Monday, March 23, 2009

Pricing it right

EDF of France and E.ON of Germany, two of the most high-profile nuclear supporters, said attempts to reach 35% of electricity generated by renewables is not only unrealistic but also damaging to alternative schemes such as nuclear plants.

“The deployment of high levels of intermittent renewables for electricity generation will require the construction of additional carbon-emitting plant as back-up for when renewables are not available to meet demand,” EDF argued. “This is likely to be predominantly gas-fired and will therefore undermine efforts to reduce dependence on non-domestic fuel sources.”

“A 25% electricity target will provide the best platform for further decarbonisation of electricity generation in the period beyond 2020, through a combination of further renewables, new nuclear and coal and gas with carbon capture and storage.”

The energy demands require a mix of all sources. The question boils down to how to put renewables on an equal footing without appearing to handicap any. Let it to the market, or ensure that the price of all electricity includes all negative impacts through their entire life cycle? Be it wind, coal or nuclear. Will that be enough?

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