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Decarbonising UK energy Decarbonising UK energy: A view of energy security Professor John Loughhead OBE FREng FTSE Chief Scientific Adviser

Transcript of Decarbonising UK energy - Royal Society/media/events/2017/10/decarbonising-uk...Decarbonising UK...

Decarbonising UK energy

Decarbonising UK energy: A view of energy security

Professor John Loughhead OBE FREng FTSE

Chief Scientific Adviser

Decarbonising UK energy

Great Britain’s Energy Vectors – in GWh per day

Decarbonising UK energy

Great Britain’s Energy Vectors – in GWh per day

Decarbonising UK energy

Great Britain’s Energy Vectors – in GWh per day

Transport fuels = Aviation Fuels + DERV (Diesel) + Motor Spirit (Petrol)

Great Britain’s Energy Vectors – in GWh per day

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Electricity from nuclear generation

Great Britain’s Energy Vectors – in GWh per day

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Electricity from weather dependent renewable sources (solar+wind+non_PS_hydro)

Great Britain’s Energy Vectors – in GWh per day

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Electricity from coal generation

Great Britain’s Energy Vectors – in GWh per day

Decarbonising UK energy

Total natural gas including exports

Exports of natural gas

Natural gas flow chart 2016 Twh

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Peak electricity demand scenarios – National Grid

Source: National Grid, Future Energy Scenarios, July 2016 (http://fes.nationalgrid.com/ )

Offshore Wind • Offshore wind is already a major part of our energy supply, and key to

our future

• UK market is the largest in the world - and will remain so to 2020 and beyond

• We have a strong framework to drive investment in offshore wind – delivered through Electricity Market Reform

• We are already securing the economic benefits – and the potential is huge

• The UK is at the forefront of delivering cost reductions in offshore wind – reflected in reduced “strike prices” over the decade

• Some rationalisation of the “pipeline” of projects is to be expected – a sign of the sector maturing

Figure 1 BEIS Energy and Emissions Projections (EEP) 2016 Reference Case Gas Demand and Other Projections

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Table 1 UK Gas Demand Projections

Source Coverage/Scenario Demand (bcm)

Key Assumptions 2020 2030 2035

National Grid Future Energy Scenarios

(2017)

Two Degrees 77 62 55 Cost optimal pathway to meet the UK’s 2050

carbon emissions reduction target.

Slow Progression 74 67 59 Low economic growth and affordability. With limited money, the focus is on cost efficient

longer-term environmental policies.

Steady State 77 88 81 Business as usual prevails and the focus is on ensuring security of supply at a low cost for

consumers. The least green scenario.

Consumer Power 80 89 81 High affordability, with no new targets

introduced, focus on consumer’s desires.

BEIS EEP (2016)[1]

Reference Scenario 74 68 65

Based on central assumptions of growth and fossil fuel prices. Contains all agreed policies

where decisions on policy design are sufficiently advanced to allow robust estimates of impact.

Low Prices 87 101 110 Assumptions similar to reference scenario but

using low fossil fuel price assumptions

High Prices 69 66 62 Assumptions similar to reference scenario but

using high fossil fuel price assumptions

Low Growth 74 67 64 Assumptions similar to reference scenario but

using low economic growth assumptions

High Growth 74 68 65 Assumptions similar to reference scenario but

using high economic growth assumptions

Existing Policies 75 77 78 Based on central estimates of price and

economic growth, but not planned policies.

Baseline Policies 87 101 110

Based on central price and growth assumptions, but excludes the impact of Climate Change

policies brought in since the 2007 Low Carbon Transition Plan.

Wood Mackenzie (H1 2017)

Central 72 63 59

IHS (2017) Central 72 69 69

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Figure 2 – UK gas demand range and production projections

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Table 1 UK Gas Demand Projections

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Final Energy Consumption

(including international aviation)

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0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Electricity

Natural gas

Petroleum products

Renewables

Solid / manufactured fuels3

Total energy consumption4

Years from 2000

Changes over time in gas production and demand

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