The following Guest Post was written by Allen Shuford who works with Selectra Group, which is a company that offers advice on consumer energy . He is developing www.theswitch.co.uk
This past December the UK government finally gave an answer to the long-awaited question of how the UK will meet its deadline of net-zero emissions by 2050. While the answers to this question were not entirely a mystery, thanks to the prime minister’s 10 Point Plan for a Green Industrial Revolution and the Climate Change Act (target amendment to the 2008 agreement) Order 2019, which set the goal of net-zero into law, the government has finally set forth a plan on reaching this target.
For those unfamiliar with the Prime Minister’s 10 Point Plan, it pledges £12 billion of government investment into offshore wind, hydrogen production, electric vehicles, and nuclear energy projects. The Energy White Paper: Powering Our Net-Zero Future goes a step further and details the exact measures the government will take in implementing these changes.
GROWING THE ELECTRICITY SECTOR
The main boon for the road to net-zero will be the UK’s electricity sector, which has been the fastest to decarbonize up till now. The demand for electricity is expected to double as fossil fuel demands decrease thanks to uptake in electric-powered vehicles and energy-efficient, electric powered home refurbishments. One thing made clear is that the electricity sector will not be able to power the whole of the UK as demands increase, though low carbon electricity generation is expected to increase by four times the current number to 18GW by 2030.
The paper explains that in order to remove strain from the electricity system, the government looks to hydrogen production as part of the answer. Investing in hydrogen generation funded largely by investment from the private sector and new flexible models for electricity consumption to reduce strain on the grid during peak times, such as incentivizing the use of electricity during low demand hours, etc.
NUCLEAR POWERED FUTURE
In regards to the UK’s current model for electricity generation, it relies on 8 nuclear power plants, with 7 of these set to be phased out by 2030 due to their age. This will create pressure on an already strained electricity grid. To make matters worse, renewable energy from wind, solar, and hydroelectric will not be able to bear the full brunt of this decommissioning. Thus, the government expects to invest heavily in nuclear power in the coming years. The exact measures are still to be determined, but one of the main ideas is to create several miniature nuclear plants funded partially by private investment, such as the Hinkley C reactor plant recently built by EDF energy. Although relying on nuclear power is emission free, it can hardly be classed as environmentally friendly. It appears the government’s focus lies largely on achieving net-zero emissions.
OIL AND GAS REGULATION
In regards to the oil and gas industry, much of the information presented is republication of past policy that was presented in the OGUK Roadmap 2035, however later this year the government is expected to announce a clearer policy on decarbonising the North Sea and likely moving toward converting existing operations to some form of hydroelectric and hydrogen production.
This all will work in tandem with expected regulatory changes in the way that OFGEM (Office of Gas & Electricity Management and OGA (Oil & Gas Authority) handle changes to their current frameworks. More inter-cooperation is expected between all parties involved and there is a suggestion of perhaps a completely new, separate organization being created to coordinate how the different sectors of the energy system will work together.
AFFECTING CONSUMERS
Lastly, and most importantly, consumer attitudes toward energy will need to change as merely creating the framework will not ensure the goals are met. Consumers are expected to bear part of the brunt through a rise in energy bills, and with this comes the importance of making sure that the cost is evenly shared among the population. This means incentives and grants to help lower-income families, who may not be able to pay for expensive energy-efficient systems, for making the necessary upgrades and changes at home to make their properties more energy efficient. It is widely understood that the rise in energy bills will coincide with an overall increase in energy efficiency at home, in effect keeping things affordable for consumers. As mentioned before, more flexible programs for energy use are expected to be adopted allowing customers to help relieve strain from the grid at peak times. One idea is, as all cars become electric, allowing customers to plug in their parked vehicles to share power back to the grid at peak time and be compensated for it. Opt-in switching is something that will be tested later in 2021, allowing the government to take a role in making sure that customers are automatically switched to cheaper providers and tariffs when they come available.
Summary
In summary, this white paper goes further than previous plans for net-zero and defines key steps needed to be taken in order to usher in the Green Industrial Revolution in the UK by 2050. To achieve this goal it is clear it will take a multi-front effort and coordination between the government, private sector, regulatory bodies, and private citizens if it is to succeed. Overhauling of virtually every part of the current energy sector will need to occur in order to stay on track. In the coming months, more information and details on how each of the Prime Minister’s 10 steps will be further developed is expected to be released.