Energy policy of the United Kingdom

For energy use in practice, see Energy use and conservation in the United Kingdom.

The current energy policy of the United Kingdom is set out in the Energy White Paper of May 2007 and Low Carbon Transition Plan of July 2009, building on previous work including the 2003 Energy White Paper and the Energy Review Report in 2006. It is led by the Department of Energy and Climate Change, currently headed by Amber Rudd. The current focus of policy are on reforming the Electricity Market, rolling out smart meters and improving the energy efficiency of the UK building stock through the Green Deal.

Overview

The 2007 White Paper: “Meeting the Energy Challenge” sets out the Government’s international and domestic energy strategy to address the long term energy challenges faced by the UK, and to deliver four key policy goals:

1. To put the UK on a path to cut carbon dioxide emissions by some 60% by about 2050, with real progress by 2020;
2. To maintain reliable energy supplies;
3. To promote competitive markets in the UK and beyond, helping to raise the rate of sustainable economic growth and to improve productivity; and
4. To ensure that every home is adequately and affordably heated.

The scope of energy policy includes the production and distribution of electricity, transport fuel usage, and means of heating (significantly Natural Gas). The policy recognises: "Energy is essential in almost every aspect of our lives and for the success of our economy. We face two long-term energy challenges:

• Tackling climate change by reducing carbon dioxide emissions both within the UK and abroad; and
• Ensuring secure, clean and affordable energy as we become increasingly dependent on imported fuel."

The policy also recognises that the UK will need around 30-35GW of new electricity generation capacity over the next two decades as many of the UK’s current coal and nuclear power stations, built in the 1960s and 1970s, reach the end of their lives and are set to close.

The 2006 Energy Review reintroduced the prospect of new nuclear power stations in the UK. However, following a judicial review requested by Greenpeace, on 15 February 2007 elements of the 2006 Energy Review were ruled 'seriously flawed', and 'not merely inadequate but also misleading'. As a result, plans to build a new generation of nuclear power stations were ruled illegal at that time. (See Nuclear power in the United Kingdom for details). In response, the Government ran “The Future of Nuclear Power” consultation from May to October 2007. The Government’s response to the consultation conclusions, published in January 2008, state “set against the challenges of climate change and security of supply, the evidence in support of new nuclear power stations is compelling.”

The January 2008 Energy Bill updates the legislative framework in the UK to reflect their current policy towards the energy market and the challenges faced on climate change and security of supply. Key elements of the bill address nuclear, carbon capture and storage, renewables, and offshore gas and oil. A framework to encourage investment in nuclear power within a new regulatory environment was simultaneously published in the January 2008 Nuclear White Paper.

In October 2008, the Government created the Department of Energy and Climate Change to bring together energy policy (previously with the Department for Business, Enterprise and Regulatory Reform), and climate change mitigation policy (previously with the Department for Environment, Food and Rural Affairs).

Scotland

Though energy policy is an area reserved to the UK government under the Scotland Act 1998 that established devolved government for Scotland, the Scottish Government has an energy policy for Scotland at variance with UK policy, and has planning powers to enable it to put some aspects of its policy priorities into effect.

Energy market

A Research and Markets review estimated the 2006 total market value of UK inland energy consumption was GBP 130.73bn. Consumption by the energy sector was valued at GBP 28.73bn, while the value of consumption by the non-energy sector was GBP 128.2bn, with transport being the largest component of the non-energy sector. The UK is currently proposing a wide ranging reforms of its electricity market, including measures such as contracts for difference for generators and a capacity market to ensure security of supply in the latter half of this decade.

Primary energy sources

Decommissioned Dounreay nuclear power complex.

Historically a country emphasising its coal, nuclear and off-shore natural gas production, the United Kingdom is currently in transition to become a net energy importer.

In the year 2011 the percentage of primary energy derived from major sources was as follows:

• Natural gas: 41%
• Coal: 29%
• Nuclear: 18%
• Renewables: 12%
• Other: 2%.

Coal

Coal usage may be expected to decline steadily because of eroding cost advantages and pressure to reduce sulphur and carbon (carbon dioxide) emissions, notwithstanding ongoing subsidy policies designed to retain jobs in the coal mining industry. Future coal usage is highly dependent on legislative drivers on emissions and the need to have security of supply. Whilst the costs of burning coal with desulphurisation and carbon capture facilities is greatly increased, it is still being actively considered as part of the UK energy strategy due to large domestic reserves, higher price stability than natural gas and reduced capital expenditure and construction time for plant compared to nuclear power.

The 2002 Energy Review concluded that the option of new investment in clean coal technology (through carbon sequestration) needed to be kept open, and that practical measures should be taken to do this.

The future of coal was dealt a severe blow in November 2015 by the announcement that all coal-fired power stations will be closed by 2025.

Oil

Oil is also `primary energy' but has not been included. This needs to be corrected. It will also affect the list of percentages above.

Gas

During the 1980s and early 1990s, there was a massive expansion in gas-fired generation capacity, known as the Dash for Gas. The rapidity of construction of gas-fired plants (compared to coal-fired or nuclear plants) was especially attractive due to the high interest rates of the period.

Natural gas looks set to take a smaller part in providing future UK energy needs. Domestic production from the North Sea gas fields continues to lessen. And despite investment to enhance pipelines and storage of imported natural gas (mostly from Norway) there is a reluctance to allow too great a reliance on Russia and its gas exports for energy needs.

By the year 2021, North Sea oil and natural gas production is predicted to slip 75 percent from 2005 levels to less than one million barrels per year. Oil and coal reserves for all of Europe are among the most tenuous in the developed world: for example, Europe's reserves to annual consumption ratio stands at 3.0, perilously low by world standards.

A new "dash for gas" was announced by energy secretary Amber Rudd in November 2015. This is required to fill the gap between the closure of all coal-fired power stations by 2025 and the delayed opening of new nuclear power stations.

Nuclear Power

Main article: Nuclear power in the United Kingdom

Following the UK Government's January 2008 decision to support the building of new nuclear power stations, EDF announced that it plans to open four new plants in the UK by 2017. EON and Centrica have also shown interest in building further plants. However, there are questions over whether more nuclear power stations will be built in Scotland as the Scottish Government is opposed.

Renewable Energy

Electricity generation from renewable sources in the United Kingdom (2009)

Main article: Renewable energy in the United Kingdom

From the mid-1990s renewable energy began to contribute to the electricity generated in the United Kingdom, adding to a small hydroelectricity generating capacity. Renewable energy sources provided for 6.7 per cent of the electricity generated in the United Kingdom in 2009, rising to 11.3% in 2012.

By mid-2011, the installed capacity of wind power in the United Kingdom was over 5.7 gigawatts and the UK was ranked as the world’s eighth largest producer of wind power. Wind power is expected to continue growing in the UK for the foreseeable future, RenewableUK estimates that more than 2 GW of capacity will be deployed per year for the next five years. Within the UK, wind power is the second largest source of renewable energy after biomass.

UK electricity generation from renewable energy in 2012 - Total was 41,258 GWh

Source	GWh	%
Onshore Wind	12121	29.4
Offshore Wind	7463	18.1
Shoreline wave/tidal Wind	4	0.0
Solar photovoltaics	1188	2.9
Small scale Hydro	653	1.6
Large scale Hydro	4631	11.2
Bioenergy	15198	36.8

Energy end usage

See main article Energy use and conservation in the United Kingdom

Year 2005 UK end use energy percentage is approximately:

• Transport: 35%
• Space heating: 26%
• Industrial: 10%
• Water heating: 8%
• Lighting/small electrics: 6%

There is a steady increase of fuel usage driven by an increasingly affluent and mobile population, so that fuel use increased by ten percent in the decade ending 2000. This trend is expected to be mitigated by increased percentage of more efficient diesel and hybrid vehicles.

United Kingdom space and hot water heating consume a greater share of end use compared to the USA and more mild southern European or tropical climates. With regard to building and planning issues affecting energy use, the UK has developed guidance documents to promote energy conservation through local councils, especially as set forth in Part L of the Building Regulations (Conservation of Fuel and power). The associated document. Part 2B, addresses commercial uses, and is generally complete as to heating issues; the guidance is lacking on lighting issues, except with guidelines for local switching of lighting controls. In particular there are no standards set forth for illumination levels, and over-illumination is one of the most significant unneeded costs of commercial energy use.

From June 2007 buildings in the England and Wales have to undergo Energy Performance Certification before they are sold or let, to meet the requirements of the European Energy Performance of Buildings Directive (Directive 2002/91/EC).

Energy policy history

1980s market liberalisation

Under the Conservatives during the 1980s and 1990s, Government policy was one of market liberalisation linked to the privatisation of state controlled energy companies and the dismantling of the Department of Energy.

As a consequence, Government no longer has the ability to directly control the energy markets. Regulation is now carried out through the Office of Gas and Electricity Markets (OFGEM), while energy policy is largely limited to influencing the operation of the market. Such influence is exerted through taxation (such as North Sea Oil Tax ), subsidy (such as the Renewables Obligation), incentives, planning controls, the underwriting of liabilities (such as those carried by the Nuclear Decommissioning Authority), grants, and funding for research.

Early 2000s: Climate Change rises up the agenda

Joining over 170 other nations the UK has committed to reduction of carbon dioxide emissions, with consequent constraints to its energy policy. The UK produces four percent of the world’s greenhouse gases as of 2003, compared to 23 percent by the US and 20 percent for the rest of Europe. The long term reduction goal for carbon emissions is 80 percent decrease by the year 2050. A scheme of trading for carbon emission credits has been developed in Europe that will allow some of the reduction to arise from economic transactions.

Road transport emissions reduction has been stimulated since 1999 by the banding of Vehicle Excise Duty. Bands for new vehicles are based on the results of a laboratory test, designed to calculate the theoretical potential emissions of the vehicle in grammes of CO₂ per kilometre travelled, under ideal conditions.

Average carbon emissions fell from 192 to 172 grams/mile between 1995 and 2004. Aviation fuel is not regulated under the Kyoto Protocol, so that if the UK is successful in carbon emission reduction, aviation will constitute 25 percent of UK generated greenhouse gases by the year 2030.

The UK government has one project in the planning stage for natural gas fed power generation with carbon capture by seawater. This facility is contemplated at Peterhead, Scotland, a relatively remote exposure to the North Sea.

Prof Kevin Anderson raised concern about the growing effect of air transport on the climate in a paper and a presentation in 2008. Anderson holds a Chair in Energy and Climate Change at the School of Mechanical, Aerospace and Civil Engineering at the University of Manchester in the UK. He has pointed out that even at a reduced annual rate of increase in UK passenger air travel and with the government's targeted emissions reductions in other energy use sectors, by 2030 aviation would be causing 70% of the UK's allowable CO₂ emissions.

Energy White Paper, 2003

The UK Government published its White Paper on Energy (“Our Energy Future – creating a Low Carbon Economy”) in 2003, establishing a formal energy policy for the UK for the first time in 20 years. Essentially, the White Paper recognised that a limitation of carbon dioxide (CO2 – the main gas contributing to global climate change) was going to be necessary. It committed the UK to working towards a 60% reduction in carbon dioxide emissions by 2050, and identified business opportunities in so doing: a recurrent theme throughout the document was “cleaner, smarter energy”. It also claimed to be based on four pillars: the environment, energy reliability, affordable energy for the poorest and competitive markets.

However the White Paper focused more on analysing the issues than in providing detailed policy responses. Some detail began to filter through in a series of follow-on documents, including an Energy Efficiency Implementation Plan (April 2004) and the DTI Microgeneration Strategy "Our Energy Challenge" (March 2006). Nonetheless, most of the policies were a continuation of business as usual, with emphasis on market-led solutions and an expectation that consumers act rationally, for example in installing energy efficiency measures to make running cost savings.

However, in November 2005 it was announced that the Government, under DTI leadership, would undertake a full scale Energy Review, and over 500 organisations and individuals made detailed submissions as part of this review. Officially, the review was to take stock of the outcomes to date of the White Paper, which a particular focus on cutting carbon (emissions of which remained stubbornly high) and to look in more detail at security of supply, as the UK’s oil and gas production from the North Sea had peaked, and Russia was seen as being a high-risk supplier of gas.

Unofficially, it was widely felt that the real reason behind the review was to allow nuclear power back into the energy debate, as it had been sidelined in the 2003 White Paper. That document had said “This white paper does not contain specific proposals for building new nuclear power stations. However we do not rule out the possibility that at some point in the future new nuclear build might be necessary if we are to meet our carbon targets. Before any decision to proceed with the building of new nuclear power stations, there will need to be the fullest public consultation and the publication of a further white paper setting out our proposals.” The Energy Review was therefore to be this public consultation.

Energy Review, 2006

In the light of a fast changing world energy context, increasing dependence on oil and gas imports, concerns about carbon emissions, and a need to accelerate investment in electricity infrastructure and power stations the UK Government undertook the 2006 Energy Review. One aspect of the 2006 Review dealt with development of nuclear power. Greenpeace challenged the Government's process of consultation on proposals to develop nuclear power and following a judicial review requested by Greenpeace, on 15 February 2007 the consultation process was ruled 'seriously flawed', and 'not merely inadequate but also misleading'. As a result, plans to build a new generation of nuclear power plants were delayed while the UK Government reran the consultation process in a way that complied with the court's decision. See Nuclear power in the United Kingdom for details.

Contents

The Energy Review Report 2006 came out as a broader and more balanced document than critics (in advance) had expected. It started by reiterating the Government’s four long-term goals for energy policy:

• To put the UK on a path to cut carbon dioxide emissions by some 60% by about 2050, with real progress by 2020;
• To maintain reliable energy supplies;
• To promote competitive markets in the UK and beyond, helping to raise the rate of sustainable economic growth and to improve productivity; and
• To ensure that every home is adequately and affordably heated.

It then identified two major long-term energy challenges:

• Tackling climate change, along with other nations, as global carbon emissions from human activity continue to grow; and
• Delivering secure, clean energy at affordable prices, as we become increasingly dependent on imports for our energy needs.

The Review took an internationalist response, stressing that the world’s economies need to get on a path to being significantly less carbon-intensive, and noting rising global demand, especially from countries such as India and China. This means using less energy in products and services and changing the way energy is produced so that more of it comes from low-carbon sources. It also identified the need for a fairer distribution of energy around the world, and identified that many resources, especially of fossil fuels which are concentrated in just a few countries.

It placed its main concerns and proposals into three groups:

Saving Energy

The starting point for reducing carbon emissions is to save energy. The challenge is to secure the heat, light and energy we need in homes and businesses in a way that cuts the amount of oil, gas and electricity used and the carbon dioxide emitted. Actions proposed include:

• Increasing information, e.g. through Home Information Packs
• Raising basic standards, removing inefficient goods from the market
• Making best use of the EU Emissions Trading Scheme and Climate Change Levy
• Making the Government estate carbon neutral by 2012
• Increasing the focus on energy efficient transport

Cleaner Energy

Cost-effective ways of using less energy will help move towards the carbon reduction goal. But on their own they will not provide the solution to the challenges faced: there is also a need to make the energy used cleaner. Under this head, the Government considered:

• more distributed energy generation including low-carbon heat
• more use of community based systems, including CHP
• a strong commitment to carbon pricing in the UK, through improving the operation of the EU Emissions Trading Scheme
• a strengthened commitment to the Renewables Obligation
• proposals for reform of the planning regime for electricity projects
• a clear statement of our position on new nuclear build
• support for carbon capture and storage
• developing alternative fuels for transport

The Energy Security Challenge

The challenges of reducing carbon emissions and ensuring security of supply are closely linked. Security of supply requires that we have good access to available fuel supplies, the infrastructure in place to transport them to centres of demand and effective markets so that supply meets demand in the most efficient way. Many of the measures already described for tackling carbon emissions also contribute to the healthy diversity of energy sources that is necessary for meeting the energy security challenge.

There are two main security of supply challenges for the UK:

• Managing increased dependence on oil and gas imports, especially in the light of the global distribution of energy reserves and growing international demand; and
• Ensuring that the market delivers substantial and timely investment in electricity generating capacity and networks so that households and businesses have the electricity they need at affordable prices.

The Government’s response is to continue to open up markets and to work internationally to develop strong relationships with suppliers, developing liberalised markets.

So where does nuclear power fit within this debate? Although it is mentioned a lot more in the Review compared to the White Paper (441 times, compared to 55 to be exact), the Government does not propose building new stations itself. Instead, it will leave it to the market, although it will ease some of the planning constraints (which it also aims to do for renewables) and look into providing a design authorisation procedure. However, as with many other aspects of the Energy Review Response, the document is not likely to be the last word on the subject, as there are plans for further consultation, and the establishment of further reviews and studies in issues such as identifying suitable sites, and managing the costs of decommissioning and long term waste management.

Energy White Paper, 2007

The 2007 Energy White Paper: Meeting the Energy Challenge was published on 23 May 2007. The 2007 White Paper outlines the Government’s international and domestic strategy for responding to two main challenges:

• cutting carbon emissions to tackle global warming
• ensuring secure, clean and affordable energy as imports replace declining production from North Sea oil and gas

It seeks to do this in a way that is consistent with its four energy policy goals:

• cutting the UK’s carbon dioxide emissions by some 60% by about 2050, with real progress by 2020;
• maintaining the reliability of energy supplies;
• promoting competitive markets in the UK and beyond, helping to raise the rate of sustainable economic growth and to improve productivity; and
• ensuring that every home is adequately and affordably heated.

The paper anticipates that it will be necessary to install 30-35 GW of new electricity generation capacity within 20 years to plug the energy gap resulting from increased demand and the expected closure of existing power plants. It also states that, based on existing policies, renewable energy is likely to contribute around 5% of the UK’s consumption by 2020, rather than the 20% target mentioned in the 2006 Energy Review.

Proposed Energy Strategy

In summary, the government's proposed strategy involves 6 components:

• Establishing an international framework to tackle climate change, including the stabilisation of atmospheric greenhouse gas concentrations and a stronger European Union Emissions Trading Scheme
• Providing legally binding carbon targets for the whole UK economy, reducing emissions through the implementation of the Climate Change Bill.
• Making further progress in achieving fully competitive and transparent international markets, including further liberalisation of the European Union energy market.
• Encouraging more energy saving through better information, incentives and regulation
• Providing more support for low carbon technologies, including increased international and domestic public-private sector collaboration in the areas of research, development, demonstration and deployment – for example though the launch of the Energy Technologies Institute and the Environmental Transformation Fund.

To achieve the government's aims, the White Paper proposes a number of practical measures, including:

Energy conservation

Businesses:

• A new mandatory cap and trade scheme for organisations consuming more than 6,000 MWh of electricity per year, to be known as the Carbon Reduction Commitment.
• The introduction of Energy Performance Certificates for business premises and Display Energy Certificates for public sector organisations.
• The extension of smart metering to most business premises within 5 years.

Homes:

• A requirement for all new homes to be zero-carbon buildings as soon as practically possible and preferably by 2016.
• Improving the energy efficiency of existing homes.
• Improving the efficiency of consumer electronics and domestic appliances, and the possible phase-out of inefficient light bulbs by around 2011.
• Increasing the Carbon Emission Reduction Target for the electricity and gas industries for 2008-2011.
• A requirement that new domestic electricity meters should have real time displays from 2008, and a commitment to upgrade existing domestic meters on request.

Transport:

• The introduction of a Low Carbon Transport Innovation Strategy
• Support for including aviation within the EU Emissions Trading Scheme

Energy supply

• The introduction of a Biomass Strategy to expand the use of biomass as an energy source.
• Measures to grow distributed electricity generation and distributed heat generation alongside the centralised system.
• A reconfirmation that, under the Renewables Obligation, renewable energy should supply 10% of electricity generation by 2010, an 'aspiration' to achieve 20% by 2020, together with the introduction of bands within the Obligation to support different renewable technologies.
• The launch in November 2007 of a competition to demonstrate commercial-scale carbon capture and storage technology
• A 'preliminary view is that it is in the public interest to give the private sector the option of investing in new nuclear power stations'. A consultation on this was launched at the same time as the White Paper.
• The introduction of the Renewable Transport Fuel Obligation in 2008-2009, with a commitment that biofuels should provide 5% of transport fuel by 2010-2011.
• Measures to support the recovery of the remaining oil and gas reserves from the North Sea.
• Removing barriers to developing new energy infrastructure and power plants through reform of planning permission processes, as detailed in the 2007 Planning White Paper: Planning for a Sustainable Future.

Response of the Scottish Government

The Scottish Government responded to the UK government paper by making clear that it was against new nuclear power stations being built in Scotland and had the power to prevent any being built. In a statement to parliament, Energy Minister Jim Mather stated "Members will be aware that Greenpeace, backed by the courts, have forced the UK Government to consult properly on the future role of nuclear power. We will respond and we will make clear that we do not want and do not need new nuclear power in Scotland. If an application were to be submitted for a new nuclear power station that will be for Scottish Ministers to determine. We would be obliged to look at it - but given our policy position, our generating capacity, our multiplicity of energy sources and our strong alternative strategies such an application would be unlikely to find favour with this administration."

Climate Change Act, 2008

Main article: Climate Change Act 2008

On 13 March 2007, a draft Climate Change Bill was published following cross-party pressure over several years, led by environmental groups. The Act puts in place a framework to achieve a mandatory 80% cut in the UK's carbon emissions by 2050 (compared to 1990 levels), with an intermediate target of between 26% and 32% by 2020. The Bill was passed into law in November 2008. With its passing the United Kingdom became the first country in the world to set such a long-range and significant carbon reduction target into law, or to create such a legally binding framework.

The Committee on Climate Change, whose powers are invested by Part 2 of the Act, was formally launched in December 2008 with Lord Adair Turner as its chair.

In April 2009 the Government set a requirement for a 34% cut in emissions by 2020, in line with the recommendations of the Committee on Climate Change, and announced that details of how this would be achieved would be published in the summer.

UK Low Carbon Transition Plan, 2009

Published on 15 July 2009, the UK Low Carbon Transition Plan details the actions to be taken to cut carbon emissions by 34% by 2020, based on 1990 levels (of which 21% had been achieved at the time of publication). As a result, by 2020 is it envisaged that:

• Over 1.2 million people will be employed in green jobs.
• The efficiency of 7 million homes will have been upgraded, with over 1.5 million of them generating renewable energy.
• 40% of electricity will be generated from low carbon sources (renewables, nuclear power and clean coal).
• Gas imports will be 50% lower than would otherwise have been the case.
• The average new car will emit 40% less carbon compared to 2009 levels.

Energy Bill, 2012 - 2013

The Energy Bill 2012 -2013 aims to close a number of coal power stations over the next two decades, to reduce dependence on fossil fuels and has financial incentives to reduce energy demand. The construction of a new generation of nuclear power stations will be facilitated, helped by the establishment of a new Office for Nuclear Regulation. Government climate change targets are to produce 30% of electricity from renewable sources by 2020, to cut greenhouse gas emissions by 50% on 1990 levels by 2025 and by 80% on 1990 levels by 2050.

Fossil energy public support

David Cameron announced subsidies for the North Sea oil and gas industry in March 2014 resulting in the production of 3-4bn more barrels of oil "than would otherwise have been produced.

Renewable energy targets

The first targets for renewable energy, 5% of by the end of 2003 and 10% by 2010 'subject to the cost to consumers being acceptable' were set by Helen Liddell in 2000.

The UK Government's goal for renewable energy production is to produce 20% of electricity in the UK by the year 2020. The 2002 Energy Review set a target of 10% to be in place by 2010/2011. The target was increased to 15% by 2015 and most recently the 2006 Energy Review further set a target of 20% by 2020.

Subsequently the Low Carbon Transition Plan of 2009 made clear that by 2020 the UK would need to produce 30% of its electricity, 12% of its heat and 10% of its fuels from renewable sources.

For Scotland, the Scottish Government has a target of generating 100% of electricity from renewables by 2020. Renewables located in Scotland count towards both the Scottish target and to the overall target for the UK.

Although renewable energy sources have not played a major role in the UK historically, there is potential for significant use of tidal power and wind energy (both on-shore and off-shore) as recognised by formal UK policies, including the Energy White Paper and directives to councils in the form of PPS 22. The Renewables Obligation acts as the central mechanism for support of renewable sources of electricity in the UK, and should provide subsidies approaching one billion pounds sterling per annum by 2010. A number of other grants and smaller support mechanisms aim to support less established renewables. In addition, renewables have been exempted from the Climate Change Levy that affects all other energy sources.

The amount of renewable generation added in the year 2004 was 250 megawatts and 500 megawatts in 2005. There is also a program established for micro-generation (less than 50 KWe (kilowatt electrical) or 45 KWt (kilowatt thermal) from a low carbon source) as well as a solar voltaic program. By comparison both Germany and Japan have photovoltaic (solar cell) programmes much larger than the installed base in the UK. Hydroelectric energy is not a viable option for most of the UK due to terrain and lack of force of rivers.

Biofuels

The government has established a goal of five percent of the total transport fuel that must be from renewable sources (e.g. ethanol, biofuel) by the year 2010 under the Renewable Transport Fuel Obligation. This goal may be ambitious, without the necessary infrastructure and paucity of research on appropriate UK crops, but import from France might be a realistic option (based upon the French wine lake).

In 2005 British Sugar announced that it will build the UK's first ethanol biofuel production facility, using British grown sugar beet as the feed stock. The plant in Norfolk will produce 55,000 metric tonnes of ethanol annually when it is completed in the first quarter of 2007. However it has been argued that even using all the UK's set-aside land to grow biofuel crops would provide for less than seven percent of the UK's present transport fuel usage.

Fuel poverty

Main article: fuel poverty

Reducing occurrence of fuel poverty (defined as households paying over ten percent of income for heating costs) is one of the four basic goals of UK energy policy. In the prior decade substantial progress has been made on this goal, but primarily due to government subsidies to low-income families rather than through fundamental change of home design or improved energy pricing. The following national programs have been specifically instrumental in such progress: Winter Fuel Payment, Child Tax Credit and Pension Credit. Some benefits have resulted from the Warm Front Scheme in England, the Central Heating Programme in Scotland and the Home Energy Efficiency Scheme in Wales. These latter programs provide economic incentives for physical improvement in insulation, etc.

Public opinion

The UK is largely supportive of renewable energy and this is primarily driven by concerns about climate change and dependence on fossil fuels.

In July 2013, the UK Energy Research Centre published a national survey of public attitudes towards energy in the UK.

• 74% of participants were very or fairly concerned about climate change.
• 82% were worried about the UK becoming too dependent upon energy from other countries.
• 79% wanted to see a reduction in the use of fossil fuels over the next few decades.
• 81% expressed a desire to reduce their energy use.
• 85% supported solar energy.
• 75% supported wind energy.
• 42% had never heard of carbon capture and storage (CCS) and when given further information many expressed concern, viewing it as a "non transition‟ – a continuation of unsustainable practices associated with fossil fuels.
• The public was undecided on the role of nuclear power in the future energy mix. However, over half (54%) said they would oppose the building of a new nuclear power station in their area.
• A majority (53%) were willing to use electric vehicles, rising to 75% if they performed as well as conventional models.

This can be compared with a similar study from the 1st Annual World Environment Review, published in June 2007, which revealed that:

• 81% are concerned about climate change.
• 79% think their Government should do more to tackle global warming.
• 73% think that the UK is too dependent on fossil fuels.
• 77% think that the UK is too reliant on foreign oil.
• 87% think that a minimum 25% of electricity should be generated from renewable energy sources.
• 24% think that the Government should do more to expand nuclear power.
• 56% are concerned about nuclear power.
• 76% are concerned about carbon dioxide emissions from developing countries.
• 61% think it appropriate for developed countries to demand restrictions on carbon dioxide emissions from developing countries.

Peak Oil

In their October 2009 report, the Government-funded UK Energy Research Centre (UKERC) noted that the implications of reaching the peak of world oil production had, until the late 2000s, caused little concern among the world's governments. The UKERC report concluded that this peak could be expected before 2030, but that there is a 'significant risk' of a peak before 2020. The UK Government has no contingency plans for oil peaking before 2020.

The UKERC report's authors warn of the risk that 'rising oil prices will encourage the rapid development of carbon-intensive alternatives (such as coal) which will make it difficult or impossible to prevent dangerous climate change' and that 'early investment in low-carbon alternatives to conventional oil is of considerable importance' in avoiding this scenario. It is suggested that the current measures being established to address climate change may not be sufficient or rapid enough to address the challenges of peak oil, but that it will require 'both improved understanding and much greater awareness of the risks presented by global oil depletion' for further action to become politically feasible.

Other issues

• Loss of energy independence. Rather than creating an aggressive plan to lessen the impending loss of energy independence, the UK policy succumbs to that outcome, with resultant risks to future supplies and costs.
• Lack of strong national policy on transport fuel efficiency. While the city of London and other local councils have given incentives to hybrid vehicles, the national policy does not provide any real stimulus to highly fuel efficient vehicles. In fact, the government has done so little to inform the public about fuel efficient options that a survey released in March 2006: "Some of the 1,200 people surveyed [by Honda] thought 'hybrid' meant two cars welded together. Others thought hybrids had to be plugged in at night."
• Lack of emphasis of energy conservation by reducing over-illumination. If the light level in a building is reduced then so is its energy usage.

See also

• Avoiding dangerous climate change
• Climate change in the United Kingdom
• Energy efficiency in British housing
• Energy policy of the European Union
• Energy policy of the United States
• Energy Saving Trust
• Energy switching services in the UK
• Financial incentives for photovoltaics
• Low Carbon Building Programme
• List of renewable resources produced and traded by the United Kingdom
• National Energy Action (NEA)
• The Carbon Trust
• Timeline of the UK electricity supply industry
• UK Energy Research Centre

External links

• United Kingdom 2004 Energy Act
• Text of the Climate Change and Sustainable Energy Bill
• Government business efficiency portal
• 2006 Government Energy Review
• 2003 Government Energy White Paper: Our Energy Future - Creating a Low Carbon Economy
• 2003 Green Party Alternative Energy Review
• 2002 Government Energy Review
• International Energy Agency UK energy statistics
• UK Government Energy Statistics
• Critique of Government biofuels policy
• Planning Policy Statement 22 (PPS22) on renewable energy
• Electricity calculator for 2020
• Analysis of Renewables Growth to 2020

In the media

• 23 May 2007, BBC, Britain's energy strategy
• 6 September 2006, New Builder, Extra Funding For Scottish Renewables
• 25 July 2006, epolitix.com, House of Lords committee reject European Commission bid for role in energy policy
• 29 June 2006, BBC, Government promises carbon cuts
• 5 June 2006, epolitix.com, Alistair Darling: Electricity profits should be linked to efficiency
• 26 September 2005, BBC, UK needs yearly climate updates