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PRASEG Sustainable Energy Awards Ceremony

Malcolm Wicks MP,  Minister of State for Energy
The Commonwealth Club, London,  08 July 2008

Thanks for inviting me once again to present these awards. Sorry I couldn’t join you for the whole evening this time.

Good progress has been made delivering the strategy I set out last year following publication of the Energy White Paper. I'm going to talk about the ground covered since then and plans for further progress.

We have made significant progress on the targets set out in the White Paper in the move to a low carbon economy:

Rapid progress in renewables: UK now has more than 170 wind farms producing 2.5MW of electricity (further 36 currently under construction) and we will overtake Denmark this year as world leader in installed offshore wind generation capacity.

Severn Tidal Power - the UK is in a unique position to benefit from renewable energy sourced from waves and tidal flow – possibly providing as much as 15-20% of the UK’s current electricity usage – hence a major feasibility study into harnessing the tidal power of the Severn estuary – potential to generate 5% of UK electricity;

RES - Launched a consultation on our Renewable Energy Strategy – a comprehensive roadmap for reaching our 2020 target, (Greenpeace even called it ‘visionary’) rightly looking at microgeneration as well as large-scale deployment, and beyond electricity generation to heat and transport.

The Renewable Transport Fuels Obligation which means that by 2010, 5% of all fuel sold in the UK will be more environmentally friendly biofuels.

Microgeneration: Fully committed to promoting microgeneration:

The Low Carbon Buildings Programme - £86m grants for the installation of microgeneration technologies;
5% vat rate for purchase of microgeneration technology;
Almost all new zero-carbon homes are now exempt from stamp duty

Nuclear: Our historic decision in January in favour of new nuclear power stations to help us meet our climate change and energy security targets. On track with the timetable set out in the Nuclear White Paper for new power stations to come into operation between 2017 and 2020.

CCS: Realistically we will still be burning fossil fuels, so we are leading the way in the search for technological solutions to make fossil fuels cleaner:
supporting the world’s first commercial-scale demonstration project for post-combustion CCS on a coal-fired plant. CCS technology has the potential to capture 90% of carbon emissions - crucial tool in the global fight against climate change.
CCR – recently launched consultation on legislative framework for CCS. Includes asking whether new fossil fuel power stations should be Carbon Capture Ready (CCR).
Funding for Low Carbon Technologies: The Environmental Transformation Fund has been increased to £400m over the next three years.

Energy Efficiency: Most cost effective way of tackling climate change and security of supply. We are:
Working to provide more information to consumers, both through the “Act on CO2” campaign and through initiatives such as smarter electricity meters.
Improving regulation, especially building regs. All new homes to be zero-carbon by 2016.
Introducing incentives, such as the Carbon Reduction Commitment (to come in 2010), an emissions trading scheme to incentivise large organisations to reduce electricity use.

Current challenges:

EU 2020 targets for 20% renewable energy and 20% energy reduction
Continuing to put in place the right incentives for low carbon investment and technology development;
Tackling the planning system;
Driving up energy efficiency standards;
Cleaning up fossil fuels on which we shall continue to be reliant

How we will tackle them:

Domestic legislation – 3 bills:
CC Bill (setting legally binding targets);
Planning bill (providing investment confidence and a more efficient process);
Energy bill (ccs, strengthening the RO to drive rapid renewables deployment in UK and amending the RO to give more support to emerging technologies.

Conclusion:

Congratulations to those who have done exceptional work to meet the challenges we all share.

After presentation of awards

Congratulations to the award winners for the outstanding work they have done in helping to meet our energy challenges. While climate change and energy security are global challenges that need to be tackled internationally, the fact remains, as the efforts of these winners show, that all of us can make a difference.
I am sure that I can speak for everyone in this room in saying that we have all been encouraged by the work you have been doing and to say once again well done.