The Energy White Paper

1
The Energy White Paper

• Jeremy Eppel
• Sustainable Energy Policy Division
• Defra

2
Background

• Royal Commission on Environmental Pollution
  2000
• California
• Prime Ministers Performanc and Innovation Unit
  report 2002
• extensive consultation (6500 stakeholders and
  public)
• major analytical programme (101)

3
Starting points (1)

• Now
• UK self-sufficient in energy
• liberalised markets low prices
• overcapacity in electricity
• good progress on greenhouse gas cuts Kyoto and
  beyond

4
Starting points (2)

• Future
• more challenging carbon reduction ambitions
• increasing import dependency
• infrastructure needs modernising newer and
  more localised
• European/global arena increasingly important

5
Starting points (3)

• Climate Change is Real
• cost of trying to tackle it is relatively small
  
• approx 0.5 to 2 of GDP in 2050 if others
  engage
• opportunities as well as costs
• costs of not acting ..

6
New Goals of UK Energy Policy

• putting ourselves on a path to 60 cuts in CO2
  by 2050
• maintaining reliability of energy supplies
• promoting competitive markets in the UK and
  beyond
• ensuring that every home is adequately and
  affordably heated
• Aim to achieve these together

7
The Carbon Challenge
8
Delivering Our Carbon Goals (1)

• making carbon cuts of between 15 and 25 MtC by
  2020
• through .

• energy efficiency (8-12 MtC)
• renewables (3-5 MtC)
• emissions trading (2-4 MtC)
• transport (2-4MtC)

9
Delivering Our Carbon Goals (2)

• strong emphasis on renewables and energy
  efficiency
• coal has a future, if cleaner
• no commitment to new nuclear build now, but
• dont rule it out later if necessary to meet our
  carbon
• goals

10
The Vision for 2020

• emphasis on .
• renewable
• distributed
• local and micro
• net metering
• hyper efficient

• demand management
• fuel cells (static first)
• hybrid vehicles H2 close
• carbon valued/priced
• people engaged

11
Energy Efficiency

• Savings of this magnitude would need roughly a
  doubling of the rate of energy efficiency
  improvement seen in the past thirty years.

12
Energy Efficiency

• Households will account for around half of the
  expected savings by 2010 about 5MtC
• Measures to deliver 1.5MtC by 2010 are already in
  place. Key measures to deliver the remaining
  3.5MtC are set out in the White Paper

13
Energy Efficiency

• Installation of around 5 million A- and B-rated
  condensing boilers, saving around 0.6MtC
• insulating around 4.5 million cavity walls,
  saving around 1.2MtC

14
Energy Efficiency

• installing an extra 100 million energy saving
  lights, saving around 0.5MtC
• significantly increasing the uptake of A-rated
  appliances, saving around 0.5MtC

15
Energy Efficiency

• other measures, notably revisions to the
  Building Regulations to lessen the energy
  requirements of new build and refurbishment, as
  well as community heating with CHP - saving
  around 1MtC.

16
Energy Efficiency

• Businesses and the public sector - expected to
  deliver savings of around 6MtC by 2010
• The climate change levy/agreements and the UK
  emissions trading scheme have put us on track to
  achieve these savings
• EU Emissions Trading Scheme key - National
  Allocation Plan

17
Energy Efficiency Commitment

• Current EEC expected to save around 0.4MtC per
  year by time it ends in 2005
• We will consult on an expansion of the EEC to
  run from 2005 to at least 2008, at possibly twice
  its current level of activity

18
Energy Efficiency Commitment

• High Level Advisory Committee now underway
• Chair of Partnership and Chairs of 4 Strategy
  Groups (Heating, Insulation, Lighting and
  Appliances) are members

19
Energy Efficiency Commitment

• Also considering whether to extend the EEC beyond
  the household sector....
• ....full consultation if we conclude that it is
  the right approach.

20
Delivering the Energy Efficiency Objectives

• Will publish Implementation Plan within a year
  that sets out in further detail how Government
  will deliver the strategy for energy efficiency
  laid out in the White Paper
• Role for Partnership

21
Tackling Fuel Poverty

• Working with the Fuel Poverty Advisory Group, we
  will continue to

• report annually on progress against the fuel
  poverty targets
• keep under review the resources needed to achieve
  our targets

22
Tackling Fuel Poverty

• find ways to improve delivery of energy
  efficiency improvements to the fuel poor
• work across Government to ensure that policies on
  benefits, health and housing help to alleviate
  fuel poverty and
• address the need to overcome skills shortages.

23
Building Regulations

• Aim to bring into effect in 2005 the next major
  revision of the Building Regulations
• standard required for new and replacement
  boilers to be raised to level of the most
  efficient - A and B rated condensing boilers
• EU Energy Performance of Buildings Directive
  also important

24
Appliances

• Need to remove least efficient products from the
  market, encourage competition to bring forward
  improved products, and make it easier for people
  and businesses to choose the best.

25
Appliances

• Government supports EU proposals for a new
  framework directive to set standards for a wider
  range of products and to revise the energy
  labelling regime
• will work proactively to influence and speed
  their delivery.

26
Taxation

• Tax measures will also have a role to play. The
  Chancellor announced in the 2002 Pre-Budget
  Report that we would consult further on specific
  measures to promote greater energy efficiency in
  households
• Consultation paper under development

27
Setting an Example

• Government will set an example throughout the
  public sector by improving energy efficiency in
  buildings and procurement.
• central Government estate already has interim
  target to reduce carbon emissions by 1 a year
  from 1990-2000
• new targets to be set in 2003, including for CHP

28
Setting an Example

• Energy Efficient Procurement
• We have made central arrangements for departments
  to purchase goods with high energy efficiency
  standards in areas such as IT equipment, boilers,
  lights, refrigeration, televisions and washing
  machines.

29
Combined Heat and Power

• White Paper reaffirmed commitment to a target of
  10GWe of Good Quality CHP capacity being
  installed by 2010
• Difficult market conditions for CHP
• White Paper contained additional support measures
  for CHP beyond draft Strategy

30
Combined Heat and Power

• Government support for CHP will include
• power station consent applicants providing
  significant evidence that they have considered
  all economically viable options for CHP and
  community heating

31
Combined Heat and Power

• working with Ofgem to ensure that NETA does not
  discriminate against smaller generators,
  including CHP.
• explore the opportunities for incentivising CHP
  technologies in the extension and expansion of
  the EEC

32
Combined Heat and Power

• Further encouraging low-carbon technologies,
  including CHP, in the framework of the EU
  Emissions Trading Scheme

33
Delivering Our Objectives

• establishment of a virtual Sustainable Energy
  Policy Network (SEPN) of departmental policy
  units
• DTI, Defra, FCO, Treasury, ODPM, DfT, the
  Scotland Office, the Wales Office, the Devolved
  Administrations, Ofgem, Environment Agency, EST
  and Carbon Trust are part of Network

34
Delivering Our Objectives

• Review of low carbon delivery programmes and
  associated support bodies before the end of 2004
  - in context of a review of low carbon
  instruments more generally, in advance of the
  introduction of the EU emissions trading scheme

35
Delivering Our Objectives

• Strengthened analytical and strategic
  capabilities in the field of energy policy - in
  DTI, Defra and elsewhere - to ensure that the
  aims set out in the White Paper are delivered

36
Delivering Our Objectives

• Need to augment the current range of energy
  indicators with a smaller, more focussed set, to
  give a broad overview of whether overall energy
  policy objectives are being delivered
• will be seeking views on the most appropriate
  indicators to focus upon

37
Delivering Our Objectives

• Annual report, as part of follow-up to the
  White Paper, on progress towards achieving the
  savings set out within it