Sussex Energy Group SPRU - Science and Technology Policy Research Climate change mitigation and transforming the UK energy system Jim Watson Director, Sussex Energy Group West Sussex Environment and Climate Change Board Launch 23 rd September 2010

Sussex Energy Group SPRU - Science and Technology Policy Research Overview UK climate change targets and plans The 2020 renewables target and progress so far Current policies to meet the target What more might be required?

Sussex Energy Group SPRU - Science and Technology Policy Research The low carbon transition plan Emissions reductions to 2050 Source: Committee on Climate Change

Sussex Energy Group SPRU - Science and Technology Policy Research The low carbon transition plan July 2009 How UK could achieve 34% emissions reduction by 2020 Key focus on power sector: 40% low carbon electricity by 2020 £3.2bn for home energy efficiency ; community energy funding Renewables target agreed with EU: 15% of energy by 2020 New policies to meet it (e.g. feed in tariffs and support for renewable heat)

Sussex Energy Group SPRU - Science and Technology Policy Research The low carbon transition plan Power generation today and 2020

Sussex Energy Group SPRU - Science and Technology Policy Research The 2020 renewables target Renewables strategy (Jul 2009)

Sussex Energy Group SPRU - Science and Technology Policy Research The 2020 renewables target Progress so far (electricity) 7% of electricity generation in 2009 Target implies around 30% by 2020 But only 3% of overall energy

Sussex Energy Group SPRU - Science and Technology Policy Research The new policy context “The UK’s ambitions are clear. We are determined to be the greenest government yet. We are dedicated to achieving a comprehensive international deal on climate change. And we are committed to reducing the UK’s carbon emissions by 80% by 2050” Chris Huhne, September 2010

Sussex Energy Group SPRU - Science and Technology Policy Research The new policy context “When I go up and down the country and speak to council leaders, social entrepreneurs and local activists … I ask them: ‘what powers do you want? What more do you want to be able to do?’ It’s by asking those questions that you arrive at so many of this coalition’s most transformative ideas … … Powers to generate their own energy and have beat meetings to hold police to account.” David Cameron, July 2009

Sussex Energy Group SPRU - Science and Technology Policy Research Meeting the target Some current policies Comprehensive Spending Review means many planned policies are under threat Reforms to renewable energy policy: feed in tariffs for small (and perhaps larger?) plants Local Authorities allowed to sell electricity to suppliers Renewable heat incentive from April 2011? Incentives for investment in grids (national and local) Fund for small-scale community energy projects Planning frameworks being reformed

Sussex Energy Group SPRU - Science and Technology Policy Research Meeting the target Lock-in and scale GeographyTechnologyInstitutionsRegulations Centralised InternationalIEA EU emissions trading scheme National Centralised gas / power grids Energy market rules Decentralised Regional / City City heat and power plant London CC Agency Town / Neighbourhood Merton rule BuildingMicro- generation Household

Sussex Energy Group SPRU - Science and Technology Policy Research Meeting the target Lock-in and scale GeographyTechnologyInstitutionsRegulations Centralised InternationalIEA EU emissions trading scheme National Centralised gas / power grids Energy market rules Decentralised Regional / City City heat and power plant London CC Agency Town / Neighbourhood Merton rule BuildingMicro- generation Household

Sussex Energy Group SPRU - Science and Technology Policy Research Meeting the target District heating infrastructure Renewable Heat Incentive and £25m for district heating schemes vulnerable to CSR Need up to date heat maps maintained by Local Authorities Need to reduce risk of investment: –LA power to compel connection of new (and existing?) developments –Access to new forms of LA finance?

Sussex Energy Group SPRU - Science and Technology Policy Research Meeting the target Smarter distribution infrastructure Some research funding (£6m) Ofgem’s low carbon network fund will provide up to £500m over 5 years, paid for through bills Bids to join up smart meters, electric vehicle trials etc. (e.g. in Milton Keynes) Key role for such experiments to learn about what works Smart meters important: faster roll out by 2017

Sussex Energy Group SPRU - Science and Technology Policy Research Meeting the target Incentives for innovation Previous government signalled more intervention to secure benefits for business and jobs Some actions (e.g. Nissan ‘Leaf’ electric vehicle production; Clipper Wind offshore wind factory), but vulnerable to cuts Three recommendations: –A clear framework for setting priorities. Technologies not specific variants or firms (cf Carbon Trust) –Portfolio that balances near term and next generation renewables to go beyond 2020 target –Regular, independent evaluation programme which feeds back into reviews of priorities. Criteria for success and failure.

Sussex Energy Group SPRU - Science and Technology Policy Research Thanks