The UK Energy Balancing Act: Net Zero and Energy Security

08/22/23 • 43 min

The United Kingdom (UK) has had to balance its net-zero ambitions with energy security after suffering from a price shock in 2021 that increased the cost of energy and forced them to stop importing Russian natural gas.

This week, Lord Martin Callanan, the UK’s Parliamentary Under Secretary of State (Minister for Energy Efficiency and Green Finance) at the Department for Energy Security and Net Zero, joins the podcast. His responsibilities include CCUS, hydrogen, green finance, energy efficiency, and emissions trading.

Here are some of the questions Jackie and Peter asked Lord Callanan: How do you respond to those that oppose the licensing of new North Sea oil and gas developments? Has the UK changed its policies or subsidies to compete with the US Inflation Reduction Act (IRA)? How can a carbon-market approach with price volatility compete against the certainty of the IRA-style, subsidy-based policy? How does the UK structure offshore wind, nuclear, CCUS, and hydrogen incentives to attract capital?
Content referenced on this podcast:

See the live power generation on the UK’s National Grid: https://grid.iamkate.com/
See the latest carbon clearing prices in the UK Emissions Auctions: https://www.ice.com/marketdata/reports/278

Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/X (Twitter): @arcenergyinst
LinkedIn: @ARC Energy Research Institute
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See the live power generation on the UK’s National Grid: https://grid.iamkate.com/
See the latest carbon clearing prices in the UK Emissions Auctions: https://www.ice.com/marketdata/reports/278

Previous Episode

Mixed Signals: Renewables Pause in Alberta While Feds Unveil Canada’s 2035 Net Zero Draft Policy

The podcast is back after a summer break! This week, Vittoria Bellissimo, President and CEO of the Canadian Renewable Energy Association (CanREA) joins the podcast to discuss the recent developments in Canada’s electricity markets.
On August 4th the Alberta government announced that Alberta is pausing new approvals for large-scale wind and solar projects for six months. Peter and Jackie asked Vittoria about the industry's reaction to this news and if a pause was required to address the concerns raised by the government, such as the impact on pristine landscapes, reclamation security requirements, and the implications for the reliability of the power grid.
A week later, the Canadian federal government released draft Clean Electricity Regulations. The policy aims to create a net zero electricity system in Canada by 2035. Starting in 2025, the draft rules require all new power generation assets to have low emissions (limit of 30 tonnes of CO2/GWh) by 2035. Natural gas generation is permitted if the emissions are captured or if the facility is used for short periods or in emergencies. Natural gas power plants built before 2025 can continue to operate with unabated emissions until they are 20 years old. Peter and Jackie discuss the draft policy, including the negative response from provinces with high-emitting power systems, including Alberta and Saskatchewan.
Content referenced on this podcast:

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Next Episode

Summer 2023 Lookback: From Nuclear to Oil to Renewables

Before you know it, summer is gone and its back to school! Peter and Jackie look back on the energy headlines of summer 2023.

They start the podcast by discussing the new nuclear capacity announced in Ontario, with three additional small modular reactors (SMRs) announced and the potential for a significant expansion at the Bruce Power nuclear plant. The excitement over room-temperature superconductors and another net-energy gain nuclear fusion reaction got their attention.

Next, a review of why oil prices rallied in July and the outlook for the supply-demand fundamentals for the remainder of the year.

Finally, Peter and Jackie cover some additional news on the pause for new renewable energy permits in Alberta, as well as some feedback and clarification on the draft Clean Electricity Regulations.
Content referenced on this podcast:

· Canada’s Draft Clean Electricity Regulation (released August 10, 2023)

· The Alberta Government’s Frequently Asked Questions on the Renewables Inquiry and the Related Pause (August 25, 2023)

Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/
Check us out on social media:

X (Twitter): @arcenergyinst
LinkedIn: @ARC Energy Research Institute

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