Energy policy forges ahead

The UK's energy strategy took five important steps forward over the past 12 months, according to the Energy White Paper Annual Report published last month. During the report period, a treaty has been signed with Norway that will facilitate future developments along the North Sea maritime boundary, including the Langeled pipeline which will provide up to a fifth of the UK's future gas needs.

The EU has introduced an Emission Trading Scheme, which gives energy generators and industry a financial incentive to reduce damaging carbon emissions at least cost, and a single British electricity market and grid has been created. This will open up new markets for generators in Scotland and bring a downward pressure on prices for Scottish consumers. The Nuclear Decommissioning Authority has been established to manage the nuclear legacy for future generations. And finally, the Renewables Obligation has been extended to 2015, providing long term confidence for investment in renewable energy.

‘We're living through a period of enormous transformation in the energy sector. There are still big challenges ahead, but we've made very good progress over the past year on the objectives set out in the 2003 Energy White Paper,’ commented Trade and Industry Secretary Alan Johnson. ‘The signing of the Treaty with Norway clears the way for the construction of the Langeled pipeline and will be of particular importance as we manage the shift to being a net importer of energy.’

UK Energy Sector Indicators, published alongside the Annual Report, showed strong growth for renewable energy in 2004. The percentage of electricity generated from renewables grew at a record rate and reached 3.1% of UK electricity supply.

NOTE: The first annual report to Parliament on the security of gas and electricity supplies has also been published. This discusses prospects for the medium and longer term. Improvements in gas infrastructure that will ease the situation are already under development or construction. These include the Langeled pipeline to bring more gas from the North Sea, new liquefied natural gas (LNG) import terminals at Milford Haven and a new pipeline from the Netherlands.