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Free from EU targets, the government should use Brexit to reaffirm the UK’s commitment to a low carbon economy and pursue a more diversified portfolio of renewable generation, says Chris Evans.
As 2016 drew to a close, the future of the UK’s energy landscape was unclear. Arguably the biggest factor in this uncertainty is the UK’s vote to leave the EU, and the potential impact this decision will have on the renewables sector. Unfortunately, announcements in the autumn statement did little to clarify matters, with most of the important policy issues for the direction of the UK’s low-carbon future delayed until later budget announcements.
The continued lack of certainty about future of UK energy policy has been vocalised by many, especially businesses which feel “disappointed at the lack of focus on energy”, according to an open letter to the Department for Business, Energy and Industrial Strategy (BEIS).
Over recent years, a large proportion of UK energy policy has been focused on the transition to a low carbon economy, and heavily influenced by EU policy. This low carbon focus has been successful, with renewables now supplying 83.3TWh of electricity – this was a quarter of the UK’s energy requirement in 2015. For power, the UK is on track to meet its EU renewable targets and, given the current scale of industry investment in the UK and the momentum gained, this progress is not expected to grind to a halt once the UK breaks away from the EU.
It is worth remembering that the UK already has energy-focused commitments that do not stem from EU membership, such as the 2008 Climate Change Act (CCA) and the recently agreed COP21 Paris climate agreement. These agreements will provide welcome international pressure to ensure the UK does not lose its motivation to continue pursuing a low carbon economy. However, the target year of 2050 for the CCA is over three decades away and a lack of more immediate pressure could result in the UK slipping in its current rate of renewables deployment.
Against this backdrop of momentum in UK renewables, it would be easy for us to have a rose-tinted view of the sector. Despite the encouraging rate of progress in renewable generation at present, most of the UK’s 33GW renewable capacity consists of wind and solar schemes, which are widely criticised for their intermittency. Other low carbon technologies, such as energy from waste, wave and energy storage, could help address the intermittency of wind and solar.
However, the EU-driven target for 30 per cent of the UK’s electricity to be supplied from renewables by 2020 has contributed to widespread grasping of the quick and easy low hanging fruit – and this has led to problems when the sun is not shining and the wind is not blowing.
Given that it is likely the UK will not be bound by European targets on leaving the EU, pressure to increase renewable capacity quickly will be lifted. This presents the opportunity for us to develop a more diverse mix of low carbon technologies driven by the 2008 CCA (target date 2050).
Among the uncertainty post-Brexit, it is no secret that electric vehicles are set to be the next game-changer in the automotive sector – a real challenge for our already struggling national grid.
Ralf Speth, chief executive of Jaguar Land Rover (JLR), recently advised that big local infrastructure improvements would be needed to support JLR’s planned Midlands expansion, because currently the grid infrastructure in the Midlands is incapable of supporting its plans for growth and investment in the area.
The UK desperately needs a strategy to create a more stable national grid, capable of supporting our ever-increasing energy demands. Entering 2017, it is vital that the momentum delivered by EU energy policy to date is maintained in order to negate the risk from EU targets no longer applying to the UK. As part of this, BEIS needs to deliver a long-term vision for energy policy with a clear framework of delivery, ahead of the 2017 budget, rather than more short-term changes. The UK has an opportunity for the energy industry to become the engine room of the UK economy. However, before this can happen, energy policy needs to evolve to make low carbon energy the most attractive option for industry and energy suppliers by being cost-effective, secure and easily accessible.
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