Energy efficiency

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Devolution in energy policy in the UK – Evolution or revolution?

Iain Todd

Renewable Energy Consultant

CROSSTALKS, Brussels

11 February 2009

Devolution • Devolution is the statutory granting of powers from the central Government of a state to Government at a subnational level

Devolution • “Spain is one of the most decentralised nations in Europe” • “France is one of the most centralised nations in Europe”

Devolution • Scottish Parliament and Government created in 1998 and first met in 1999 • Energy policy is a matter for the UK Government • But devolved subjects include: – The promotion of energy efficiency – The promotion of renewable energy

Questions • Are these issues dealt with more effectively at the devolved level? • What differences arise between the two administrations, and how important are they? • Are these differences greater when different parties are in power in the two Governments? ( ie since 2007)

Climate change

Impacts – EU Temp

Impacts – EU prec.

Impacts

Climate change • Scottish Government currently consulting on a draft Climate Change Bill • Sets a target of 80% reduction in carbon emissions by 2050

Climate change • At the end of 2008, UK Government set up its new Department of Energy and Climate Change (DECC) • First act - carbon reduction target for 2050 increased from 60% to 80%

Energy efficiency • Scottish housing stock 2.3 million • 30% of households in fuel poverty • 90% of homes fall below current energy efficiency standards • 30% “difficult to treat”

Energy efficiency • The private rented sector has a high proportion of fuel-poor and poor housing stock

Energy efficiency • Electricity demand in the UK is rising at 1.5% per annum

Energy efficiency • The Scottish Government funds: – Advice bodies such as the Carbon Trust and the Energy Savings Trust – A new network of energy savings advice centres across Scotland – An interest-free loan scheme for SMEs – An energy efficiency fund for local authorities – Fuel poverty programmes

Energy efficiency • The Government also helps to achieve low carbon buildings through – the Building Regulations – the planning system

Energy efficiency • In February 2009, the Government announced a new £1m annual prize fund to inspire innovative ways to improve the energy efficiency of Scotland’s housing stock

Energy efficiency • Audit Scotland report in December 2008: – Public sector needs to give higher priority to energy efficiency – Energy consumption of LAs reduced 5% over 2004-7 – But over same period costs rose 47% – More leadership, more commitment

Energy efficiency • In Scotland – New Action Plan promised for spring 2009

• In England: – All new homes zero carbon from 2016 – All new buildings by 2019

Energy efficiency • Requirement for buildings to have Energy Performance Certificates when built, sold or let (EU Directive)

Energy efficiency • Energy efficiency rating A-G (current and potential) • CO2 rating A – G (current and potential) • Estimated energy use and cost per year

Energy efficiency • Now in force in both Scotland and England • Different forms of certificate in use – eg in Scotland two types – one for dwellings, one for businesses

Energy efficiency • Differences emerging • Element of competition • Or at least differentiation in practice

Renewable energy • More important differences emerging under devolution • Different targets – Scotland aiming for 20% of all energy to be renewable by 2020 (UK 15%)

Renewable energy • Renewables Obligation – key legislation • Two administrations kept in line 2002 - 2008

Renewable energy

Renewable energy

Renewable energy

Renewable energy • But in April 2009, Scottish Government planning to give greater financial rewards for the development of wave and tidal power • A more significant issue for Scotland than for England

Renewable energy • Other individual actions: – Scottish international Saltire Prize for marine energy

AREG objectives • To make Aberdeen a global energy city, as well-known for renewables as it is for oil and gas • To harness our existing capabilities to deliver renewable energy objectives • Around 100 member organisations

Aberdeen offshore wind farm

Nuclear energy • UK Government in favour of new nuclear power • Scottish Government against, and has said that it will use its local planning powers to block any such new development in Scotland

Conclusions • Devolved powers provide: – Responsibility – Opportunity – Challenge

Conclusions • Professor Michael Keating, University of Aberdeen (in 2003) • “A well networked UK-wide policy committee presses for uniformity, though strong pressures for divergence are present and may not be contained.”