Electrical generation policy

UK national government
• Many types of electricity
generation
• Important resource for
business and economy gr
owth
• Advantage and
disadvantage of each typ
e
• “corporate objective”:
best value for money
Electricity & genaration – current situation
• Increasing demand of
electricity
• Coal and gas are 60%
percent of power generati
on
• Coal and gas fired power
plant affect the global warm
ing
• Uncertainty about coal
and gas supply
• Other sources of
electricity generation
 Fiscal policy
recommendations (1/2)
• Create incentives for companies to invest in
alternative energy resources, e.g. tax shield, reduced
NI company contributions

• Provide subsidies for building new

electricity plants
• Restrict coal and gas mining by
limiting the amount, apply a tax premium,
apply import tax for gas and oil
• Reduce imports of electricity (cost-
intensive and lack of control)
 Fiscal policy
recommendations (2/2) Nuclear power Hydro/wind power/
Implications
renewable
resources
Reduced CO2 emission X X
Benefits

Exploitation of natural resources X X

w/o reducing them
Lower generating costs X
Increased employment level X X
Increase R&D activities X X
(alt. sources of energy)
Huge initial investment X X
Issues

Huge space requirement X

Careful location selection X X
necessary
Huge initial investment X X
Strict safety & security measures X