Sustainable energy what does it mean

1
Sustainable energy what does it mean?

• Megan WheatleyHead of Policy

2
Our goal

• To support the fastest transition possible
• towards a sustainable energy economy
• consistent with the delivery of a secure
• and reliable energy infrastructure.

3
What we do

• Develop practical and ambitious new thinking in
  energy policy
• Facilitate high level engagement between
  business, Government and NGOs
• Play an active role in international climate
  negotiations

4
Global - Primary energy demand projections
Source IEA World Energy Outlook 2006
5
Global - Projections of greenhouse gas emissions
Source IEA World Energy Outlook 2006
6
The global future for energy?

• Vulnerable

• Increasing reliance on fossil fuels
• Increasing greenhouse gas emissions
• Increasing reliance on fuel imports
• Fuel price variability
• Increasingly vulnerable customers

• Dirty

• Expensive

7
UK - Security of supply
Projected need for electricity generating
capacity requirements
90,000
80,000
Available Capacity
Need for new capacity
70,000
Closures
60,000
50,000
Capacity (MW)
Expected increase in demand
40,000
30,000
20,000
10,000
2005
2025
Source DTI
8
UK - Security of supply
Projected need for imported energy
250
Domestic energy
Imported gas
200
Import dependency
Mtoe
Imported coal
150
Imported oil
100
50
0
2005
2020
Source DTI
9
UK Greenhouse abatement target
Source Defra
10
Making the transition
Business as usual
Sustainable

• Vulnerable
• Increased reliance on fossil fuels and energy
  imports

• Secure
• Greater use of local resources
• Diverse supply

• Dirty
• Increasing greenhouse gas emissions

• Clean
• Lower carbon

• Expensive
• Increasing reliance on finite resources
• Environmental costs

• Competitive
• Lower environmental costs
• More stable fuel costs

11
Making the transition
Energy efficiency Renewable energy Distributed
energy Cleaner fossil fuel use
Sustainable

• Secure
• Greater use of local resources
• Diverse supply

• Clean
• Lower carbon

• Competitive
• Lower environmental costs
• More stable fuel costs

12
UK policy developments

• Stern Review
• Delaying action will be more costly
• Strong deliberate policy action is required
• Energy White Paper
• Draft Climate Change Bill
• Planning White Paper
• Implementing European targets

13
The business perspective
Reduced regulatory risk
Reduced exposure to price variability
Increased profitability
Maintenance
Sustainable Energy
Reduced production costs
Increased competitiveness
Improved Product Quality
Emerging markets for new products
14
Evolving role of energy companies

• Building stronger relationships with business
  customers
• Focus on tailored services
• Information and advice
• Energy efficiency delivery
• Renewable energy development
• CHP
• Microgeneration

15
A sustainable energy vision for the future

• Businesses and communities actively engaged in
  saving energy
• Increased focus on tailored energy solutions to
  meet business needs
• A diversity of energy supplies ranging from local
  solutions to large plant
• Smarter systems and networks responding to
  changing supply and demand
• Sustainable energy delivering commercial
  opportunities