Addressing the challenges of Energy and Climate Change
Addressing the challenges of energy and climate change is undoubtedly one of the most significant the UK faces. Finding a solution to a secure, sustainable and affordable energy future for the UK is in the interests of government, industry and consumers – that is why creating the right balance and mix is crucial.
The Government has published its White Paper reviewing the electricity market and the subsequent legislation, if passed, will set energy policy for governments to come. With the energy market reform, the roll-out of smart meters and the need to cater for a more diverse energy mix, ENA and our members remain at the heart of things.
Every Minister in the Department of Energy & Climate Change (DECC) has emphasised the need for a balanced energy mix. This isn’t just for the benefit of good politics, it’s about ensuring we give ourselves the flexibility to adapt as we analyse what works best for the country. Speaking in March, Secretary of State Chris Huhne said: “It is better to make the right decision slowly than the wrong decision quickly”.
Renewable generation, such as solar panels and wind turbines, are key parts of the mix but there remains a need to store capacity on the network to ensure that the peaks of energy usage can be catered for when the sun doesn’t shine or the wind doesn’t blow. They require new technology and improved efficiency and usage of the energy they generate, and all these new technologies carry with them an element of risk. These are not risks to be feared, but issues that need to be managed effectively.
These varied challenges we face all point to a clear role for gas in our energy future both as a means of heat and generation. Gas is the cleanest fossil fuel and new technologies such as Carbon Capture and Storage and the injection of biomethane will further improve the ability to retain this capacity whilst meeting climate change targets.
The attractiveness of gas is further promoted by results of a Redpoint Consulting report in November last year showing that scenarios involving gas can save up to £700bn compared with fully electrified alternatives. As part of the announcements on the Renewable Heat Incentive, Mr Huhne also said that he would like to see the use of biogas in boilers and that the continued dual fuel approach that uses gas in the home was not something that had been ruled out. The Opposition too are clear in their support for the long-term role for gas. Speaking at an ENA event earlier this year Shadow Energy Minister Huw Irranca-Davies committed his party to support for gas.
Aside from possible cost benefits, there are other advantages in retaining gas within the energy mix. The presence of gas will enhance the diversity of Britain’s energy supply and will provide additional flexibility when it comes to energy balancing, particularly at times when the output from renewable sources is low.
The real jewel in the crown of our low carbon energy future will be ‘smarter’ networks. Through the creation of a smarter grid, networks will be able to connect renewables of all sizes and improve the efficiency, performance and security of energy supply. The network companies will increasingly come into contact with energy consumers. Initially, this will be through the roll-out of Smart Meters. But beyond this a world of new relationships between networks and customers opens up.
This is not about the spy in the fridge. Smart means power quite literally in the hands of the consumer.
It is absolutely right that we find a way to reduce our carbon emissions and boost our use of renewables and it is furthermore essential that to drive this we set aggressive targets both here and in the EU. However, these targets don’t sit in isolation and in implementing them, an affordable vision is necessary.
Editor: David Smith, Chief Executive of Energy Networks Association.
Energy Networks Association (ENA) represents the electricity and gas transmission and distribution network operators in the UK and Ireland. Our members are diverse, from major international companies to independent network operators, including network operators in the Irish Republic.
