THE ENERGY CHALLENGE

"The Energy Challenge: Energy Review Report" was published by the DTI on 11 July this year.  It reviews the UK's progress against the four long-term goals of UK energy policy, which are:

·        To put the UK on a path to cut our carbon dioxide emissions by 60% by 2050, with "real progress" by 2020;

·        To maintain reliable energy supplies;

·        To promote competitive markets in the UK and beyond, helping to raise the rate of sustainable economic growth and to improve our productivity; and

·        To ensure that every home is adequately and affordably heated.

A White Paper is due to be published at the end of the year.

Energy efficiency is integral to the overall energy policy and will be brought about through technological improvements and behavioural change.  The Government promises to be an exemplar in the energy management of its own estate, with a target of carbon neutrality by 2012 and a 30% reduction in carbon emissions from Government buildings by 2020. 

A variety of tools to promote energy reducing behaviour include:

• the provision of better energy usage information by suppliers, including the development of "smart metering" and provision of real time information on consumption rates
• Home Information Packs, with home energy ratings
• Phasing out of the least efficient appliances, including light bulbs and white goods
• Reduced "stand by" consumption
• Increased energy efficiency in new build and on-site microgeneration
• Energy performance commitment for sectors not covered by the emissions trading scheme.

The report also recognises energy efficiency as key tool to tackle fuel poverty, with the number of vulnerable households on the increase again as energy prices rise. 

Consultation on Phase 3 of the Energy Efficiency Commitment will include consideration of microgeneration, smart metering and an obligation on suppliers to cap the growth of domestic sector carbon emissions.  

For local authorities, the Local Government White Paper due in the autumn will provide a real incentive to take action on climate change.  In Wales, this will build on the commitment made by Council Leaders and Chief Executives at the launch of the Welsh Declaration on Climate Change last April.  Energy efficiency is seen as critically important in the development and implementation of climate change action plans. 

Local authorities will be required to produce reports on energy measures, including the promotion of microgeneration technologies.  The review also states the Government intention to include the installation of microgeneration technologies in the General Permitted Development Order thus permitting the use of e.g. solar panels and domestic wind turbines without the need for individual planning permission.  Central Government is conducting a full review and the Welsh Assembly Government is involved.

Planning Policy Statement 22 expects planning authorities in England to include development plan policies which require a percentage of energy in new developments to come from on-site renewable generation.  Consultation on a further PPS on Climate Change is imminent.  The Welsh Assembly Government is mindful of developments in England and considering its position. 

The EU Emissions Trading Scheme remains the central element of the UK's emissions reduction policy framework, but requires strengthening and reinforcing to provide businesses with the long-term certainty they need.  More clarity is required on how caps are determined, and consideration should be given as to whether more sectors and more gases should be included in the EU ETS.  The UK Government will push for inclusion of aviation and possibly surface transport.

A mandatory emissions trading scheme to improve energy efficiency in the large commercial sector will also be among government consultation proposals and will consider whether local authorities should be included in such a scheme. 

The review also contains chapters on distributed energy, fossil fuels, electricity generation from renewables, cleaner coal and nuclear, transport and planning for large scale energy infrastrutcture.  For the full DTI report see The Energy Challenge