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On The Continuing Spread of Carbon Pricing

Hi Simon,

I don't know the answer to this, but I think most don't price emissions from biofuels as they are considered renewables and in principle carbon neutral, although of course most are not.  Also many carbon pricing schemes exclude the power sector, so would exclude transport biofuels on those grounds anyway.  If I find out more I'll get back to you.

Regards,

Adam

January 27, 2014    View Comment    

On The Continuing Spread of Carbon Pricing

Hi Simon,

I don't know the answer to this, but I think most don't price emissions from biofuels as they are considered renewables and in principle carbon neutral, although of course most are not.  Also many carbon pricing schemes exclude the power sector, so would exclude transport biofuels on those grounds anyway.  If I find out more I'll get back to you.

Regards,

Adam

January 27, 2014    View Comment    

On The UK Needs to Take a More Serious Look at Importing Renewable Electricity

Nathan,

Thanks for your comment.  To be clear, I am not suggesting the UK should avoid building new nuclear.  As I say, it does look like the UK needs new nuclear.  Rather, at these sorts of prices (even if the £80/MWh DECC projects is achievable for nuclear), imports of renewables also appear worth a closer look as part of a portfolio of low carbon generation that includes nuclear.  But as yet they do not seem to have received the focus they warrant. 

The cost comparison between nuclear and imported renewables is largely unaffected by the cost of other new UK generation.  The only place the price of other UK generation features in the calculations is in the contract premium, where I have assumed a lower market price for electricity than the cost of new gas plant that DECC estimates, in part because I have, as noted, assumed that it will prove difficult in practice to raise the carbon price to their assumed level of over £70/tCO2.   The additional value of the longer contract may be higher or lower than I have estimated, but if the longer contract did not have value the case the owners would presumably not have sought such a long contract.

There is, as always, a range of assumptions you can adopt in making these kind of adjustments.  For example I noted the potential decrease in the daytime price premium in future.  But provided solar costs fall significantly over the next decade (this is the most critical assumption) it does not appear that changes to other assumptions would invalidate the conclusion that imported renewables look potentially quite cost effective as part (but by no means all) of a programme to decarbonise the power UK power sector.

 

Regards,


Adam

November 19, 2013    View Comment    

On Solar Deployment: Are There Limits as Costs Come Down?

Josh,

 

Thanks.  You make some good points.  I think in particular the point at the end of your first paragraph is critical.  If the cost advantage of solar becomes large enough to finance the load balancing then it's difficult to see what would stop solar becoming predominant.  But that's still some way off.

Also I suspect you will find changes to pricing structures with a move away from mainly per kWh pricing, especially for distriubtion networks.

September 29, 2013    View Comment    

On Solar Deployment: Are There Limits as Costs Come Down?

Thanks Jesse, glad you liked it.

September 29, 2013    View Comment