What do we do about energy? It’s a question that politicians and policy makers ask regularly. How do we make sure we have enough, and that it’s cleaner, safer and more afford- able? How do we finance investment, and what about regulation, pricing and infrastructure? What technologies do we use, and what new energy sources do we prioritise? To frack, or not to frack? These and many other questions make energy a vast, complex subject with few straight- forward answers.
This is part of the problem. Energy’s complexity is driven by the way we think about it. We see the “energy ques- tion” as a list of dilemmas to answer, a series of challenges to be met; bits and pieces rather than a whole. Instead, we should think of it as an ecosystem – as a full and living picture with each part influencing the other. In nature’s eco- systems, water, air, plants and animals impact each other and survival depends on recognising this interdependence. This holds true for energy too: invest- ment, taxation, regulation, policy inter- vention, infrastructure, supply, demand, technology, consumers and producers are also parts of an interdependent system.
To encourage this eco-system ap- proach, this summer the Energy Institute (EI), the leading professional body dedi- cated to developing skills, knowledge and good practice within the energy in- dustry, brought together leading figures from our sector and from academia to consider how the energy system needs to be transformed. The event concluded with specific recommendations that provide precious consideration for
policy makers grappling with this subject. A central theme emerged: that peo- ple must be put at the heart of energy. Citizens, consumers and producers – the people that need it, provide access to it and also pay for it – should have a say in the way the system is shaped. A clear and honest discussion about the benefits and costs of changes would be a valuable ex- ercise. We need more education about the interrelationships between the various elements of the energy system and the
real world trade-offs the industry faces. The energy debate often focuses on international risks, at the expense of at- tention to national risks. What happens if Russia turns off the gas tap, for exam- ple? A silo mentality has historically per- vaded the energy industry, where policy
Planning for our energy future requires input from outside the sector, too
divisions between oil and gas, transport fuel, electricity, and heat production are commonplace. Isolated and fragmented policy interventions pose obstacles to market investment and project financ- ing. Integrated, long-term energy poli- cies are needed to break down these silos and allow energy and utility companies to plan for the long term with assured investment. If the lights go out in the UK, will it be the fault of UK policy or of global events?
Planning for a future energy system will also require the involvement of in- stitutions outside of the energy sector.
For example, more effective forecasting tools will be needed to design an inte- grated policy framework. Data is central to economic and social development, and energy is no different. Information must be collected, processed, analysed, stored and shared – and to do this successfully, data collection and storage institutions will have to play their part.
For example, we know that district heating systems are an efficient solution to domestic heat and power needs, and yet we still believe that every house has to have its own localised boiler.
We tend to focus on meeting energy demand efficiently, when we should be taking a step back and asking whether de- mand itself is for the best. The cheapest energy is the kind that is not consumed, and the cheapest power station is the one that doesn’t need to be built. With that in mind, when considering smart grids, demand-side management must be em- bedded from the beginning. We need to think about cities: they consume two thirds of energy and pose a key challenge around climate change. Cities can pro- mote green and resilient energy systems and adapt more rapidly than nations. But to do this, urban communities must be engaged, and heat, transport, electricity and other services need to be considered together in municipal planning.
The energy system is a vast single eco- system, not a series of silos. If we consid- er it in its entirety, we can implement the ideas, create the policies, and apply the regulations that will turn our many ques- tions into innovative answers. l
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