DECC yesterday (Thursday) published its ‘Delivering UK Energy Investment’ report setting out the scale of investment to support our changing energy future.
The reports highlights the essential role networks play in ensuring a reliable, sustainable and crucially affordable energy future, as well as the investment in the UK economy and jobs.
Latest figures in the report show that capital investment in the UK networks into the next decade is expected to reach £38.8bn to provide for the changing demand of customers and the move to a low carbon energy future.
“Keeping the lights on, homes warm and businesses working are the bread and butter of the energy networks, and significant investment is needed over the coming decade to ensure we meet the challenges of a more sustainable but affordable energy future.
“Recent decades have seen the increase in network investment delivering improved resilience, safety and efficiency while the costs to customers have fallen. Whether national or regional, our UK networks are supporting economic growth, innovation and boosting jobs and skills in the areas they work.
“As we look ahead to the next decade, the UK networks will experience a scale of change and improvement that hasn’t been seen since the formation of the national grid infrastructure in the 50s.”
Oil & Gas also broadly welcomed the Secretary of State’s viewpoint.
“As the biggest investor in the UK’s energy security, now and throughout the last three decades, the offshore oil and gas industry welcomes Government’s acknowledgement of the essential role oil and gas play in our country’s energy mix. Oil and gas provides some 70 per cent of our country’s total energy demand – a figure which DECC predicts will remain unchanged until at least 2030.
“We are also heartened that the report recognises the contribution the industry makes through supporting the employment of some 450,000 people here in the UK.
“As the report outlines, the UK’s energy mix is more than simply our supply of electricity. Whilst natural gas is currently used to generate about a quarter of our electricity, it is also the overwhelmingly our source for heating, as is oil for our transport.
“As the UK’s leading trade body for the offshore oil and gas sector, Oil & Gas UK recognises the need, over time, to move towards a lower-carbon economy. However, this transition must be managed carefully and will take decades not years to complete. Our industry will be needed to provide the foundations for that journey.”
Katja Hall, Deputy Director General of the CBI said:
“Energy efficiency has for too long been the poor relation in this debate. We need investment in supply but this must be combined with a renewed push to cut our energy usage.
“To date, we have over-promised and under-delivered. Energy efficiency needs date, we have over-promised and under-delivered. Energy efficiency needs to move up the rankings and be seen as a critical investment.”
Get the whole speech from Katja Hall and a poll which discusses just how the CBI members voted about energy and the document at CBI Poll.
Pictured from the top David Smith, Chief Executive of Energy Networks Association, Malcolm Webb, Oil & Gas UK’s Chief Executive and Katja Hall, CBI’s Deputy Director General