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As the global community grapples with the mounting threat of climate change, governments worldwide have committed to transitioning their energy policies from fossil fuel dependency to renewable energy sources such as solar, wind, and hydroelectric power. These 'clean' energy sources are celebrated for their minimal carbon and greenhouse gas emissions, contributing to global warming. However, the United Kingdom's approach to this transition has come under sharp criticism from Peter Prior, the chairman of Summerleaze, a mineral extraction company that was once a pioneer in the UK's renewable energy sector.

A Legacy of Renewable Energy Leadership

Peter Prior, who joined Summerleaze in 1962, was critical in steering the company into the renewable energy sector. In the 1980s, Summerleaze's RE-Generation division began producing electricity from landfill gas, positioning the company as one of the UK's largest independently-owned renewable energy businesses. By 2006, the company was generating over 310 GWh of electricity annually. However, despite its early success and leadership in the sector, Summerleaze gradually exited the renewable energy business. The landfill gas operations were sold in 2007 following changes in the UK government's biodegradable waste policy, and the company's remaining renewable energy interests, including its anaerobic digestion and renewable heat business, Andigestion, were sold in September 2023.

The Hijacking of Renewable Energy by Corporations

According to Prior, the reason for Summerleaze's departure from the renewable energy sector lies in what he describes as the distortion of the UK's decarbonisation policy in favour of large corporations. He argues that these corporations have co-opted government energy policies to serve their interests and those of their shareholders, often at the expense of the public. "The influence of corporations on government departments has led to the adoption of large-scale solutions that may not always be the most effective or cost-efficient," Prior said. "Meanwhile, smaller yet effective solutions are often overlooked."

Prior also points out that government ministers, who typically lack deep expertise in renewable energy, rely heavily on advice from civil servants who, in turn, depend on information provided by corporations. According to Prior, this dynamic results in policies that do not deliver the best value for taxpayers or energy consumers. "Taxpayers and consumers are not getting the best return on their money," Prior stated. "Instead, they are footing the bill for policies that benefit corporate interests more than the public good."

Rising Energy Costs and Market Volatility

The past few years have seen dramatic fluctuations in the UK's electricity prices, with monthly costs reaching a peak of £363.70 in August 2022. Although prices have stabilised since then, Prior notes that the volatility highlights the vulnerability of the UK's energy market to supply chain shocks. He recalled a recent incident where a former government advisor claimed that wind-powered electricity from the North Sea was becoming cheap. "But just a week later, there were no bidders in the government tender round for North Sea licences at the prices offered," Prior said, pointing to the gap between political rhetoric and market reality.

Consumers' primary concern is not the cost of generating electricity but how much they must pay on their monthly bills. A significant portion of electricity costs comes from grid management and distribution, including the expense of keeping gas-fired turbines on standby when wind power is insufficient. "Consumers are more concerned with their monthly energy bills than with how much it costs to generate electricity," Prior emphasised. "Yet, the current system places an undue burden on them through high distribution and management costs."

A Broken System Favouring Corporations

Reflecting on his experience as a former board member of the Association of Electricity Producers (AEP), Prior expressed frustration with the direction of UK energy policy. "At an AEP board meeting ten years ago, I warned that the government's energy policies were more aligned with corporate interests than those of consumers or smaller energy producers," he said. "I predicted a crisis in the cost and availability of electricity and urged the trade association to develop alternative policies to present to the government. My concerns were dismissed by my corporate colleagues."

Prior believes that the UK's energy policies are being shaped more by corporate power than by the need to deliver affordable and sustainable energy to the public. "Corporations hold significant influence, and with that power comes responsibility," he said. "But too often, that responsibility is neglected in favour of profit."

The Need for a New Approach to Energy Policy

Given the current global geopolitical climate, Prior argues that it is more critical than ever for the UK to develop energy policies that transition from fossil fuels to non-carbon-emitting sources. He advocates for a more market-driven approach, where multiple contributors to the energy transition can emerge and thrive, rather than the government "picking winners" through subsidies and other forms of support. "It is essential that we move towards energy policies that replace fossil fuel use with sustainable alternatives," Prior stated. "This can be achieved by allowing the market to identify viable solutions and applying appropriate taxation to fossil fuels rather than relying on subsidies for renewables."

Prior's critique highlights the need to re-evaluate the UK's energy policies comprehensively. As the country strives to meet its climate goals, it must also ensure that its approach to renewable energy serves the public interest rather than being driven by corporate agendas. "There are no magic bullets in this transition," Prior concluded. "A better way forward is to let the market find the solutions while the government ensures that the playing field is level through fair taxation and regulation."