This national policy statement (NPS) sets out national policy for the energy infrastructure. A further five technology-specific NPSs for the energy sector cover: fossil fuel electricity generation (EN-2) (ISBN 9780108510786); renewable electricity generation (both onshore and offshore) (EN-3) (ISBN 9780108510793); gas supply infrastructure and gas and oil pipelines (EN-4) (ISBN 9780108510809); the electricity transmission and distribution network (EN-5) (ISBN 9780108510816); and nuclear power generation (EN-6) (ISBN 9780108510823). An Impact assessment is also available (ISBN 9780108510830). The NPSs have effect on the decisions by the Infrastructure Planning Commission on application for energy developments. This statement outlines the Government's objectives for the power sector in order to meet its energy and climate change strategy. It sets out the need for new energy infrastructure and the assessment principles and generic impacts.
This plan sets out the Government's belief that the low carbon transformation can be a major driver of economic growth and job creation - in the UK, in Europe and globally. In it the UK Government makes clear that: it wants to build on the strengths of the Kyoto Protocol, and is open to extending that agreement as a way of getting the legal deal needed; it is in favour of strengthening the UN decision making process that was so frustrating at Copenhagen; it is pushing for the EU to increase its plans to cut emissions in line with comparable moves elsewhere, supporting the European Commission's work to identify the practical steps that would be required to implement a 30 per cent reduction target. The Action Plan builds on the Copenhagen Accord, in which countries have put forward actions that, if delivered in full, would see global emissions peak before 2020.
This report presented by the Department of Energy and Climate Change, sets out the nature and potential available to the UK energy market, in meeting three long-term challenges: (i) ensuring affordable, secure and sustainable energy; (ii) bringing about the transition to a low-carbon Britain; (iii) achieving an international agreement at Copenhagen in December 2009. This is the third Energy Markets Outlook report and seeks to facilitate and inform debate and decision making by market participants and other energy market stakeholders with a factual background to the development of the Government's approach to the above challenges. The publication comprises 10 chapters, and looks at the following areas: the security of supply in a competitive energy market; electricity, gas, coal, oil, nuclear fuel, renewable energy and carbon.
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.
There are two main energy challenges: tackling climate change by reducing carbon dioxide emissions; and ensuring clean and affordable energy as the country becomes increasingly dependent on imported fuel. These challenges have to be met against the backdrop of rising fossil fuel prices; slower than anticipated liberalisation of the EU energy markets; heightened awareness of the risk arising from remaining oil and gas reserves being concentrated in a few geographical regions; and a need for substantial new investment in power stations, the electricity grid and gas infrastructure. This White Paper sets out the Governments international and domestic strategy to address these challenges and ways to implement the Energy Review of 2006 and the 2006 Pre-Budget Report. There is a separate consultation document on nuclear power.
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.
In November 2009 the previous Government published six draft energy NPSs and associated documents for public consultation and Parliamentary scrutiny. In the House of Commons, the previous Energy and Climate Change (ECC) Select Committee scrutinised the draft energy NPSs and published a report (HC 231-I, session 2009-10, ISBN 9780215545237) of itsfindings. This included a recommendation that the draft NPSs should be subject to a debate in the main chamber of the House of Commons. This debate took place on 1st December 2010 on the basis of revised draft NPSs and a number of issues were raised there. This is the Government response to the 18 recommendations made by the Energy and Climate Change Select Committee to the revised NPSs.
In establishing the Levy Control framework, the Government has recognised the importance of monitoring and controlling the considerable cost of energy schemes that consumers fund through their energy bills. The NAO concludes that the Levy Control Framework is a valuable tool for supporting control of the costs to consumers that arise from the Government's energy policies, and has prompted the Department of Energy and Climate Change to monitor actual and expected costs to consumers from the schemes it covers. However, the operation of the Framework has not been fully effective in some key areas. Spending and outcomes have not been linked in deliberations by the joint Treasury and departmental levy control board and reporting on Framework schemes has not supported effective public and parliamentary scrutiny of the overall costs and outcomes from levy-funded spending. As consumer-funded spending on energy policies increases and new schemes are introduced, the Department needs to assure Parliament and the public that it has robust arrangements to monitor, control and report on consumer-funded spending, and the outcomes it is intended to secure. The spending cap under the Levy Control Framework is set to rise from £2 billion in 2011-12 to £7.6 billion in 2020-21 (in 2011-12 prices). By establishing this cap, the Department has provided greater certainty for investors. The NAO's report highlights that the Framework does not cover the consumer-funded Energy Companies Obligation scheme and that it is not yet clear whether it will cover the new Capacity Market including electricity demand reduction measures.
British Energy was the largest independent energy generator in the UK and owner of sites viewed by industry as the most suitable for new nuclear power stations. The Government sold its 36 per cent interest in the company to EDF Energy for £4.4 billion in January 2009. The final cash offer from EDF was 774 pence per share - 10 per cent higher than the valuation by the Shareholder Executive, the Government agency that managed the sale. Movement in energy prices after completion of the sale show that EDF put forward its offer when energy prices were at a peak. The Government's primary strategic objective for the sale was to ensure nuclear operators are able to build and operate new nuclear stations from the earliest date with no public subsidy. There was no binding commitment to build new nuclear power stations as a condition of the sale so it is too early to say whether the sale will enable the Government to achieve its strategic objective. But EDF's acquisition of British Energy has improved the prospect of investment in new nuclear power stations. While the Government no longer has a direct financial interest in British Energy, it remains responsible for funding any shortfall in the future cost of decommissioning British Energy's existing nuclear power stations. The Shareholder Executive did not carry out a formal assessment of the impact of the sale on the risks that taxpayers might have to bear if, for example, the new owner operated British Energy's power stations in a way that required earlier decommissioning.
This memorandum provides a preliminary assessment of the Climate Change Act 2008 ch. 27 (ISBN 9780105427087) The Act aims to create a legislative framework for the effective management and delivery of policies to tackle climate change, in particular by: a). establishing an economically credible emissions reduction pathway to 2050, by putting into statute medium and long-term targets and a system of carbon budgets; b). providing greater clarity and predictability for industry to plan effectively for, and invest in, a low-carbon economy; c). providing a strong evidence base and expertise to underpin statutory targets; d). establishing a duty on the Government regularly to assess the risks to the UK from climate change and draw up a programme to address them; and e. creating a power for the Government to require a range of public authorities or statutory bodies to assess and address the impacts of climate change. The memorandum concludes that the Act has created an effective legislative framework and is structured to provide a degree of flexibility, setting a framework to motivate and enable policy action without being too prescriptive about how the framework should be applied. This is required to address the inherent unpredictability around future emissions projections and to ensure that mitigation is not unnecessarily costly. In this vein, the Climate Change Act allows for a carbon budget level to be amended if it appears to Government that there have been significant changes affecting the basis on which the previous decision was made
Raising awareness and encouraging citizen involvement at a domestic level is fundamental to tackling climate change. This work examines: information and the raising of awareness about climate change; household energy efficiency; microgeneration; economic instruments and personal carbon allowances; and the role of the government.
This year's Annual energy statement sets out the progress the Government has made, how the Government is implementing its energy and climate change strategy and how the UK will develop its approach further. Publishing simultaneously is Electricity demand reduction consultation document (Cm. 8468, ISBN 9780101846820); Electricity demand reduction consultation summary document (Cm. 8492, ISBN 9780101849227); Electricity market reform policy overview (Cm. 8498, ISBN 9780101849821); Energy security strategy (Cm 8466, ISBN 9780101846622); and Statutory security of supply report (HC 688, session 2012-13 ISBN 9780102980691)
£200 billion of new investment in energy infrastructure is needed by 2020 to cope with rising demand and meet targets on renewable energy and climate change. The six draft National Policy Statements (NPSs) are designed to speed up the planning process for major energy projects to help facilitate this investment, but the new drafts do not prioritise low-carbon generation and renewables over conventional capacity. New Government rules on energy policy could lead to a second 'dash for gas', delaying critical investment in renewables and other low carbon technologies and making the UK's climate change targets impossible to achieve. And development of too much gas capacity could crowd out opportunities for renewables to form a substantial component of the UK's energy mix. The Committee is also sceptical about the ability of the Government to deliver its aims on nuclear power. Ministers told the Committee that the NPSs should enable the development of 16 GW of new nuclear plant by 2025. That is two new nuclear plants each year. The MPs call for more clarity in coordinating developments, and stress that political certainty is essential for investors having to make decisions with planning horizons sometimes over several decades. It raises concerns about the level of investment uncertainty created by giving Ministers the ultimate power to decide on planning decisions and the Government should publish criteria against which the Secretary of State should exercise their discretion.
The Government is putting in place policies aimed at driving down energy bills for consumers, reducing input costs for industry, cutting carbon emissions and contributing to a more competitive economy. Electricity demand reduction (EDR) measures are a crucial part of delivering potential. Already developed policies include the flagship Green Deal and new domestic Energy Company Obligation. These, together with the deployment of smart meters, are expected to reduce electricity consumption by nearly 6.5TWh by 2030. In addition, the Green Investment Bank will support access to finance and, in time, audits required under the new EU energy efficiency directive will further reduce demand. However, the Department believes that above and beyond existing policies, it should be possible to reduce demand even further. If a 10% electricity demand reduction could be achieved, this could result in electricity system costs savings in the region of £4 billion in 2030. This consultation opens up a range of options to unlock the energy savings that are currently embedded in the system and seeks views on a number of market-wide financial incentives. Publishing simultaneously to the consultation are a consultation summary document (Cm. 8492, ISBN 9780101849227); Electricity market reform policy overview (Cm. 8498, ISBN 9780101849821); Energy security strategy (Cm 8466, ISBN 9780101846622); Annual energy statement 2012 (Cm. 8456, ISBN 9780101845625); and Statutory security of supply report (HC 688, session 2012-13 ISBN 9780102980691)
Response to the 4th Progress Report - Meeting Carbon Budgets - http: //hmccc.s3.amazonaws.com/2012 Progress/CCC_Progress Rep 2012_bookmarked_spreads_1.pdf, issued on the 28 June 201
The CRC Energy Efficiency Scheme (CRC) is a mandatory UK-wide trading scheme designed to incentivise large public and private sector organisations to take up cost-effective energy efficiency opportunities, so helping to drive down consumption and protect energy security. The Government issued proposals (http://www.decc.gov.uk/assets/decc/11/consultation/CRC/4757-cons-simp-crc-energy-efficiency-scheme.pdf) to simplify the scheme, to make it easier and simpler for businesses to feel the benefits of using less energy, as well as supporting jobs in the energy savings industry. The 46 proposals were intended to: address stakeholder concerns about complexity and associated administrative costs; provide greater business certainty; allow for greater flexibility; reduce the reporting burden; reduce the scheme complexity; and reduce the overlap with other schemes. The proposals received broadly positive feedback and the Government intends to implement most proposals as set out in the consultation document. Eight proposals are being changed. The simplification proposals will reduce the administrative costs of participants by more than 55%, savings of some £272 million by 2030. This paper sets out the responses to each proposal, and the action the Government is taking to implement them. The majority of proposals will be implemented in the second phase of the scheme in 2014-15.
This document sets out the Government's plans for a radical increase in the UK's use of renewable electricity, heat and transport, which will meet the legally-binding target of 15 per cent of energy coming from renewable sources by 2020. This Strategy will help tackle climate change, reducing the UK's emissions of carbon dioxide by over 750 million tonnes between now and 2030. It will also promote the security of UK energy supply, reducing our overall fossil fuel demand by around 10 per cent and gas imports by 20-30 per cent against what they would have been in 2020. And it will provide opportunities for the UK economy with the potential to create up to half a million more jobs in the UK renewable energy sector resulting from around £100 billion of new investment. In parallel with energy saving, nuclear and carbon capture and storage, this is a key element for setting the UK on the path to achieve a low-carbon, sustainable future that helps address dangerous climate change. This strategy could result in: more than 30 per cent of electricity and 12 per cent of heat generated from renewables; and 10 per cent of transport energy from renewables. The Government will: provide financial support for renewable electricity and heat worth around £30 billion between now and 2020; drive delivery and clear away barriers, through the Office for Renewable Energy Deployment; increase investment in emerging technologies and pursue new sources of supply: create new opportunities for individuals, communities and business to harness renewable energy. The UK Low Carbon Transition Plan is published alongside this document (ISBN 9780108508394).
This issue of the Digest of United Kingdom Energy Statistics (DUKES) is part of a series and updates the figures given in the DUKES 2009. The publication consists of seven chapters; the first chapter deals with overall energy, with the other chapters covering specific fuels, combined heat and power and renewable sources of energy. The statistics presented in this digest will generate widespread interest from anyone working within or with an interest in energy sources, consumption and climate change. Chapters covering specific fuels and renewable sources of energy contain details on the production and consumption of individual fuels, presented using commodity balances. A commodity balance illustrates the flow of a fuel through from production to final consumption. These individual commodity balances are also combined in an energy balance, showing the interaction between different fuels. General energy statistics are presented in a table, revealing energy consumption by final users and an analysis of energy consumption by main industrial groups. Surveys conducted by AEA Energy & Environment on behalf of DECC estimate the contribution made by combined heat and power and renewable energy to energy production and consumption in the UK.
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