Kyla's energy dispatch

A summary of today's stories...

UK

More claims that shale will lower gas prices
A study by Navigant for DECC suggests global shale gas could lower prices in the UK. The study, which assumes significant shale gas production in China, included an optimistic scenario forecasting a fall in prices of over 20% if very significant production in Eastern Europe kicks in by the 2020's. However a pessimistic scenario of global gas prices saw them rise by 16%. The study forecast very modest 'best case' production from the UK.

You can view the full report here.

Taxpayers to foot the bill for nuclear reactor compensation
The £1 billion bill for compensating communitites hosting new nuclear reactors will be paid via taxpayers and not energy companies the Government says.

DECC ends subsidies to dedicated biomass power
Under the Government's draft Elecrticity Market Reform delivery plan, dedicated biomass power plants will no longer be able to receive subsidies as they "do not offer as cost effective a means of decarbonising the electricity grid as other renewables technologies." The Renewable Energy Association calls the decision "misguided".

Scottish coal mine restoration plans revealed
The former Glenmuckloch mine will then be turned into a renewable energy park accoring to restoration plans. The restoration will also include the construction of a large lake with a carbon capture station.

WORLD

JPMorgan in talks to settle energy manipulation case
After accusations emerged this spring that JP Morgan Chase manipulated energy prices, the bank is seeking to settle with the federal agency for $500 million.

This comes at the same time as Barclays bank appeals the $453 million fine for rigging electricity markets in California.

BP requests freeze on spill payments
A New Orleans Judge will hear arguments on Friday that all payments from BP's oil-spill settlement fund should be frozen after BP alleges the lawyers handling the payments were getting kickbacks from law firms filing damage claims.

World Bank to limit coal investment
Under a new energy policy agreed yesterday, the World Bank will limit investment in new coal power plants to only "rare circumstances" in which countries have no other feasible alternative.