A controversial report by consultancy KPMG claiming that 2020 carbon reduction targets without renewables has been rejected by the Government.
A controversial report by consultancy KPMG claiming that 2020 carbon reduction targets could be met through nuclear and gas fired power stations has been rejected by the government.
Recently launched by independent consultancy AF Cosult, the report, entitled Powerful Targets, has prompted newspapers to question the validity of the current UK renewable energy policy.
The report initially suggested that forgoing significant wind farm expansion and focusing on nuclear and gas could save the UK £34bn, however that figure is increased to £45bn according to AF Consult.
A spokeswoman from the Department of Energy and Climate Change (DECC) said AF Consult’s analysis was “short-sighted” because it suggested the UK could obtain all its energy from two sources, rather than a diverse portfolio of technologies.
“The report’s assumptions are so flawed the conclusions are near pointless,” she said.
“AF aren’t planning for enough generation capacity; they’re putting all our eggs into just two energy technology baskets and keeping their fingers crossed that gas prices come good.”
“If this sort of short-sighted analysis informed our policies, we’d not meet our carbon emission targets and keep the lights on, and the consumer would certainly be worse off.”
She added that DECC’s chief economist, energy director general and director of strategy all agreed the report was “a very, very poor piece of work”, on the grounds that it disregarded four key factors: that electricity demand would increase; diversity of technology is crucial to the future energy mix; renewable energy costs are being driven down; and gas prices are uncertain.