Presentation slides

Question 1

Introduction

Answer 1

• The main focus of UK energy policy at the moment is decarbonisation
• Beginning our Race to Zero ahead of COP26 next year
• We’re hosting, need to set an example to other major economies
• As such, the government released their 10-point plan for a GER a couple of weeks ago
• Worth acknowledging the economic and political backdrop this announcement was made against
• Global pandemic, Brexit is ever-present and more and more people are becoming aware of the climate emergency
• So there was a big focus on creating jobs, new markets here in the UK and improving health as co-benefits to the green transition
• e.g. banning the sale of new petrol and diesel vehicles by 2030 is a historic step for climate action and sends clear signals to the automotive industry to invest in Britain
• But decarbonisation poses challenges for energy policy at all stages of the energy life cycle
• So in this presentation I’ve chosen to outline key challenges at energy generation, distribution and usage
• To illustrate how the entire process will be affected and which actors are involved

Question 2

Energy generation: integrating new technology

Answer 2

• Firstly, a key challenge at the energy generation stage will be the integration of new tech
• The 10-point plan includes ambitious pledges to make sources like hydrogen the backbone of the UK energy system
• However, integrating such technology will pose numerous practical challenges, for example
• Time and resources needed for R+D and deployment
• Which needs to be done at scale to make it financially viable
• Need to train a skilled workforce
• And create reliable supply chains
• To achieve this, we need strong, coherent policy decisions that support the scientific, industrial and commercial inputs to an operation of this nature
• It’s also important to mention that the 10-point plan states blue hydrogen
• Blue hydrogen uses natural gas as a feedstock
• Raises the question of energy security, as the UK lacks a thriving natural or shale gas industry
• Meaning we would rely heavily on imports
• Which is important considering the UK is currently still navigating its post-Brexit trade agreements
• Plus, blue hydrogen is generated through CCS
• So there is the concern that FF companies might use it as an excuse to continue BAU
• So I think the policy challenge there is to recognise the potential for greenwashing and put measures in place to prevent it

Question 3

Energy distribution: evolving the grid

Answer 3

• A key challenge at the energy distribution stage will be modernising the National Grid
• This was not mentioned in the 10-point plan
• But with policy pledges to increase electrification, notably through the ban of new petrol and diesel vehicles from 2030, we need to modernise the grid so it can cope with the increased demand from homes, heating systems and EVs
• This would involve incorporating flexible technology like interconnection, energy storage and demand-side response (DSR)
• Plus we need to roll out charging infrastructure for EVs across the UK
• Which again requires skilled workers and reliable supply chains
• Progress is being made in this area, for example the UK is a well-established centre for battery development and storage technology has advanced in recent years
• Plus the National Grid is working to create a network of EV charging points
• But government policy should support this activity
• e.g. by setting targets for the gigawatt capacity of interconnection, storage and DSR
• And expanding Ofgem’s core mandate to support net zero emissions delivery

Question 4

Energy usage: addressing inequality

Answer 4

• Lastly, a key challenge at the energy usage stage is addressing inequality
• One of the UN’s SGDs is ‘clean and affordable energy access for all’ by 2030
• Yet there are many families in the UK in fuel poverty
• A number which is likely to have grown due to unemployment from coronavirus
• Additionally, while the ban on polluting vehicles is a historic step for climate action, it will inevitably be coupled with restrictions on older vehicles
• As many families across the UK rely on their cars, the government needs a clear plan to protect those who cannot afford to upgrade their vehicle
• Poorer communities are also disproportionately affected by particulate air pollution
• Which has been linked to a range of illnesses from respiratory disease to depression
• Energy policy must therefore account for wealth disparity in order to achieve a just transition
• Local authorities would be best placed to meet the diverse needs of their residents
• Yet the decentralisation of power was not mentioned in the 10-point plan
• Even though this would empower communities and help to elicit the urgent social change needed for transition

Question 5

Summary

Answer 5

• So, in summary, the UK’s transition to a net zero energy system poses policy challenges throughout the energy life cycle
• And involves diverse actors from all sections of society
• Despite the considerable challenges, the UK has a historic expertise of research and innovation
• Plus we have a legally-binding target of net zero emissions by 2050
• So I think we have the capability and political will needed to achieve green transition in the time required
• Plus the fact public interest in climate breakdown has increased massively in recent years
• Which should hopefully spur on policy development