The use of alternative energy sources overtakes coal utilization. In this case, the United Kingdom is extending funding of this sector and reducing the use of fossil fuel in energy provision.
The United Kingdom energy policy is based on the extended use of alternative power sources, such as solar, wind, geothermal and biomass energy. In this case, national energy industry has accomplished a breakthrough during the second quarter current year.
It was the first time the alternative energy sources overtook the use of coal since they had been involved in the power generation, according to the official data announced by Department of Energy and Climate Change. Solar and wind energy production rate has reached more than 25 per cent during the period from April to June 2015. This rate was estimated at 16.7 per cent last year.
The data released reveals that the solar energy production has increased more than twice, electricity generated by wind power station has risen by 65 per cent and biomass-based electricity has risen by 26 per cent since the second quarter 2014. The last one has increased due to use of wood pellets by Drax Power Station.
At the same time, renewable energy sources rank second in domestic electricity generation. Nowadays gas-fired power stations remain the main electricity supplier in the United Kingdom, which generates 30 per cent of energy consumed. The third one is nuclear power. Its share in electricity production is equal 21.5 per cent. The last one is coal with 20.5 per cent.
Solar and wind turbines and offshore power stations installation as well as appropriate weather condition during twelve months are considered to have contributed the most to the growth of renewable power sources utilization. Nevertheless, the biomass and waste systems along with wind power stations have been involved the most (61.7 per cent), while the use of solar energy and hydropower has fallen behind significantly (29.1 per cent).
Beyond that, coal-fired power stations becomes less profitable, since the UK's carbon tax has been increased. One of the largest investment banks, The Goldman Sachs Group, considers that demand for coal reached the highest level in 2013 and will be decreasing with every next year.
In proof of its statement, The Goldman Sachs Group reported that price for coal, $65 per tonne, was also the heaviest in 2013. Nowadays this figure is equal $50 per tonne, which proves that coal-fired power stations are losing their profitability.
It is also interesting that renewable energy sources data was revealed practically at the same time with announcement made by Government of the United Kingdom. A conservative David Cameron's government took a decision to reduce subsidies given to alternative energy sector as they were growing too fast.
In this case, a plan of 87 per cent reduction for solar power along with an intention to end the support of onshore wind farms was announced. Such decisions were strongly criticized and caused governmental debate.
Maria McCaffery, RenewableUK’s chief executive, said that these decisions have given rise to a strong disappointment. She also added that government has to take interests of wide range of social groups into account.
First of all, it is referred to hard-working citizens, which deserve to get an opportunity to consume electricity at a lower price. It is possible on condition that the renewable energy subsidization is extended.
As a new alternative energy data was released, the government of the United Kingdom has altered its decision. Moreover, renewable energy funding was extended. A spokesman from the Department of Energy and Climate Change claimed that electricity generation based on alternative sources would be able to compete with other technologies. It will also give an opportunity to provide the country with cheap and clean energy.
