Downloads / David Newbery

Energy in a low carbon economy: new roles for governments and markets

David Newbery, EPEG Cambridge EU climate policy comprises of the Emissions Trading Scheme (ETS) to price CO2, the 20-20-20 Directive to create a demand pull for renewables and the EU SET-Plan to double R&D spending. However there are failures with some aspects of these policies, such as the ETS CO2 price being volatile and too low and the Renewables Directive undermining the ETS as it can reduce the price of EUAs and prejudice other forms of low carbon generation (nuclear). UK energy policy seeks to ensure a secure, affordable and efficient, low carbon energy system and is based in part around the policy lead from the EU. However, the UK also needs to consider how policy can support the transition to low carbon and the wider goals for the energy system. This requires the development of certainty to ensure that timely investment comes forward, including: a need for quick clarity on energy policy; the reduction of unnecessary risk; the replacement of ROCs with tendered FiTs; underpinning and guaranteeing the carbon price; and reform of the market and transmission access.

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Energy in a low carbon economy - Presentation.pdf 366.01 KB
22nd
Sep
2010

Energy White Paper: Overview

Professor David Newbery, Cambridge University As well as comparing the 2003 and 2007 Energy White Papers, progress since 2003 is set out. For different sectors, an overview of energy prices and CO2 emissions is given; and policies to increase low carbon investment are discussed (ETS, Climate Change Bill, RO and improved planning). Key themes and their implications for energy prices are discussed, including: carbon pricing; security of supply; electricity investment; large scale low carbon generation; and the renewable transport fuel obligation. In summarising the White Paper, it is highlighted that: energy taxes and subsidies still not mentioned; there are no reassurances of floor price to CO2; ROCs are retained, but are a costly solution; otherwise the EWP has some good intentions, such as policy developments around nuclear consultation, planning, and better information.

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Energy White Paper Overview 2007.pdf 276.82 KB
25th
Sep
2007

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