Decarbonising UK Energy


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Decarbonising UK Energy

  1. 1. Decarbonising UK Energy: Barriers & Opportunities The need for a national strategic approach Turning sustainable energy into local opportunities
  2. 2. UK Electricity Generation, 2005-2030 Above: 2005 FOE model to deliver 20% renewable electricity by 2020. New EU/UK 2020 target of 15% of all energy from renewables will require 40-45% renewable electricity!
  3. 3. Decarbonising UK energy: National action required <ul><li>Strategic development of a supergrid, smartgrid, and decentralised energy </li></ul><ul><li>Investment in infrastructure and manufacturing </li></ul><ul><li>Move away from free market ideology – Govt intervention required </li></ul>
  4. 4. Future grid = a smart grid = radical change
  5. 5. Future grid needs investment now <ul><li>North-South power transfer </li></ul><ul><li>Offshore connection. </li></ul>Grid takes longer to build than new generation. £4.7bn investment required for 2020
  6. 6. Grid delivery needs strategic approach We need to ensure the most strategic approach to develop the most suitable infrastructure for the future. However, the new offshore transmission arrangements encourage competition, NOT cooperation: “Proposed offshore arrangements not appropriate.... urge Govt to reconsider development of an offshore grid” Select Cttee Innovn, Univ, Scnce & Skills, 2008
  7. 7. Problematic key player: Ofgem - Office of Gas & Electricity Markets <ul><li>Ofgem – created to regulate liberalised energy markets (generation, transmission, distribution, and supply) </li></ul><ul><li>Duty: ‘protect the consumer’ </li></ul><ul><li>Ideologically favours free market & deregulation </li></ul><ul><li>Limits innovation & investment, encourages asset sweating </li></ul><ul><li>2008: Formation of DECC, & change of duty for Ofgem </li></ul><ul><li>Will this be enough to drive change? </li></ul>
  8. 8. UK needs an industrial strategy for renewables. From report by SKM consultants to Govt renewables consultation, 2008. SKM: “lack of [UK] engineering resource endemic” 2020 requirement Barrier Problem Solution? Wind turbines 10 000 by 2020? Global shortage, 5yr delivery No UK manufacturers Establish UK assembly plant £15M Offshore installation vessels At least 5 required by 2020 Only 2 available “ limited UK shipbuilding capacity” 5 new vessels £250M HVDC cables 7 300 km required 5 year delivery No UK manufacturers Establish UK manufacturing plant £35M Transformers & switchgear Global shortage, long delivery time Limited UK availability
  9. 9. Decarbonising UK energy: Local Action Required <ul><li>National targets require delivery at a local level </li></ul><ul><li>Planning is a major problem </li></ul><ul><li>Culture change required at a local level </li></ul><ul><li>Improving benefits to communities will improve delivery of RE </li></ul>
  10. 10. Planning: major problem at local level. Planning decisions should take 16 weeks, but average 18 months. Local politicians don’t understand technology, and swayed by vocal public opposition
  11. 11. Culture change needed: low carbon energy is an opportunity! <ul><li>Opposition is not restricted to wind, eg this good quality biomass CHP + district heating/cooling proposal </li></ul>
  12. 12. Delivering renewable energy locally <ul><li>Greater local control & local benefit is important </li></ul><ul><li>Local energy strategies required – mapping renewable resource, and energy demand. </li></ul><ul><li>Achieving RE targets should be rewarded (cf housing delivery grant) </li></ul><ul><li>ESCOs can deliver RE & heat networks, cut emissions, and combat fuel poverty </li></ul><ul><li>PfR: windfarms on public estate = revenue stream </li></ul><ul><li>Community ownership -> greater acceptance </li></ul>