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Today the Secretary
of State for Energy and Climate Change, Amber Rudd has set out her
vision for an energy system that puts consumers first, delivers more
competition, reduces the burden on bill-payers and ensures enough electricity
generation to power the nation.
“We now have an electricity system where no form of power
generation, not even gas-fired power stations, can be built without government
intervention. And a legacy of ageing, often unreliable plant.
Perversely, even with the huge growth in renewables, our
dependence on coal - the dirtiest fossil fuel – hasn’t been reduced. Indeed a higher proportion of our electricity
came from coal in 2014 than in 1999.
So despite intervention we still haven’t found the right
balance.”
Cleaner, more secure
energy network
“One of the greatest and most cost-effective
contributions we can make to emission reductions in electricity is by replacing
coal fired power stations with gas.
I am pleased to announce that we will be launching a
consultation in the spring on when to close all unabated coal-fired power
stations. Our consultation will set out proposals to close coal by 2025
- and restrict its use from 2023. If we take this step, we will be one of the
first developed countries to deliver on a commitment to take coal off the
system.
But let me be clear, we’ll only proceed if we’re
confident that the shift to new gas can be achieved within these timescales".
Central role of nuclear
power
“Opponents of nuclear misread the science. It is safe and
reliable. The challenge, as with other low carbon technologies, is to deliver
nuclear power which is low cost as well. Green energy must be cheap energy.
We are dealing with a legacy of under-investment and
with Hinkley Point C planning to start generating in the mid-2020s, this is
already changing.
It is imperative we do not make the mistakes of the past
and just build one nuclear power station. There are plans for a new fleet
of nuclear power stations, including at Wylfa and Moorside. It also means
exploring new opportunities like Small Modular Reactors, which hold the promise
of low cost, low carbon energy.”
Offshore wind
“We should also support the growth of our world leading
offshore wind industry.
Today I can announce that – if, and only if, the
Government’s conditions on cost reduction are met – we will make funding
available for three auctions in this Parliament. We intend to hold the first of
these auctions by the end of 2016.
On current plans we expect to see 10GW of offshore wind
installed by 2020.
The industry tells us they can meet that challenge, and
we will hold them to it. If they don’t there will be no subsidy. No more blank
cheques.”
Climate change
“Action on climate change is linked to the action we’re
taking now to reduce the deficit. It is about resilience now and in the future.
But climate change is a global problem, not a local one. Action by one state
will not solve the problem. It’s what we do together that counts. And that is
why achieving a global deal in Paris next month is so important.
But climate change will not be solved by a group of
over-tired politicians and negotiators in a Conference centre. It will
take action by businesses, civil society, cities, regions and countries.
Paris must deliver that and help unleash the levels of
private investment needed.
Our most important task is providing a compelling example
to the rest of the world of how to cut carbon while controlling costs.”
The full text
of the SoS’ speech can be found here.
Notes:
A consultation
will be published in the spring on when to close all unabated coal-fired power
stations. The consultation will set out proposals to close coal by 2025 and
restrict its use from 2023.
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