Decarbonising UK Energy:Barriers & Opportunities

The need for a national strategic approach

Turning sustainable energy into local opportunities

UK Electricity Generation, 2005-2030

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FOE Bright Future "good progress" scenario, coal & gas mix

Solar CSP imports

Micro CHP

CHP

Renewables

Oil

Interconnectors

Nuclear

CCGT advanced or refurbished

CCGT current

IGCC & Miller CCS schemes

Drax (retrofit & 20% biomass)

Drax

Coal retrofit/new

Coal current

Demand

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!

Decarbonising UK energy: National action required

• Strategic development of a supergrid, smartgrid, and decentralised energy

• Investment in infrastructure and manufacturing

• Move away from free market ideology – Govt intervention required

Future grid = a smart grid = radical change

Future grid needs investment nowNorth-South power transfer Offshore connection.

Grid takes longer to build than new generation. £4.7bn investment required for 2020

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

Problematic key player: Ofgem - Office of Gas & Electricity Markets

• Ofgem – created to regulate liberalised energy markets (generation, transmission, distribution, and supply)

• Duty: ‘protect the consumer’

• Ideologically favours free market & deregulation

• Limits innovation & investment, encourages asset sweating

• 2008: Formation of DECC, & change of duty for Ofgem

• Will this be enough to drive change?

UK needs an industrial strategy for renewables.

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

From report by SKM consultants to Govt renewables consultation, 2008. SKM: “lack of [UK] engineering resource endemic”

Decarbonising UK energy: Local Action Required

• National targets require delivery at a local level

• Planning is a major problem

• Culture change required at a local level

• Improving benefits to communities will improve delivery of RE

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

Culture change needed:low carbon energy is an opportunity!

Opposition is not restricted to wind, eg this good quality biomass CHP + district heating/cooling proposal

Delivering renewable energy locally

• Greater local control & local benefit is important

• Local energy strategies required – mapping renewable resource, and energy demand.

• Achieving RE targets should be rewarded (cf housing delivery grant)

• ESCOs can deliver RE & heat networks, cut emissions, and combat fuel poverty

• PfR: windfarms on public estate = revenue stream

• Community ownership → greater acceptance