Conference Overview
Frameworks for a Low Carbon Future: Key Building Blocks for Success
Falmouth 23 - 24 May 2010
The conference brings together key decision makers, stakeholders, academics and other people interested in building a low carbon future. It encourages informal, constructive discussions and networking between delegates and speakers in both plenary and parallel sessions.
Parallel sessions will consist of short presentations from speakers, followed by discussion of the issues identified and other related areas.
A Gas-as-a-Transition-Fuel versus an Electric-Centric Future?
An increasingly electric future is often talked about as if it is a certainty, rather than just one of many pathways to a sustainable and secure future. An electric-centric future sees individuals moving to electric vehicles and altering their domestic heating arrangements for water and space from gas to electricity. As more low carbon generation comes on line, operational difficulties arise between inflexible and variable power. On the other hand, gas as a transition fuel offers benefits in being cheap and easy to build in the short term, while being able to transition to a flexible balancer as more variable power comes on to the system and is complementary to the demand side and decentralisation. This latter future, however, depends on reasonably priced and environmentally acceptable, available gas. Both futures present security concerns, albeit different ones.
Energy Market Reform and Industry Structure
The EMR proposals have potentially altered the revenue and cost streams for all technologies and their owners. At the same time, reviews are being undertaken on various other areas of the energy system, for example the transmission network, will have further impact on the costs and viability of different technologies. The institutional framework of the industry is also under review, for example the Review of Ofgem. The retail market and distribution networks, however, seem to have avoided any major discussion for change and yet both appear to offer potential benefits if restructured, and anyway will be impacted by EMR outcomes.
New Institutions
Does the UK have appropriate institutions in place to ensure the meeting of our carbon budgets? The meeting of our social goals? To implement the EMR proposals? To encourage innovation? To ensure energy security – whether technologically or geo-politically? To connect individuals and communities to what the various energy futures means for them?
New Practices
As the energy system moves towards transforming into a sustainable and secure energy system, new practices may evolve. One that it is being encouraged is a move to a services orientated, more energy efficient future via the Green Deal. Energy efficiency is an area which has been the recipient of billions of pounds of support. Will the Green Deal make a fundamental difference? And will it encourage new practices? Energy transformation should provide new opportunities, possibly for new entrants. What sort of practices are developing at the moment, here in GB but also elsewhere in the world? How easy will it be for these sort of companies in the GB energy system?
Timing, Decision Making and Infrastructure
The energy system is made up of long-lived assets, which can also take a long time to build. Certain decisions, which are complex and take a long time to get in place [for example the roll-out of smart meters] can unlock other opportunities. Once built or installed, different types of infrastructure can lock-in and lock-out technologies or business practices and models, potentially channelling the energy system. All create costs and require choices. Given uncertainty within energy policy, a clearer options approach may provide benefits. Is this the case or pie in the sky? If it has value, how could it be further inputted to the debate?
Big Society and Localism
The Government has major policy areas around Big Society and Localism. Local area plans for renewable energy have been scrapped. The national planning commission has increased powers over large infrastructure projects and the recent budget has introduced the idea of local authority auctions, whereby local authorities can gain from planning initiatives. This appears to be an area of mixed messages. Quite what this means for people, communities, society at large and energy provision needs to be clarified.
Europe
European Directives are a central part of Britain's energy policy landscape. While always important, discussions over the 'Third Package' are establishing rules for 'market coupling', including the basic rules for network access and charging. In theory, Britain should have implemented them by 2014, in which case it is very important that EMR, Project Transmit and so on fits with these legal requirements. The current EU Directive on Renewable Energy is projected to reduce carbon dioxide across Europe by 20% by 2020. As a result, further targets for RE and energy demand reduction are being discussed in order that the EU's target of a 60% cut in carbon dioxide by 2050 can be achieved. To what degree is GB connecting to these discussions?
