ENERGY ISSUES FOR THE UK

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ENERGY ISSUES FOR THE UK

• MAXWELL IRVINE
• BRISTOL
• 9 NOVEMBER 2006

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A TIME OF CHANGE

• DEPLETION OF NORTH SEA OIL AND GAS
• CLOSURE OF NUCLEAR STATIONS
• CLOSURE OF COAL STATIONS
• GROWING GLOBAL DEMAND
• CHANGING GEOPOLITICAL ORDER
• GLOBAL WARMING
• RENEWABLE ENERGY DEVELOPMENT

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THE ENERGY MARKET

• THERE IS A GLOBAL ENERGY MARKET
• IN THE UK THE MARKET IS PRIVATISED COMPANIES
  MUST ACT IN THE BEST INTERESTS OF THEIR
  SHAREHOLDERS
• GOVERNMENT IS RESTRICTED TO TAX/CREDIT AND
  REGULATION TO SHAPE THE MARKET

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ENERGY POLICY/STRATEGY

• ADEQUATE SUPPLY OF ENERGY (IMPLIES SECURITY AND
  SAFETY. REQUIRES DIVERSITY, STOCKPILING AND A
  GENERATING MARGIN)
• MUST NOT DESTROY COMPETITIVENESS
• PROTECT THE ENVIRONMENT (INCLUDING GLOBAL
  WARMING. REDUCE DEPENDENCE ON FOSSIL FUELS)
• AVOID ENERGY POVERTY

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4
21
40
35
OTHER INCLUDES OIL, HYDRO AND RENEWABLES
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75 OF ELECTRICITY FROM GAS AND COAL
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44GAS 42ELEC
68GAS 21ELEC
42GAS 27ELEC
99 OIL
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THE GRID SUPPLY AND DEMAND
6am
NOON
6pm
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ELECTRICITY ISSUES

• INABILITY TO STORE ELECTRICITY MEANS THAT
  GENERATION MUST FOLLOW DEMAND - THUS TIMING
  CONSTRAINTS
• THE CEGB MARGIN OF 25 IS BEING ERODED AND WILL
  VANISH BY 2015
• INDUSTRY WANTS TO BUILD NEW GAS PLANTS IN THE
  SOUTH OF ENGLAND VIOLATING SECURITY OF SUPPLY
  AND ENVIRONMENTAL CONCERNS
• CHP

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ELECTRICITY ISSUES

• REPLACEMENT OF CONVENTIONAL GENERATION BY
  RENEWABLES MEANS A GRID MODIFIED FOR MORE
  DIVERSITY AND INTERMITTENCY
• GRID MODIFICATIONSgt5B PLUS INCREASED GRID
  MANAGEMENT COSTS
• INTERMITTENCY MEANS STAND BY CONVENTIONAL PLANT
  UNECONOMIC!

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ELECTRICITY ISSUES

• COAL PLANT CLOSURES BY 2014 (LCPD)
• ALL MAGNOX REACTORS NOW BEING DECOMMISSIONED
• AGR DECOMMISSIONING BEGINS WITHIN 5 YEARS
  (LIMITED SCOPE FOR EXTENSION)
• WE NEED TO REPLACE A THIRD OF OUR GENERATING
  CAPACITY WITHIN 10 YEARS AND OVER 50 BY 2020

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TRANSPORT ISSUES

• MORE EFFICIENT USE OF CURRENT TRANSPORT GREATER
  OCCUPANCY (PRIVATE AND PUBLIC)
• MORE FUEL EFFICIENT VEHICLES HYBRID ENGINES
• ELECTRIFICATION OF FIXED ROUTE PUBLIC TRANSPORT
• HYDROGEN

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RENEWABLES

• WIND
• MARINE
• HYDROELECTRICITY
• GEOTHERMAL ENERGY
• SOLAR POWER (HEAT PHOTOVOLTAICS)
• BIOMASS

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HYDROGEN

• AN ENERGY VECTOR NOT A PRIMARY SOURCE
• A MEANS OF STORING SURPLUS ELECTRICITY
• STORABLE AND TRANSPORTABLE
• A UNIVERSAL FUEL (HEATING, ELECTRICITY GENERATION
  AND TRANSPORT)
• A POTENTIAL FEASABILITY STUDY REQUIRED
• JOINED UP GOVERNMENTINDUSTRY

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DOMESTIC ISSUES

• THERMALLY EFFICIENT HOMES (AND OTHER BUILDINGS)
• MORE EFFICIENT APPLIANCES
• SMART METERING OF HOMES (AND OTHER BUILDINGS)

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TIME IS NOT ON OUR SIDE