Utility Week

UTILITY WEEK | 12TH - 18TH JULY 2019 | 13 Utility of the future: climate change "Standing by is not an option. Reaching net zero by 2050 is an ambitious target, but it is crucial that we achieve it to ensure we protect our planet for future generations." Prime minister Theresa May "Science is clear that stopping climate change means bringing emissions to net zero. We can cut our emissions to net zero, the costs are manageable, and, in many ways, from lower air pollution to restored natural environments, the world will be a better place to live in when we do so." Professor Joanna Haigh, co-director of the Grantham Institute at Imperial College "Net zero can be achieved but only if the ambition is supported by the right policies. We need to go further and faster in areas like decarbonising transport and heating and improving the energy efficiency of our homes and businesses." Lawrence Slade, chief executive, Energy UK "Nuclear has long provided the UK with clean, reliable, secure electricity, and it will be needed to help meet the increased demand from the electrification of heat and transport." Tom Greatrex, chief executive, the Nuclear Industry Association "The UK needs to quadruple renewable electricity generation by 2050 to reach net zero and the government needs to urgently remove the barriers to onshore wind to deliver on this." Keith Anderson, chief executive, Scottish Power "We need to deliver the best low-carbon electricity grid, through smart charging of batteries and electric vehicles, to maximise solar and wind resources." Simon Daniel, chief executive, Moixa Removing coal from our power generation system has been done without the consumer noticing. They flick on a switch, the lights come on. That's why decarbonising the gas grid is such an attractive option. Keeping existing tech- nologies, familiar to consumers in how they work, ticks so many boxes. Decarbonisation needs to be done with consumers, not to them. It also needs to be done as cost effectively as possible. In part, that's why interna- tional off-setting holds its attrac- tions. Buying carbon off-sets is virtuous, not a policy of last resort. The UK's response to net zero has been entirely appropri- ate and should be applauded. You can quote me… heat and transport in a way acceptable (or possibly even delightful) for consumers. This challenge is multi-faceted – it com- bines technology, policy and regulation, business models and people. Together with colleagues from Imperial College London, Laura Sandys and I outlined elements of the solution in our Redesigning Regula- tion report, published at the end of 2018. We argue that a net zero emissions target requires rapid transformation of the energy sector, and that enabling this requires a rethink of how the sector is regulated. As an example, net zero energy has implications for lifestyles, in that all ser- vices, such as lighting, cooking, heating and mobility must be net zero. In addition, con- sumers may be asked to be flexible in their energy use, so that energy available from variable output renewables can be used when available. For consumers, this could result in more complexity than today, and come with a stiff, and for many unaffordable, upfront costs. Therefore, utilities will need to engage consumers in the net zero journey and, where required, manage this complex- ity and address issues of upfront costs (for example, the cost to install a zero-emissions heating system). In conclusion, the net zero challenge for utilities is twofold. How to adapt to climate change, particularly within increasingly interconnected and interdependent sys- tems? And how to transform utility business models and regulation to drive the net zero transition? Dr Jeffrey Hardy, senior research fellow, EnergyREV, Grantham Institute, Imperial College London "This is industry at its best. Given a target, asked to tackle it and dedicating their expertise and resources to deliver solutions."

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