A new independent report published today will outline the important role that renewables can play in the UK’s transition to a low carbon electricity supply over coming decades. The report will be launched in Parliament at a cross-party debate with key note speech from Rt. Hon Ed Davey MP (Secretary of State for Energy and Climate Change).
The report, sponsored by Siemens and DONG Energy, is part of a cross-party and independent inquiry series, sponsored by the Institution of Gas Engineers and Managers. The Future Electricity Series brings together experts from parliament, industry and academia to build consensus, lay down the facts and point to policy challenges in the power sector.
Chaired by former Energy Minister, Charles Hendry MP, and Shadow Energy Minister, Baroness Worthington, the ‘invaluable’ report has been compiled by independent think tank Carbon Connect. It presents over 30 findings as part of a year-long, independent inquiry into the UK power sector.
Findings
The inquiry says that Government could do more to narrow the scope of debate about technology mix beyond 2020. It argues that it should work with industry and academia, first to establish ‘low regrets’ levels of technology deployment, and second to ensure that policies are in place to incentivise investments, such as supply chain investment, needed to deliver these low regrets actions.
This approach would help provide the longer term clarity that could secure supply chain investments giving the UK a head-start in the global race. The report finds that these investments could be missed, delayed or more expensive if there insufficient confidence about long term demand for key technologies such as offshore wind. Work by Government to help incentivise these investments would increase the likelihood that technology cost reductions are achieved and help mitigate against high costs if new nuclear or carbon capture and storage development fails or is delayed.
On affordability, the report finds that avoiding bill increases driven by fossil fuels, making electricity bills more predictable and providing an economic boost are some of the ‘hidden’ benefits that the UK could see from investing more in renewables through electricity bills between now and 2020. The extra money paid to support renewables and other low carbon generation such as nuclear power could be more than offset by energy efficiency savings, although Government needs to do more to show how these savings will arise.
On sustainability, the report tackles myths about the carbon emitted in manufacturing renewable technologies or in backing up varying technologies such as wind, solar, wave and tidal. It finds that even when considering these factors, renewables are still amongst the most low carbon options.
The report also looks at the sustainability of electricity from biomass. Bioenergy overall could provide up to ten per cent of energy and reduce the cost of cutting carbon by £44 billion per year in 2050. The Government’s new biomass policies are a pragmatic response to concerns about the sustainability of biomass power, which balances protecting the environment, building public confidence and enabling the sector to grow.
On security of supply, the inquiry says that debate should focus on the whole electricity system and that individual technologies should be considered in the context of how they add to or reduce system risks. Considered like this, renewables reduce some risks, such as fuel supply risks, which caused concerned last winter, and add to others, such as system balancing risks. System balancing risks from varying renewables (wind, solar, wave and tidal technologies) are manageable using a number of existing and developing technologies.
Quotations
Speaking ahead of the launch, inquiry co-chair and former Energy Minister, Charles Hendry MP, said:
“I am delighted to welcome this latest report from Carbon Connect into our electricity system. At a time when there is so much interest in energy matters, and also so much uncertainty about the fact, this report is an invaluable resource. It looks objectively at the benefits and challenges associated with renewables, just as its first report looked in the same way at hydrocarbons. It is a document which will be of interest to anyone wanting to understand the energy challenges we face and the solutions open to us.”
Fellow inquiry co-chair and Shadow Energy Minister, Baroness Worthington, said:
“Renewable sources of energy are an inexhaustible and largely UK located source of power we are only just beginning to harness at scale. In considering their future it is important to neither exaggerate nor dismiss their evident potential and to consider issues relating to cost and sustainability holistically. This report is another welcome contribution from Carbon Connect. Despite the rhetoric in the media there is a sensible middle ground occupied by members of all parties and this report speaks from that position.”
Mike Rolls, Director of Business Development, Sustainability and Government Affairs for Siemens UK Energy Sector, co-sponsors of the report said:
"The Future Electricity Series presents a balanced view of the technologies for future generation and particularly how they each fit into the complex system that has to balance generation against demand minute by minute as well as provide security at affordable cost over the long term. This second report in the series presents clearly the contribution that the different renewables technologies can sensibly play in that mix and we are delighted to be associated with its launch."
Benj Sykes, Country Manager for DONG Energy Wind Power UK, co-sponsors of the report said:
“We are proud to be sponsors of such a well-rounded report that has been shaped by industry leaders and key opinion formers from within the energy sector. It gives an honest and expert picture of shifting renewable energy policy and calls for certainty as a prerequisite for continued investment in the renewables sector.”
Peter Hardy, Head of Technical Services at IGEM, sponsor of the inquiry series, said:
“The report’s conclusion that individual technologies must be considered in the context of the energy system as a whole is crucial to the UK’s energy future. Expanding the proportion of renewables in the power mix is indispensable for long term energy security, sustainability and affordability, and the report explores how this might be achieved economically. Natural gas will also have a crucial role in the power generation mix as a bridging role for at least decades to come, and the report highlights the valuable experience and expertise the gas industry can contribute to the further development of renewables.”
Simon Griew, IGEM’s Chief Executive Officer, sponsor of the inquiry series, said:
“IGEM is very pleased to be sponsoring the Future of Electricity Series. Too often, debates on the UK’s energy policy are muddied by myths and vested interests. Power from Renewables is therefore a particularly helpful contribution: a dispassionate account of the potential, the challenges and the limitations of renewables over the coming decades, informed by key facts, figures and analysis.”