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Wed, Apr 23, 2008

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Scottish Gov’t Rejects Major Wind Farm Plan
Biofuels Making Food More Expensive

Scottish Gov’t Rejects Major Wind Farm Plan
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Yet the conflict over the Lewis proposal, which would have generated 650MW of electricity has exposed some of the most significant tensions and challenges facing onshore wind farms.
Plans to build one of Europe’s largest onshore wind farms in the Outer Hebrides, comprise an island chain off the west coast of Scotland, were formally rejected on April 21 after Scottish ministers ruled the £500 million scheme would devastate a globally significant peatland.
According to BBC, the Scottish energy minister, Jim Mather, said on April 21 that the 181-turbine project, which would have dominated the moors of northern Lewis, would have had “significant adverse impacts“ on rare and endangered birds living on the peatlands--a breach of European habitats legislation.
The decision to turn down the proposals from Amec and British Energy was greeted with delight by local opponents and environment groups, and dismay by the developers. Nearly 11,000 islanders had objected to the scheme, which had been supported by the Western Isles council and the island’s main community trust.
Dina Murray, a crofter who farms part of the moor affected, said, “I’m absolutely delighted, and I’m delighted for the people of Lewis who fought long and hard against this, on the same grounds as the wind farm has been rejected. The environment, the landscape and the peatlands are worth far more than any wind farm.“
Mather said the decision did not mean his Scottish National party administration in Edinburgh was opposed to wind farms in the Western Isles or in general. Ministers were pushing ahead with plans for a new sustainable green energy program for the islands, which experts believe has amongst the greatest renewable energy potential of any part of the UK.
“Nor does today’s decision alter in any way this government’s unwavering commitment to harness Scotland’s vast array of potentially cheap, renewable energy sources,“ he added.
The SNP had agreed to 13 new schemes since last May, and was processing applications for a further 35 wind and hydropower schemes. Along with existing schemes, this would generate enough to supply all Scotland’s homes.
Yet the conflict over the Lewis proposal, which would have generated 650MW of electricity--roughly 10 percent of Scotland’s electricity needs--has exposed some of the most significant tensions and challenges facing onshore wind farms.
Lewis Wind Power, the joint venture company set up by Amec and British Energy, said it was “bitterly disappointed“ by the decision. The farm would have brought 400 jobs to Lewis, injected £6 million a year in rental payments and other benefits to the island, and meant a crucial ’interconnector’ to take electricity to the mainland would have been built.
“Sadly all of this has been lost because of the government decision which, we believe, represents a huge missed opportunity,“ the firm said.
Wind power opponents are now focusing on the frequent use of peatlands, particularly in Scotland, for major new schemes. They argue that ’industrialization’ of peat moors risks destroying these habitats and will release the carbon stored in the peat through erosion and drainage.
The Scottish Tory MEP Struan Stevenson urged European commission officials last week to develop a more coherent strategy for locating wind farms on land, claiming that Scotland’s 1.9m hectares of peat and bog were part of the planet’s “airconditioning system“.

Biofuels Making Food More Expensive
Developed nations should stop paying agricultural subsidies to encourage biofuel production because the payments are making staple foods more expensive, the Asian Development Bank said on April 21.
Biofuels should also be re-examined by governments around the world as it is increasingly unclear how environmentally friendly they are, ADB Managing Director General Rajat Nag said in an interview with AP.
The production of biofuel leads to forests being destroyed and reduced land area for growing crops for food, he said.
“We feel that the developed countries should seriously rethink the whole issue of biofuel, particularly the biofuel subsidies,“ Nag said. “Giving subsidies for biofuels ... basically acts as an implicit tax on staple foods.“
Paying farmers to grow oilseed and other crops to produce biofuels means they grow fewer food crops, resulting in higher prices for such staples as palm oil and corn. Nag did not give examples, but countries that subsidize biofuel include the US, the world’s largest producer of ethanol, which is made mostly from corn and other grain crops. The country’s farm subsidy programs include payments for ethanol production.
“We believe it is more important to let the developed country farmers decide on what they will plant, based on the relative prices, based on the international prices, but not subsidized prices,“ he said.
Surging food prices, stoked by rising fuel costs that have increased production and transport costs, have triggered protests around the world in recent weeks. Riots have erupted over food shortages in the Caribbean and Africa and hunger is approaching crisis stage in parts of Asia.
Nag said rising food prices will be top on the agenda of the ADB’s annual board of governors meeting in Madrid next week.
He urged governments faced with rising food prices not to impose price caps or export bans, as the measures could prove counterproductive. Price controls are disincentives for farmers amid the rising costs, he said.
“The cost of production is going up, so the obvious, rational reaction (to price caps) of the farmer is to reduce planting, which is exactly the opposite of what we want. We want production to increase, not decrease,“ he said.
Nag said governments should instead consider targeted cash income transfers to the poor. The Manila-based bank was ready to provide loans to governments to help ease the situation, he said, but added that no country has made any specific requests yet.
“If the governments go for the targeted income support, obviously this will add to the fiscal burden of the governments, so ADB will be very responsive and willing to consider budget support for the government, and providing program loans,“ he said.
In Asia, Nag said, the supply of rice to the region remained adequate even though stocks have slipped to their lowest in decades.
“We want to get the focus away from being dramatized or an overreaction to the supply situation. It is tight, no doubt about it,“ he said. “But it is not a situation when rice is not available in the region as a whole.“
Nag said, however, that the rapid increase in the price of rice had a “very serious impact“ on the region’s poor, who spend a large proportion of their income on food.

Eni Eyes Iraq Oil
Italian energy giant Eni is considering investing in Iraq with the expected passage of new legislation on oil revenue distribution.

EnergyCol3
$80b to Help
Double Africa’s Electricity
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Seven African governments and the world’s largest banks and construction firms meet in London on April 21 to plan the most powerful dam ever conceived--an $80 billion (£40 billion) hydro power project on the Congo river which, its supporters say, could double the amount of electricity available on the continent.
Some African governments hope that the Grand Inga dam in the Democratic Republic of Congo will generate twice as much electricity as the world’s current largest dam, the Three Gorges in China, and jump start industrial development on the continent, bringing electricity to hundreds of million of people, Guardian reported.
But while governments and banks expect the dam to export electricity as far away as South Africa, Nigeria and Egypt, and even Europe, environment groups and local people warned that it could bypass the most needy and end up as Africa’s most ruinous white elephant, consigning one of the poorest countries to mountainous debts.
The dam is being planned to exploit one of the largest major water falls by volume anywhere in the world--nine miles of rapids which lie 90 miles from the mouth of the Congo where the world’s second largest river drops nearly 100 meters in just eight miles. Two hydroelectric plants, known as Inga 1 and Inga 2, were constructed near there in the 1970s and a third is planned, but Grand Inga is intended to dwarf them all.
One feasibility study suggests the 40,000MW dam will be 150m high, and will harness 26,000 cubic meters of water a second, with more than 50 turbines each producing nearly as much power as a British nuclear reactor.

Beyond Feasibility
Grand Inga was proposed in the 1980s but never got beyond feasibility studies because of political turmoil in central Africa. But now it stands a chance, according to Gerald Doucet, secretary general of the World Energy Council think tank, which is convening the London meeting.
“It is the greatest sustainable development project, offering Africa a unique chance for interdependence and prosperity,“ said Doucet. “It’s much more feasible now than ever. There is a peace settlement in Congo, and economic and technical studies have all shown it is possible.“
Grand Inga’s prospects of being completed by 2022 are said to have risen significantly in the last year as countries, banks and private companies have found they can earn high returns from the emerging global carbon offset market and UN climate change credits.
In return for investments in clean power, rich countries such as Britain hope to be able to offset their own greenhouse gas emissions against the renewable energy that dams such as Grand Inga would produce, and constructors are making windfall profits out of renewable energy projects in developing countries.
“The banks and the City of London see that Grand Inga is serious. The G8 countries are behind it because they can get UN clean development mechanism [CDM] credits to offset their emissions. Chinese, Brazilian and Canadian dam-building companies, as well as the World Bank, are all interested,“ said Doucet.

Massive Debts
But advocacy groups said on April 20 the plans ignored local people and could leave Congo with massive debts rather than a sustainable industrial base.
“The project would be a magnet for corruption in one of the world’s least stable regions. Its enormous budget and large contracts could devolve Inga into a corruption-riddled white elephant. Inga will centralize a vast store of the region’s electric and financial power, a development model that can foster tensions and civil wars,“ said Terri Hathaway, Africa campaigner with International Rivers, a watchdog group monitoring the project.
Hathaway said that the 94 percent of people in Congo DRC and the two in three Africans who have no electricity now were unlikely to benefit because the dam depends on exporting its electricity to existing centers of industry, especially in South Africa where there have been power shortages.
“As it stands, the project’s electricity won’t reach even a fraction of the continent’s 500 million people not yet connected to the grid. Building a distribution network that would actually light up Africa would increase the project’s cost exponentially. It would be very different if rural energy received the kind of commitment and attention now being lavished on Inga,“ she said.
Despite Congo having exported electricity for years from Inga 1 and Inga 2, access to electricity across the country is less than 6 percent, and in rural areas where nearly 70 percent of people live, it is only 1 percent .
“My village is 3km from Inga’s power lines. They built a line almost 2,000km to the mines [in Katanga province] but in all of these years we have been left without electricity,“ said Simon Malanda, a community representative.
Doucet acknowledged that “there are huge social issues around Grand Inga that must be dealt with. Congo must benefit. If Congo is bypassed then the whole project fails,“ he said.