Offshore Electricity Transmission - a New Model for Infrastructure, Twentieth Report of Session 2012-13, Report, Together with Formal Minutes, Oral and Written Evidence
Offshore Electricity Transmission - a New Model for Infrastructure, Twentieth Report of Session 2012-13, Report, Together with Formal Minutes, Oral and Written Evidence
It is estimated that offshore wind farms have the potential to contribute 8-15% of electricity by 2020. This will require a large investment in offshore infrastructure, including around £8 billion of investment in transmission assets (offshore platforms, cables and onshore substations). An elaborate regime that licences operators of offshore electricity transmission assets following competitions has been introduced. The aim was to develop a competitive market for offshore electricity transmission but the reality is that the first six licences were won by just two companies. Furthermore, the terms of the transmission licences awarded so far appear heavily skewed towards attracting investors rather than securing a good deal for consumers. The transmission operators receive their income from the National Grid which recovers its costs from electricity suppliers and generators. Future payments to licensees are estimated at around £17 billion, and this will ultimately be funded by customers who could well end up paying higher electricity prices. The investors' estimated returns of 10-11% on the initial licences look extremely generous given the limited risks the investors bear. Licensees are guaranteed a fully retail price index-linked income for 20 years regardless of the extent to which assets are used. Yet penalties are limited to 10% of expected income in any one year if the operators fail to provide the transmission facilities when required. Despite the lessons from the PFI market the Government has failed to ensure that gains secured, for example, from debt refinancing are shared
This report discharges obligation under section 172 of the Energy Act 2004 as amended by section 80 of the Energy Act 2011; to report annually on the availability of electricity and gas for meeting the reasonable demands of consumers in Great Britain. It also discharges obligation under certain EU Directives to monitor and report on gas and electricity security of supply issues. This year's report includes two annexes: the Secretary of State's response to Ofgem's Electricity Capacity Assessment report; and an update to the indicators on security of supply published in the Energy Security Strategy of November 2012. Great Britain's electricity system faces some significant challenges over coming years. Older more polluting generation capacity has been closing under EU directives and some generation infrastructure is naturally coming to the end of its working life. In addition the system needs to ensure the UK can meet its decarbonisation objectives. In relation to gas, GB has the most liquid and one of the largest gas markets in Europe with extensive import infrastructure and a diverse range of gas supply sources. If necessary it could meet nearly double (189 per cent) its annual demand from imports alone. With regards to oil, the international nature of oil markets mean that if there are issues with a particular supply source it is likely to impact on prices paid, as opposed to physical supplies, as other supplies step in to take advantage of higher prices on offer. However GB's dependence on imports is expected to increase as oil demand globally continues to rise, and as global production becomes more complex
The Annual Energy Statement 2013 sets out the government's priorities in delivering the UK's energy policies in the near term: helping households and businesses take control of their energy bills and keep their costs down; unlocking investment in the UK's infrastructure that will support economic growth; playing a leading role in efforts to secure international action to reduce greenhouse gas emissions and tackle climate change. It presents plans to make switching simpler and quicker, and a new probe into energy firms' accounts, to make them more transparent on profits and prices, as well as increasing penalties for market manipulation and regularly checking that the market is working properly
The Committee believes that climate change is and will continue to be one of the most important challenges facing the EU and the world. Thjs report examines what the the EU is doing about climate change, what policies are in place and how they are working. Chapters cover the international context for EU policy, the EU emissions trading scheme, transport, other policy areas (including energy efficiency, renewable energy policy, nuclear energy, waste and agriculture), and the EU and the international community. The EU adopted a European Climate Change Programme, a comprehensive and relevant set of measures, but progress has been mixed. The report also finds that most member countries have not made significant progress towards their Kyoto targets for greenhouse gas reduction. It recommends that the EU emissions trading scheme be endorsed by the G8 as a model to be followed throughout the world. The lack of action to deal with the effects of aviation on climate change is seen as a major problem that needs to be addressed internationally.
This consultation document seeks views on proposals for implementing the key mechanisms under electricity market reform (EMR) - the Contracts for Difference (CfDs), the Capacity Market, and associated institutional and delivery arrangements. A package of draft secondary legislation is included to help illustrate the proposals. EMR is the Government's response to the challenges facing the electricity sector: a fifth of 2011 capacity has to close over the next ten years; the need to transform the generation mix to respond to climate change and to meet legally-binding carbon and renewable targets; the expectation that electricity demand will continue to increase over the coming decades. An estimated £110 billion investment is required over the next 10 years. CfDs will provide long-term revenue stabilisation to low-carbon plant, allowing investment to come forward at a lower cost of capital. The Capacity Market will provide a regular retainer payment to reliable forms of capacity (both demand and supply side), in return for such capacity being available when electricity supply is being squeezed. The National Grid will be the delivery body for EMR. The key mechanisms will be supported by: carbon price floor, a tax underpinning the price of carbon emissions in the UK; emissions performance standard, a regulatory backstop to the amount of CO2 emissions from new fossil-fuel power stations; action to promote electricity demand reduction; Ofgem's measures to improve wholesale market liquidity. The Energy Bill currently progressing through Parliament will introduce the powers to implement EMR.
This document sets out the Government's response to the public consultation on the draft Climate Change Bill (Cm. 7040, ISBN 9780101704021) and to the reports of the following Parliamentary Committees during session 2006-07: the Joint Committee on the Draft Climate Change Bill (HLP 170-I/HCP 542-I, ISBN 9780104011379); the Environment, Food and Rural Affairs Committee (HCP 534-I, ISBN 9780215034892); and the Environmental Audit Committee (HCP 460, ISBN 9780215035561). The Climate Change Bill seeks to introduce a clear, credible and long-term framework to support emissions reductions in the UK, designed to maximise the social and economic benefits and minimise costs, and also sets out an international precedent, reinforcing the UK's position as a consistent leader in the field of climate change and energy policy. This document explains the main changes the Government intends to make to the Bill, taking into account the consultation responses and the recommendations of the three Parliamentary Committees, and key elements of the Bill include: putting into statute the UK's domestic targets to reduce carbon dioxide emissions through domestic and international action by at least 60 per cent by 2050, and 26 to 32 per cent by 2020, against a 1990 baseline; secondary legislation to set binding limits known as carbon budgets on aggregate carbon dioxide emissions over five year periods; and the creation of a new independent body, the Committee on Climate Change, to advise on setting carbon budgets.
In September 2014 people in Scotland will take one of the most important decisions in the history of Scotland and the whole of the United Kingdom (UK) - whether to stay in the UK, or leave it and become a new, separate and independent state. In advance of the referendum, the UK Government will ensure through the Scotland analysis programme that the debate is properly informed by analysis, and that the facts crucial to considering Scotland's future are set out. This paper sets out the role of economic and fiscal integration in shaping Scotland's economic performance as part of the UK and describes some of the potential economic and fiscal consequences of independence. It follows the fourth paper in the Scotland analysis series, Scotland analysis: Business and microeconomic framework, which sets out how the UK's domestic market is a key part of Scotland's successful business environment
On 20 April 2010, a blowout of BP's Macondo well in the Gulf of Mexico led to the deaths of 11 workers on Transocean's Deepwater Horizon drilling rig, and the release of an estimated 4.9 million barrels of oil. The European Commission called for a moratorium but the UK government decided its regulatory controls were fit for purpose. However a full review of the oil and gas environmental regulatory regime would be undertaken. The Committee believes that the UK has high regulatory standards - as exemplified by the Safety Case regime that was set up in response to the 1988 Piper Alpha tragedy in 1988. The blowout in the Gulf of Mexico could have been prevented if the last-line of defence - the blind shear ram on the blowout preventer had activated and crushed the drill pipe. Given the importance of this equipment the committee recommends prescribing specifically that blowout preventers should have two blind shear rams and that simple, potential failures mustn't be left unchecked. The Committee also recommends that the Bly report conclusions, BP's internal investigation, be considered alongside observations of other companies involved. They believe that should an oil spill resulting from drilling activities occur in the UK there needs to be an absolute clarity as to the identity of the responsible party, and that liability legislation needs to ensure prompt compensation. They conclude that any calls for increased oversight of the UK offshore industry should be rejected in favour of multilateral approaches to regulation and oil spill response
The agreement of the Bali roadmap charted a course for negotiations on a successor agreement to the Kyoto Protocol when it expires in 2012. But there remain uncertainties about the pace and eventual outcome of the negotiations. A post-2012 agreement will only be a success if it is guided by the science, which warns that developed countries must reduce emissions by 25-40 per cent by 2020 and 80-95 per cent by 2050. These figures only translate to a 50-50 chance of avoiding dangerous climate change, and the international community should aspire to even greater reductions. Most developing countries are not required to reduce emissions, but will need to commit to certain actions that will limit the growth of and eventually stabilise their emissions. The Committee believes that the targets for developed countries and commitment to actions by developing countries are the minimum that the UK and EU should accept in the negotiations. Diplomacy will be key in helping to reach agreement on the effort required. The Government will have to work closely with developing countries to explore the actions that they might be willing to commit to. The post-2012 agreement can be more flexible and creative than its predecessor in responding to the different needs of different countries. It is clear that substantial developed country financing will be required in order to shift developing countries onto a low-carbon path and also to encourage them to agree to mitigation actions.
The test of whether the UK should continue to give aid to India is whether that aid makes a distinctive contribution to poverty reduction. The Government of India has primary responsibility for this and has already reduced poverty levels from 60 percent in 1981 to 42 percent in 2005. But whilst the economy is growing there are large pockets of poverty that still remain. The DFID plans to change some of its programme, focusing primarily on three of the poorest states, Bihar, Madhya Pradesh and Orissa, also changing the sectors it prioritises and putting 50 percent of its budget through the private sector by 2015.The Committee supports the focus on the poorest states but provided it is supported by the Government of India. They recommend supporting in particular sanitation, malnutrition, maternal and child health and social exclusion. The Committee supports the Government's aim to forge a new enhanced partnership with India with its mutual benefits from cooperation in trade and investment but the DFID must ensure UK Government policies help protect the poorest and reduce inequalities. The Committee assuming that over the next four years as India continues to grow at current rates it will have increased its capacity to tackle poverty and meet the millennium development goals. DFID should continue to provide technical assistance where requested but the funding mechanism should change by 2015.
This annual report details the work and expenditure of the Department for International Development (DFID) during the period April 2006 to March 2007, working as part of the wider international effort to tackle world poverty and promote the sustainable development of low-income countries. The report includes chapters on: reducing poverty in Africa and Asia and progress towards the Millennium Development Goals; making the multilateral system and bilateral aid more effective; fragile states, conflicts and crises; environment, climate change and natural resources; and working with others on policies beyond aid. The assessment of progress is structured around the DFID Public Service Agreement (PSA) targets.
The Environmental Audit Committee states that the UK should only provide funding for multilateral institutions with strong environmental credentials. The current scale of the World Bank's lending to fossil fuel powered energy generation is unacceptable and the Committee urges the Government to be prepared to vote against new World Bank funding for high emissions coal-fired power stations. The profile of climate change has increased hugely but there is far less awareness of the importance of protecting biodiversity and ecosystems. The Committee believes that the Department for International Development (DFID) needs to publish a clear strategy on its approach to environmental issues to ensure that it gives them sufficient priority in its programmes and expenditure. Every effort must be made to help emerging economies leap-frog fossil fuels and fuel their growth with clean energy instead. High levels of consumption in the UK increases demand on production in poor countries which leads to degradation of their natural resources. The report calls on the UK Government to ensure that economic activity in Britain does not cancel out, or even reverse, the positive impact that UK aid is having overseas.
The Foreign Affairs Committee concludes that the UK has an extremely close and valuable relationship with the US in specific areas of co-operation, for instance in the fields of intelligence and security; that the historic, trading and cultural links between the two countries are profound; and that the two countries share common values in their commitment to freedom, democracy and the rule of law. However, the use of the phrase 'the special relationship' in its historical sense, to describe the totality of the ever-evolving UK-US relationship, is potentially misleading, and its use should be avoided. The report examines key areas of co-operation: military and defence; intelligence; security; nuclear. Other sections cover: the FCO's US network (under unacceptable financial pressure); the British political approach to UK-US relations; the future of the relationship. The Committee believe the UK must continue to position itself closely alongside the US in the future, recognising the many mutual benefits which flow from close co-operation in particular areas. But the UK needs to be less deferential and more willing to say no to the US on those issues where the two countries' interests and values diverge.
The Committee's report finds that, over the past decade, the Government has failed to rise fully to the domestic challenge of climate change, and its likely failure to reach its domestic target on reducing carbon dioxide emissions will have a damaging impact on the UK's international leadership role in reaching a post-Kyoto agreement. Although the Government has introduced some new arrangements for co-ordinating climate change policy more effectively across Whitehall, the scale of the challenge and the complexity involved in radically restructuring the economy to bring about the needed emission reduction targets requires further changes. There is a need for a strategic review of Government action to ensure that the leadership and responsibility for the development and delivery of climate change mitigation and adaptation policies is clear, as well as a new long-term policy framework to ensure that policies introduced today do not undermine our ability to reduce emissions in the future. The Committee also recommends that a new and authoritative body be established within the Cabinet Office to drive forward policy and to diminish the potential for a conflict of objectives between departments.
The Environmental Audit Committee established a sub-committee to explore concerns that Government policy on trade and development was not adequately incorporating the need for sustainable development and environmental protection. The series of inquiries have scrutinised DFID, the WTO and UK trade policy, the Government's response to the United Nations Millennium Ecosystem Assessment. This is the final inquiry and it looks at the role of the Foreign and Commonwealth Office in delivering international environmental objectives. Although it is not often the lead department it has a role in building international support for policy objectives and it also has direct responsibility, with DFID, towards the environment in UK Overseas Territories. The report looks at: FCO policy; FCO capacity on the environment; international environment strategy; setting an example; UK Overseas Territories.
This programme sets out the Government's policies and priorities for action on climate change in the UK and internationally. The first section examines the nature and scale of the challenge posed by climate change. It describes the existing international framework for action, including the G8 and EU meetings and resulting plans of action. The Government intends to build on these developments, and also try to influence the rapidly growing economies of India, China, Brazil and others so that they evolve as low-carbon economies. The major part of the report is concerned with the UK's attempt to deliver the Kyoto Protocol target of reducing emissions of six greenhouse gases by 12.5 per cent below base year levels over the 2008-2012 period, and also the domestic goal of reducing carbon dioxide emissions by 20 per cent below 1990 levels by 2010. Projections indicate that CO2 reduction by 2010 will only be some 10.6 per cent below the 1990 level. Sections on the UK emission inventory and projections, the strategy to reduce emissions, and the energy supply sector, are followed by chapters covering particular economic sectors: business; transport, domestic; agriculture and forestry; the public sector. Among policies outlined here are: encouragement of microgeneration and renewable sources of energy; investigation of carbon capture and storage; support for energy efficiency in business, local and central government; increase uptake of biofuels; include aviation in the emissions trading scheme for the EU from 2008; raise energy standards of new and refurbished buildings; introduce the Code for Sustainable Homes; strengthen consumer demand for energy efficiency. The Government also sets out its approach to encourage personal action, as citizens, consumers, motorists and business people. Provision of better information to the public, including an online service on the environmental impact of everyday products and services, will be supplemented by a plan for action on sustainable consumption by the end of 2006.
The overwhelming scientific consensus is that the earth is warming because of human activities. Adaptation will be necessary even if mitigation efforts are markedly increased, because we are already locked in to climate change as a result of historic greenhouse gas emissions. Projections show that it is likely that global average temperatures will rise by 2 degrees C, and there is the potential for a 4 degree C rise by the end of the century. UK projections suggest warmer, drier summers and warmer wetter winters. The consequences are likely to be profound, even devastating with more extreme events - floods, drought and heat waves - coupled with sea level rises. Policies and practice on water management, coast protection, and nature conservation will need to change. This report explores how institutions should adapt their policies to a changing climate and offers a ten point check list to be followed by all organisations. The Commission found many institutions are poorly prepared to adapt to climate change and many have simply not started to consider it. The Commission makes recommendations designed to help institutions develop their capacity to respond to this challenge. In contrast to climate change mitigation (where local actions have global benefits), adaptation is primarily about local action with local consequences that may differ markedly in different parts of the UK.
The Government's energy policy has four key objectives: protecting the environment and addressing climate change issues, including cutting carbon dioxide emissions levels; energy security; delivering affordable energy; and promoting competitive energy markets. The Government has set a target of securing 10 per cent of Britain's electricity supply from renewable sources by 2010, and aims to double this level by 2020. Following on from an NAO report (HCP 210, session 2004-05, ISBN 0102932204) published in February 2005, the Committee's report examines the contribution of renewables to the UK's energy and environmental objectives, the cost of the Renewables Obligation for consumers, and the challenges of delivering the 2010 target.
This publication contains oral and written evidence taken before the Committee in their inquiry into the Government's Climate Change Programme announced in March 2006 (in its White Paper 'Tomorrow's Climate, Today's Challenge' Cm. 6764, ISBN 0101676425). It includes contributions from officials from Defra, the Confederation of British Industry, the UK Sustainable Development Commission, Greater London Authority and local authorities.
The UK contains more than 26 million homes which, collectively, emitted 41.7 million tonnes of carbon dioxide in 2004. This book includes chapters, which examine: regulation and encouragement; financial incentives; energy performance certificates; breaching the barriers to change; newer technologies; and, older buildings.
This report, entitled "Climate change and local, regional and devolved government", (HCP 225, session 2007-08, ISBN 9780215522122) sets out 22 conclusions and recommendations, including: that Central Government has a duty to co-ordinate how different spheres of government interact and integrate in regard of action on climate change; overcoming barriers to progress on climate change is essential and the Government must look at incentives and encouragements it can offer to local, regional and devolved government; all local authorities should be obliged to include climate change indicators in their Local Area Agreements and further, the investrment and development plans for local authorities should consider the need to reduce emissions and adapt to climate change; that local authorities, regional and devolved governments need to be aware of other targets, including biodiversity and energy efficiency; that the Government needs to consider what part carbon impact assessments will play in local, regional and devolved governments and how they can become a central role in decision and policy making.
Climate change is one of the biggest challenges facing the world today and requires an urgent response from Government, industry and the individual. This inquiry was triggered by the publication of the Stern Review on "The Economics of Climate Change" (2006, ISBN 9780102944204), which stressed the need to stabilise carbon emissions sooner rather than later, and warned of potentially catastrophic impacts if that was not achieved. The Review framed the climate change debate in terms of economic choices, and considered the use of economic tools such as environmental taxation and permit trading schemes as economically-efficient mechanisms for cutting emissions. This Report recommends that the Government give primary consideration to the use of economic tools in combating climate change: The Treasury's policies and action in this regard were the main focus of the inquiry. The report looks at work on this topic by the Treasury and other select committees. It then assesses the economics of the Stern Review, and examines the Government's approach to reducing emissions. Further sections cover emissions trading schemes, environmental taxes and adaptation (designed to counter the negative impacts caused by time lags in global and local ecosystems). The Committee calls for a twin track approach involving both adaptation and mitigation.
The Committee's report examines the issue of how to tackle climate change in an international context, in light of the fact that the UK will hold both the presidency of the EU and the chair of the G8 this year. Topics discussed include: the impact of global warming and emissions forecasts; the EU emissions trading system; the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol; options for a post 2012 framework; and UK government objectives for 2005.
Greening Government operations is important in its own right, because of the size and range of their environmental impacts. Each year central Government offices produce approximately 2.3 million tonnes of CO2 emissions (around 0.4 per cent of the UK total) and 309,000 tonnes of waste. Central Government spends £60 billion on goods and services each year and through sustainable procurement it could accelerate the take-up of environmentally friendly products. This report examines progress relating to: carbon emissions; renewable energy; carbon neutrality; energy consumption; Government response to the Sustainable Development Commission (SDC); the role of the Sustainable Development Commission. The record is poor on carbon emissions. Excellent progress has been made on increasing the use of green electricity, but progress on generating its own electricity from on-site or district renewables has been very disappointing. The target of making the Government Estate carbon neutral by 2012 will depend very heavily on buying offsets. It is important the Government does as much as possible to reduce its own emissions. The newly-announced Greening Government IT programme is encouraging, given that increased use of IT would appear to be the biggest single factor in the upward trend in emissions from civil departments. The Government has, encouragingly, announced significant reforms in its response to the SDC's report. The Commission is having a significant influence in galvanising Government to improve its structures.
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