The Energy Generator Ofgem Announced - 917 Words

Energy, especially electricity, is vital in today’s economy however demand for electricity is currently so high that the available supply may not be sufficient over the next 25 years. Electricity lights our homes, powers our technology and is a fundamental factor in everybody’s day to day lives. In 2012, the energy generator Ofgem announced that Great Britain risks running out of energy. (Business, 2012). In the United Kingdom, equipment which is used to generate electricity has suffered from years of under investment. This has resulted in an inefficient system that distributes energy across the country. Most of the UK’s electricity is produced by burning fossil fuels. In 2010, Energy UK reported that the UK currently use 47% natural gas and 28% coal to supply the countries power. (Energy-uk.org, 2010). In 2007, the United Kingdom Government agreed to an overall European Union target of generating 20% of the European Union s energy supply from renewable sources by 2020. The total of all renewable electricity sources provided for 14.9% of the electricity generated in the United Kingdom in 2013, reaching 53.7 TWh of electricity generated. (Daley, 2015). Renewable energy is energy generated from natural resources such as sunlight, wind, rain, tides and geothermal heat. Renewable energy technologies range from solar power, wind power, hydroelectricity/micro hydro, biomass and biofuels for transportation. Solar power is recently becoming more popular across the UnitedShow MoreRelatedEdexcel Igcse Economics Answer49663 Words   |  199 Pagesthe production of a certain good. In this case, the US government is offering subsidies to the producers of biofuels. The government wants to increase the production of biofuels, such as ethanol and wood gas, to help protect the environment, make energy supplies more secure and to aid rural development. (b) If the government grants a subsidy to biofuel producers in the US, the supply of biofuel will increase. This is because subsidies will lower production costs and the production of biofuels