Department of Energy and Climate Change

Greg Barker: Low Carbon Business (Times article)

Wed, 1 Sep 2010 00:00:00 GMT

Thriving, innovating and high growth low carbon businesses will be the hallmark of a globally competitive, twenty-first century economy.

That’s why I believe that Britain’s success in emerging from recession will be judged, in part, by how successfully our country and economy moves away from its reliance on expensive and polluting fossil fuel towards a leaner, cleaner and more energy efficient model.

One of the new coalition Government's crucial challenges is to ensure that what emerges from the recession is a stronger economy; prepared for the challenges of the coming decades. An economy that is more broadly based and more resilient. We need to build a low-carbon economy that will drive economic recovery, deliver energy security and meet our ambitious climate-change targets.

Leaner and greener businesses across the country are therefore not just an exciting example of Great British innovation, they are a non-negotiable part of our long-term economic recovery.

The coalition may have an ambitious vision but the government also has a clear role to play to help create the right conditions which will allow these emerging industries that hold the promise of renewed growth and jobs to thrive and prosper.
We know that the green economy is a massive new business opportunity with tens of billions of pounds of investment heading for this sector and tens of thousands of green jobs up for grabs over the next decade. The shift to a low carbon economy represents a huge opportunity for UK exports too. The global market for low carbon goods and services is currently worth £3.2 trillion and is estimated to grow to over £4 trillion by 2015.

But the ‘green economy’ is not just about the ability to produce clean energy, it’s also about growing the market for products that consume less energy. It is increasingly clear energy efficiency will be a key benchmark of a globally competitive company in the new century.

Within the first one hundred days we have already taken action to fulfil the Prime Minister’s pledge for this to be the greenest government ever. We are working to create a Green Investment Bank to help boost low carbon investment, creating jobs and prosperity as the economy recovers.

In the recent Budget, we announced plans to consult on reforms to the Climate Change Levy to provide more certainty and support to the carbon price.
We are also pressing in Europe for an increase in the EU emissions reduction target from the current 20 per cent by 2020 to 30 per cent which will add confidence to low carbon investors, and pushing for further energy market reforms to promote low-carbon generation.

In the autumn we will introduce legislation for the Green Deal - a radical, game changing, way of improving energy efficiency in all properties affordable to all. By creating a new market opportunity for private sector finance we will provide another major opportunity for growth and employment with tens of thousands of jobs likely to be created in the home insulation market alone by 2020.

An ambitious plan to make the leap to a more efficient, low carbon economy is not without risk. But it represents Britain’s best opportunity to reassert global industrial leadership. Britain’s best companies, entrepreneurs, and skilled workers have never been afraid of change. Now is the time to lead the new industrial revolution and reap the benefits in the decades ahead.

Under sea CO2 storage licensing plans published (Press Release)

Fri, 27 Aug 2010 00:00:00 GMT

27 August 2010
DECC Press Notice: 2010/097

The Government today set out how it will license the storage of carbon dioxide under the sea bed, following responses to its recent consultation on the geological storage of CO2.

During the consultation, developers, industry bodies and other interested parties gave their view on potential plans for the broad structure of the proposed licensing system. This includes a proposal for having a license which would cover all phases of such developments.

Publishing the Government’s response to the consultation, Charles Hendry MP, Minister of State for Energy said:

“Carbon capture and storage is essential for mitigating climate change while maintaining energy security. There is enough potential under the North Sea to store more than 100 years worth of carbon dioxide emissions from the UK’s power fleet and we need to make the most of that.

“I am pleased that investors and experts who will take this exciting and crucial technology forward are happy with our approach, and that we can take our next steps without delay”.

DECC will now lay the regulations in Parliament in order to comply with European rules on the underground storage of carbon dioxide and these will come into effect on 1 October.

ENDS

Notes for editors

DECC received 29 responses to its consultation, launched in September 2009 - view Press Release.
The response published today deals with the points raised that were relevant to the core licensing provisions of the Directive. Where comments have been made about other aspects of the Directive (such as the third party access provisions) these have been brought to the attention of the relevant officials within Government. The full DECC response is available on the consultation page.
Carbon Capture and Storage (CCS) involves capturing carbon dioxide from power stations and transporting it to geological sites where it will remain safely stored and permanently isolated from the atmosphere. Development and deployment of CCS has the potential to reduce the CO2 emissions from power stations by around 90%, and make a significant contribution towards the UK and international climate change goals. The Government Response and the Regulations deal with the last part of the CCS process - the permanent geological storage of the carbon dioxide.
The Energy Act 2008 established a legislative basis for permitting the offshore storage of carbon dioxide. That framework is intended to ensure that there are clear, fit-for-purpose provisions setting out the requirements that must be met in licensing this activity, in order to encourage investment in offshore storage projects and minimise the potential impact on the environment.
European Union Directive (2009/31/EC) on geological storage was agreed in February 2009 and came into force on 25 June 2009. It has to be transposed into national law by 25 June 2011.
The Regulations will apply in all offshore areas within UK jurisdiction, except Scottish territorial waters. The Scottish Government will make separate regulations for Scottish territorial waters.

One North Sea - Joint ministerial statement on climate change and energy security (Press Release)

Wed, 25 Aug 2010 00:00:00 GMT

Reference: 2010/096
Date: 25 August 2010
Stavanger, Norway

On the occasion of the 2010 ONS Conference and Exhibition, an important industry event attracting several hundred Norwegian and British energy companies and investors;

Recognising the historical significance and important on-going role of offshore North Sea oil and gas in our bilateral trade relationship;

Identifying the growing potential for North Sea marine renewable energy projects to bring new investment and green job opportunities and to strengthen energy security in the region;

Acknowledging as a priority the need to apply new technology for the further development of North Sea petroleum resources in the most efficient, safe and environmentally responsible manner;

The Norwegian Minister for Petroleum and Energy and the British Minister of State for Energy agree the following priorities for UK and Norway cooperation:

Oil and Gas

Further develop the valuable relationship between Norway as gas supplier and the United Kingdom as an important gas consumer.
Recognising the continuing importance of natural gas in respect to energy security, consider deepening existing mechanisms for information sharing in case of emergency gas supply disruptions and encourage work to develop co-operation between system operators.
Pursue the development of fields close to the median line in the co-operative spirit laid down in agreements between our two countries.
Exchange information and confer on the investigations into the Gulf of Mexico oil spill and the appropriate regulatory and industry responses to the accident.
Exchange information and co-operate in promoting Enhanced Oil Recovery.

Renewables

Encourage the wind energy industry to exchange information on the development of offshore North Sea wind energy projects in order to learn from each other and lower costs for industry across the entire value chain.
Support and follow closely the work of National Grid and Statnett on the feasibility study for an interconnection between the UK and Norway.
Work together to encourage uptake of renewables and access to green energy in developing countries, including through REEEP and IRENA.

CCS

Take forward actions resulting from Phase 2 of the North Sea Basin Task force in a Ministerial Meeting together with Germany and Netherlands, by establishing a work programme for Phase 3, including recommendations from the UK Norway funded One North Sea study.
Work jointly with China to advise them in hosting the next Carbon Sequestration Leadership Forum Ministerial meeting in 2011 as joint hosts of the 2009 meeting.
Work together in the Clean Energy Ministerial CCUS Action Group to ensure that ambitious recommendations on how to overcome barriers to CCS deployment are presented to Ministers at the next Clean Energy Ministerial in Abu Dhabi in Spring 2011.
Coordinate bilateral initiatives to advance CCS development in developing countries, particularly to ensure delivery of Phase II of the EU-China Near Zero Emissions Coal project

FOR THE
MINISTRY OF PETROLEUM AND ENERGY OF THE KINGDOM OF NORWAY

FOR THE
DEPARTMENT OF ENERGY AND CLIMATE CHANGE OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

Department of Energy and Climate Change
3 Whitehall Place, London, SW1A 2AW
Press enquiries +44 (0)300 068 5226 Public enquiries +44 (0)300 060 4000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment)

Chris Huhne letter to the Guardian on an Emissions Performance Standard

Tue, 17 Aug 2010 00:00:00 GMT

17 August 2010

Dear Sir,

The idea that we are “watering down” our commitment is simply incorrect ("Dirtiest coal power plants win reprieve, 16 August"): this Government has committed to introducing an Emissions Performance Standard.

We are moving as quickly as possible and our consultation on a radical reform of the electricity market to deliver secure, affordable and low carbon energy, will be out within 6 months of election while a white paper will be published within a year.

The view that this might raise the possibility of new coal-fired power stations “slipping through the system” is ludicrous.

We consider planning applications thoroughly and will not allow any new coal power station to be built without being equipped with carbon capture and storage. While we will consult on the final details of an Emissions Performance Standard, I am clear that without CCS it would be impossible to meet such a standard.

However an Emissions Performance Standard on its own is not a magic bullet to decarbonise our economy. We have inherited an energy system that has suffered from a lack of clear direction and was not fit for purpose. That is why we will be implementing comprehensive electricity market reform to ensure that we can have a secure, low carbon, affordable electricity mix for decades to come.

Chris Huhne, Secretary of State for Energy and Climate Change

50 days for businesses to register with carbon cutting scheme (Press release)

Wed, 11 Aug 2010 00:00:00 GMT

Greg Barker calls on 1000s of businesses to register now and start saving money

With just 50 days to go until the end of registration for the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), Greg Barker is calling on the remaining organisations to register now.

Currently 1229 of the organisations required to register have done so.

Launched in April 2010 the CRC requires large public and private sector organisations to register with the Environment Agency by 30th September 2010.

Greg Barker, Energy and Climate Change Minister, said;
“This new Coalition Government wants to boost energy efficiency in business because we know that saving energy saves money. The CRC will encourage significant savings through greater energy efficiency and importantly will make carbon a boardroom issue for many large organisations.

My message to businesses today is to register now. I understand the original complexity of the scheme may have deterred some organisations and I want to hear suggestions as to how we can make the scheme simpler in the future.”

The London Fire Brigade is one organisation that has registered for the CRC.
Energy efficiency projects put in place by the Brigade have led to savings of £260,000 in 2009/10 and over £1 million since the Brigade started focusing on the need to be greener. Despite the organisation growing overall carbon emissions on their buildings are down by over 18% on 1990s levels.

Greg Barker visited Westminster Fire Station this month to meet fire fighters and see some of the measures recently installed to improve the station’s energy efficiency. Chairman and Leader of London Fire and Emergency Planning Authority Councillor Brian Coleman AM, FRSA, said:

“This isn’t just about protecting the environment, it makes excellent business sense. Last year we saved the taxpayer over a quarter of a million pounds by making our fire stations greener and reducing our energy bills.”

The CRC will help to ensure that organisations play their full role in contributing to the UK’s emissions reductions of at least 34% on 1990 levels by 2020 through improved energy efficiency.

ENDS

Huhne ends Local Authority power struggle (Press release)

Mon, 9 Aug 2010 00:00:00 GMT

Energy Secretary overturns law banning councils from selling renewable electricity
Full benefit of renewable incentives will spur local power revolution and bring in income to benefit local areas

Councils across Britain will from next week be allowed to sell renewable electricity to the grid and should assume their rightful place leading a local power revolution, Chris Huhne will say today in a letter to all local authorities.

At present only 0.01% of electricity in England is generated by local authority-owned renewables, despite the scope that exists to install projects on their land and buildings. In Germany the equivalent figure is 100 times higher.

In one of the first energy policy actions of the coalition government, a ban on local authorities selling renewable electricity will end on 18 August. This will open new sources of income including the full benefit of the feed in tariff which incentivises renewable electricity. It could mean up to £100 million a year in income for local authorities across England and Wales.

In advance of a visit to Woking Borough Council’s clean energy projects, the Energy and Climate Change Secretary said:

“For too long, Whitehall’s dogmatic reliance on ‘big’ energy has stood in the way of the vast potential role of local authorities in the UK’s green energy revolution.

“Forward thinking local authorities such as Woking in Surrey have been quietly getting on with it, but against the odds, their efforts frustrated by the law.

“I’ve taken the early step of overturning the ban on local authorities selling renewable electricity to the grid.

“I’ve today written to all councils urging them to take advantage and lead a local energy revolution.

“This is a vital step to making community renewable projects commercially viable, to bring in long-term income to benefit local areas, and to secure local acceptance for low carbon energy projects.”

Derby is front runner to cash in on new Government rules allowing councils to sell electricity (Press release)

Mon, 9 Aug 2010 00:00:00 GMT

Rules that will come into force next week will mean Derby council can start making cash from their green energy projects.

The laws, introduced by the Department of Energy and Climate Change (DECC) mean that from 18 August 2010 Local Authorities are no longer restricted from selling renewable electricity into the national or local network.

Derby already has schemes in the pipeline that will now benefit from this change including the first hydro electric plant at Longbridge.

Further hydro projects will also become commercially viable in Derby under the new laws as well as plans for onshore wind and solar photovoltaics.

Councillor Matthew Holmes, Cabinet Member for Planning and the Environment said:

“We are delighted at this news because for us it is the culmination of almost two years of lobbying to get the Government to make this change.

“Longbridge weir is the first of what we hope will be many larger scale Council led renewables projects in Derby and is an important step in reducing the Council and wider City emissions.

“Until this change was enacted the Council was faced with the challenge of what to do with surplus generation output when we were not allowed to sell it to the grid”

Secretary of State Chris Huhne said:

“For too long, Whitehall’s dogmatic reliance on ‘big’ energy has stood in the way of the vast potential role of local authorities in the UK’s green energy revolution.

“Forward thinking local authorities such as Derby have been quietly getting on with it, but against the odds, their efforts frustrated by the law.

“I’ve taken the early step of overturning the ban on local authorities selling renewable electricity to the grid.

“I’ve today written to all council chief execs urging them to take advantage and lead a local energy revolution.

Notes for editors:

1. The Longbridge hydro will feed its power in to the Council head quarters building and any surplus (night time) generation will be sold to the gird.
2. The peak power output will be 230kW falling to 40kW as river flows decrease. In times of flood the hydro would shut down completely.

3. The hydro is expected to generate 1,250,000kWh of electricity per year saving almost 700t of CO2 emissions.

4. The projected income from the project fully covers its financing costs so it has not diverted resources from other Council capital projects.

5. Work is expected to start on site early in 2011 with completion late summer 2011.

6. Other projects in the pipeline are:

7. Early work on 8 further hydro opportunities within the City – two of which may be fully self funding. Three other smaller sites may still be developed for demonstration purposes.

8. Planning applications are presently being considered for wind resource prediction masts at three locations in the City. If these go ahead they will provide the evidence to either justify wind generation at the sites or prove it is not viable.

9. Feasibility work is under way to establish a business case for installing large scale (50-100kWp) solar photovoltaic panels on two Council buildings.

10. A feasibility study investigating the viability of a City Centre combined heat and power backed district heating scheme is almost complete.
11. An investigation is under way to establish whether a second hand combined heat and power unit could economically be installed at Moorways swimming pool given its expected short remaining life.

12. The Council has been working with Partnership for Renewables to establish the feasibility of large scale wind generation on Council owned land. Following their initial report PfR have chosen not to take this forward with the Council because they have better business case opportunities with others in the public sector. The Council now intends to revisit this work to establish its ongoing options with a view to developing large scale wind generation without the involvement of PfR.

13. At present only 0.01% of electricity in England is generated by local authorities, despite the scope that exists to install projects on their land and buildings.

14. In one of the first actions of the coalition government, a ban on local authorities selling renewable electricity, dating back to 1976, will end on 18 August. This will open up the full benefit of renewable energy incentives such as the feed in tariff.

Shetland is front runner to cash in on new Government rules allowing councils to sell electricity (Press release)

Mon, 9 Aug 2010 00:00:00 GMT

Rules that will come into force next week will mean the Shetland Islands can start making cash from their green energy projects.

The laws, introduced by the Department of Energy and Climate Change (DECC) mean that from 18 August 2010 Local Authorities are no longer restricted from selling renewable electricity into the national or local network.

Shetland has much potential and is already developing several wind energy projects. The new legislation will mean more of projects like these become viable.

The renewable schemes could generate potential funds for energy efficiency and the new law, coupled with the Local Government in Scotland Act could allow the Council to tackle fuel poverty in rural areas.

Iris Hawkins, Chair of the Council’s Infrastructure Committee, said

“This change will potentially allow another funding source for renewable energy projects and could encourage Council or partnership projects that will see more of the revenue generated being retained by the Council for the further benefit of Shetland as a whole, including development of further energy efficiency initiatives.”

Secretary of State Chris Huhne said:

“For too long, Whitehall’s dogmatic reliance on ‘big’ energy has stood in the way of the vast potential role of local authorities in the UK’s green energy revolution.

“Forward thinking local authorities such as the Shetland Islands have been quietly getting on with it, but against the odds, their efforts frustrated by the law.

“I’ve taken the early step of overturning the ban on local authorities selling renewable electricity to the grid.

“I’ve today written to all council chief execs urging them to take advantage and lead a local energy revolution.

“This is a vital step to making community renewable projects commercially viable, to bring in long-term income to benefit local areas, and to secure local acceptance for low carbon energy projects.”

Notes for editors:

At present only 0.01% of electricity in England is generated by local authorities, despite the scope that exists to install projects on their land and buildings.

In one of the first actions of the coalition government, a ban on local authorities selling renewable electricity, dating back to 1976, will end on 18 August. This will open up the full benefit of renewable energy incentives such as the feed in tariff.

Hampshire to benefit from new rules on selling energy (Press release)

Mon, 9 Aug 2010 00:00:00 GMT

Rules due to come into force next week will mean that Hampshire County Council could soon start generating cash from their green energy projects.

Already seen as a leader in promoting and installing low carbon electricity projects, Hampshire has the potential for several more schemes that will benefit from the changes.

Introduced by the Department of Energy and Climate Change (DECC) the new rules mean that from 18 August 2010 local authorities are no longer restricted from selling renewable electricity into the national or local network.

Councillor Mel Kendal, Hampshire County Council’s Executive Member for Environment said:

“We welcome plans to allow local authorities to develop heat and electricity from all forms of renewable sources, and strongly support the power to sell the electricity we produce from all renewable forms of generation.

“Against a backdrop of increasing pressure to reduce carbon emissions whilst satisfying our need for energy, there will be a greater focus on the development and construction of new facilities. Having the ability to sell our own generated electricity - instead of through an energy supply company - would really help us to invest in cleaner and more efficient generation technologies. The benefits for Hampshire include ensuring energy security and reducing our vulnerability to future price increases.”

Secretary of State and MP for Eastleigh Chris Huhne said:

“For too long, Whitehall’s dogmatic reliance on ‘big’ energy has stood in the way of the vast potential role of local authorities in the UK’s green energy revolution.

“Forward thinking local authorities such as Hampshire have been quietly getting on with it, but against the odds, their efforts frustrated by the law.

“I’ve taken the early step of overturning the ban on local authorities selling renewable electricity to the grid.

“I’ve today written to all council chief execs urging them to take advantage and lead a local energy revolution.

Notes for editors:

1. Hampshire’s three energy from waste (ERFs) plants at Marchwood, Chineham and Portsmouth process residual (unrecyclable waste) and generate enough energy each year to power 50,000 homes.

2. http://www3.hants.gov.uk/waste-and-recycling/what-happens/nonrecyclable.htm

3. These ERFs have contributed to diverting more than 90% of Hampshire’s waste from landfill - more than any other county in the UK. In 2000/01, Hampshire diverted just 20% of waste from landfill.

4. http://www3.hants.gov.uk/communications/mediacentre/mediareleases.htm?newsid=356682

5. These facilities are part of Hampshire’s world-class integrated waste and resource management network which is the equal of many of the best examples from Europe. As a result, Hampshire recycles more than 40% of all household waste.

6. Hampshire is now working in partnership across the public sector to deliver major responses to climate change. The work includes looking at large scale renewable energy options, which will be made easier if local authorities are given the power to generate and sell energy.

7. At present only 0.01% of electricity in England is generated by local authorities, despite the scope that exists to install projects on their land and buildings.

8. In one of the first actions of the coalition government, a ban on local authorities selling renewable electricity, dating back to 1976, will end on 18 August. This will open up the full benefit of renewable energy incentives such as the feed in tariff.

Bristol is front runner to cash in on new Government rules allowing councils to sell electricity (Press release)

Mon, 9 Aug 2010 00:00:00 GMT

Rules that will come into force next week will mean Bristol council can start making cash from their green energy projects.

The laws, introduced by the Department of Energy and Climate Change (DECC) on 27 July 2010 mean that Local Authorities are no longer restricted from selling renewable electricity into the national or local network.

Bristol already has schemes in the pipeline that will now benefit from this change including two 2-3 megawatt wind turbines off the Severn Estuary, on council land, in the Avonmouth Industrial Area.

Bristol City Council Cabinet Member Gary Hopkins said:

"This is very welcome news and means that we can move ahead with our turbine project as planned. Wind turbines will be a boost to renewable energy production in the city, providing us with a localised energy supply.
But it also makes good financial sense, with any profits made earmarked to fund other carbon reduction projects in the city.

“We also have a whole series of small scale plans, including encouraging energy generation at schools which we can now progress as a result of this excellent announcement.

Secretary of State Chris Huhne said:

“For too long, Whitehall’s dogmatic reliance on ‘big’ energy has stood in the way of the vast potential role of local authorities in the UK’s green energy revolution.

“Forward thinking local authorities such as Bristol have been quietly getting on with it, but against the odds, their efforts frustrated by the law.
“I’ve taken the early step of overturning the ban on local authorities selling renewable electricity to the grid.

“I’ve today written to all council chief execs urging them to take advantage and lead a local energy revolution.

Notes for editors:

1. Bristol City Council has been investing in renewable energy for several years and has already invested about £3m in a portfolio of 14 biomass boilers generating renewable heat from the city's wood waste from parks, street trees and other sources. It is planning to invest up to £9m to install up to 6 MegaWatts of wind turbines on a former oil storage tank site on the shores of the Severn Estuary. The City Council has already secured planning permission after undertaking extensive environmental assessment to ensure the development would not affect the internationally important bird habitats of the estuary.

2. Bristol's wind turbines will be wholly owned by the City Council generating revenue for the council and helping them meet their carbon reduction commitment. It is expected that the turbines will generate a rate of return on investment of at least 15% and will meet about one fifth of the Council's total electricity needs, significantly reducing their carbon footprint.

3. At present only 0.01% of electricity in England is generated by local authorities, despite the scope that exists to install projects on their land and buildings.

4. In one of the first actions of the coalition government, a ban on local authorities selling renewable electricity, dating back to 1976, will end on 18 August. This will open up the full benefit of renewable energy incentives such as the feed in tariff.

Letter to the Daily Telegraph, from Chris Huhne, responding to their front page splash on the Annual Energy Statement

Thu, 5 Aug 2010 00:00:00 GMT

The Editor
Daily Telegraph

Sir,

Your front page report of the Government’s first annual energy statement rightly said that my department’s central estimate is that overall gas and electricity bills for households will rise by about 1 per cent – or £13 – in 2020, compared to what bills would otherwise be without our policies. This is made up of a big increase in the cost of energy combined with a big reduction in the use of energy due to our planned Green Deal for homes, smart meters and other energy saving measures. The cost of heating our homes is immensely wasteful because of poor insulation. For example, we use more energy to heat our homes than does Sweden, where winters are longer and colder.

However, your report does not make clear that this forecast is inevitably founded on a view of what is likely to happen to the costs of fossil fuels. It is based on an oil price in 2020 of $80 a barrel, which is barely higher than yesterday’s market price of $78 a barrel. If oil prices were instead to rise to $100 a barrel, as projected by the International Energy Agency, then the net effect would be that British households break even. If the oil price were to rise to $108 a barrel, as the United States administration forecasts, British households would save money on our bills. My department, indeed, calculates a high fossil fuel scenario of $150 a barrel in which average household bills would be 5 per cent lower due to our policies to encourage energy saving.

In such an uncertain world, where the costs and risks of extracting oil and gas are rising as we have seen in the Gulf of Mexico, oil and gas prices could not only be high but also very volatile, putting immense strain on household finances. Moreover, declining North Sea oil and gas means that we are steadily becoming more dependent on imports. The only sound energy policy for our nation is one that moves as rapidly as possible to close the looming energy gap between demand and supply both by saving wasteful demand and by boosting secure supply.

Yours sincerely,

Chris Huhne

Secretary of State for Energy and Climate Change
3 Whitehall Place SW1A 2AW

Letter from Chris Huhne in response to Financial Times leader dated 2 August 2010.

Thu, 5 Aug 2010 00:00:00 GMT

The Editor
Financial Times

Sir,

Your leading article (Monday 2nd August) suggests that the Government does not seem gripped by sufficient urgency in pushing nuclear power and that “green dogma threatens to saddle it with the wrong energy policies”. You are wrong on both counts.

I have said clearly – most recently in the annual energy statement – that nuclear power will play a important part in our future energy mix, and that the Government will continue with all the facilitating measures such as streamlined planning and the national policy statements. Moreover, nuclear power will benefit from the framework put in place to encourage low carbon electricity generation, such as the European Union’s emissions trading scheme and our own plans for a carbon price floor to provide greater investor certainty. What nuclear will not have – and this is common across all three parties in Britain – is public subsidy specific to the industry, because it is a mature technology unlike the infant industries of renewables. Given our policy framework, and the outlook for oil, gas and carbon prices, I am nevertheless confident that there will be new nuclear power as planned by 2018.

Given the uncertainties about costs in the future, however, any energy strategy must adopt a portfolio approach to different technologies. I would indeed like to increase the proportion of Britain’s energy that comes from renewables such as wind, wave, tidal, biomass and energy from waste, not least because it is currently the third lowest of all 27 members of the European Union. The proportion of our supply coming from renewables is also lower than in the United States.

In addition, we are planning the biggest programme of energy saving ever undertaken, as this is the cheapest way of closing the energy gap between demand and supply. This will also – in combination with nuclear and renewable electricity generation – provide us with an important cushion against the increasingly uncertain markets for oil and gas in the coming decades. Our objectives for low carbon emissions and energy security are entirely compatible.

Yours sincerely,

Chris Huhne MP
Secretary of State for Energy and Climate Change
3 Whitehall Place SW1A 2HD

Spotlight on Whitehall energy waste (Press Release)

Thu, 5 Aug 2010 00:00:00 GMT

05 August 2010
Press Release: 2010/088

Energy meters in all 18 Whitehall headquarters can now be tracked by the public online in real time, Greg Barker and Francis Maude announced today.

The real time display innovation has been fast tracked in just three months since the Prime Minister announced central government would cut emissions by 10% over the next year.

Going public about how much energy is being wasted is the first step to changing staff behaviour across the government estate.

Energy and Climate Change minister Greg Barker, who chairs the 10% government working group, said:

“For too long Whitehall has been guilty of preaching and not acting on efficiency. Slashing energy waste in government needs to happen fast, as much for tackling the public finances as for climate change. Shining a spotlight on what’s being used in real time will help staff change their behaviour and the public hold us to account. We said we’d be the greenest government ever and we mean it.”

Francis Maude, Minister for the Cabinet Office, who leads on the Government’s transparency agenda, said:

“The publication of the real time energy figures today is yet another demonstration of our commitment to transparency as a Government. As with other transparency initiatives we urge the public to really hold our feet to the fire and make sure that we drive down our energy use as much as possible.”

The introduction of the real time energy displays is just one element of work going on across Whitehall to reduce carbon emissions. Savings are being achieved through common sense measures as simple as reducing the use of cooling systems and turning off IT equipment when not in use. Real time energy meters help departments to identify when and where energy is being used and help them try and find ways to reduce that energy use.

On 20 July, Francis Maude and Greg Barker hosted a meeting at which they called upon the facilities management industry to help departments cut carbon emissions. At this event, the Government announced a new Energy Efficiency Code under which departments and facilities management contractors will work in partnership to cut carbon emissions and benefit from each other’s successful initiatives.

Notes for Editors:

All the departmental real time energy displays can be found on their website and at data.gov.uk.
Cabinet Office Press notice: “Government calls on contractors to help cut carbon emissions”
Government energy use. Final energy consumption in the service sector by sub-sector and end use 2008. Source: Department of Energy and Climate Change - secondary analysis of data from the Digest of UK Energy Statistics and Building

Baseline 2008-09: Energy use in the public sector estate

Carbon emissions 19.5 MtCO2e.
Energy spend £2.6bn

(*numbers do not add due to rounding)

Part of the public sector estate	% share of emissions	Use	%
Core departments	3%	Catering	7
Executive agencies	5%	Computing	6
Ministry of Defence	10%	Cooling and ventilation	2
Local authorities	20%	Hot water	8
State schools	21%	Heating	63
HE institutions	11%	Lighting	8
FE institutions	4%	Other	5
NHS bodies	23%	TOTAL	100
Police, fire and rescue services	4%
TOTAL	100%*

Department of Energy and Climate Change

Greg Barker: Low Carbon Business (Times article)

Under sea CO2 storage licensing plans published (Press Release)

Notes for editors

One North Sea - Joint ministerial statement on climate change and energy security (Press Release)

Oil and Gas

Renewables

CCS

Chris Huhne letter to the Guardian on an Emissions Performance Standard

50 days for businesses to register with carbon cutting scheme (Press release)

Huhne ends Local Authority power struggle (Press release)

Derby is front runner to cash in on new Government rules allowing councils to sell electricity (Press release)

Notes for editors:

Shetland is front runner to cash in on new Government rules allowing councils to sell electricity (Press release)

Notes for editors:

Hampshire to benefit from new rules on selling energy (Press release)

Notes for editors:

Bristol is front runner to cash in on new Government rules allowing councils to sell electricity (Press release)

Notes for editors:

Letter to the Daily Telegraph, from Chris Huhne, responding to their front page splash on the Annual Energy Statement

Letter from Chris Huhne in response to Financial Times leader dated 2 August 2010.

Spotlight on Whitehall energy waste (Press Release)

Notes for Editors:

Baseline 2008-09: Energy use in the public sector estate

See also: