Bottom Up in a Top Down World - Lessons from Wales. - COST / JRC Joint Workshop Brussels - February Jon Oates

Transcription

1 Bottom Up in a Top Down World - Lessons from Wales - COST / JRC Joint Workshop Brussels - February Jon Oates

2 UK Energy Policy The Role of Wales Wales A devolved nation, but not really in energy terms. UK Government has responsibility for: Energy policy; Energy security; Planning decisions on >50 MW generation schemes; Fiscal regimes to encourage behaviour; Policy and regulation of transmission and distribution networks; Regulation of supply So energy policy rests with UK Government and top down dominates driven by energy security and costs (not necessarily value for money).

3 UK Energy Policy The Role of Wales In Wales we have added to the Top Down approach

4 The Creation of a Top Down World Electricity - The British Electricity Authority (BEA) was established in 1948, taking over the operations of over 600 small power companies, municipal authority electricity department and the Central Electricity Generating Board. Driven by the need to keep the lights on - energy security. Gas The National Transmission system was created to cater for North Sea Gas in the 1970 s and 1980 s. Before this, gas came locally from municipal gasworks. Driven by a need to exploit North Sea gas. Energy security. Privatisation

5 Some of the Results of Top Down Subsidy regimes difficult to manage and create significant investor complexity. Electricity capacity margins are decreasing with increasingly expensive measures to address. An increasingly turbulent world and declining energy security is driving certain behaviours shale gas. Large scale renewables whilst generally popular, polarise opinion. Privatisation of electricity and gas markets in the UK is increasingly seen as failing consumers.

6 Energy Wales : A Low Carbon Transition Energy Wales is Welsh Government s sustainable strategy for our transition to a low carbon economy. Launched by the First Minister in March 2012: Energy is a defining issue for our generation and an issue on which, as a Government, I am determined that Wales will lead. As a nation, we are rich in energy resources and this provides a tremendous opportunity to fuel our drive for a fairer and more prosperous Wales and to achieve a better quality of life for our own and future generations. First Minister - March 2012

7 The Search for Benefits Permeating much of the analysis in the report are assumptions reflecting that major decisions on capital investment are made elsewhere, developers are typically based elsewhere, managing contractors are based elsewhere, and then the risks and rewards of new infrastructure development are in large measure internalised elsewhere. Munday, M. et al (2013). Employment effects associated with regional electricity generation [online]. Available at:

8 A Challenge to Top Down Wales Renewable Statistics 2014 Since 2012 total capacity for low carbon energy in Wales has grown by over 70 percent. Low carbon heat capacity has more than tripling since ,303 low carbon energy projects recorded across Wales Only 41 projects above 5MW (2/3 of the renewable capacity) There are now over 120 community energy projects in Wales. 57 percent of consumption met by low carbon energy. 38 percent of consumption met by renewable energy.

9 A Challenge to Top Down Wales Renewable Statistics Growth of low carbon energy Capacity (MW) Number of projects Electrical capacity (MWe) Heat capacity (MWth) Number of projects 0

10 A Challenge to the Status Quo Wales Renewable Statistics 2014

11 Driver for the Bottom Up Network Constraint Source: Scottish Power Energy Networks - Indicative Map of Connection Opportunities [Online] Available at:

12 What are we Trying to do in Wales? Focusing on enabling Welsh organisations and in particular, public bodies to deliver increaset renewables and energy efficiency: Support Finance Tools Aims for a zero carbon Welsh public sector. Better equipped and connected homeowners. Preparing for the future by demonstrating Smart Living.

13 An Example Bridgend County Borough Some Details Population 140,000 Mixed economic landscape Some signficant socio-economic issues

14 An Example Bridgend County Borough Energy Aims Economic Growth/Job Creation Opportunity Reduced Fuel Poverty Improved Health and Wellbeing Upskilling and Training Opportunities Energy Security for County Borough Focus upon Low Carbon Agenda

15 Bridgend Heat Plans Town Centre Scheme Up to 10,000 houses Two Hospitals Council Building Leisure Centre Police Headquarters Valley Scheme 2000 houses Utilising abandoned mine water as the Heat source

16 Bridgend Building in Confidence Partnership SSH Programme Partners Welsh Government Academia Further Education Sector Housing Sector Energy Infrastructure Sector Private Sector : Non-SME s and Contractors Building a Track Record Wide ranging housing and council building retrofit Regeneration Projects Bridgend Town Centre Porthcawl Harbour 21 st Century Schools Programme Aware of being a trusted brand

17 To conclude.