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Synergies and tensionsin UK energy policy
Jim Watson, Research DirectorUK Energy Research Centre
Energy Systems Conference, London, 24-25 June 2014
Energy policy and energy systems
Large scale technology, such as electric light and
power systems, incorporate not only technical and
physical things such as generators, transformers and
high-voltage transmission lines, but also utility
companies, electrical manufacturers and reinforcing
institutions such as regulatory agencies and laws
Thomas Hughes, American Genesis (1989)
Balancing energy policy goals?
Our energy security is best served
by minimising our exposure to the
volatile global fossil fuel markets,
enhancing our energy efficiency
and maximising home-grown low
carbon energy, as well as cleaner
indigenous reserves, such as
natural gas, to help ease the low
carbon transition
Ed Davey, March 2014
Balancing energy policy goals?
Security of supply, affordability, and
playing our part in combating
climate change. And that for me is
the order
Michael Fallon, 2nd Dec 2013
Reducing GHG emissions:good progress, but will it continue?
Source: Department of Energy and Climate Change
CO2 emissions are down 19% since 1990
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
100
200
300
400
Gas Electricity
Inde
x (2
000
= 10
0)
Gas prices have trebled since 2000
Electricity prices have doubled since 2000
Affordability:Domestic gas & electricity prices
But energy has become more expensive:rising prices and bills
Click to add titlePrice rises and fuel poverty
Source: Department of Energy and Climate Change
Energy security is high on the agenda for many reasons: High energy prices since mid 2000s UK’s shift back to net energy
importer Geopolitics and conflicts Impacts of extreme weather Ageing and/or inadequate
infrastructure
Security debates often focus on international risks, but many risks are closer to home
A secure energy system: but can this be maintained?
1980 1985 1990 1995 2000 2005 2010
-200.0
-100.0
0.0
100.0
200.0
300.0
400.0
500.0
600.0
Exports Pipeline Imports LNG Imports Net Imports
TW
h
Source: DECC
Maintaining energy securityFrom gas exporter to importer / trader
A secure energy system? from gas exporter to importer
Tensions between policy goals
Click to add titleTensions between policy goals
Tensions between policy goals
Fracking has become a national
debate in Britain – and it’s one that
I’m determined to win. If we don’t
back this technology, we will miss
a massive opportunity to help
families with their bills and make
our country more competitive.
Without it, we could lose ground in
the tough global race
David Cameron, August 2013
3. Innovation systems & developmentMeeting energy policy goals:a return to energy planning?
The electricity market is disappearing: government making investment decisions Even if this is temporary, need to be aware of the risks and tensions, e.g. We don’t know which low carbon
technologies will be most cost effective
Risks of stifling radical change: demand side response; decentralised generation; a more plural energy market
Heat and transport decarbonisation are even more uncertain: need for experimentation, innovation & learning
3. Innovation systems & developmentMeeting energy policy goals:a return to energy planning?
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Thanks
http://www.ukerc.ac.uk
@UKERCHQ @watsonjim2
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