Where's the break point?
The UK's assumption about carbon costs underpins some huge programmes - not least the smart meter rollout. It has to reflect assumptions about how costs will change over the long term and can't swing on the whim of today's market.
But the European Investment Bank raised about €8 per allowance - about £6.50 - when it sold allowances in the Emissions Trading Scheme to fund carbon capture and storage projects. It was thought lucky to get it. Meanwhile, the government's nominal carbon price in the CRC Energy Efficiency Scheme stands at £12. At what point does the current, real, carbon price begin to affect our long-term assumptions?
This article first appeared in Utility Week's print edition of 20 January 2012.
Get Utility Week's expert news and comment - unique and indispensible - direct to your desk. Sign up for a trial subscription here: http://bit.ly/zzxQxx
- Scottish Water sets out £3.5 billion six year plan Scottish Water has set out its £3.5 billion, six year infrastructure investment programme.
- Good Energy earnings halve despite customer growth Renewable energy supplier Good Energy said its first-half earnings had halved year-on-year despite a 36 per cent increase in...
- Tories pledge to 'unlock shale' and secure supply The Conservative party will “unlock the shale beneath our feet” in order to ensure a secure energy supply, according to the...