The UK should launch a nationwide effort to chop power demand, selling measures like house insulation, warmth pumps and hydrogen, alongside sustaining its personal oil and fuel sources, Offshore Energies UK’s appearing chief govt has mentioned.
Mike Tholen advised an viewers of power consultants not too long ago that accelerating such measures was one of the best long-term method to lower client payments and scale back greenhouse fuel emissions. He additionally mentioned {that a} new licensing spherical for oil and fuel exploration, introduced this yr, was key to supporting the UK’s near-term power safety.
His remarks got here in a speech on the launch of OEUK’s Financial Report: A Concentrate on UK Power Safety, attended by greater than 300 senior figures from the UK’s power industries. The speech is ready out in full under.
Within the speech, on the P&J Stay venue in Aberdeen, Mr Tholen mentioned:
“Lengthy-term administration of demand is important. Easy measures resembling enhancing power effectivity can’t be ignored, even when they take time to implement.
- Insulating properties and different buildings should be a precedence
- Options like heat-pumps ought to be embraced to assist us use much less power,
- And electrical and hydrogen powered autos also can lower our consumption.
“These are all identified and reliable applied sciences that may not solely drive down client payments but additionally lower carbon emissions. Nevertheless, such adjustments will take years – throughout which the nation also needs to maximise the power from offshore sources, that means fuel, oil and offshore wind.”
He added:
“We should additionally profit from our personal power sources.
“The North Sea nonetheless gives oil and fuel sources aplenty. The North Sea Transition Authority estimates the equal of 15 billion barrels of oil could possibly be accessed over time.
“And naturally, alternatives for important wind energy, too – there need to be some perks to working in one of many windiest nations in Europe!
“We should maximise manufacturing in a sustainable manner and proceed to replenish our reserves via extra exploration. We can’t delay, the clock is ticking. We’d like the assist of regulators and authorities.
“That features having the anticipated Local weather Compatibility Checkpoint revealed as quickly as attainable.
“Then we’d like a brand new oil and fuel licensing spherical – ideally introduced properly earlier than Christmas. “
Mr Tholen additionally known as for a evaluate of electrical energy tariffs. He mentioned:
“We have to take a step again and have a look at our power techniques and markets and see whether or not they’re really as much as the duty. Specifically, we have to have a look at the hyperlink between electrical energy costs and wholesale fuel costs.
“As a result of, our techniques and markets have been constructed for a really completely different time, and for very completely different circumstances. At current, the value of fuel units the value for the entire electrical energy market – although fuel generates solely 40% of our energy.
“Because of this we’re absolutely supportive of the Authorities’s ongoing present evaluate of electrical energy markets. We’d like a tariff and pricing system that’s match for the challenges we face now, and certainly the power panorama of the long run.
“Which means match for a world the place we’re shifting in direction of low carbon and renewable sources.
“What’s extra, these sources ought to be below our management – working within the UK and its surrounding waters the place we will take cost not simply of provide however, because the proportion of low carbon era grows, of pricing too.”
Mr Tholen additionally welcomed the UK’s new authorities and mentioned the offshore business was eager do construct on its current partnerships with all of the governments of the UK.
“Our first message to all politicians and events is that no matter your politics, our business may be very undoubtedly a part of the answer.
“We’re now on the verge of an power revolution – shifting on from an period dominated by fossil fuels to at least one the place our nation runs on low carbon power. Our business will play a key position in that revolution.
“However we will solely do it as companions, in a long-term, secure and stable relationship with politicians of all events – and with customers. We’d like motion now to make it possible for revolution goes easily.”
