UK Energy Policy: Overview And Update

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UK Energy PolicyOverview And Update Rob
Wright Director, Energy Strategy UK Department of
Trade and Industry
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where are we now?

• now
• UK self-sufficient in energy
• liberalised markets low prices
• recent overcapacity in electricity but now .
• good progress on greenhouse gas cuts Kyoto and
  beyond
• future
• more challenging carbon reduction ambitions
• increasing import dependency
• infrastructure needs modernising newer and
  more localised
• European/global arena increasingly important

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responding to the RCEP

• climate change is real
• cost of reducing UK emissions is relatively
  small approx ½ to 2 of GDP in 2050 if others
  engage
• opportunities as well as costs
• costs of not acting ..

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the new goals of UK energy policy

• putting ourselves on a path to 60 cuts in CO2 by
  2050
• maintaining reliability of energy supplies
• promoting competitive markets in the UK and
  beyond
• ensuring that every home is adequately and
  affordably heated
• Aim to achieve these together

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the carbon challenge

• aiming to save 15 - 25 MtC in 2020

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delivering 15 25 MtC in 2020

• strong emphasis on renewables and energy
• efficiency
• emissions trading and transport
• no commitment to new nuclear build now, but
• dont rule it out later if necessary to meet our
  carbon goals
• coal has a future, if cleaner
• vital role of innovation

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delivering security

• gas
• monitor market reaction on infrastructure (esp
  diversity)
• develop international/European market
• electricity
• monitor capacity changes/projections
• assess risks (and the markets response to them)

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the vision for 2020

• emphasis on .
• renewable
• distributed
• local and micro
• net metering
• hyper efficient

• demand managed
• fuel cells (static first)
• hybrid vehicles H2 close
• carbon valued/priced
• people engaged

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what the white paper does

• sets out a clear aim for 2050, together with a
  comprehensive strategy to 2020 and the
  shorter- term measures needed to put us on the
  right path
• puts environment at the centre of energy policy
• makes a strong continued commitment to the
  market
• provides a firm context for business/investors
• puts in place arrangements to deliver, monitor
  and tune

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what the white paper doesnt do

• try to set out detailed policies for the next
  17 (let alone 47) years
• make decisions that dont need to be made (yet)
  
• pick winners
• tell business what to do
• rule anything out for the market to determine
• claim to be the last word on energy policy

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conclusions

• strategy here for the long haul
• a new direction to deliver significant change
• innovation essential
• WP, summary and extensive analytical work
• at www.dti.gov.uk/energy/whitepaper/