Energy, Environment and Sustainability Group
The meeting was organised by the Institution's Energy and Environment theme manager, Dr Jenifer Baxter, and was supported by an external energy communications consultancy, JBP Energy. The event was initiated in large part by the perception that there was no coherent UK electricity generation policy, with not only uncertainty about future generation, but also shorter term concerns about meeting our current demand with existing ageing assets that are not being replaced fast enough.
The aim of the workshop was to draw out ideas to inform an Institution policy statement on the subject, which would be communicated with Government. Attendees included both Institution members active in the energy field and also external energy specialists, not only in the field of engineering, but also in the fields of finance, regulation, consumer products and lobbying.
It was recognised in the inception of the workshop that energy in the UK is more than just about electricity and that electricity cannot be viewed in isolation from heat and transport energy. However Dr Jenifer Baxter’s view was that there would be more engagement with Government if the Institution aligned its communication with the Government focus on electricity generation and then introduced the connection with heat and transport in relation to this. At the workshop Ian Arbon made the point that less than a quarter of the energy supplied in the UK is from electricity and that it was important that we addressed heat and transport at the outset of any communications with the Government.
There were mixed views at the meeting on the ‘Energy Trilemma’, a term that may be applied to the Government’s approach, in its energy policy, of balancing the three criteria of security of supply, the environment and affordability. In particular it was the definition of affordability that was contentious at the meeting and a number of those present were of the opinion that we cannot expect more benign forms of energy supply to be cheaper and they considered that this would not allow them to be affordable. However there were others who considered that energy prices as a proportion of household income are still much lower than at times over the last four decades and so it may be argued that there is more that can be afforded.
It was generally recognised by those present that there is a lack of Government vision and associated long term planning. Energy policy and the approach to energy supply we have been experiencing over recent years in the UK has been very reactive and indeed political. It was understood by those present that there have been recent economic pressures and together with the short electoral cycle it is difficult to focus on long term plans, but it was acknowledged that there could be pragmatic pathways in line with a long term vision that could meet our short term needs and well as taking us towards a long term goal.
It was agreed at the meeting that there is not one fixed solution for our future energy supply mix together with management of energy demand and that there should be flexibility in the market to allow different options to develop in the most effective way. However it was recognised that the current definition of a ‘free market’ is not delivering what is required and there needs to be at least some effective structural guidance in the form of regulation and incentives. Incentives may include a more developed carbon dioxide tax and for this to be fair there would need to be more transparent and effective quantification of externalities. The idea of increased transparency in this regard was welcomed across the table, from the fossil power representative to those working in renewables.
A second draft of the policy statement, based on the outcome of the workshop, is being circulated for review and the final version is to be published within the next few weeks.