Thursday 15 September 2016

ELEPHANTS IN ENERGY







The 'big five' describes the animals you should see on safari.  The easiest of these to spot is the elephant but for two hundred years we have used the expression 'the elephant in the room' to describe things that should be tackled but are ignored and that is what lies behind my title of ‘elephants in energy’. My big five elephants in the Scottish energy policy environment are:
 1. An integrated energy policy that combines power, heat and transport
We need an integrated energy policy that combines power, heat and transport and which applies the full force of technology and policy to all three areas with the right emphasis.  Energy efficiency should be a national infrastructure project, managed on an area by area basis, and focussed on heat. We need to look at the energy storage and network implications of increased electrification. In assessing affordability we should look at the impact on all three bills in aggregate.  I think we should make Scotland the best place in Europe to invest in and deploy home automation, energy storage and electric vehicles.
2. Put the demand side on the same footing as the supply side
We need to put the demand side on the same footing as the supply side. The existing energy trilemma of sustainability, security of supply and affordability has been hi-jacked by the supply side.  I believe we need a new energy demand trilemma which should include flexibility, meeting of needs and affordability. Flexibility needs to encompass convenience and control and reconcile whether it should be customer or industry led. Meeting of needs has to focus on actual needs without just using more energy and affordability, on the demand side, is about managing unit consumption and not unit price. I long for the day when as much time is spent demand side policy as is spent on the supply side.
3. Scotland’s renewable energy industry needs to adopt new technologies to maximise output 
The renewable energy industry in Scotland has done a great job over the past 15 years but has to accept that its golden era is over. However, it can have a successful future if it adapts quickly to new challenges. It needs to adopt new technologies to maximise output from existing assets. It has to reduce the cost of future projects in the approval, construction and operational phases. It has to think about more than just wind with tidal power and renewable heat being two promising areas.  It has to address the growing challenge of network congestion and renewable curtailment through smart network investment, embedded storage and demand side management.

4. Scotland needs an evidence-based look at smaller ‘new (modular) nuclear’ power stations
I am strongly against the Hinkley Point nuclear power station on cost, timing, size, technology, waste, ownership and need grounds.  I believe that we should not be building this enormous, expensive piece of old but curiously unproven technology. However, we should not ignore the fact that nuclear produces base load zero carbon electricity. I have recently looked at small modular nuclear reactors. They are much smaller, should be cheaper and quicker to build, are safer by design, produce less waste and decommissioning risk and represent true new nuclear. From my research I was convinced that this sort of nuclear power was worth considering and I think that, here in Scotland, we should take a fresh, independent and evidence-based look at this emerging new generation of modular nuclear power stations. The Scottish Government should set up an expert review group to look at truly new nuclear to determine if it has a place in our energy future.
5. We need to address policy inconsistency between our low carbon ambition and maximising North Sea oil and gas recovery
We have to address the inconsistency between our low carbon ambitions and maximising economic recovery of North Sea reserves. If we are to keep the global temperature rise to 1.5 degrees as advocated by the scientists we can only use about one fifth of the world's known fossil fuel reserves by 2050. Squaring the circle between the fossil fuels abundance and climate change is the defining energy challenge of this century and in Scotland we cannot hide from that by simultaneously aiming for maximum economic recovery of North Sea reserves whilst taking a world leading position on reducing carbon emissions. It is not defensible to say that we can burn our reserves whilst other countries should keep theirs in the ground when we have enjoyed the fruits of carbon emissions for the last two hundred years. The North Sea challenge is really about undertaking an efficient decommissioning programme whilst managing the decline in production. If we get a successful decommissioning programme going then we will have the expertise to build an export industry which can create jobs that will survive long after North Sea production has ended.
... so, let’s have an honest and informed debate on Scottish energy policy 
I'm sure you will have your own list and I encourage you to make sure that your big energy issues are aired and addressed. Silence is not an acceptable response to the 21st energy and carbon challenges we face. My biggest single plea is that we have an honest and informed debate on Scottish energy policy. It's too important not to.