26 Feb 2009 05:02:09
Energy sector must invest £230bn to meet targets
Over £230 billion needs to be spent by energy firms to meet energy demand as well as carbon emissions and renewable targets by 2025, according to a new report.
The study by Ernst & Young, an update to its 2008 Costing the Earth study, suggests £234 billion will have to be spent on infrastructure to ensure energy supply and to meet renewable and emissions targets.
Investment on that scale is the equivalent of doubling the total value of the UK's energy supply asset base.
To ensure the money is spent cost-effectively, the industry and government need to focus on energy efficiency, according to Steve Jennings, Ernst & Young partner and head of the firm's power and utilities group.
"As part of a package of measures to maintain security of supply, supporting and educating consumers on ways to improve energy efficiency will play a pivotal role. Investment in energy efficiency will play an important role in achieving the industry's objectives," he said.
Among the expenses the energy industry could face will be the development of carbon capture and storage technology.
According to the Guardian, energy companies estimate that the cost of carbon capture and storage technology will be between £250 million and £1 billion per power plant.
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