Dounreay nuclear waste was dumped in the sea over a period of 20 years

By The Herald


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The operator of Dounreay nuclear power plant in Caithness admitted illegally dumping radioactive waste and releasing nuclear fuel particles into the sea more than 40 years ago.

The UK Atomic Energy Authority (UKAEA) pled guilty to four charges under the Radioactive Substances Act 1960: one of disposing of radioactive waste at a landfill site at the plant between 1963 and 1975 and three of allowing nuclear fuel particles to be released into the Pentland Firth between 1963 and 1984.

The charges were brought after UKAEAwas reported to the procurator-fiscal following a lengthy investigation by the Scottish Environment Protection Agency (Sepa).

Wick Sheriff Court heard yesterday that fuel fragments which were supposed to be disposed of in a storage shaft had been put in 46,000 cubic metres of landfill. The error came to light in July 1999.

Alasdair MacDonald, procurator-fiscal forCaithness, Sutherland and Easter Ross, said six radioactive particles were removed from the landfill and two from the coast.

He added that such solid radioactive waste could only have legally been disposed of in a low-level pit. Between December 1963 and December 1984, nuclear particles entered the sea from a drain.

The court heard was told that this drain was supposed to contain only liquid waste, but storage tanks were not properly filtered, allowing contaminated material to escape.

Mr MacDonald told the court that, between 1976 and the end of 2006, 1401 radioactive particles were recovered by UKAEA from the foreshore and nearby Sandside Beach.

He said Sepa had found between 1000 and 4000 particles within 15ft of an overflow pipe at Dounreay.

UKAEA also admitted allowing fragments to escape from two other pipes at the site.

Mr. MacDonald said: "This appears to be a clear unauthorised disposal of solid radioactive waste as a matter of incompetence. It has not only lasting consequences for the future, but provides a clear signpost back to the mistakes of the past. Particles were literally flushed out to sea over a 20-year period."

Mr. MacDonald said four nuclear fragments recovered from Dounreay's foreshore and two from the sea bed were considered "very dangerous" and could be fatal if ingested.

David Stewart, for UKAEA, said it was accepted that a small amount of radioactive material had been found in the landfill site and had been released into the sea. But a study had shown only an extremely small possibility of a member of the public coming into contact with a particle on local beaches.

Sheriff Andrew Berry deferred sentence until February 15.

Dr John Crofts, director of safety with UKAEA, said outside the court: "UKAEA deeply regrets that some particles were released from the site. The practices which gave rise to these particles ceased long ago."

A spokesman for Friends of the Earth Scotland said these incidents illustrate "the idiocy of considering an expansion of nuclear power in Scotland".

Dounreay, a former fast reactor research and development centre, was shut in 1994 and is earmarked for a GBP2.9bn decommissioning by 2033.

Last year UKAEA was fined GBP2m after 266 litres of hazardous, dissolved spent fuel spilled on to a laboratory floor at the plant.

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Winter Storm Leaves Many In Texas Without Power And Water

Texas Power Grid Crisis strains ERCOT as extreme cold, ice storms, and heavy snow trigger rolling blackouts, load shedding, and boil-water notices, leaving millions without electricity while frozen turbines and low gas pressure hinder generation.

 

Key Points

A statewide emergency of outages and boil-water notices as ERCOT battles extreme cold and load shedding.

✅ Millions without power; ERCOT orders load shedding

✅ Boil-water notices in Austin, Houston, Fort Worth

✅ Frozen equipment, low gas pressure, extreme cold disrupt supply

 

Nearly 3 million homes and businesses in Texas remain without power, some for a third consecutive day, as severe winter weather continues to pummel the state, forcing some localities to issue boil-water notices and urge residents to reduce their electricity usage.

Heavy snowfall, ice storms and bitter temperatures continue to put an enormous strain on the state's power grid. This as the Electric Reliability Council of Texas (ERCOT), which manages roughly 75% of the Texas power grid, announced Wednesday morning that some 600,000 households had power restored overnight.

That still left another 2.7 million customers having to endure extreme cold with no indication of when the thaw would break in their homes.

"We know millions of people are suffering," ERCOT's president and CEO, Bill Magness, said in a statement Wednesday. "We have no other priority than getting them electricity. No other priority."

ERCOT also said Wednesday that it was urging local utilities to shed some 14,000 megawatts of load, which translates to roughly 2.8 million customers, to prepare for a sudden increase in demand.

"The ability to restore more power is contingent on more generation coming back online," said Dan Woodfin, the senior director of ERCOT's system operations, and utility supply-chain constraints can further complicate repair timelines for some utilities.

He said that about 185 generating units were offline, stemming from a range of factors including frozen wind turbines, low gas pressure and frozen instrumentation.

But many Texans feel abandoned by the council and power companies and they are lashing out at the local face of utilities.

The City of Austin's community-owned electric utility, Austin Energy, issued a tweet saying crews that are working to restore power are facing harassment.


"Our crews have been working 24/7 and in these elements," Austin Energy announced. "Some of our crews are reporting incidents of harassment, threatening them and even throwing things at them."

Officials pleaded with the public to remain calm. "I know people are extremely frustrated. But please, I bet of you, do not approach AE crews."

Parts of Austin are under a boil water notice, which Austin Water Director Greg Meszaros attempted to explain during a press briefing Wednesday afternoon.

"There was a large main break in that area, maybe multiple ones. We're seeing main breaks and pipes bursting by the tens of thousands. Our entire system is under stress," Meszaros said.

It's not just the Lone Star State that is being crippled by the arctic blast, with a deep freeze slamming the energy sector across the country.

At least two dozen people have died this week from weather-related incidents, according to The Associated Press.

The National Weather Service reports that more than 100 million Americans are being affected by extreme winter weather from the south central U.S. to the East Coast, including Arkansas, Louisiana, Mississippi, North Carolina, Virginia and West Virginia, and analysts warn of blackout risks nationwide during extreme heat as well.

The National Weather Service adds that cold temperatures over the nation's heartland will begin to "moderate in the coming days" but that many parts will remain 20 to 35 degrees below normal in the Great Plains, Mississippi Valley and lower Great Lakes region.

"Potential is increasing for significant icing across portions of the Mid-Atlantic, which will be very impactful, especially for those hardest hit from the previous ice storm," the National Weather Service tweeted Wednesday.

Texas Gov. Greg Abbott railed against ERCOT, and Elon Musk criticized the agency as unreliable, saying the utility "has been anything but reliable over the past 48 hours."

"This is unacceptable," Abbott added, as residents were facing rotating intentional power outages. The governor issued an executive order that will add reforms for how the power grid is managed, including grid reliability improvements under discussion, as an emergency legislative item for the state legislature to review.

The rolling power outages forced Fort Worth to extend a boil-water notice for roughly 212,000 residents. Officials said the outages affected the city's systems that both treat water and move it to customers.

Fort Worth officials said nine other localities that purchase water from the city are also affected, including Haslet, Keller, Lake Worth and Northlake.

Officials in Houston also issued a boil-water notice for the city's residents Wednesday.

"Do not drink the water without boiling it first," Houston Public Works said from its official Twitter account. "Bring all water to a boil for at least two minutes. Let it cool before using."

In Harris County, which includes Houston, Judge Lina Hidalgo warned residents about extended power outages.

"Let me give it to you straight, based on the visibility I have: Whether you have power or not right now, there is a possibility of power outages even beyond the length of this weather," Hidalgo said, according to Houston Public Media.

The NPR member station adds that county officials have also reported more than 300 cases of carbon monoxide poisoning since Monday as residents going without electricity search desperately for alternative sources of warmth.

"In no uncertain terms, this is a public health disaster and a public health emergency," Samuel Prater, an emergency physician at Memorial Hermann-Texas Medical Center, said at a news briefing Tuesday.

Prater warned residents that over the last 24 hours, emergency officials "have seen a striking increase in the number of cases related to improper heating sources," including indoor use of generators, charcoal grills, campfire stoves and other devices that are being used to warm homes. The result, he added, is carbon monoxide poisoning of entire families.

"If you think you or a loved one has become ill from carbon monoxide poisoning, first thing you need to do is get outside to fresh air," Prater said.

A woman and an 8-year-old girl are among those who have reportedly died from carbon monoxide poisoning after a vehicle was left running inside a garage in an attempt to generate heat, according to Houston's ABC affiliate.

As Texas endures further weather-related issues, including road and highway closures, there's a renewed focus on how the Texas power grid has failed, and why the grid is facing another crisis amid this prolonged cold.

The Texas electrical grid is "facing conditions that it was not designed for," said Emily Grubert, a professor at Georgia Tech whose expertise includes electric networks.

"These are really extreme conditions for the Texas grid. It's very cold. It's cold across the entire state, and it's cold for a long time. This does not happen very often," she said in an interview with NPR's Morning Edition.

"Demand really spiked both in the electricity and the natural gas systems at the same time as a lot of the generators were not able to operate because of those cold conditions, and not being prepared for it is really what's going on," Grubert said. "But a lot of grids are susceptible to really, really major failures when they are this far outside of design conditions."

Abbott told Fox News on Tuesday that with weather-related shutdowns in wind and solar energy, which account for more than 10% of the state's grid, renewable energy is partly to blame for the Texas power crisis, even as he later touted the grid's readiness heading into the fall.

"It just shows that fossil fuel is necessary for the state of Texas as well as other states to make sure that we'll be able to heat our homes in the wintertime and cool our homes in the summertime," Abbott said.

But Grubert said that "coal, gas and nuclear actually shut down because of the extreme cold due to things like instruments freezing, et cetera. So I think the overall point here is all of the fuels were really, really struggling."

 

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BloombergNEF: World offshore wind costs 'drop 32% per cent'

Global Renewable LCOE Trends reveal offshore wind costs down 32%, with 10MW turbines, lower CAPEX and OPEX, and parity for solar PV and onshore wind in Europe, China, and California, per BloombergNEF analysis.

 

Key Points

Benchmarks showing falling LCOE for offshore wind, onshore wind, and solar PV, driven by larger turbines and lower CAPEX

✅ Offshore wind LCOE $78/MWh; $53-64/MWh in DK/NL excl. transmission

✅ Onshore wind $47/MWh; solar PV $51/MWh, best $26-36/MWh

✅ Cost drivers: 10MW turbines, lower CAPEX/OPEX, weak China demand

 

World offshore wind costs have fallen 32% from just a year ago and 12% compared with the first half of 2019, according to a BNEF long-term outlook from BloombergNEF.

In its latest Levelized Cost of Electricity (LCOE) Update, BloombergNEF said its current global benchmark LCOE estimate for offshore wind is $78 a megawatt-hour.

“New offshore wind projects throughout Europe, including the UK's build-out, now deploy turbines with power ratings up to 10MW, unlocking CAPEX and OPEX savings,” BloombergNEF said.

In Denmark and the Netherlands, it expects the most recent projects financed to achieve $53-64/MWh excluding transmission.

New solar and onshore wind projects have reached parity with average wholesale power prices in California and parts of Europe, while in China levelised costs are below the benchmark average regulated coal price, according to BloombergNEF.

The company's global benchmark levelized cost figures for onshore wind and PV projects financed in the last six months are at $47 and $51 a megawatt-hours, underscoring that renewables are now the cheapest new electricity option in many regions, down 6% and 11% respectively compared with the first half of 2019.

BloombergNEF said for wind this is mainly down to a fall in the price of turbines – 7% lower on average globally compared with the end of 2018.

In China, the world’s largest solar market, the CAPEX of utility-scale PV plants has dropped 11% in the last six months, reaching $0.57m per MW.

“Weak demand for new plants in China has left developers and engineering, procurement and construction firms eager for business, and this has put pressure on CAPEX,” BloombergNEF said.

It added that estimates of the cheapest PV projects financed recently – in India, Chile and Australia – will be able to achieve an LCOE of $27-36/MWh, assuming competitive returns for their equity investors.

Best-in-class onshore wind farms in Brazil, India, Mexico and Texas can reach levelized costs as low as $26-31/MWh already, the research said.

Programs such as the World Bank wind program are helping developing countries accelerate wind deployment as costs continue to drop.

BloombergNEF associate in the energy economics team Tifenn Brandily said: “This is a three- stage process. In phase one, new solar and wind get cheaper than new gas and coal plants on a cost-of- energy basis.

“In phase two, renewables reach parity with power prices. In phase three, they become even cheaper than running existing thermal plants.

“Our analysis shows that phase one has now been reached for two-thirds of the global population.

“Phase two started with California, China and parts of Europe. We expect phase three to be reached on a global scale by 2030.

“As this all plays out, thermal power plants will increasingly be relegated to a balancing role, looking for opportunities to generate when the sun doesn’t shine or the wind doesn’t blow.”

 

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Texans to vote on funding to modernize electricity generation

Texas Proposition 7 Energy Fund will finance ERCOT grid reliability via loans and grants for new on-demand natural gas plants, maintenance, and modernization, administered by the Public Utility Commission of Texas after Winter Storm Uri.

 

Key Points

State-managed fund providing loans and grants to expand and upgrade ERCOT power generation for grid reliability.

✅ $7.2B incentives for new dispatchable plants in ERCOT

✅ Administered by Public Utility Commission of Texas

✅ Aims to prevent outages like Winter Storm Uri

 

Texans are set to vote on Tuesday on a constitutional amendment to determine whether the state will create a special fund for financing the "construction, maintenance, and modernization of its electric generating facilities."

The energy fund would be administered and used only by the Public Utility Commission of Texas to provide loans and grants to maintain and upgrade electric generating facilities and improve electricity reliability across the state.

The biggest chunk of the fund, $7.2 billion, would go into loans and incentives to build new power-generating facilities in the ERCOT (Electric Reliability Council of Texas) region, where ERCOT has issued an RFP for winter capacity to address seasonal concerns.

The proposal, titled Proposition 7, is one of several electricity market reforms under consideration by lawmakers and regulators in Texas to avoid another energy crisis like the one caused by a deadly winter storm in February 2021.

That storm, known as Winter Storm Uri, left millions without power, water and heat for days as ERCOT struggled to prevent a grid collapse after the shutdown of an unusually large amount of generation, and bailout proposals soon surfaced in the Legislature as the market reeled.

Pablo Vegas, president and CEO of ERCOT, emphasized the grid has become more “volatile” given the current resources, as the Texas power grid faces recurring challenges.

“The complexities of managing a growing demand, and a very dynamic load environment with those types of resources becomes more and more challenging,” Vegas said Tuesday during a meeting of the ERCOT board of directors.

Vegas said one solution to overcome the challenge is investing in power production that is available on demand, like power plants fueled by natural gas. Those plants can help during times when the need for electricity strains the supply.

“With the passing of Proposition 7 on the ballot this November, we’ll see those incentives combined to incentivize a more balanced development strategy going forward,” Vegas told board members.

If Proposition 7 is passed by voters, it would enact S.B. 2627, which establishes an advisory committee to oversee the fund and the various projects it could be used for, amid severe-heat blackout risks that affect the broader U.S. $5 billion would be transferred from the General Revenue Fund to the Texas Energy Fund if Proposition 7 passes.

Opposition for Proposition 7 comes from the Lone Star chapter of the Sierra Club, an environmental organization based in Austin and which has issued a statement on Gov. Abbott's demands regarding grid policy. Cyrus Reed, conservation director of the Lone Star chapter, said the Texas energy fund is slated to benefit private utilities to build gas plants using taxpayer’s money.

 

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Strong Winds Knock Out Power Across Miami Valley

Miami Valley Windstorm Power Outages disrupted thousands as 60 mph gusts toppled trees, downed power lines, and damaged buildings. Utility crews and emergency services managed debris, while NWS alerts warned of extended restoration.

 

Key Points

Region-wide power losses from severe winds in the Miami Valley, causing damage, debris, and restoration.

✅ 60 mph gusts downed trees, snapped lines, blocked roads

✅ Crews from DP&L worked extended shifts to restore service

✅ NWS issued wind advisories; schools, businesses closed

 

On a recent day, powerful winds tore through the Miami Valley, causing significant disruption across the region. The storm, which was accompanied by gusts reaching dangerous speeds, led to windstorm power outages affecting thousands of homes and businesses. As trees fell and power lines were snapped, many residents found themselves without electricity for hours, and in some cases, even days.

The high winds, which were part of a larger weather system moving through the area, left a trail of destruction in their wake. In addition to power outages, there were reports of storm damage to buildings, vehicles, and other structures. The force of the wind uprooted trees, some of which fell on homes and vehicles, causing significant property damage. While the storm did not result in any fatalities, the destruction was widespread, with many communities experiencing debris-filled streets and blocked roads.

Utility companies in the Miami Valley, including Dayton Power & Light, quickly mobilized crews, similar to FPL's storm response in major events, to begin restoring power to the affected areas. However, the high winds presented a challenge for repair crews, as downed power lines and damaged equipment made restoration efforts more difficult. Many customers were left waiting for hours or even days for their power to be restored, and some neighborhoods were still experiencing outages several days after the storm had passed.

In response to the severe weather, local authorities issued warnings to residents, urging them to stay indoors and avoid unnecessary travel. Wind gusts of up to 60 miles per hour were reported, making driving hazardous, particularly on bridges and overpasses, similar to Quebec windstorm outages elsewhere. The National Weather Service also warned of the potential for further storm activity, advising people to remain vigilant as the system moved eastward.

The impact of the storm was felt not only in terms of power outages but also in the strain it placed on emergency services. With trees blocking roads and debris scattered across the area, first responders were required to work quickly and efficiently to clear paths and assist those in need. Many residents were left without heat, refrigeration, and in some cases, access to medical equipment that relied on electricity.

Local schools and businesses were also affected by the storm. Many schools had to cancel classes, either due to power outages or because roads were impassable. Businesses, particularly those in the retail and service sectors, faced disruptions in their operations as they struggled to stay open without power amid extended outages that lingered, or to address damage caused by fallen trees and debris.

In the aftermath of the storm, Miami Valley residents are working to clean up and assess the damage. Many homeowners are left dealing with the aftermath of tree removal, property repairs, and other challenges. Meanwhile, local governments are focusing on restoring infrastructure, as seen after Toronto's spring storm outages in recent years, and ensuring that the power grid is secured to prevent further outages.

While the winds have died down and conditions have improved, the storm’s impact will be felt for weeks to come, reflecting Florida's weeks-long restorations after severe storms. The region will continue to recover from the damage, but the event serves as a reminder of the power of nature and the resilience of communities in the face of adversity. For residents affected by the power outages, recovery will require patience as utility crews and local authorities work tirelessly to restore normalcy.

Looking ahead, experts are urging residents to prepare for the next storm season by ensuring that they have emergency kits, backup generators, and contingency plans in place. As climate change contributes to more extreme weather events, it is likely that storms of this magnitude will become more frequent. By taking steps to prepare in advance, communities across the Miami Valley can better handle whatever challenges come next.

 

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EU outlines $300 billion plan to dump Russian energy

REPowerEU Plan accelerates the EU's shift from Russian fossil fuels with renewable energy, energy efficiency, solar, wind, heat pumps, faster permits, and energy security measures by 2027, backed by grants, loans, and grid investments.

 

Key Points

EU plan to quit Russian fossil fuels via renewables and efficiency, with faster permits, by 2027.

✅ €300bn in grants and loans for efficiency and renewables

✅ Streamlined permits; solar mandate on new buildings

✅ Targets 2027 independence; cuts Russian gas, oil, coal

 

The European Union’s executive arm moved Wednesday to jump-start plans for the 27-nation bloc to abandon Russian energy amid the Kremlin’s war in Ukraine, proposing a nearly 300 billion-euro ($315 billion) package that includes more efficient use of fuels and faster rollout of renewable power, even as rolling back electricity prices remains challenging.

The European Commission’s investment initiative is meant to help the 27 EU countries start weaning themselves off Russian fossil fuels this year, a move many see as a wake-up call to ditch fossil fuels across Europe. The goal is to deprive Russia, the EU’s main supplier of oil, natural gas and coal, of tens of billions in revenue and strengthen EU climate policies.

“We are taking our ambition to yet another level to make sure that we become independent from Russian fossil fuels as quickly as possible,” European Commission President Ursula von der Leyen said in Brussels when announcing the package, dubbed REPowerEU.

With no end in sight to Russia’s war in Ukraine and European energy security shaken, amid what some describe as an energy nightmare for the region, the EU is rushing to align its geopolitical and climate interests for the coming decades. It comes amid troubling signs that have raised concerns about energy supplies that the EU relies on and have no quick replacements for, including Russia cutting off member nations Poland and Bulgaria after they refused a demand to pay for natural gas in rubles.

The bloc’s dash to ditch Russian energy stems from a combination of voluntary and mandatory actions. Both reflect the political discomfort of helping fund Russia’s military campaign in a country that neighbors the EU and wants to join the bloc.

An EU ban on coal from Russia is due to start in August, and the bloc has pledged to try to reduce demand for Russian gas by two-thirds by year's end, while debating gas price cap strategies to curb volatility. Meanwhile, a proposed EU oil embargo has hit a roadblock from Hungary and other landlocked countries that worry about the cost of switching to alternative sources.

In a bid to swing Hungary behind the oil phaseout, the REPowerEU package expects oil investment funding of around 2 billion euros for member nations highly dependent on Russian oil.

Energy savings and renewables form the cornerstones of the package, which would be funded mainly by an economic stimulus program put in place to help member countries overcome the slump triggered by the coronavirus pandemic.

The European Commission said the price tag for abandoning Russian fossil fuels completely by a 2027 target date is 210 billion euros. Its package includes 56 billion euros for energy efficiency and 86 billion euros for renewables.

Von der Leyen cited a total funding pot of 72 billion euros in grants and 225 billion euros for loans.

The European Commission also proposed ways to streamline the approval processes in EU countries for renewable projects, which can take up to a decade to get through red tape, as part of a broader effort to revamp the electricity market across Europe. The commission said approval times need to fall to as little as a year or less.

It put forward a specific plan on solar energy, seeking to double photovoltaic capacity by 2025 and pushing for a phased-in obligation to install solar panels on new buildings.

Simone Tagliapietra, an energy expert at the Bruegel think tank in Brussels, called REPowerEU a “jumbo package” whose success will ultimately depend on political will in the bloc’s national capitals, with examples such as Germany’s 200 billion euro energy price shield illustrating the scale of national responses.

“Most of the actions entailed in the plan require either national implementation or strong coordination among member states,” Tagliapietra said. “The extent to which countries really engage is going to be defining.”

The German energy think tank Agora Energiewende said the EU’s plan “gives too little attention to concrete initiatives that reduce fossil fuel demand in the short term and thereby misses the opportunity to simultaneously enhance Europe’s energy security and meet Europe’s climate objectives.”

The group's research shows rapidly expanding solar, wind parks and use of heat pumps for low-temperature heat in industry and buildings could be done faster than constructing new liquefied natural gas terminals or gas infrastructure, said Matthias Buck, its director for Europe.

The European Commission’s recommendations on short-term national actions to cut demand for Russian energy, which include potential emergency measures to limit electricity prices as well, coincide with deliberations underway in the bloc since last year on setting more ambitious EU energy-efficiency and renewable targets for 2030.

Those targets, being negotiated by the European Parliament and national governments, are part of the bloc’s commitments to a 55% cut in greenhouse gases by decade's end, compared with 1990 emissions, and to climate neutrality by 2050.

Von der Leyen urged the European Parliament and national governments to deepen the commission’s July proposal for an energy efficiency target of 9% and renewable energy goal of 40% by 2030. She said those objectives should be 13% and 45%, respectively.

Belgium, the Netherlands, Germany and Denmark plan to build North Sea wind farms to help cut carbon emissions.

 

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State-owned electricity generation firm could save Britons nearly 21bn a year?

Great British Energy could cut UK electricity costs via public ownership, investing in clean energy like wind, solar, tidal, and nuclear, curbing windfall profits, stabilizing bills, and reinvesting returns through a state-backed generator.

 

Key Points

A proposed state-backed UK generator investing in clean power to cut costs and return gains to taxpayers.

✅ Publicly owned investment in wind, solar, tidal, and nuclear

✅ Cuts electricity bills by reducing generators' windfall profits

✅ Funded via bonds or asset buyouts; non-profit operations

 

A publicly owned electricity generation firm could save Britons nearly £21bn a year, according to new analysis that bolsters Labour’s case to launch a national energy company if the party gains power.

Thinktank Common Wealth has calculated that the cost of generating electricity to power homes and businesses could be reduced by £20.8bn or £252 per household a year under state ownership, according to a report seen by the Guardian.

The Labour leader, Keir Starmer, has committed to creating “a publicly owned national champion in clean energy” named Great British Energy.

Starmer is yet to lay out the exact structure of the mooted company, although he has said it would not involve nationalising existing assets, or become involved in the transmission grid or retail supply of energy.

Starmer instead hopes to create a state-backed entity that would invest in clean energy – wind, solar, tidal, nuclear, large-scale storage and other emerging technologies – creating jobs and ensuring windfalls from the growth in low carbon power feed back to the government.

The Common Wealth report, which analysed scenarios for reforming the electricity market, said that a huge saving on electricity costs could be made by buying out assets such as wind, solar and biomass generators on older contracts and running them on a non-profit basis. Funding the measure could require a government bond issuance, or some form of compulsory purchase process.

Last year the government attempted to get companies operating low carbon generators, including nuclear power plants, on older contracts to switch to contracts for difference (CfD), allowing any outsized profits to flow back to taxpayers. However, the government later decided to tax eligible firms through the electricity generator levy instead.

The Common Wealth study concluded that a publicly owned low carbon energy generator would best deliver on Britain’s climate and economic goals, would eliminate windfall profits made by generators and would cut household bills significantly.

MPs and campaigners have argued that Britain’s energy companies should be nationalised since the energy crisis, even as coal-free records have multiplied and renewables still need more support, which has resulted in North Sea oil and gas producers and electricity generators making windfall profits, and a string of retail suppliers collapsing, costing taxpayers billions. Detractors of nationalisation in energy argue it can stifle innovation and expose taxpayers to huge financial risks.

Common Wealth pointed out that more than 40% of the UK’s offshore wind generation capacity was publicly owned by overseas national entities, meaning the benefits of high electricity prices linked to the war in Ukraine had flowed back to other governments.

The study found the publicly owned generator model would create more savings than other options, including a drive for voluntary CfDs; splitting the generation market between low carbon and fossil fuel sources at a time when wind and solar have outproduced nuclear, and a “single buyer model” with nationalised retail suppliers.

 

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