Delivering the New Energy Economy

• By Charles Hendry, UK Minister of State, Speech at the Energy and UK Utility Forum • Thank you for inviting me to take part in this event. The current energy market has served us well in recent years. But we now face a number of unprecedented challenges which the market will struggle to address. Around 20GW, or one fifth, of existing electricity plant are to close over next decade. Demand for electricity is on increase as we turn to electricity for heat and transport. Demand is likely to double over the next 40 years. This could mean tight capacity margins, compared to the relatively ample of supply of recent times. Also firmly committed to ambitious climate and renewable targets to build a cleaner energy future for Britain and the world. This includes statutory targets to: reduce green house gas emissions by 34% by 2020; and, 80% by 2050; and, an EU requirement to deliver 15% of all UK energy from renewable sources by 2020. To meet these challenges we need to see broad changes to the way that we generate energy and the way we handle demand and supply. And we must deliver this at the lowest cost to the tax-payer and to consumers in a world of unstable fossil fuel prices. This is why we are working towards a market framework that encourages the right kind of investment, and the growth of the new energy economy. An economy in which: security of supply is achieved by diversity of generation technologies; in which affordability is ensured by competition between generators; and, in which climate change is tackled by reducing carbon emissions. Making it happen We want to develop a diverse energy mix by encouraging new investment. We are establishing a stable and long-term framework to mobilise private-sector capital. According to a recent poll of more than 150 investor by Credit Suisse, the UK is overwhelmingly perceived as the favourite region in terms of regulation, ahead of all other countries ...Zum vollständigen Artikel

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