Technology and policy Delivering the UK s future energy system

Transcription

1 Technology and policy Delivering the UK s future energy system David Clarke Chief Executive 2012 Energy Technologies Institute LLP The information in this document is the property of Energy Technologies Institute LLP and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Energy Technologies Institute LLP This information Energy is given Technologies in good faith based Institute upon the latest LLP information - Subject available to to notes Energy on Technologies page 1 Institute LLP, no warranty or representation is given concerning such information, which must not page 1 be taken as establishing any contractual or other commitment binding upon Energy Technologies Institute LLP or any of its subsidiary or associated companies.

2 System level strategic planning Technology development and demonstration Informs effective decision making Underpins national energy systems policy Develops capacity, technology and engineering Increases investor confidence 2012 Energy Technologies Institute LLP The information in this document is the property of Energy Technologies Institute LLP and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Energy Technologies Institute LLP This information Energy is given Technologies in good faith based Institute upon the latest LLP information - Subject available to to notes Energy on Technologies page 1 Institute LLP, no warranty or representation is given concerning such information, which must not page 2 be taken as establishing any contractual or other commitment binding upon Energy Technologies Institute LLP or any of its subsidiary or associated companies.

3 Making energy policy work for the UK Capacity Skills, training, infrastructure, science, R+D Energy power, heat, transport, infrastructure Wealth creation gross value added, direct employment, secondary jobs and impacts, exports, inward investment 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 3

4 What might the UK energy system look like in Decided by global developments not just UK events, decisions and policy UK and global economy Industry and technology developments UK demand changes scale and segmentation Global socio-political events International market confidence... The future is uncertain and we need an energy system design that allows for this 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 4

5 ESME is a design tool... Integrating power, heat, transport and infrastructure 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 5

6 Effective national policy needs to focus on things which will move the dial Focus on the big levers is crucial to maximise impact of scare resources - money, skills, supply-base and time Investment in innovation is critical to reduce costs Engagement of industry and consumers is essential ETI view immediate development priorities for 2050 as... Efficiency (technology, consumer demand, storage) Nuclear CCS Bio energy Offshore wind Gas for transport 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 6

7 2050 abatement cost is <1% GDP Biomass and CCS are key levers, nuclear is part of the base platform 2010(Mean)/year Total system cost 294bn Abatement cost 26bn (0.7% GDP) Average cost Marginal cost 51/tCO2 360/tCO2 No biomass No CCS No nuclear + 44bn + 42bn + 4bn No tech devt* + 106bn *Assumes current technology cost/performance 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 7

8 2050 CO 2 target is unaffordable with today s technologies 2050 marginal UK system cost 2010 /Te CO Current technology capability 0% 20% 40% 60% 80% 100% UK Committee UK Energy GHG Reduction (including aviation and shipping) on Climate Change target 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 8

9 2050 abatement costs can be acceptable if... we develop and apply the optimum technologies 2050 marginal UK system cost 2010 /Te CO % 20% 40% 60% 80% 100% UK Committee UK Energy GHG Reduction (including aviation and shipping) Current technology capability on Climate Change target Expected improvement in technology capability Successful technology selection, innovation and development ETI projects focus on reducing these levels further 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 9

10 UK energy policy Will it deliver? The assured availability of affordable, sustainable energy is a critical element in delivering long-term economic development and growth UK policy will deliver a system that combines these 3 elements but... Will it meet the targets? Will it be the optimum solution? Success will need industry and finance to be persuaded to invest in... widespread innovation major, long-term infrastructure developments (in an uncertain market) 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 10

11 UK Energy policy Must support and be supported by the bigger picture Must operate in a global market Capacity Skills, training, infrastructure, science, R+D Energy power, heat, transport, infrastructure Wealth creation gross value added, direct employment, secondary jobs and impacts, exports, inward investment 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 11

12 UK Energy policy Must support and be supported by the bigger picture Must operate in a global market Capacity Skills, training, infrastructure, science, R+D Energy Stable regulation Known liabilities Wealth creation gross value added, direct employment, secondary jobs and impacts, exports, inward investment power, heat, transport, infrastructure Proven value chains 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 12

13 Delivering low carbon energy technologies Supporting economic growth by... Informing policy Building partnerships Delivering innovation Sharing risk Creating affordability Energy Technologies Institute LLP The information in this document is the property of Energy Technologies Institute LLP and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Energy Technologies Institute LLP This information Energy is given Technologies in good faith based Institute upon the latest LLP information - Subject available to to notes Energy on Technologies page 1 Institute LLP, no warranty or representation is given concerning such information, which must not page 13 be taken as establishing any contractual or other commitment binding upon Energy Technologies Institute LLP or any of its subsidiary or associated companies.

14 Energy Technologies Institute Holywell Building Holywell Park Loughborough UK LE11 3UZ For all general enquiries telephone the ETI on +44 (0) For more information about the ETI visit For the latest ETI news and announcements The ETI can also be followed on Twitter at twitter.com/the_eti 2012 Energy Technologies Institute LLP - Subject to notes on page 1 page 14