Government Energy Plans Revealed

The government's energy white paper, was unveiled by the Trade and industry secretary Alistair Darling told the House of Commons outlining the need tackle environmental and energy security issues by focusing on energy efficiency.

Among the goals set by the white paper are tripling the amount of electricity from renewable sources by 2015 and cutting emissions by up to 33 million tonnes of carbon by 2020.

It hopes to achieve these aims by introducing new real-time 'smart meters' from 2008, publishing a biomass strategy, legalising the storage of natural gas underneath the North Sea and funding for the development of low carbon vehicles.

"Every action set in train by this white paper is important, and none will be easy. Nor can we become a low carbon economy in a single step," Mr Darling told the Commons."But if each of us acts we can start to deliver the low-carbon economy vital to our prosperity," he said.

The government stopped short of a full endorsement of nuclear power in a bid to avert the expected fierce debate between policymakers and environmentalists.Instead ministers framed nuclear power stations as an environmentally-friendly energy source but avoided making concrete decisions on the issue, launching a new consultation.

Just hours after Mr Darling announced his Energy White Paper yesterday, BP, the oil giant halted work on a £1bn-plus carbon capture and storage facility in Scotland, blaming delays in state subsidies. BP's decision is an embarrassment for the minister, whose White Paper is designed to underline the Government's commitment to take a global lead in cutting greenhouse gases.

Announcements in the White Paper include:

• A requirement for new meters to come with a real-time display from 2008 and a short term offer of free displays from energy suppliers for households to 2010. In addition, the Government is encouraging the introduction of smart meters, also with displays, in the household sector and for small firms and expects everyone to have a smart meter within 10 years, whilst requiring smart meters for all but the smallest of businesses in the next five years.
• A consultation setting out how the energy efficiency of consumer electronics will need to improve is published.
• A consultation to double energy suppliers' current obligation to deliver energy efficiency measures to customers through a new 'Carbon Emission Reduction Target'.
• A 'Distributed Generation' Report is published including simplification of energy market and licensing arrangements for localised energy by the end of 2008 and clearer export tariffs from all six major energy suppliers for microgenerators to sell excess electricity.
• Legislation to band the Renewables Obligation to benefit offshore wind, wave, tidal and other emerging technologies. The cap on the amount of co-firing generation qualifying for support will be removed.
• Publication of a Biomass Strategy as well as a response to 'Creating Value from Renewable Materials' - a 2 year progress report on the Strategy for Non - Food Crops and Uses.
• Detail on the competition announced in the Budget to build the world's first end-to-end Carbon Capture and Storage plant, which will deliver at least 300MW capacity, 90% CO2 saving, and be up and running between 2011 and 2014.
• Legislation to allow the storage of natural gas under the seabed and unloading of Liquefied Natural Gas at sea.
• A three month deadline within which DTI will make consent decisions on large scale energy projects, pending more radical reforms set out in the Planning White Paper.
• A new energy market information and analysis service from this autumn.
• A Low Carbon Transport Innovation Strategy is published backed by funding of £20m for public procurement of low carbon vehicles, an up to £30m R&D 'Innovation Platform' and £5m additional funding for the Energy Technologies Institute.