On Wednesday, the French government announced the full nationalization of energy giant EDF, which is currently building Hinkley Point ‘C, the first new nuclear power plant in the UK in a generation and is the country’s fourth largest household energy supplier.
Another major power utility in the region, Uniper, appears to be getting a bailout from the German government, which is reportedly discussing a package worth up to €9 billion.
Elisabeth Borne, the French PM, told parliament: “The climate emergency requires strong, radical decisions. We need to have full control of the production and our energy future. We must ensure our sovereignty faced with the consequences of the war and the colossal challenges ahead.
“That is why I confirm today the intention of the state to hold 100% of the capital of EDF.”
Although this may sound like a big acquisition, prior to this the government already owned an 84% stake in EDF.
There are several reasons why the French government would want to seize total authority.
In order for France to achieve carbon neutrality by 2050, Mr. Macron stated during the election that he wants to see an ambitious construction programme of new nuclear power stations, ranging from six to fourteen. It will probably cost tens of billions of euros to do that.
One of the difficulties EDF is said to have been facing is the fact that some of its older reactors are currently offline due to corrosion. As Europe looks for alternatives to Russian gas supplies, this problem has forced the French utility to reduce its nuclear power output.
The government has ordered EDF to sell its electricity to its rival corporations at a reduced price in order to shield the French people from a sharp increase in their cost of living.
Due to lower output, it is predicted that EDF’s profits will decline by €18.5 billion this year. In addition, the company would lose an additional €10.2 billion due to the discounted power sale.
EDF had been expecting to be able to raise prices by around 35% this year to reflect higher wholesale prices.
Will this effect Customers?
In a newer development, government spokesman Olivier Veran has stated that the nationalization of EDF will have no impact on the cost of electricity for the French people.
In May, EDF had 26.2 million customers in France, an increase of 500,000 from the previous month.
Recent events like the war in Ukraine, which caused sharp price increases on the global market and consequently higher bills for those on alternative tariffs indexed on market rates, have led to a rise in the number of people choosing the regulated rates of the national energy supplier, instead of ones that don’t use the price cap.
Nationalising the supplier will give the government complete control over the firm’s rates, which might be advantageous for consumers if it chooses policies like this year’s electricity price cap.
Will this effect UK Projects?
According to reports, sources claimed that “the odds of EDF putting money into another UK plant are incredibly small.”
An EDF spokesperson told EnergyLiveNews : “The teams of EDF in the UK are fully committed to continuing to run and build our power stations and renewables and to serve our customers.”
Can I avoid rising energy prices by installing solar panels?
As the UK is seeing soaring temperatures and soaring energy bills, people are wondering if there’s anything more that can be done.
Making your home more energy-efficient can help you save money in the long run while also keeping it warmer and potentially increasing its value.
With more people working from home and thus using more energy during the day, many people are considering installing solar panels to save money and even earn money from the energy they generate.
Solar energy is converted into electricity by solar panels. More electricity is produced when the sun is stronger; this electricity can either be used in your home or exported to the national grid.
They are VAT-free, and the cost of installation has decreased over the past ten years (by 88 percent), with a 3.5kW system installation typically costing £4,800, including labour. This typically has 12 panels.
According to the Energy Saving Trust, a charity that promotes energy efficiency, domestic systems typically consist of between 10 and 15 panels, each of which produces between 200W and 350W of energy. The potential for more energy increases with the number of panels on the roof, but so does the cost of installation.
The cost of a battery, which enables the storage of solar energy for later use, is not included in this price. According to GreenMatch, which compares green energy products, they range from £1,200 to £6,000.
Although the cost of solar systems has decreased over the past ten years, recent shortages of Chinese panels and the rising cost of labour have caused prices to rise once again.
South-facing roofs are the best for solar panels. North-facing roofs are the least productive and are considered impractical in the UK. East- or west-facing roofs produce up to 20% less energy.
You need space for 15 to 20 square metres of panels for a 3.5kW system. A roof angled at 30 degrees will produce the best results. According to consumer advocacy group Which?, the majority of UK roofs are between 30 and 45 degrees.
Do you need warm weather for them to work?
Unexpectedly, their performance declines as the temperature increases. Incoming photons are used in solar panels to raise the energy level of the electrons in a semiconductor. However, the more electrons that are already in the excited state, the hotter the panel gets. This lowers the voltage the panel can produce and decreases its effectiveness.
The electrical resistance of the circuits that transform the photovoltaic charge into AC electricity is also increased by higher temperatures. Modern hybrid solar panels can still lose 10% of their rated efficiency on hot days even though they are made to be less heat-sensitive.
Households may be compensated for the electricity they export back to the grid Under the Smart Export Guarantee (SEG).
Where a home is located, whether electricity is sold back to the grid, and how much energy you use all affect your bill savings and the time it takes to recover your investment.
In terms of how Solar Panels can add value to your property, there isn’t too much evidence out there, however we do know that those with better energy performance sell for more.
Cambo Oil Fields Must Go Ahead to Stop Energy Price Rises says UK Energy Minister
If oil fields like Cambo don’t go ahead, the price of energy will rise even more, a UK government minister has warned.
Speaking to journalists last week, Mr Hands was asked what the impact on households would be if Cambo and projects like it do not go ahead.
He declared: “It would almost certainly drive up the price of energy.
“And it would almost certainly be bad for energy security. And it’s likely to be bad for emissions.”
He also said other European countries are envious of the UK’s hydrocarbon production, adding: “The UK having his own capability is something that our European partners and allies look on – with the exception of Norway, which obviously is an even better position than we are – but look on with envy.
“The fact that the UK is able to produce 50% of its own gas – I would say we need to make sure that we take good care of the resource that we’ve got, to invest in the resource that we’ve got at the moment, while still making the transition.”
New oil and gas fields have been urged to be stopped by environmental organisations, and Scotland’s First Minister Nicola Sturgeon has voiced opposition to the Cambo field.
The Cambo development was put on hold in December while it waits for final regulatory approval.
There have been websites created such as https://www.stopcambo.org.uk, with the purpose and aim of halting the oil fields from going into production.
Oil colossus Shell and private equity-backed Siccar Point Energy, the owners of Cambo, are requesting authorization to extract 170 million barrels of oil in the first phase alone. According to stopcambo.co.uk, this would result in emissions that are comparable to the annual carbon pollution produced by 18 coal-fired power plants.
To meet the 1.5°C target of the Paris Agreement, there can be no new investment in oil, gas, or coal.
Mr. Hands also stressed the importance of new nuclear power, another issue where there is a disagreement between the UK and Scottish governments.
“I think we need to be working better together,” he said.
“To deliver particularly on nuclear, to make sure that that baseload is there, what do we do when the wind isn’t blowing and the sun isn’t shining?”