Friday, 24 May 2013

Patrick+Raleigh Comment

What legacy did Thatcher leave behind?

Patrick Raleigh, Editor

Complex energy scene should not 'fuel' inertia

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London – The UK process industries are facing unprecedented rises in their energy bills over the next few years that threaten to reduce their competitiveness in international markets - even against companies in EU countries.

As we have reported previously, the Government’s own figures show that its self-imposed ‘green’ targets will add more to UK manufacturers’ electricity costs than those of their counterparts in any other industrial country - including China, Japan, Russia, the US, France and Germany.

Given this, it is surprising to find a general inertia in the UK process sector with regard to addressing energy issues: even when it comes to practical measures, such as the monitoring and control of energy usage consumption.

Talking to end users and suppliers for an Energy Management supplement in the next issue of Process Engineering, there are, as yet, few signs of a drive to adopt new technologies or systems that can allow effective monitoring and control of energy usage across plants, sites or even entire organisations.

Some observers have linked this lack of momentum to the growing complexities around UK incentives for ‘going green’ as well as the uncertainty being created by the Government’s Energy Bill and, within this, the Electricity Market Reform.

To stay in business, though, all process manufacturers will soon have to get a grip on their energy consumption, rather than just waiting for the policy makers’ ‘stars’ to align. Measuring it would be a good starting point.

Readers' comments (3)

  • The problem with "inertia" at monitoring and control of energy usage consumption is that such a system does not have a "clear-cut" payback figure. Organisations have to do more to understand (get trained!) that the benefits of such a system come with time and such benefits typically surpass costs in a matter of months rather than years.

    On the other hand, what are the incentives for installing a monitoring and targeting system?

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  • David Mackay's book 'Sustainable Energy - without the hot air' points to a UK electricity crisis around 2015 following the closure of various fossil fuel & nuclear generating stations. This is not far away, and I don't sense much policy from Gov to sort this -wind mills won't sort it. You can no more run and sustain an industrial economy with windmills in the 21st C than in, say, 1750. The ongoing debacle around the West Coast main line services does not inspire the feeling that Whitehall understands business & technology (and energy).

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  • The coming problems will remain firmly in place. This is because there is no overall "tsar" in charge of our energy; no centralised CEGB any more and things are left to individual companies (most not even British) to use market forces. But natural markets are thwarted again and again by rules and regulations and the huge restrictions caused by the catastrophic Climate Change Act AND the current governments mad Carbon Price Floor.
    An impossible scenario.
    Germany has the common sense to continue building a few modern coal fired power stations for when the wind does not blow. But even they have some difficulties with distribution.
    The solutions are the antithesis of all the above points.

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