"We’re sticking by our commitment to invest in the science base and in our national innovation capacity. We’ll be supporting those growth industries and next-generation technologies where we can have a clear global impact"
London
01 December 2008
Good morning.
When the current downturn ends, there will be major opportunities for those countries who are ready to seize them.
Indeed, all the problems affecting people right now will be overshadowed by the economic consequences of not being in a position to exploit those opportunities when they emerge.
The Government is taking the necessary steps to support companies over the short term – from recapitalising the banks to the measures announced in the pre-Budget report.
But we're also preparing for the long-term – as we were doing well before "credit crunch" became the defining phrase of recent times.
We're sticking by our commitment to invest in the science base and in our national innovation capacity. We'll be supporting those growth industries and next-generation technologies where we can have a clear global impact.
When it comes to battery electric vehicles and plug-in hybrids, I'm confident we are laying the groundwork for sustainable success – by which I mean being early to market with viable cars; creating the infrastructure required to handle power demand; building world-class companies with global brands; and bringing new money and new jobs into our economy.
The Technology Strategy Board's Low Carbon Vehicles Innovation Platform has been up and running for 18 months.
With over £100 million of public sector investment, it is coordinating UK activity from initial research to the production of demonstration vehicles. In October, it announced a 10-million-pound ultra low-carbon demonstration competition to put 100 vehicles on the road next year.
Around the same time, we hosted an international meeting of experts on low-carbon cars to explore the challenges of bringing electric vehicles to market.
The meeting established our position as a leading player. It enhanced the case for future inward investment from global manufacturers. It validated the Government's focus on sensible regulation and procurement for nascent markets – not least the 20-million-pound programme for low carbon and electric vans.
The work of the Energy Technologies Institute is just as crucial to achieving a green revolution in Britain – which is why I'm here today.
The recent Cenex/Arup report demonstrated that the UK has the potential to seize competitive advantage in a range of EV-related systems – internal combustion engines for hybrids, batteries and battery recycling, electric motors, regenerative braking. We must fulfil that potential.
But the report also gave a strong indication that – in principle – we have sufficient generating capacity in the UK to cope with a mass uptake of EVs. It argued that – with adjustments – the existing transmission network could cope with the demand.
Easier said than done. The challenges here are both fascinating and intimidating.
Besides perhaps the most basic challenge of improving battery performance, we know that the existing 13 amp supply won't charge those batteries fast enough to offer sufficient range, while a 30 amp supply in even a modest proportion of homes would put enormous pressure on the distribution system in its current form.
Next, there's the urgent need to examine how consumers might behave. How do we handle high demand for electricity at off-peak times? How many quick-charge facilities – which require more power – should local authorities make available in urban centres?
And there's a whole tranche of issues to consider where supply and usage interact. Advanced batteries will be expensive. If people have them on a rental basis – a bit like mobile phones – contracts would have to take account of different tariffs according to the time of day, as well as the variable cost of plugging into the grid.
That's just a handful of the related problems requiring innovative solutions and new business models. Hence the ETI infrastructure demonstrator project, which will examine the impact on electricity supply and explore aspects like dynamic pricing and smart metering through real-life consumer trials.
The insights it generates will enable companies in a range of sectors to develop products and services with greater certainty, and will inform the infrastructure design requirements and industry standards for the large-scale introduction of electric vehicles.
Now I'm very encouraged that so many of the key players are gathered here today – car makers, utilities companies, electricity network operators, IT firms, local authorities, regional development agencies. Given the ambition and complexity of what we're trying to achieve, it's essential that the various parties appreciate the concerns and aspirations we all bring to the table.
From my own perspective, I would point out that our research base has never been in better shape. And yet this country has a regrettable history of developing high-potential technologies without realising the full benefits for UK plc.
The current global economic crisis has only increased my determination that we won't repeat those past mistakes.
Let's do all we can to harness the vast pool of talent in the car industry, which attracts so many foreign companies to the UK, and combine it with the talent in the many sectors with a stake in this venture.
Beyond the vast commercial possibilities, EVs that are capable of a 50 kilometre range or more could reduce road transport CO2 emissions by up to 50 per cent. Coupled with low-carbon electricity generation, this would cut total UK CO2 emissions by more than 10 per cent.
British people care about climate change. They've recently endured the consequences of the spike in oil prices. They embrace new technologies with greater enthusiasm than their European counterparts.
So let's offer something that's revolutionary in every sense – what they drive, how it works, the way they pay.
This is also science and engineering at its most exciting. It's precisely the kind of challenge we can use to encourage girls and boys to study the STEM subjects at school and then university.
For all these reasons, I thank you for your willingness to play a part in preparing for a brighter future led by this country, and I urge you to continue working together through the ETI to make it happen.
