Energy

Oil is no longer used as a significant source of electricity generation; it was replaced in this role by coal, nuclear, and gas during the early 80s, precisely because of the oil price spikes and availability uncertainties which dominated that era. This is good news.

However, the national supply picture is much worse. North Sea oil was just coming on stream in the late 70s, and this turned the UK into an oil exporter for the next 25 years. That era has now come to an end and the UK is, once again, a net importer of oil

Further electrification of the railways, the potential mass-conversion of road vehicles to electric power,  and the possible adoption of ‘green electricity’ for heating in response to climate change fears, will change the demand pattern for electricity on the nation’s power-generation and transmission/ distribution infrastructure.

• Government policies must plan to accommodate a significant upswing in electricity consumption and, in the short-term, must plan for the possibilities of price spikes and supply interruptions.

• The single most important aspect that will allow the UK to manage the above uncertainties and its 2020 vision for a low carbon economy is for the government to provide a stable and pro-investment regulatory and political climate in the UK that will allow companies to finance their activities.

• The ‘cleantech revolution’ in the use of renewable energy for generating electrical and motive power, and heating, requires continuing support. Although its short-term impact will be limited, UK plc can aspire to be a major player in the new industries that are being created, thus abating the long-term risks from peak oil, more general energy security, and climate change.