The UK’s energy security is increasingly influenced by international developments. With the decline in production from the North Sea, the UK became a net importer of gas in 2004 and of crude oil in 2005.
While importing energy is itself not a security concern, international energy markets face a number of key challenges such as increasing demand, finite resources, high investment needs, and geopolitical risks. There is also growing demand from emerging economies such as China
The UK’s overall energy security - access to the energy imports it needs, at stable and affordable prices - depends crucially on its international energy security.
In October 2008, Malcolm Wicks MP, Special Representative on International Energy Issues, was asked to carry out an independent review of international energy security and how developments internationally were likely to affect the UK’s energy security in the coming decades. His report was published on 5 August 2009 and complemented the UK Low Carbon Transition Plan, setting out an approach to energy security that will enable the UK to achieve its climate change objectives.
The Review focused on the changing UK and global energy picture, pointing out that even with ambitious climate change targets, the world is still likely to be reliant on coal, oil and gas to meet over two-thirds of its energy needs by 2030.
The Review considered how global trends affect the UK’s medium and long term energy security and having concluded that energy independence is unachievable, addresses the UK’s international strategy and how we interact with multilateral agencies. In terms of the UK’s bilateral relationships, it recommended that Norway, Qatar and Saudi Arabia should be prioritised as the most significant relationships for our energy security.
The Review also considered actions we could take within the UK’s borders to reduce import dependency. It recognised that energy efficiency must be the starting point of all action and welcomed the ambitious proposals set out in the UK Low Carbon Transition Plan, in particular the support for households to reduce their energy use. It made recommendations on maximising the UK Continental Shelf and considerations around gas storage.
In addition, if the UK electrifies much of its transport and heating, demand for electricity in 2050 could be 50 per cent higher than it is today, making it possible that electricity could account for half of our overall energy use; it is within this context that Malcolm Wicks’s Review recommended that Government considered setting a higher aspiration for nuclear power generation and keep under review whether further policy instruments may be necessary to direct further investment in capacity towards non-fossil fuel power generation, including wind, tidal and wave.
Government Response to the Review
The Government published its response to this Review on 1 April 2010, outlining its agreement on the need to encourage more energy efficiency and the adoption of low carbon technologies in order to move towards a low carbon economy. It also explains how the Government is acting to ensure we have access to energy imports that are affordable, secure and sustainable.