The 2006 Energy Review
Regional Stakeholder Seminar:
Energy RD&D and Transport
23 February 2006
Carl McCamish
Deputy Head of Energy Review Team
Energy Review: New Technologies and Transport
Regional Seminar
Outline
•
2003 Energy White Paper Goals and the
Key Consultation Questions
•
Current Situation - Transport
•
Current Situation – RD&D
•
Discussion Questions
Energy Review: New Technologies and Transport
Regional Seminar
Energy White Paper Goals
1.
Reducing carbon emissions
2.
Maintaining reliable energy supplies
3.
Promoting competitive markets
4.
Ensuring that every home is adequately &
affordably heated
Energy Review: New Technologies and Transport
Regional Seminar
Questions in the Consultation Document
(Summarised)
1.
What more could the government do on the demand or supply side to meet our CO2 reduction
targets in the medium and long term?
2.
How do we develop our market framework for delivering reliable energy supplies ?
3.
Are there particular considerations that should apply to nuclear ?
4.
Are there particular considerations that should apply to carbon abatement and other low carbon
technologies?
5.
Steps to take towards ensuring that every home is adequately and affordably heated ?
Energy Review: New Technologies and Transport
Regional Seminar
Questions in the Consultation Document
continued …
Submissions are also requested on:
1.
The long term potential of energy efficiency measures in transport … and how
best to achieve that potential
4.
Potential measures to help bring forward technologies to replace fossil fuels in
transport … in the medium and long term
Energy Review: New Technologies and Transport
Regional Seminar
Transport – rising emissions…
Energy Review: New Technologies and Transport
Regional Seminar
Transport – …despite improving efficiencies
Energy Review: New Technologies and Transport
Regional Seminar
Transport drives our reliance on oil
Sources of fuel for transport
Oil-based
products 98.8%
Other – 1.2%
Energy Review: New Technologies and Transport
Regional Seminar
Demand for oil is dominated by transport
Uses of oil, UK 2005
Non-energy use
13%
Other transport
2%
Air transport
15%
Road transport
47%
Transformation
and Refineries
8%
Industry
10%
Other
5%
Energy Review: New Technologies and Transport
Regional Seminar
Future technology options in transport?
Short-term
(2006-2015)
- Improved fuel efficiencies
- Hybrids
Medium-term
- Sustainable Biofuels
(2015-2030)
Long-term
(2030-2050)
- Renewable Hydrogen
Energy Review: New Technologies and Transport
Regional Seminar
Current policies
•
Reduce traffic (vehicle/passenger km)
e.g. “Smarter Choices”
•
Improve fuel efficiency (litres per km, mpg)
e.g. EU Voluntary Agreements
•
Lower the carbon content of fuel (grams per litre)
e.g. the Renewable Transport Fuels Obligation
Energy Review: New Technologies and Transport
Regional Seminar
RD&D – scope of Review
Priorities:
•
•
•
Analysis of the current state of development of specific low carbon
technologies
Working towards a Government low carbon RD&D strategy
Review of the organisation of the current landscape of Government
funding for low carbon RD&D
Covers all low carbon energy technologies (electricity, heat, transport, efficiency,
enabling/ supporting technologies).
Energy Review: New Technologies and Transport
Regional Seminar
RD&D – structure for thinking
Energy Review: New Technologies and Transport
Regional Seminar
RD&D – current funding bodies
(not comprehensive)
Basic R&D
Applied R&D
Demonstration
International
Demand
Carbon Vision, UKERC
Defra, DfT, ODPM,
Carbon Trust
Carbon Trust
[REEEP]
Conventional
sources
EPSRC, [TSEC]
HSE, Defra, DTI,
Technology Prg
ITI Energy, [NaREC
[CSLF, GEN IV,
M2M]
Low carbon sources
Supergen, Fusion,
[TSEC], UKERC
Technology Prg,
Carbon Trust
ITI Energy, RDAs,
Carbon Trust, DTI
Capital Grants
[REEEP]
Infrastructure
[TSEC, Supergen, DG
Centre, UKERC]
[Technical
architecture]
ITI Energy
[IPHE]
Energy Review: New Technologies and Transport
Regional Seminar
RD&D – current UK funding mechanisms
(not comprehensive)
Includes:
•
Academic research supported by the Research Councils (£70m by 2007/2008).
•
Industry-led R&D supported by Technology Programme (£35m since 2004) and the Carbon Trust’s
R&D Programme.
•
Various capital grants schemes for demonstration stage (totalling over £300m).
Direct Government funding not the only possible intervention – deployment-stage interventions
could be designed to incentivise RD&D as well by creating market pull.
Energy Review: New Technologies and Transport
Regional Seminar
Barriers to deployment
R&D only part of what’s needed to achieve deployment.
Other barriers:
•
(Unit) cost
•
Planning
•
Regulatory
•
Grid
•
Infrastructure
•
Lock-in to high carbon technologies
•
Availability of private sector financing
Energy Review: New Technologies and Transport
Regional Seminar
Questions for discussion
Transport:
RD&D:
•
Strengths and weaknesses of current transport policy, and
further steps
•
Cost of carbon abatement compared to other sectors
•
Technology-neutral vs. picking winners
•
Balance between supporting deployment and supporting RD&D
•
Drivers and barriers to industry RD&D, and which interventions
can affect them
•
Organisation of the current Government funding landscape