Impact of Advancements

Question: Using the Strength-Weakness-Opportunity-Threat (SWOT) analytical tool,critically discuss the impact of advancements in renewable energy technologies on the direction of energy policy of the United Kingdom. Answer: Introduction: Energy policy alludes to the policies undertaken by the supreme authority of a state, generally the government in addressing issues related to development of energy; this including production, distribution consumption of energy. Energy policies may mean legislation, signing international treaties, providing incentives for investment, implementing taxation public policy, setting guidelines for the conservation of energy. Fossil fuel can be referred to as being an example of non renewable energy source formed during the carboniferous period, i.e. it took time between 300/360 million years for its formation (Das, 2014). Energy is freely found in nature. But the natural resources that which cannot be replenished; which is found in finite amount and which will cease to exist due to extensive usage by mankind is non renewable source of energy. The main source of fossil fuel is Carbon (Appendix 1). The UK has been extensively using fossil fuel (non renewable energy). But these extensive u sage causes harm to the environment. For a better and healthy atmosphere, and to control the atmospheric anomalies like climate changes global warming, due to usage of fossil fuel, an environmentally friendly, evolutionary, and radical energy policy is desirable. Use: It can be noted that fossils fuels are extensively used in the UK because its cost of production is less. This less cost induces high demand because when price is low, demand is higher. This is the only positive attribute of the usage of fossil fuel. Renewable source as an alternative energy (environmental friendly): Extensive use of non renewable sources like fossil fuel has led to environmental threats like: Climatic changes. Global warming. Mostly the fossil fuels constitutes of carbon. When these are burnt, they produce many carbon compounds like CO2 (Carbon-di-oxide) and green house gases, which cause harm to the surrounding environment (Ecotricity.co.uk, 2015). The above two phenomenon are matters of concerns for the UK. This is because it causes threat to the objects of nature, especially mankind, animals and the environment. This produces negative externalities like air pollution, land pollution and water pollution (Appendix 2). For a better understanding, we shall first study the instances of environmental issues due to extensive usage of fossil fuels. Global warming: Global warming is part of the changes in climate. Burning fossil fuels generates/ produces much amount of CO2 and greenhouses gases like methane and nitrous oxide (Gov.uk, 2013). These trap the atmospheric heat and the heat cannot be released back to the atmosphere. This raises the level of water, raises the temperature and increases the rate of happenings of natural calamities. Acid rains: When a fossil fuel is burned, some aerosolized pollutants get released in the atmosphere. The electricity plants that are powered by coal causes sulfur-di-oxide emissions. The emissions of sulfur-di-oxide and nitrogen oxide causes the acidification of rains as these dangerous gases reach the upper layer of atmosphere and get mixed with clouds. Acid rains have high pH which affects our eco system tremendously (Uccee.org, 2015). Acid rains give rise to high deforestation, weathering, dissolves nutrients of soil, causes damages to trees and plants. It affects the marine organisms. It may be noted that the marine organisms too need some acidic conditions for their survival. But acid rains destroy their habitat and causes harms to their lives. Rationale: From a highly fossilized economy energy policy, the UK should implement an energy policy which is evolutionary and environmentally friendly. The UK should subject itself to the usage of renewable sources of energy like sun, wind, tides, rain water, waves and geo-thermal heat (Fells and Whitmill, 2008). More precisely, this evolutionary energy policy should solely mean the new usage of renewable energy in lieu of fossil fuel (non renewable sources of energy). This is mainly for two reasons as under: To revitalize the environment and prevent it from further decay like more global warming and more climatic changes. To prevent exhaustion of the non- renewable sources of energy. In order to reduce the environmental threats, policy for uses of renewable sources of energy which is environmentally friendly is desirable . For a better understanding, the diagram below can be scrutinized. It may be seen from the diagram that the energy reserves shall be exhausted totally by the year 2081. In order to prevent this, there is required to embrace and utilize the renewable sources of energy like, sun, wind, tides, rain water, waves and geo-thermal heat (graphs, 2012). The UK, Energy Fuel Energy: The UKs industrialization derives its power from non renewable sources. This is because of its easiness in accessing. It is one of the leading industrial nations of the world. But the extensive usage of fossil fuel has induced negative effects on the environment (Gov.uk, 2013). For this reason, the UK is required to embrace an alternative source of energy, especially renewable energy to minimize the negative effects of fossil fuel usage. Statics of energy use of the UK (GDP PPP per kg): Year GDP/Unit kg usage 1990, 1991, 1993, 1994 7.3, 7.0, 7.1, 7.2 1995, 1996, 1997, 1998,1999 7.6, 7.5, 7.9, 8.1, 8.3 2000, 2001, 2002, 2003, 2004 8.6, 8.8, 9.2, 9.5, 9.7 2005, 2006, 2007, 2008, 2009 9.9, 10.4, 11.1, 11.2, 11.4 2010, 2011, 2012 11.3, 12.3, 12.1 Statistics: [fossil fuel energy use of the UK (GDP PPP per kg]): Year GDP/Unit kg usage 2000, 2001, 2002, 2003, 2004 88.4, 87.8, 87.7, 88.0, 86.1 2005, 2006, 2007, 2008, 2009 88.1, 88.6, 89.6, 90.1, 87.3 2010, 2011, 2012 88.3, 85.8, 85.1 Emissions: CO2 emission was 422.0 Mt (2014), 467.5 Mt (2013). Green house gas emission was 82% (2013). Statics: Green house emissions (2001-2013) Green house gases Units (in ton) 01 02 03 04 05 06 07 CO2 Carbon dioxide Million 568.0 550.4 561.3 561.5 557.8 555.6 546.7 CH4 Methane Million 109.3 107.1 102.1 97.3 92.1 88.2 84.2 N2O Nitrous Oxide Million 34.7 32.9 32.7 33.3 32.2 31.2 30.9 HFC Hydrofluorocarbon Thousand 11.4 11.8 13.1 12.2 13.1 13.9 14.2 PFC Perfluorocarbons Thousand 0.5 0.4 0.4 0.4 0.4 0.4 0.3 SF6 Sulphur hexafluoride Thousand 1.5 1.1 1.3 1.1 1.1 0.8 0.8 NF3 Nitrogen Trifluoride Thousand 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total 725.4 704.2 710.9 705.8 696.6 690.1 677.2 Statics: Green house emissions (2001-2013) Green house gases Year Units (in ton) 08 09 10 11 12 13 CO2 Carbon dioxide Million 532.9 482.2 500.8 457.5 476.3 467.5 CH4 Methane Million 78.3 71.9 67.0 64.0 61.2 56.2 N2O Nitrous Oxide Million 30.2 28.5 28.9 27.7 27.7 27.6 HFC Hydrofluorocarbon Thousand 14.8 15.2 15.7 16.0 16.2 16.2 PFC Perfluorocarbons Thousand 0.3 0.2 0.3 0.4 0.3 0.3 SF6 Sulphur hexafluoride Thousand 0.7 0.7 0.7 0.6 0.6 0.6 NF3 Nitrogen Trifluoride Thousand 0.0 0.0 0.0 0.0 0.0 0.0 Total 657.1 598.6 613.3 566.2 582.2 568.3 (Source: Gov.uk, (2013).Final UK greenhouse gas emissions national statistics: 1990-2013 - ) According to the EU, the UK should consume energy from renewable source @ 20% by the year 2024. The UK committees to use 15% but at present it is positioned third from the bottom of EU renewable source usage after Malta Luxemburg (Gov.uk, 2013). It also implies that electricity production must be done from renewable sources 40%. Current produces from renewable source is only 4.58% (Web.stanford.edu, 2015). Firstly, to get rid of UK's carbon dioxide emissions by at least 60% by 2050, and progressing by 2020; Secondly, to keep reliable energy supplies; Thirdly, to create competitive markets, improve the rate of sustainable economic growth and to increase productivity; and fourthly, to make sure that every home is adequately and affordably heated (Gov.uk, 2013). As regardsrenewable energy, the UK has set goals forutilizing tidal energy and wind energy (Web.stanford.edu, 2015). As per the White Paper on Energy (2007), UK has set a target that by the year 2020, 20% of the UK's energy must be derived from renewable source (the Guardian, 2015). SWOT Analysis: (for implementing renewable energy policy). Internal Analysis Strength: v The UK can play a lead role in combating climatic changes and global warming. v The UK has many congenial locations for production and development of various types of renewable energy. v This policy shall attract private investors due to incentives attached to it. v The govt. is economically sound to invest huge capital for implementation of this policy. v The fall in the off shore oil and natural gas industry can provide impetus for implementing a renewable energy policy. v Lately, the legislations in the UK and UE assure a commitment to the development of this policy. Internal Analysis Weakness: v The renewable energy requires huge capital in the short run as compared to conventional energy usage. v There shall be less profitability in the short run. v Product differentiation of supply of this energy is little. So, the consumer shall buy only from the cheapest source. This means energy suppliers shall set a penetration pricing policy. v Shortage of congenial equipments to convert the renewable sources may hinder its development. External Analysis Opportunity: v Politically the UK is stable state with advanced infrastructure and technological leapfrogging. Thus, it has the capability to develop, design, research, install, produce, and distribute renewable energy. v Multinational gas oil companies can increases their stakes and they can enter the market as new entrants. v Rural people can get employment opportunities. v UK renewable energy suppliers can get opportunity to enter foreign market. External Analysis Threats: v Plans to set new nuclear plants in place of the older ones pose threat to implementation of renewable energy policy. This is because their carbon emission is low and they are perfect substitutes for renewable energy. Future Plans: The department of climate changes energy administers and leads the energy policy of the UK. The existing energy policy of UK is an amalgamation of Energy white paper (May, 2007), Low carbon transmission plan (July, 2009). Its previous foundation stone being a combination of energy review report white paper Energy white paper (Conserve-Energy-Future, 2013). The current head is Chris Huhne. Four aims of the policy: Getting rid of the CO2 emissions of the UK by 60% by the year 2050 to progress by the year 2020. Keeping reliable supplies of energy. Creating a market which is competitive, improving sustainable economic growth rate, increasing productivity. Making sure that all households are affordably and adequately heated. Conclusion: Renewable energy policy and usage is the next big thing in order to combat the environmental damages. In the short run it may need huge cost of its proper implementation, technically and economically. The technical aspect of the cost can be alluded to the level of the technology and economically the cost can be alluded to savings of cost via economies of scale. But in the long run, it will definitely help. As UK is an economically solvent country and posses advanced infrastructure, adopting the said policy shall not be a hindrance. In order to avoid further decay of the environment which poses threats to humans and animals, this policy implementation is required. But renewable sources are ordained by nature, the control of which cannot be superseded by humans. But advantage is that, this policy shall provide a permanent source of energy. There is a growing demand for renewable energy this continuous increasing demand shall set the market for this source of energy. Thus, it will crea te opportunities for investors. References: 2014 UK Greenhouse Gas Emissions, Provisional Figures. (2015). 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