Power Engineering - UK Government unveils energy review

11 July 2006 - The UK Government today concluded its Energy Review with the publication of a range of proposals designed to reinforce the UK's long-term energy policy in the face of the mounting global threats posed by climate change and to energy security. Opposition politicians immediately pounced on the report claiming it lacked any material proposals.

Signalling the need to take the necessary decisions for the long term, Trade and Industry Secretary Alistair Darling outlined proposals designed to reduce the demand for energy, to secure a mix of clean, low carbon energy sources and to streamline the planning process for energy projects. "We face two big challenges, climate change and the need to provide secure cleaner energy at affordable prices'," said Darling. He said that the UK faced the issue of declining North Sea oil and gas production and an increasing dependence on imports from the global energy market.

In addition he revealed that forecasts suggest that, over the next twenty years, up to a third of our existing generating capacity will reach the end of its life.

"This is a critical moment to make informed choices to safeguard our quality of life for the coming decades. Today's proposals will set out a framework within which the energy market will operate for the coming 30 to 40 years.

For the Conservatives, shadow trade and industry secretary Alan Duncan said Mr Darling's statement contained "no real policies, no real action, no real decisions".
Darling said new energy saving measures were needed. Old inefficient electrical goods would be phased out and there would be new incentives to reduce emissions from large organisations like supermarkets and hotel chains.

"In parallel we're proposing measures to ensure that the energy we do use is secure and emits as little carbon as possible. It is clear that we need a mix of energy and that the challenges are so great that we cannot afford to rule out any low-carbon energy source that could help.

"The proportion of electricity generated from renewables needs to increase substantially so we are strengthening and reforming the Renewables Obligation to push this towards 20 per cent - a five-fold increase on today's level, " said Darling.

He said that the government were proposing major reforms to promote this and other clean energy sources, including steps to remove barriers to carbon capture to ensure cleaner coal and gas.

On the question of nuclear power he said that, "alongside other low carbon generating options, a new generation of nuclear power stations could make a contribution to reducing carbon emissions and reducing our reliance on imported energy."

Energy Minister Malcolm Wicks, who headed up the Review, said: "It's not possible in 2006 to make all the policy decisions needed up to 2050. Circumstances will change, technology in particular will advance, but today's proposals set us more firmly on track to achieving our energy policy objectives.

"Together our proposals would result by 2020 in a reduction in annual carbon emissions of 19-25 million tonnes of carbon, the equivalent of the annual emissions of Austria or Greece. Together with the steps we have already announced, these ambitious proposals are a significant step in the right direction, getting us on course to achieve real progress in emissions reductions by 2020 and on the right path to achieving our goal of cutting the UK's CO2 emissions by some 60% by about 2050. The measures will also reduce our over-dependence on imported gas and will help bring forward substantial new investment in generating the electricity on which we all depend."

Other policy changes proposed over the coming months include an aggressive implementation of the Microgeneration Strategy to remove barriers to household renewables, a series of measures and review of ways to bring on more localised 'distributed' generation and a fundamental change to the planning system for all types of energy projects, including timelines for inquiries and a high-powered inspector for complex and controversial projects.

Licensing procedures for new nuclear power stations would be streamlined clarifying the strategy on decommissioning and waste.

A consultation is to be launched t on a policy framework, including a Statement of Need. It will lead to an Energy White Paper around the turn of the year.

The government also proposes removing regulatory barriers to carbon capture and storage, intensifying international cooperation with partners such as Norway and further work on the costs of demonstration, maximising exploitation of North Sea reserves, refocusing the Stewardship initiative and a Taskforce with industry on infrastructure to the west of Shetland.

It plans to establish a new Coal Forum bringing together coal-fired generators, coal producers, power plant suppliers, trade unions and others to seek solutions to securing the long-term future of coal-fired generation and UK coal production.

Speaking ahead of the statement, the prime minister, on a visit to an offshore wind farm near Whitstable, Kent, stressed the urgency of making decisions on rejuvenating Britain's energy supplies.
He said he wanted to see renewables grow by five times in the next 15 years. "It's not a question of either/or - it's everything that's got to be done to make a difference," he said. "We're about to move to a situation of importing energy. We have to at least replace our nuclear power stations. These decisions have to be taken now. "Fifteen years down the line we have got high energy prices and real problems."

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