Chris Evans, deputy managing director at Rolton Group, says this is a good time to reassess our steps towards a low-carbon economy, broaden our technology choices, and move heat up the agenda
The start of 2017 has not alleviated the confusion that has arisen from the political upheaval of the past few months.
The Chancellor’s Autumn Statement did little to set out a roadmap for UK energy, with many of the policy decisions concerning renewable energy postponed until future budgetary announcements. Hence, how the UK will leave the EU remains the question on everyone’s lips, and the effect on UK energy strategy of our imminent departure still hangs in the balance.
The political events of last year mean we are now at a crossroads. At a time when new year’s resolutions encourage us all to make a fresh start, there is a clear opportunity for us to create a better energy landscape in the UK. Government and industry have to work together, to choose a clear course for the UK energy sector and to continue to steer in the right direction towards a more sustainable future.
Recent UK energy policy has been heavily influenced by EU policy, leading to a transition to a low-carbon economy that has so far been reasonably successful. Renewables now supply about a quarter of the UK’s energy requirements (83.3TWh). This is a good start, but further change must happen if we want to build effectively on this foundation.
The EU-set target of 30% of the UK’s electricity mix to be supplied by renewables by 2020 has been both a help and a hindrance – it has led to the achievements to date, but has also encouraged the implementation of the quick and easy ‘low-hanging fruit’ of renewable technologies. Looking at the current UK energy landscape, most of the UK’s 33GW renewable capacity consists of wind and solar schemes; technologies known for their intermittent energy generation, relying entirely on the weather. To ensure a more consistent energy supply, a broader mix of renewable energy generation technologies should be implemented and investment in energy storage should be encouraged.
With Brexit on the horizon, it is likely the UK will not be bound by EU targets in future. And with the pressure lifted to boost renewable capacity quickly, there will be an opportunity to develop a more diverse mix of low-carbon technologies, driven by the 2008 CCA.
There are many other, potentially more reliable, low-carbon technologies to choose from, such as energy from waste, wave and tidal, and energy storage.
A new focus on heat
Our current EU energy targets have not promoted wide deployment of renewable heat technologies in the UK, despite schemes such as the UK’s Renewable Heat Incentive and the clear benefits that a wider variety of renewable energy sources would bring. However, the UK now has a significant opportunity to reduce heat-related carbon emissions by using district heating networks, which use wasted heat from industrial processes and power stations.
The Heat Networks Delivery Unit (HNDU) estimates that 14% of UK heat demand could be met by district heating networks by 2030, and 43% by 2050. This would contribute £2 billion in capital investment and up to £6.4 billion in maintenance contracts to the UK economy.
Using waste heat also presents an opportunity to supply some of the estimated 10.6% of English households that live in fuel poverty – thus reducing the number of winter deaths, currently 43,900 a year. Given the energy intensity required to generate heat, decarbonising and using wasted heat has substantial potential to reduce UK emissions and make a significant contribution towards our 2008 CCA targets.
Local authorities and their planners must seriously consider the full benefits of urban energy centres and not just play lip service to planning applications. The use of waste heat typically would improve system efficiencies by a further 10%, which would ensure we get the maximum out of the energy generation process, otherwise waste heat will continue to be thrown away.
Fortunately, many of the UK’s energy commitments are unrelated to EU membership.
Take for example the 2008 Climate Change Act (CCA) and the recently agreed COP21 Paris climate agreement. These commitments will continue to ensure the UK does not lose its motivation to continue pursuing a low-carbon agenda.
There is a danger, however, that the long-term nature of some of the goals – the target year of 2050 for the CCA is over three decades away – removes immediate pressure and could result in the UK slipping in its current rate of renewable deployment. The momentum we have gained with low-carbon energy must be maintained. Without imminent EU energy targets, we have the time and opportunity to refocus our low-carbon efforts to ensure a broader and healthier mix of energy generation methods for the benefit of the National Grid and our long-term energy needs. These opportunities, coupled with investment in R&D, have the potential to create a thriving low-carbon industry in the UK.
First published in the February 2017 issue of New Power Report.
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