Tag: energy policy

  • Opinion: Energy policy will have a role to play in the 2024 US election result

    Randall Heather

     

    One reason why Trump’s numbers are looking good is because the Biden-Harris administration is so incredibly stupid regarding energy policy – so much so that every increase in the price of oil will be seen as a creation of the Democratic Party.

    Let’s look at what Biden and Harris have contributed to energy policy. He got rid of the Keystone Pipeline, but that oil is still coming down from Canada on trains and barges and the likelihood of a spill is multiple times that of a pipeline. Nor will they issue any new permits for oil- or gas-drilling on federal land at a time when oil prices have been going up. This means that everyone’s underinvesting in oil because it’s not politically popular.

    All of this means that not only is supply being shut down but that demand is going up and it’s hitting people’s pockets every day. Really, when you come right down to it the best thing we could do as an energy policy is to drill like hell for gas – as there’s so much of it out there. The world is a huge methane creating machine: if you displaced all the coal fire generation with natural gas then the impact on the environment would be substantial. But the green lobby go after natural gas as if it’s oil or coal. But everybody knows you have to have some sort of bridge to build a solar-based energy policy.

    The truth is we don’t have an energy crisis – we have an energy storage crisis. As things stand, we can’t take solar and wind energy and save it at grid level. The technology doesn’t enable us to store it for any length of time whatsoever – and until you solve that problem, you can’t rely on solar or wind.

    Which brings me back to the Keystone Pipeline and the question of why Biden might be struggling in those states like Pennsylvania, Wisconsin and Michigan which he needs to win to retain the presidency, if he’s well enough to contest the election. There are lots of blue collar jobs associated with the natural gas infrastructure, and if you make an intervention like the one Biden did, then any adverse fluctuation in the gas prices can be justifiably placed at your door. Added to that, there’s not much spare capacity globally – expect in states like United Arab Emirates and Saudi Arabia. But you can’t expect to switch off supply without some effect on prices, and therefore political ramifications.

    Biden is discovering this all too late. There’s the perception of a weak President – more than that there’s no real Bidenism that I can see which might amount to a core set of principles. It’s worth comparing him for instance with Bill Clinton. People forget that after Clinton came in in 1992, he immediately got cleaned out in the mid-terms, and had to work with Republicans. But he didn’t stick his head in the sand: instead he brought down the federal deficit and instituted some important welfare reforms. That led to a remarkably prosperous decade where the federal government even ran a surplus.

    That’s where Obama differed with Clinton. Clinton saw how he could make lemonade out of lemons – and it helped him in doing that, to have been the Governor of Arkansas. Obama, by unhappy contrast, had never run anything and it certainly showed. Biden suffers from the same affliction.

    What we’re witnessing with Trump’s resurgence speaks to a gap in America’s institutions: there’s no Leader of the Opposition in America. Trump has effectively been fulfilling that role by default – and you could say Nancy Pelosi did something similar from 2016-2020 during the Trump years. The system is too diffuse and lacks that gladiatorial atmosphere of parliamentary debate we see week in week out in the House of Commons.

    Politicians never debate each other except during elections and all interaction is done through the prism of the media.  No American President is called upon to do PMQs and the Cabinet meanwhile is absolutely invisible to the public. We’re paying the price of all that now – and who knows where it will end.

  • UK Climate Leadership: Government’s Opportunity to Lead on the International Stage in 2024

    Dinesh Dhamija presents the opportunities presented for the new UK Government to take a climate leadership role on the international stage.

     

    Marking a sharp deviation from the climate scepticism of the outgoing UK Conservative government, which disavowed environmental action, the new Labour administration has released ambitious green targets, with its eye on global leadership.

    This week the energy secretary Ed Miliband announced a £1.5 billion auction of renewable energy projects, sufficient to power 11 million homes, including 90 new solar farms with a capacity of 3.3GW and 20 new onshore windfarms. To attract bidders, the government had to face down opposition from local communities, who had hobbled the Conservatives’ renewable energy plans. Three major new solar farms have already gained approval, all of them in the east of England, in Lincolnshire, Rutland, and the Suffolk-Cambridgeshire borders.

    These projects are an initial step towards the tripling of UK solar power promised by the government, alongside its pledge to double onshore and quadruple offshore wind generating capacity. At the same time, solar-based generation across the UK is rising rapidly: it reached 2 terawatt hours per month for the first time in June 2024 and produced around 25 per cent more electricity this summer than in the same period of 2023. Rather than pandering to the oil lobby or appeasing NIMBYs, the Starmer administration hopes to show global leadership on climate action. Ed Miliband will attend Cop29 in Azerbaijan later this year, then host a 2025 conference with the International Energy Agency.

    Energy activists such as Harjeet Singh of the Fossil Fuel Non-Proliferation Treaty Initiative have urged the government to act decisively by announcing a new ‘nationally determined contribution [NDC]’ – the official term for an emissions reduction plan. “The UK has a critical opportunity to set the bar for climate leadership and equity by announcing a robust NDC,” he said.

    Climate experts point out that, with the United States in the throes of an election, and France and Germany both in political limbo, the UK can step up and demonstrate leadership. “It would be good to see the UK including its fossil fuels phase-out commitment within its NDC,” added Singh. “This would show the way for others to follow.”

    Energy secretary Ed Miliband has already visited Brazil, current president of the G20 group of developed nations and host of Cop30 in 2025. These initiatives are important for the future of renewable energy and the fight against climate change. I’m pleased to see the Labour government grasping the nettle early in its tenure, while it enjoys a large parliamentary majority and can ignore sniping from the sidelines.

    It’s too early to claim any kind of breakthrough or tipping point from this government, but it’s good to see evidence of its direction of travel towards a greater climate leadership role. Long may it continue.

     

    Dinesh Dhamija founded, built and sold online travel agency ebookers.com, before serving as a Member of the European Parliament. Since then, he has created the largest solar PV and hydrogen businesses in Romania. Dinesh’s latest book is The Indian Century – buy it from Amazon at https://www.amazon.co.uk/dp/1738441407/

     

  • Dinesh Dhamija: Labour’s Brave New Energy World

    Labour’s Brave New Energy World: Sir Kier Starmer’s Ambitous Policy Proposals, by Dinesh Dhamija

     

    With the UK election barely a month away, voters are scanning the parties’ manifestos for clues to the future – particularly that of the likely winner – Sir Kier Starmer’s Labour Party.

    As a solar energy entrepreneur, I’m alert to the parties’ renewable promises and ambitions. The most recent Conservative government talked a brave game, but gradually ditched its green commitments, because a vocal minority of its supporters hated the plans. This resulted in a fragmented approach to renewable energy, with many initiatives either scaled back or abandoned altogether.

    The Labour Party has promised a new energy deal in its pitch to the nation, including a state-owned business – Great British Energy – to invest in renewables: onshore and offshore wind, solar power, gigafactories, energy storage, and green hydrogen. This comprehensive approach aims to cover a wide array of renewable energy sources and technologies, ensuring a diversified energy portfolio for the UK.

    Listening to Sir Kier address a meeting in Leith in Scotland, you might think that he was the world’s green energy Messiah. Launching his party’s ‘national mission on clean energy’, he promised: “It will power us forward towards net-zero, generate growth right across the country, end the suffocating cost of living crisis and get Putin’s boot off our throat with real energy security.” These ambitious goals reflect a deep understanding of the interconnected challenges of energy security, economic growth, and environmental sustainability.

    It is, he proclaimed, “a plan to use clean power to build a new Britain, a plan to get our future back.” Stirring words, and a welcome commitment. But as recently as February this year, Labour ditched a promise to invest £28 billion a year in green spending, shrinking it to just £4.8 billion a year. What kind of a new deal is that? This significant reduction raises questions about the feasibility and impact of Labour’s green energy initiatives.

    Sir Kier bemoans the lost opportunities of the Tory government and the squabbles of the Scottish National Party, for whom a British success would contradict their drive for independence. He plans to headquarter GB Energy in Scotland and harvest the blowy conditions through a massive new wind energy programme, extending right down the eastern coast of the country to Grimsby in Lincolnshire. This strategic location aims to maximize the potential of wind energy, leveraging the geographical advantages of the UK’s coastline.

    He plans tidal energy in the Firth of Forth and in South Wales, with clean hydrogen programmes in Yorkshire, Merseyside, and Grangemouth. These projects highlight Labour’s commitment to exploring diverse renewable energy sources, recognizing the unique potential of different regions across the UK.

    Quite how far £4.8 billion will go, spread across these many fields, is an open question. The substantial reduction in proposed spending necessitates a careful reassessment of priorities and expected outcomes. Achieving significant progress with limited funds will require innovative approaches and efficient allocation of resources.

    Sir Kier points to the transformations of US President Joe Biden’s 2022 Inflation Reduction Act. But that included $783 billion for renewable energy and climate measures. He also wants to model GB Energy on Denmark’s Ørested or Sweden’s Vattenfall, but both of those countries have long traditions of renewable energy champions, paid for through high taxation. The comparison underscores the scale of investment and cultural commitment required for such a transition. Labour’s brave new energy world is an incredibly positive but also very expensive undertaking.

    Is Britain ready for the Scandinavian model? This question remains at the heart of the debate, as the UK’s political and economic landscape differs significantly from that of Scandinavian countries. Adopting a similar approach would necessitate substantial shifts in policy and public perception.

    Labour’s energy policy is targeted at the Red Wall seats lost during the Brexit saga. It aims to claw back support in the industrial Midlands and north (including Scotland) by promising a brave new world of clean, secure energy, with hundreds of thousands of jobs. This focus on job creation and regional development seeks to address economic disparities and garner broader support for Labour’s vision.

    All very inspiring, but without cash to back up its promises, I fear it is little more than hot air. The ambitious plans for Labour’s brave new energy world need substantial financial backing to move from rhetoric to reality, ensuring tangible benefits for the UK’s economy and environment.

    Dinesh Dhamija founded, built, and sold online travel agency ebookers.com, before serving as a Member of the European Parliament. Since then, he has created the largest solar PV and hydrogen businesses in Romania. Dinesh’s latest book is The Indian Century – buy it from Amazon.