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Déjà vu

The government has announced its new “Energy and Security Strategy”. Obviously, the focus will be on renewals and nuclear. But will eight new nuclear power stations ever be commissioned even if these are going to be located on the existing power station sites? Will the new offshore wind farms come into the fore? That’s why I say déjà vu, it is as if we are back where we started on the energy debate.

It was just the other day at the “COP26” in Scotland where the UK restated its aim of net zero. Thus, in reality there is nothing new in the strategy being put forward for the short term. Is this a missed opportunity given that everything is focused on the long term? All it takes is a change in government, for policy decisions to be consigned to the bin, especially when some of these policy decisions do not affect the term of that current government but instead successive governments.  

Any nuclear power station will take at least 15 years to come online even once the planning and finances have been agreed. Part of the energy security debate has to take in account how to fix supply and not just look at how to generate supply. In the short term there are very easy wins when looking at energy saving installations which will save money on energy consummation. The UK’s housing stock is one of the most energy inefficient in Europe despite years of government grants to improve the situation. Surely there has to be a dual approach.

Even if the government is not going to focus on energy saving improvements, I suppose it is a good thing that at least the government is looking at a new offshore grid and hydrogen to replace natural gas. However, the government needs to be bolder as back in 1973 the oil crisis led to “Messmer plan” which made France focus on nuclear energy as a means of power generation. It is the lack of investment in the UK which will cause further bill shocks in the future. If the government invested in nuclear and alternative renewables despite energy bills being at their current height, in the long term the UK consumer would secure a better return. This sounds contrary but some of the earlier wind generation contracts which looked expensive at the time are now paying dividends as they are generating electricity at prices lower than the current energy price.

So maybe a bold approach with energy saving measures framed in a radical approval process for new projects could be the solution but as always only time will tell as the government has to follow through no matter what the short-term cost are going to be as there will be long term gain then we can avoid déjà vu.

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