UK energy policy – Stuck in ideological limbo?

Energy policy in the UK has undergone a paradigm change over recent decades – from the free market stance of the 1990s to the more interventionist measures of the 21st century. However, the two approaches have not been reconciled – even as the Government intervenes, it reaffirms its goal of creating more competitive markets. The contradictions are most apparent with electricity, which has been the main focus of intervention to date, in line with decarbonisation strategy. Investment is dependent on Government support, which changes in response to circumstances, creating uncertainty and undermining the basis of market operation – so leading to the need for more intervention. The future for other sources – natural gas, nuclear power and carbon capture and storage in particular – remains unclear. The Government risks getting the worst of both worlds – without the coordination and direction which could come from a centralised approach or the efficiencies and innovation which might emerge from a more consistent market based policy. Unless a fuller policy statement, expected later this year, can clarify matters, UK energy policy will not be fit for purpose and will fail to meet its key goals, of economic effectiveness, environmental protection and energy security.     

Conditions of energy efficient behaviour��a comparative study between Sweden and the UK

The main aim of this study is to compare how specific conditions in certain countries (in this case, the UK and Sweden) can stimulate or oblige householders to be more energy efficient, or can obstruct this. European goals for energy and emission reductions now constitute the main frame for long-term energy policy changes, but national governments develop and implement policy in contrasting ways and in different contexts. Important aspects are: geographical context, degree of liberalisation of electricity and gas industry, structure and composition of energy systems, metering and billing infrastructure, and the nature of electrical load problems. The following conditions are described and compared in this paper: (1) regulation to control residential consumption and emissions; (2) energy systems; (3) electricity pricing; (4) the role of utilities and other agents in residential demand reduction; (5) quality of feedback on energy use to the householder; and (6) customer behaviour and perceptions of energy use. The analysis is carried out with a view to ecological, economic and social aspects of energy systems. The comparison shows the significance of factors that are sometimes overlooked when considering the potential for demand reduction and load management, and produces some lessons and questions that are widely applicable.     

What role for microgeneration in a shift to a low carbon domestic energy sector in the UK?

Domestic energy use accounts for more than a quarter of CO₂ emissions in the UK. Traditional approaches to energy reduction look at direct emissions savings, and recommend insulation and efficiency as more cost-effective than microgeneration. However, microgeneration has indirect, ‘soft’ benefits and could play a significant role in emissions reduction. Current uptake of microgeneration in the UK is low, with various barriers—economic, technical, cultural, behavioural and institutional—both to uptake and to maximising energy and emissions savings once installed. Subsidies and spreading information alone do not guarantee maximising uptake, and even if successful, this is not enough to maximise savings. The industry focuses on maximising sales, with no incentives to ensure best installations and use; householders do not have access to the best information, and user behaviour does not maximise energy and emission savings. This is related to a broader state of socio-technical ‘lock-in’ in domestic energy use; there’s a lack of connection between personal behaviour and energy consumption, let alone global climate change. This suggests that a major cultural–behavioural shift is needed to reduce energy/emissions in the home. Transition theory and strategic niche management provide insights into possible systemic change and a suitable framework for future policies, such as supporting a variety of radically innovative niches, both technological and social. Microgeneration, properly employed, has the potential to play a part in such a transition by increasing awareness and energy literacy and empowering people to seriously engage in energy debates as producers, as well as consumers, of energy. This deeper understanding and heightened responsibility are crucial in a shift toward bottom-up emission-reducing behaviour change and better acceptance of top-down energy-saving policy measures, as part of a new domestic energy paradigm. The implications for policy are that, as well as supporting the technologies, it needs to support existing niches and to develop new niche experiments. Policy needs to consider how to promote empowerment and responsibility and support or even develop new energy sector models; this will involve a range of stakeholders and multiple governance levels, not just national incentive schemes.     

The role of coal in energy policy and sustainable development of Turkey: Is it compatible to the EU energy policy?

This paper aims to assess the current and future role of coal in energy strategy of Turkey, and evaluates the compatibility of policies to the EU energy policy and strategy. Coal is regarded as the most important indigenous energy source in Turkey together with hydropower to strengthen the supply security of the country. Turkish government set targets to fully utilize coal reserves of the country in next decades. However, the country is also in the process of becoming an EU Member State, hence, it is expected that the energy policies have to comply with the EU. Moreover, Turkey ratified Kyoto Protocol in 2009, thus the country should limit CO₂ emission together with other greenhouse gases. The probable obstacles that Turkey may face due to the utilization of coal were determined as CO₂ emissions, lack of technology and application in Carbon Capture and Storage (CCS) and health and safety issues. It is concluded that coal is a very important domestic energy source for Turkey but new policies have to be developed and adopted immediately, and more realistic targets for the country should be set accordingly.     

Agriculture's contribution to the renewable energy sector: Policy and economics – Do they add up?

This paper reviews on-farm renewable energy (RE) production and the associated feed-in tariff (FIT) policies in Germany, USA, Canada, Denmark and the Netherlands and the impact these policies have on Renewable energy implementation with particular focus on agricultural lands. A recent FIT policy implemented in Nova Scotia is examined and used as a case study to assess the potential affect these policies might be expected to have on RE implementation within the province. Several scenarios are developed based on the existing policy structure to provide a critical review of the policy and to identify potential modifications that might provide an increase in the implementation of RE.     

What might be the energy demand and energy mix to reconcile the world’s pursuit of welfare and happiness with the necessity to preserve the integrity of the biosphere?

In today’s global energy mix with a share of 80% fossil energy, the growth of the world population and energy demand will lead to a conflict between stable ecosystems and global welfare. The inspection of social indexes of welfare and happiness leads to the following energy plan: high-income countries with a current annual energy demand of up to 8 tonnes of oil equivalent per capita (toe pc) have to reduce their demand to 2 toe pc, which should be sufficient without cutback in welfare. Vice versa, low-income countries increase their demand until 2 toe pc are reached. Compared to today this scenario (2 toe pc, 9 billion people by 2050) leads to an increase of the ecological footprint from today 1.3 to 2 planet Earths in today’s technologies. The only solution to provide 2 toe pc without damaging the biosphere is a reduction of the CO₂ footprint with a current share of 50%. A complete shift from fossil fuels to renewables would half the ecological footprint as needed for the desired footprint of one planet Earth. To reach this goal, one or more forms of solar power and/or nuclear power are needed, as the potential of non-solar renewables is too small.     

Seasonal relationship of peak demand and energy impacts of energy efficiency measures—a review of evidence in the electric energy efficiency programmes

While energy efficiency programmes traditionally focus on energy savings, there is also a policy interest in their impact on system peak demand. Examples include demand-side management, integrated resource planning and recent developments to integrate energy efficiency into forward capacity markets. However, there is only limited research on the relationship between peak demand impacts and overall energy savings from efficiency measures, although this relationship can have important bearings on efficiency programmes. This paper reviews utility efficiency programmes in nine jurisdictions in North America and analyses how the seasonal peak-energy relationship differs between commercial and industrial (C&I) and residential sectors, among efficiency measures. In terms of the seasonal difference in peak demand impacts, these programmes show that residential lighting and residential water heating can deliver greater peak savings in weekday early evening winter peak periods. By contrast, C&I lighting and residential appliances make higher peak savings in weekday afternoon summer peak periods. A seasonal difference is more significant in lighting, especially residential lighting, than other measures. The evidence from North America also suggests that space cooling in both sectors and C&I lighting may well make greater peak savings relative to non-peak impacts than other measures during summer peak periods, while in winter peak periods, residential lighting can achieve greater peak savings relative to non-peak impacts. This review highlights the significance of regional electricity use patterns along with climatic and regulatory conditions and indicates how further research may contribute to appropriate electricity demand reduction programme design and monitoring regimes in particular regions.     

Relationship between the total energy efficiency of a sodium–sulfur battery system and the heat dissipation of the battery case

The relationship between the total energy efficiency of an Na/S battery system and the heat dissipation through its battery case, was investigated. The total energy efficiency was heavily influenced by the heat dissipation of the battery case, and little influenced by the energy efficiency of its cells. In order to obtain a higher total energy efficiency, it is essential to design the battery case with less heat dissipation.     

How to measure the overall energy savings linked to policies and energy services at the national level?

The Energy End-use Efficiency and Energy Services Directive (ESD) of the European Union requires the member states to define and attain an overall target of at least 9% annual energy savings between 2008 and 2016. Even if this target is indicative, this is the first international framework mandating countries to report on their energy savings results and prove achievement of their targets. The directive thus also required the development of harmonised calculation methods that can be used by member states for this proof and reporting. Existing literature covers most of the usual issues related to energy savings evaluation, but mostly looking at single, given energy efficiency programmes or policies. The evaluation objective for the ESD implementation is different, as it aims at accounting for the whole energy savings achieved in a country. Moreover, one of the main difficulties is the diversity in history and experience on this topic among the member states. In this context, the European project EMEEES has worked out an integrated system of bottom-up and top-down methods for the measurement of energy savings. The paper presents the overview of its final results. The proposals, inter alia, include 20 bottom-up and 14 top-down case applications of general evaluation methods. They enable more than 90% of the potential energy savings to be measured and reported. They were used as a starting point by the European Commission to develop the methods recently recommended to the member states. Furthermore, the paper briefly discusses the importance of the quantity to be measured—all or additional energy savings—and the effect of measures implemented before the entering into force of the ESD (‘early action’), and what this meant for the methods to be developed. It compares the main elements of calculation needed to ensure consistent results between bottom-up and top-down methods at the overall national level. Finally, general conclusions are drawn about what could be the next steps in developing an evaluation system that enables a high degree of comparability of results between different countries.     

Driving forces for and barriers to providing energy services—a study of local and regional energy companies in Sweden

Improving energy efficiency is a cornerstone in climate change mitigation, and energy services are portrayed as a promising market-based approach to achieve this. This paper examines the barriers to, and driving forces needed for, the implementation of energy services from the perspective of Swedish local and regional energy companies. This includes an analysis of the resources needed in three phases of energy service implementation, i.e., development, sales, and deployment. The results indicate a supply-side interest in providing energy services, with the major challenges being related to (a) intra-organizational issues such as a lack of strategic direction and intent and (b) a perceived lack of knowledge, interest, and trust on the part of potential energy service customers. The paper concludes with managerial and policy implications on how an increased focus and impact of energy service can be achieved among local and regional companies.     

The role of hydrogen and fuel cells to store renewable energy in the future energy network – potentials and challenges

The penetration of renewable energy sources is expected to rapidly increase from 15% to 50% in 2050 due to their vital contribution to the global energy requirements, sustainability and quality of life in economical, environmental and health aspects. This huge rise highlights the necessity of development of energy storage systems, especially for intermittency renewable energies such as solar photovoltaic and wind turbine, in order to balance the energy network. In this study, renewable energy options including pumped hydro, pressurized air, flywheels, Li ion batteries, hydrogen and super-capacitors are compared based on a specific set of criteria. The criteria considered are energy/power density, ease of integration with the existing energy network, cost effectiveness, durability, efficiency and safety. Our study showed that storing renewable energy sources in the form of hydrogen through the electrolysis process is ranked as the most promising option considering the mentioned criteria. It brings about several benefits suggesting that hydrogen and fuel cells are promising contributors towards a more sustainable future, both in energy demand and environmental sustainability.     

What lessons have been learned in reforming the Renewables Obligation? An analysis of internal and external failures in UK renewable energy policy

Despite operating a delivery programme for RES-E since 1990, UK targets and policy goals have not been achieved. In response, the Government reformed the RO. This article re-examines UK renewable energy policy by analysing the internal and external failures of the various mechanisms to determine if Government has learnt from previous experience in reforming the RO. Government did not learn from their own actions during the NFFO/RO transition, evidenced by high-levels of similarity in internal/external failures. The reformed-RO is expected to significantly increase deployment, has provided a ‘renewables package’ by comprehensively addressing both internal/external failures but major internal failures (price/financial risk) still remain, resulting in contiguous failures over two decades and two mechanism changes (NFFO, RO, RO/reformed-RO). Success will again be heavily dependent on a select few technologies and new/untested measures to combat external failures. Mechanism-extension to 2037 is probably the single most important factor underlying potential deployment increases. However, introducing a FIT-like system via the sheer number of ‘bolt-on’ reforms to counter policy failures indicates loss of direction and clarity. Overall, although Government appears to have learnt some of its lessons from the past two-decades, significant doubt remains whether renewable energy policy objectives will be met via the latest mechanism change.     

Cooperation for climate-friendly developments—an analysis of the relationship between the energy and buildings sectors in Sweden

Buildings account for more than 40 % of the total energy demand in the European Union (EU). The energy sector is responsible for 80 % of the total greenhouse gas emissions in the EU, of which more than a third are emitted as a result of energy use in buildings. Given these numbers and the large potential for energy savings in buildings, the energy and buildings sectors emerged as key contributors to fulfilling the European climate targets. Effective cooperation between these two key sectors can contribute significantly to the efficacy of the European climate strategy. However, there may be factors that negatively impact the relationship between the energy and buildings sectors and put cooperation in climate-friendly developments at risk. Based on 23 semi-structured interviews and a web survey answered by key stakeholders, this paper provides a snapshot of the current level of cooperation between the energy and buildings sectors in Sweden and identifies factors that impact the interdependencies between the two sectors. The findings show that the current business models in energy supply and the regulations in place limit the development of mutually beneficial cases between the energy and buildings sectors. This paper contributes to improved knowledge for policymaking that affects both sectors and highlights issues for further study.     

Changes in energy requirements of the residential sector in India between 1993–94 and 2006–07

A substantial amount of primary and secondary energy is consumed by the residential sector. Residential energy consumption includes energy required for construction activity and household consumption. Hence there is a need to quantify energy consumption, its significance and causes. Calculating energy intensity of goods and services is the first step towards quantifying the causes. This research is based on the 115 sector classification input–output tables for India, for 1993–94, 1998–99 and 130 sector classification input–output tables for 2003–04 and 2006–07. Energy intensity of sectors related to household consumption has been calculated to analyze the trend between 1993–94 and 2006–07. Indirect energy requirements of Indian households have been assessed in this study from calculations of total primary energy intensity along with private final consumption expenditure. Results indicate that energy consumption has increased for all categories except “medical care and hygiene”. Percentage increase in indirect primary energy consumed by households is maximum for “house building” and “recreation” categories. Finally a complete decomposition analysis of indirect primary energy consumed by households has been carried out based on changing structural composition of the private final consumption expenditure, energy intensity patterns, per capita expenditures on energy and population.     

Are green hopes too rosy? Employment and welfare impacts of renewable energy promotion

In view of pressing unemployment problems, policy makers across all parties jump on the prospects of renewable energy promotion as a job creation engine which can boost economic well-being. Our analytical model shows that initial labor market rigidities in theory provide some scope for such a double dividend. However, the practical outcome of renewable energy promotion might be sobering. Our computable general equilibrium analysis of subsidized electricity production from renewable energy sources (RES-E) in Germany suggests that the prospects for employment and welfare gains are quite limited and hinge crucially on the level of the subsidy rate and the financing mechanism. If RES-E subsidies are financed by labor taxes, welfare and employment effects are strictly negative for a broad range of subsidy rates. The use of an electricity tax to fund RES-E subsidies generates minor benefits for small subsidy rates but these benefits quickly turn into significant losses as the subsidy rate exceeds some threshold value.     

Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?

An analytical job creation model for the US power sector from 2009 to 2030 is presented. The model synthesizes data from 15 job studies covering renewable energy (RE), energy efficiency (EE), carbon capture and storage (CCS) and nuclear power. The paper employs a consistent methodology of normalizing job data to average employment per unit energy produced over plant lifetime. Job losses in the coal and natural gas industry are modeled to project net employment impacts. Benefits and drawbacks of the methodology are assessed and the resulting model is used for job projections under various renewable portfolio standards (RPS), EE, and low carbon energy scenarios We find that all non-fossil fuel technologies (renewable energy, EE, low carbon) create more jobs per unit energy than coal and natural gas. Aggressive EE measures combined with a 30% RPS target in 2030 can generate over 4 million full-time-equivalent job-years by 2030 while increasing nuclear power to 25% and CCS to 10% of overall generation in 2030 can yield an additional 500,000 job-years.     

Status and perspectives of renewable energy policy and deployment in the European Union—What is needed to reach the 2020 targets?

This article evaluates the status of current RES deployment, policies and barriers in the EU-27 member states and compares it to the required to meet the 2020 targets. The evaluation relies strongly on the quantitative deployment status and policy effectiveness indicators. European RES deployment and policy has progressed strongly in recent years, but the growth here has been mainly driven by effective policies in a small or medium number of top runner countries. Across Europe, the highest average policy effectiveness over six years was reached for onshore wind (4.2%), biofuels (3.6%) and biomass electricity (2.7%), while in the heat sector, all technologies score below 2%. Comparing the recent progress to the required growth for meeting the 2020 target, it appears that some countries largely exceed the interim targets of the RES Directive 2009/28/EC. Despite this, Europe will need additional policy effort to reach the 2020 target. Critical success factors include implementing effective and efficient policies that attract sufficient investments, reducing administrative and grid related barriers, especially in currently less advanced countries, upgrading the power grid infrastructure, dismantling financial barriers in the heat sector, realising sustainability standards for biomass, and lowering energy demand through increased energy efficiency efforts.     

Comparison of the evolution of energy intensity in Spain and in the EU15. Why is Spain different?

Energy intensity in Spain has increased since 1990, while the opposite has happened in the EU15. Decomposition analysis of primary energy intensity ratios has been used to identify which are the key sectors driving the Spanish evolution and those responsible for most of the differences with the EU15 energy intensity levels. It is also a useful tool to quantify which countries and economic sectors have had most influence in the EU15 evolution. The analysis shows that the Spanish economic structure is driving the divergence in energy intensity ratios with the EU15, mainly due to strong transport growth, but also because of the increase of activities linked to the construction boom, and the convergence to EU levels of household energy demand. The results can be used to pinpoint successful EU strategies for energy efficiency that could be used to improve the Spanish metric.     

Renewable energy,subsidies, and the WTO: Where has the ‘green’ gone?

Faced with the energy transition imperative, governments have to decide about public policies to promote renewable electrical energy production and to protect domestic power generation equipment industries. These policies can generate trade frictions. For example, in the Canadian renewable energy dispute the EU and Japan claimed that Feed in Tariff (FIT) programs in Ontario constitute discriminatory subsidies because of a local content requirement (LCR) clause that is incompatible with World Trade Organization obligations. This paper investigates this issue using an international quality differentiated duopoly model in which power generation equipment producers compete on price. FIT programs including those with a LCR are compared for their impacts on trade, profits, amount of renewable electricity produced, and welfare. When sales are taken into account, the results confirm discrimination. However, introducing a difference in the quality of the power generation equipment produced on both sides of the border has a moderating effect on the results. Finally, the results enable discussion of the question of whether environmental protection can be a reason for subsidizing renewable energy producers in light of the SCM Agreement.     

Investment in oil and gas field materials technology – the key to a secure energy supply

Abstract

Many national and international programmes have renewable energies as a prime focus for long term R&D investment. This focus arises from an environmental perspective and the objective of a carbon abatement energy society, and may also be fuelled by often over-dramatised reports of declining oil and gas reserves. It is argued that investment in oil and gas must be a vital component of R&D planning and energy policy if energy supplies are to be assured, and that advances in materials and materials technologies will be key to these efforts.