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The 2006 Energy Review Regional Stakeholder Seminar: Energy RD&D and Transport 23 February 2006

The 2006 Energy Review Regional Stakeholder Seminar: Energy RD&D and Transport 23 February 2006. Carl McCamish Deputy Head of Energy Review Team. Outline. 2003 Energy White Paper Goals and the Key Consultation Questions Current Situation - Transport Current Situation – RD&D

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The 2006 Energy Review Regional Stakeholder Seminar: Energy RD&D and Transport 23 February 2006

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  1. The 2006 Energy Review Regional Stakeholder Seminar:Energy RD&D and Transport23 February 2006 Carl McCamish Deputy Head of Energy Review Team

  2. Outline • 2003 Energy White Paper Goals and the Key Consultation Questions • Current Situation - Transport • Current Situation – RD&D • Discussion Questions

  3. Energy White Paper Goals • Reducing carbon emissions • Maintaining reliable energy supplies • Promoting competitive markets • Ensuring that every home is adequately & affordably heated

  4. Questions in the Consultation Document (Summarised) • What more could the government do on the demand or supply side to meet our CO2 reduction targets in the medium and long term? • How do we develop our market framework for delivering reliable energy supplies ? • Are there particular considerations that should apply to nuclear ? • Are there particular considerations that should apply to carbon abatement and other low carbon technologies? • Steps to take towards ensuring that every home is adequately and affordably heated ?

  5. Questions in the Consultation Document continued … Submissions are also requested on: • The long term potential of energy efficiency measures in transport … and how best to achieve that potential 4. Potential measures to help bring forward technologies to replace fossil fuels in transport … in the medium and long term

  6. Transport – rising emissions…

  7. Transport – …despite improving efficiencies

  8. Transport drives our reliance on oil Sources of fuel for transport Oil-based products - 98.8% Other – 1.2%

  9. Demand for oil is dominated by transport Uses of oil, UK 2005 Transformation and Refineries Non-energy use 8% 13% Industry 10% Other transport 2% Other 5% Air transport 15% Road transport 47%

  10. Future technology options in transport? Short-term - Improved fuel efficiencies (2006-2015) - Hybrids Medium-term - Sustainable Biofuels (2015-2030) Long-term - Renewable Hydrogen (2030-2050)

  11. Current policies • Reduce traffic (vehicle/passenger km) e.g. “Smarter Choices” • Improve fuel efficiency (litres per km, mpg) e.g. EU Voluntary Agreements • Lower the carbon content of fuel (grams per litre) e.g. the Renewable Transport Fuels Obligation

  12. RD&D – scope of Review Priorities: • Analysis of the current state of development of specific low carbon technologies • Working towards a Government low carbon RD&D strategy • Review of the organisation of the current landscape of Government funding for low carbon RD&D Covers all low carbon energy technologies (electricity, heat, transport, efficiency, enabling/ supporting technologies).

  13. RD&D – structure for thinking

  14. RD&D – current funding bodies(not comprehensive)

  15. RD&D – current UK funding mechanisms(not comprehensive) • Academic research supported by the Research Councils (£70m by 2007/2008). • Industry-led R&D supported by Technology Programme (£35m since 2004) and the Carbon Trust’s R&D Programme. • Various capital grants schemes for demonstration stage (totalling over £300m). Includes: Direct Government funding not the only possible intervention – deployment-stage interventions could be designed to incentivise RD&D as well by creating market pull.

  16. Barriers to deployment R&D only part of what’s needed to achieve deployment. Other barriers: • (Unit) cost • Planning • Regulatory • Grid • Infrastructure • Lock-in to high carbon technologies • Availability of private sector financing

  17. Questions for discussion Transport: RD&D: • Strengths and weaknesses of current transport policy, and further steps • Cost of carbon abatement compared to other sectors • Technology-neutral vs. picking winners • Balance between supporting deployment and supporting RD&D • Drivers and barriers to industry RD&D, and which interventions can affect them • Organisation of the current Government funding landscape

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