The Oil Drum

Britain risks becoming too dependent on natural gas unless it builds more nuclear power stations, boosts renewable resources and improves energy efficiency, the International Energy Agency said on Thursday.

"We think it is a model for other IEA countries... However, there is room for improvement, particularly in the area of gas dependence," Mandil told reporters in London. "The UK government needs to monitor this situation and should keep all options open for potential developers of power stations to use other fuels."

The main threat to Britain, the IEA report on UK energy policy released on Thursday says, is that new investment is focussing on gas-fired power generation at a time when Britain's own production is falling rapidly.

Q&A: EU energy proposals

The European Commission says climate change is the biggest challenge facing the world and the EU's top international priority. It has published a number of policy papers calling for major reductions in the EU's greenhouse gas emissions in coming decades, and emphasising the importance of nuclear power, clean coal technology, renewable energy, biofuels and increased energy efficiency.

Europe diary: Energy revolution

BBC Europe editor Mark Mardell discusses the EU's blueprint for a greener future, and how the winds of change are blowing through Europe's old industries.

The European Union has established carbon limits for the second phase of the carbon trading scheme, a key step in cutting greenhouse gas emissions. The European Trading Scheme (ETS) aims to cut emissions by 8% of 1990 levels. Critics say that nations involved in the scheme had set their carbon allowance levels too high, and have not been aggressive enough in cuts. The EU set allowances for the 2008-2012 period to an average of 7% below the levels proposed by member states.

Electricity prices could double in Europe if power firms are to meet emissions reduction targets under the Kyoto protocol, says a report. Carbon prices are set to surge, and firms might pass this rise on to the wholesale market, says a report by consultancy Global Energy Decision.

British Energy Group Plc, the country's largest power producer, ousted the head of nuclear operations and said production will miss forecasts by at least 8.2 percent a year because of faulty reactors.

Annual production will be no less than 5 terawatt hours lower until at least March 2008.

Six of British Energy's 16 reactors are shut, with four down because of cracked boiler tubes. Production at two of its plants, which generate enough electricity to supply some 2.4 million homes, will be restricted for at least the next 16 months. This may undermine government efforts to promote building new reactors to replace aging units.

British Energy has 38 percent of its nuclear capacity out of service, or 3,620 megawatts from a total of 9,568 megawatts.

Protesters who have occupied a section of a huge natural gas pipeline being laid from Milford Haven [LNG import terminal] to England say they aim to stay "for the long haul".

The whole project is forecast to cost £750m ($1.4bn) and National Grid is contractually obliged to start delivering gas in October 2007. It aims to start building the second section - 115 miles long - in early 2007. If it fails to meet the timetable, it could incur up to £36m in fines by September 2008, imposed by energy regulator Ofgem. The penalty would start at £2m for the first month and increase incrementally. In addition, National Grid would have to compensate the energy firms - Exxon, Qatar Petroleum, BP and Petronas - for their inability to import LNG.