Energy secretary Chris Huhne has outlined the government’s energy policy in the first what is planned to be a programme of annual energy statements. The statement sketched out the government’s intention to reduce energy demand from domestic premises, promote renewable technologies, support the carbon price, overhaul electricity pricing incentives and twist the arm of the private sector to stump up for new nuclear facilities.

He said the government will incentivise micro-generation at both domestic and local community level and roll out smart meters as the fist step in building a smart distribution grid. He said fossil fuels still have a place in a low-carbon future, but only with carbon capture and storage.

He also highlighted the approaching energy gap faced by the UK as North Sea gas and oil run dry and old coal and nuclear power stations close, combined with the need to reduce emissions.

“The cheapest way of closing the gap between energy demand and supply is to cut energy use,” he said. “Our Green Deal will transform finance for improving the energy efficiency of Britain’s homes. It will get its legal underpinning from measures in the first session energy bill.”

None of the issues in the statement are new, but this is the first time the government has articulated them succinctly under one policy umbrella.

Source: BusinessGreen