Public Sector

National Energy Policy

Energy and Sustainability

Sustainable development is a framework for integrating economic, social and environmental policy. It requires the continuous integration of environmental, social and economic considerations into decision making.

Governments have begun to realise this and the UK government is working towards integration of sustainability principles and practices into all aspects of its operations.

The revised UK sustainable development strategy "Securing the Future" stresses the interdependency of the social, economic and environmental dimensions of sustainability and emphasises the UK’s international responsibilities. ‘Climate Change and Energy’ forms one of the four priority areas within the strategy for immediate action.

The Government recognises that changing behaviour is a cross cutting theme closely linked to all of its sustainable development priorities. This provides the rationale and guidance on how Government intends to encourage more sustainable behaviour in all areas.

Energy forms one of the aspects of sustainability. Dealing with society’s energy issues and needs must be done in a sustainable way for maximum future benefit. As society develops it must do so sustainably – this applies to energy considerations too.

Energy Challenge (July 2006)

The stated two major long term challenges in UK energy policy are;

the need to tackle climate change by reducing carbon dioxide emissions, and
delivery of secure, clean energy at affordable prices as the UK moves to increasing dependence on imported energy.

Energy efficiency will have a major part to play in future UK energy strategy but will not by itself be enough to meet the challenges. Increasing energy efficiency must be supplemented with use of lower carbon energy sources and cleaner fossil fuel technologies. The landscape for energy provision in the future will need to change and more international work will need to be done to lower worldwide carbon emissions.

Meeting the Energy Challenge – A White Paper on Energy (May 2007)

This white paper is the governments’ response to the ‘Energy Challenge’ review. It sets out a framework for action to address the UK’s energy challenges and addresses the UK’s international strategy – recognising that climate change and energy security are worldwide issues which need to be tackled in conjunction with other countries.

The governments’ four energy policy goals are to;

put ourselves on a path to cutting CO2 emissions by some 60% by about 2050, with real progress by 2020,
maintain the reliability of energy supplies,
promote competitive markets in the UK and beyond, and
ensure that every home is adequately and affordably heated.

The energy strategy has been designed to deliver these aims by;

saving energy,
dveloping cleaner energy supplies, and
securing reliable energy supplies at prices set in competitive markets.

The key elements of applying the strategy are to;

establish an international framework to tackle climate change,
provide legally binding carbon targets for the whole UK economy progressively reducing emissions,
make further progress in achieving fully competitive and transparent international markets,
encourage more energy saving through better information, incentives and regulation,
provide more support for low carbon technologies, and
ensure the right conditions for investment.

A number of consultations including on nuclear power and the renewables obligation have been launched as a result of the development of this white paper.

Energy / Resource Efficiency Initiatives

On a more practical level the government has a number of initiatives aiming to provide practical support and advice to improve energy performance and resource efficiency including:

The Carbon Trust – this government funded independent organisation we set up to help business and the public sector cut carbon emissions and support the development of low carbon technologies.
The Energy Savings Trust – this government and private sector funded organisations promotes the sustainable and efficient use of energy in the home.
Resource Efficiency Business Reviews - during the April 2006 budget statement Mr. Gordon Brown (then the Chancellor of Exchequer) stated that the Government will show its commitment to resource efficiency and sustainable development by funding 10,000 resource efficiency (including energy) reviews throughout the country by the end of the 2007 financial year. This will be carried out by the Business Advisors of the newly established Business Links under the Simplification programme (approximately 1000 reviews per RDA).

The Energy Markets Outlook report – Published October 2007

The Energy Markets Outlook report provides energy market information on security of supply, looking forward over a fifteen-year time span. The intention is to help develop a shared understanding of the longer-term outlook for energy supply and demand, and to help understand emerging risks that could affect security of supply.

The report identified the need to move as quickly as reasonably possible towards a low-carbon economy and whatever the exact composition of the future energy mix is; it must clearly involve a far greater role for renewable energy. Greater deployment of renewables will have an important role to play in cutting carbon emissions. Maintaining security of supply while expanding the use of renewable energy sources is achievable, given the UK’s significant primary renewable resources.

The report also highlighted the continued need for skills and resources in the engineering and construction sectors in order for new infrastructure to be provided.

Malcolm Wicks said: "Security of energy supply is one of the fundamental challenges this country faces. We need to ensure that the market delivers enough energy supply in five years time, in ten years time and in fifteen years time.

Decisions are being taken, the market is delivering investment, but we can’t let our guard down.

Underpinning this is the need to move as quickly as reasonably possible towards a low-carbon economy. The sooner the world tackles climate change the better, both economically and environmentally. The best way of reducing emissions from energy is to use less. But whatever the exact composition of the future energy mix is, it must clearly involve a far greater role for renewable energy."

The report highlights key signals to the market, including:

Significant medium-term opportunities for the construction of new electricity generation capacity in response to expected demand and plant closures. This is consistent with the conclusion set out in the Energy White Paper that around 20 to 25 gigawatts (GW) of new generation will be required by 2020. Companies have already announced over 14 GW of new generation.
Delivery of new gas capacity and planned new infrastructure should more than compensate for reduction in indigenous production in the medium term, although whether the infrastructure is actually used to deliver gas will depend on the market price. Further investment will be needed to avoid market tightness around the middle of the next decade and in subsequent years. Alongside pipeline supplies, the global Liquefied Natural Gas market provides an opportunity to access additional sources of gas on a more flexible basis.
The future use of other fuels - coal, oil and nuclear fuels - is unlikely to be limited by resource availability. There may be scope for additional indigenous coal production.
There is a continued need for skills and resources in the engineering and construction sectors in order for new infrastructure to be provided. Delays caused by the planning system also have a major impact on the deliverability of new infrastructure and the Governments proposals for planning reform are intended to address this.
Increases in the price of carbon should encourage investment in new, low-carbon generating capacity in the long term. In the short term, however, uncertainty about the future of the carbon market may cause delays in investment in new generating capacity. This could potentially be one cause of temporary market tightness in the years ahead, if this uncertainty is sustained.
Greater deployment of renewables will have an important role to play in cutting carbon emissions. Maintaining security of supply while expanding the use of renewable energy sources is achievable, given the UKs significant primary renewable resources, although this will involve some additional costs.