Secretary Jo Stevens.

The split over the issue is said to be causing friction within government, with Sir Keir rebuking the health secretary for repeatedly saying he is against the bill and for ordering officials to review the costs of implementing any changes in the law.

Sky News’ deputy political editor Sam Coates has been told Morgan McSweeney, the PM’s chief of staff, is concerned about the politics of the bill passing.

He is understood to be worried the issue will dominate the agenda next year and, while he is not taking a view on the bill, he can see it taking over the national conversation and distracting from core government priorities like the economy and borders.

Details of the bill were published last week and include people wanting to end their life having to self-administer the medicine.

It would only be allowed for terminally ill people who have been given six months to live.

Two independent doctors would have to confirm a patient is eligible for assisted dying and a High Court judge would have to give their approval before it could go ahead.