The U.K. may take a step towards hydraulic fracking to extract shale gas, given the high economic cost of subsidizing renewable energy, say experts.
The U.K.'s new energy and environment ministers say they are against renewable energy, and favor hydraulic fracking for extracting shale gas instead. On July 4 EU's Energy Commissioner, Gunther Oettinger, called on Germany to lift the ban on fracking. These developments opened the debate on whether theÌýEU will see shale gas as an alternative to Russian gas to curb its dependence.
London basedÌýFacts Global Energy (FGE) expert Cuneyt Kazokoglu told an Anadolu Agency correspondent that it does not necessarily mean that a European policy will follow the British ministers'Ìýview.
He explained the change in the U.K. and said,Ìý"The new cabinet is more inclined to the right. Energy MinisterÌýMatthew Hancock is especially against the subsidies given to wind farms and the new Environment MinisterÌýElizabeth Truss,Ìýwho is an ex-Shell worker, is pro nuclear, fossil fuels and fracking."
The U.K.'s National Audit Office's June report says the country gaveÌý£16.6 billion worth of subsidies for five offshore wind farms and three biomass plants, which are to become operational between 2015 and 2019.
The National Grid's July 2014Ìýreport suggests the current wholesale electric price is belowÌý£50 per megawatt per hour but could soar to over £100 by 2035. It also says since 2009, electricity prices surged by 20 percent -Ìýthe main reason being the subsidies given to wind farms.Ìý
Kazokoglu said the reason behind Oettinger's positive position on fracking was also because of his political standing coming from the Christian Democratic Union (CDU)Ìýled by Angela Merkel. The CDUÌýbelieveÌýin creating an EU-wide energy internal market, and favor the EU'sÌýEnergy 2020 Strategy for competitive, sustainable and secure energy. They believeÌýthe current carbon scheme mustÌýbe overhauled with new policies.
KazokogluÌýstated theÌýgeneral atmosphere in the EU is not supportive to fracking activities, and said,Ìý"the new EU commissionerÌýJean-Claude Juncker is also againstÌýfracking. To illustrate, Germany's shale potential is only sufficient for 10 years of consumption. Therefore, the U.K. can take a step towards hydraulic fracking for shale gas, but it will be limited to theÌýU.K. only and will not be extendedÌýEU-wide."
- Economic costs disfavorsÌýrenewables
London-basedÌýGlobal Resources Corporation PresidentÌýMehmet Ogutcu said it is the high economic cost of renewable energy that moves European countries away.Ìý
In the U.K., particularly the operation ofÌýoffshore wind farms are too costly and consequently, they are considering fracking,Ìýhe added.
Anadolu Agency
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