UK Business Council for Sustainable Energy

Background

"The UKBCSE brings together the Chief Executives of Centrica, EDF Energy, National Grid plc, E.ON UK, RWE NPower, Scottish and Southern Energy, Scottish Power, and United Utilities, as well as senior executives from Shell, BP, CE Electric, Air Products, International Power and Renewable Energy Systems.

Objectives

The UKBCSE aims to: • Provide a forum for dialogue between the UK energy industry, government and other stakeholders on the key issues shaping the deployment of sustainable energy; • Promote the policies, investment and commitment needed to secure market growth and sustain long term business planning; • Highlight the scope for technological and market innovation to deliver key environmental goals.

Through an extensive programme of stakeholder consultation, the UKBCSE took the lead role for the UK Government in bringing together the UK Energy Sector input to the World Summit on Sustainable Development. At the World Summit, the UKBCSE worked with the UK Government to launch the Renewable Energy and Energy Efficiency Partnership (REEEP).

In the UK, the Council has taken an active role in the development of cross industry input into the UK energy review, and the succeeding Energy White Paper as well as the Review of the UK Climate Change Programme and a range of other cross cutting issues.

The Council continues to take an active part in the Climate Change negotiations. It is involved in the international discussions about the structure of the second phase of the Kyoto protocol following the end of the first period of the Kyoto Protocol (2008-2012).

The Council has also taken a key role in the development and delivery of the UK Prime Ministers agenda for his G8 and EU Presidencies. The Prime Minister, in his address to the G8 summit as it received the G8 Renewables Task Force Report, welcomed its creation:

"We will work with the UK Business Council on Sustainable Energy to develop further initiatives to promote the use of renewable and sustainable energy.""

Policy

"The UKBCSE's UK Policy programme covers a range of issues surrounding the development of all forms of sustainable energy (renewables, energy efficiency and Combined Heat and Power). Our current focus is on the implementation of the EU Emissions Trading Scheme; the development of energy efficiency policy; and ensuring the right regulatory framework is in place to stimulate investment in network infrastructure."

Summary of Policy Consultations and Official Reports

The Supplier Obligation. UKBCSE submitted a joint response with the Energy Retail Association to a call for evidence on the Supplier Obligation. Representing 'energy companies' the report repeatedly mentions the importance of energy efficiency and reducing energy demand in the UK. As with other UKBCSE literature there is emphasis on generating stable carbon markets and investor confidence;

'companies agree that the long term objective of greenhouse gas abatement policy should be to unify frameworks to reveal a price for carbon'

Another key message of the report is their concern that energy companies should not be held excessively responsible for energy demand reduction, for which considerable onus is also on government, building designers and other bodies (e.g the Energy Saving Trust).

Finally there is contention about 'energy efficiency' versus 'low carbon' strategies, noting that 'Key players' believe 'carbon reduction' policies will facilitate more innovations and assist in fixing carbon price.

By way of hypothesis, this language suggests that, contrary to earlier statements, the UKBCSE may support a growing demand for energy, but in the low carbon sector, allowing for economic growth of energy companies.

Report: Implementing the EU Renewable Energy Target in the UK Emerging Issues for Consideration

This UKBCSE Report, which makes recommendations to the government's upcoming 'Renewable Energy Strategy' claims to be a high level analysis of the implications of the UK Renewables Obligation to generate 20% renewable energy by 2020. The report outlines potential capacity for expansion of renewable generation in the UK, focusing on offshore wind, with some mention of the Severn Barrage project. They estimate that 68GW of new build will be needed by 2020 to meet the target (at 2006 levels, i.e not allowing for increase in energy demand). However, available wind projects will only give an extra 16GW (though in the exective summary they give a figure of 38GW) (and Severn Barrage will not be online in time), leaving 50GW of demand capacity unmet, and 34GW of new transmission (powerlines etc) capacity needed. They acknowledge that this is well short of the target.

The report makes a number of recommendations to government regarding meeting the target.

High importance is given to certainty in Carbon markets, to encourage investment into renewable technologies. The government is urged to put pressure on European processes to make decisions about renewable credits trading possibilities and carbon credit cost price as soon as possible to stimulate markets. Changes to planning procedures through the 'Planning Reform Bill' are also emphasised as key, aswell as a need to make customers accept a rise in energy prices. These priorities strongly echo the themes of the 2007 Energy White Paper.

A number of 'no regrets' policies are recommended, such as:

'*demonstrating commitment across all Departments to delivering the 2020 target;

• demonstrating Government commitment to continue its policies and measures designed to support renewable energy in order to ensure

investor confidence is maintained;

• ensuring that in any revision of the existing statutory social and environmental guidance to Ofgem, Government gives a clear indication of the importance of Ofgem’s role in facilitating sustainable energy development;
• swift resolution of shorter-term transmission access reforms to enable full use of existing transmission infrastructure, and use of new transmission infrastructure as it is established;
• early resolution of the Government’s and EC’s position on the use of biomass and biofuels across heating, electricity and transport'

Crucially, the report also seems to encourage a growth in energy demand in the UK (which is not surprising considering their membership):

'The extent to which energy efficiency policies are implemented in the UK will have a significant impact on the amount of renewable energy that will be needed to meet the target. It is worth noting that the biggest opportunity for energy efficiency is in reducing heat consumption, and is less likely to impact on future demand for electricity. '

People

Steve Holliday Chair. (Chief Executive, National Grid) | David Green (OBE) CEO | Pamela Rudolph Executive Assistant | John FrenchHead of Policy. | Clare Dudeney Policy Advisor | Laura Pennington Executive Support Assistant. | Kirsty Hamilton International Policy Consultant. | Judith Ward Policy Consultant.

Affiliations

Members

Centrica | EDF Energy | E.ON UK | National Grid plc | RWE npower | Scottish Power | Scottish and Southern Energy | United Utilities

Strategic partners

Air Products | CE Electric | International Power | Renewable Energy Systems(RES Group) | Shell

Supporters

BP| CE Electric | Centrica | Drax Power | EDF Energy | International Power | National Grid Transco | Renewable Energy Systems | RWE npower | Scottish Power | Scottish and Southern Energy | Shell | United Utilities

Contact details, Resources, Notes

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