Energy managers express “concerns” in EI report

The firms second ‘Energy Barometer’ survey of the year reveals that EI professional members put continuity just ahead of a lack of investment as the primary worry for the sector, with the long term impact of a low oil price, along with the need for whole-system thinking and longer term planning, also emerging as top issues within the past 12 months.

70 per cent of respondents do not think the Paris Climate Change agreement will be enough to keep global temperatures below 2 degrees and are concerned that current policies are not having the desired effect, while most energy professionals asked think the UK will fall significantly short of its goal of reducing emissions by 80 per cent below 1990 levels by 2050, however support for new nuclear power stations is seen to have had a positive effect, along with energy efficiency improvements.

The majority of EI members surveyed argue that policy uncertainty relating to carbon capture and storage (CCS) is having a “particularly negative impact on industry,” with the technology standing out as most vulnerable to investment risk, while policies relating to renewable electricity deployment, reducing fuel poverty and simplifying energy taxation are also cited as insecure.

An “overwhelming majority” of contributors believe leaving the EU would have negative effects on the UK energy system should the UK leave the EU, with issues such as securing energy supplies, renewable energy development, climate change and sustainability, and air quality attracting four times as many negative reactions as positive ones, with the only exception to this pattern being oil and gas production, where positive and negative views were broadly balanced.

Professor Jim Skea CBE FEI FRSA, President, Energy Institute, believes the report emphasises the importance of policy stability for energy professionals.

“This report shows that the single biggest wish for people working in UK energy is a stable energy policy to help industry and financiers decide where to invest profitably and, more crucially, to allow for long-term planning,” he said.

“Renewable energy and capturing carbon – key to implementing the Paris climate agreement – are seen to have been particularly badly hit by policy changes over the last year.”

Malcolm Brinded CBE FEI FREng, Vice-President, Energy Institute, added: “This year’s survey reflects concern that lack of policy continuity leads to under-investment in both UK energy technology and infrastructure. This is considered to be the largest barrier to innovation and the delivery of the low carbon energy system needed to meet future demand and emissions targets, securely and affordably.”

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