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Energy Review Headline

The wide-ranging Energy Review says that the starting point is to save energy. The report provides a government undertaking to make its estate carbon neutral by 2012, and to phase out products such as inefficient lightbulbs and white goods from the UK market altogether. New buildings will be more energy efficient, the 'standby' waste issue is going to be addressed (it is estimated that standby mode on electrical goods wastes some 7% of UK electricity annually) and all energy consumers, household, business and government, will be provided with much higher standards of information in order that more informed decisions can be made.

Nuclear Protester The key issue of this much-anticipated review was whether or not the Government was going to come out for or against the nuclear power option. The nation was awaiting a clear decision and the review has not delivered this. Instead, it refers to replacing nuclear power stations, but places the entire burden on the private sector - including responsibility for eventual decomissioning. Its function will be to 'address potential barriers to new nuclear build'. As The Independent's Jeremy Warner observed, "This is in fact the most important question of the lot, for even if planning constraints are eased and a deep repository for waste is approved, it remains highly unlikely that the private sector would finance such a high-risk form of investment without Government intervention."

Domestic Wind TurbineIn the transport arena, perhaps the most significant undertaking is to press the EU into including both road and air transport in the Emissions Trading Scheme, and also to press also for tough new targets on car fuel efficiency. Encouragement of low carbon and biofuels is to be stepped up, and the report hopes that there 'may be more cost-effective opportunities to save carbon in the longer term as new techologies are developed and applied'.

The report comes out heavily in favour of 'distributed energy' which could potentially deliver cleaner energy at the point of use whilst adding to the nation's diversity of supply: perhaps the core theme of the report. It points out that currently, less than 0.5% of electricity comes from microgeneration and about 7% from combined heat and power (CHP) sources. A relaxation of planning permission restraints was promised.

The report proposes a number of measures to 'improve the market framework for investment', including a 'strong commitment' to carbon pricing in the UK, and 'a clear statement of our position on nuclear build' - indeed, the very statement the nation was expecting today. 'Renewable energy is an integral part of the Government's strategy for tackling climate change' says the report. In one of its most significant undertakings, it pledges to increase the Renewables Obligation from 15% to 20% by 2020. On both macrogeneration and renewables, there are strong references to the easing of existing planning procedures to 'help reduce planning delays'.

SECURITY OF SUPPLY

The review discusses a 'strong international agenda' to promote more open and competitive markets, and a market framework in the UK that encourages investment and diversity of supply. It points out that last winter, coal-fired generation met about half of UK demand due to the escalation in gas prices. 'The future for coal must be to become cleaner'. Future reliance on gas supplies from unstable regions has led the review to conclude that storage capacity must be significantly increased, and the EU gas market needs to be liberalised. The government has asked for an EU investigation into price distortions and/or 'abusive behaviour'. Again, the review stresses greater information, improved planning and consultation on the 'framework'.

Energy Challenge Cover Overall, the review really does seem to contain 'something for everyone, but not really enough for anyone'. Proponents of the nuclear option can see a green light, however dim, whilst opponents will take some comfort in the absence of an all-out 'go nuclear to reduce CO2' programme. Very few disagree with the concept of microgeneration, and proponents will surely be encouraged by the sheer attention given to this area and the expressed intention to remove archaic and obstructive planning rules. The wind power lobby will be pleased at the commitment to offshore generation whilst opponents will be pleased - for the precisely same reason.

The tidal power issue, and specifically the Severn Barrage project, was similarly treated. The project has ecologists and the RSPB in near apoplexy at the prospect of wholesale habitat destruction, with many others pointing out the overall ecological value of the ability to produce 5% of the nation's supply. Instead of a clear decision, the review promised to 'explore the issues arising on the tidal resources in the UK'. Again, both proponents and opponents are drawing some encouragement from that, whilst privately wondering what it will actually mean.

On what is arguably the most popularly contentious issue of all - road vehicles - the review says hardly anything at all, and certainly nothing that will cause too much upset or consternation.

"Overall, the review really does seem to contain something for everyone, but not really enough for anyone"




"The wind power lobby will be pleased at the commitment to offshore generation whilst opponents will also be pleased - for the precisely same reason".