

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.
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."
In
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'.
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'.
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.