Sussex Energy Group SPRU - Science and Technology Policy Research Climate change mitigation and transforming the UK energy system Jim Watson Director,

Sussex Energy GroupSPRU - Science and Technology Policy Research

Climate change mitigationand transforming the UK energy system

Jim WatsonDirector, Sussex Energy Group

West Sussex Environment and Climate Change Board Launch23rd September 2010


Overview

• UK climate change targets and plans

• The 2020 renewables target and progress so far

• Current policies to meet the target

• What more might be required?


The low carbon transition planEmissions reductions to 2050

Source: Committee on Climate Change


The low carbon transition planJuly 2009

• How UK could achieve 34% emissions reduction by 2020

• Key focus on power sector: 40% low carbon electricity by 2020

• £3.2bn for home energy efficiency 2008-11; community energy funding

• Renewables target agreed with EU: 15% of energy by 2020

• New policies to meet it (e.g. feed in tariffs and support for renewable heat)


The low carbon transition planPower generation today and 2020


The 2020 renewables targetRenewables strategy (Jul 2009)


0%

2%

4%

6%

8%

10%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008Per

cen

tag

e o

f el

ectr

icit

y g

ener

atio

n

The 2020 renewables targetProgress so far (electricity)

• 7% of electricity generation in 2009

• Target implies around 30% by 2020

• But only 3% of overall energy


The new policy context

“The UK’s ambitions are clear. We are determined to be the greenest government yet. We are dedicated to achieving a comprehensive international deal on climate change. And we are committed to reducing the UK’s carbon emissions by 80% by 2050”

Chris Huhne, September 2010


The new policy context

“When I go up and down the country and speak to council leaders, social entrepreneurs and local activists … I ask them: ‘what powers do you want? What more do you want to be able to do?’ It’s by asking those questions that you arrive at so many of this coalition’s most transformative ideas …

… Powers to generate their own energy and have beat meetings to hold police to account.”

David Cameron, July 2009


Meeting the targetSome current policies

• Comprehensive Spending Review means many planned policies are under threat

• Reforms to renewable energy policy: feed in tariffs for small (and perhaps larger?) plants

• Local Authorities allowed to sell electricity to suppliers

• Renewable heat incentive from April 2011?

• Incentives for investment in grids (national and local)

• Fund for small-scale community energy projects

• Planning frameworks being reformed


Meeting the target Lock-in and scale

Geography Technology Institutions Regulations

Cen

tralised

International IEA EU emissions

trading scheme

National Centralised

gas / power

grids

Energy market

rules

Decen

tralised

Regional / City City heat and

power plant

London CC

Agency

Town /

Neighbourhood

Merton rule

Building Micro-

generation

Household


Meeting the target Lock-in and scale

Geography Technology Institutions Regulations

Cen

tralised

International IEA EU emissions

trading scheme

National Centralised

gas / power

grids

Energy market

rules

Decen

tralised

Regional / City City heat and

power plant

London CC

Agency

Town /

Neighbourhood

Merton rule

Building Micro-

generation

Household


Meeting the target District heating infrastructure

• Renewable Heat Incentive and £25m for district heating schemes vulnerable to CSR

• Need up to date heat maps maintained by Local Authorities

• Need to reduce risk of investment:

–LA power to compel connection of new (and existing?) developments

–Access to new forms of LA finance?


Meeting the target Smarter distribution infrastructure

• Some research funding (£6m)

• Ofgem’s low carbon network fund will provide up to £500m over 5 years, paid for through bills

• Bids to join up smart meters, electric vehicle trials etc. (e.g. in Milton Keynes)

• Key role for such experiments to learn about what works

• Smart meters important: faster roll out by 2017


Meeting the target Incentives for innovation

• Previous government signalled more intervention to secure benefits for business and jobs

• Some actions (e.g. Nissan ‘Leaf’ electric vehicle production; Clipper Wind offshore wind factory), but vulnerable to cuts

• Three recommendations:–A clear framework for setting priorities. Technologies not specific

variants or firms (cf Carbon Trust)–Portfolio that balances near term and next generation renewables to

go beyond 2020 target–Regular, independent evaluation programme which feeds back into

reviews of priorities. Criteria for success and failure.


Thanks

www.sussex.ac.uk/sussexenergygroup

Sussex Energy Group SPRU - Science and Technology Policy Research Climate change mitigation and transforming the UK energy system Jim Watson Director,

Documents