Only a few years ago, the big debate about climate change, our energy supplies and the affordability of energy were seen as three separate issues. It is clear now that they are all connected – we cannot respond to one without taking account of the others. They are different aspects of the same challenge – creating new sustainable energy solutions for the future.

Climate change

It is widely accepted that we need to reduce carbon dioxide (CO2) emissions to protect the environment. Under the UK Climate Change Act, by 2050, greenhouse gas levels must be reduced by 80% from the levels in 1990. That means cutting the level by a third in the next 10 years. To achieve this target there will need to be dramatic changes in the way electricity is produced. We will need to depend less on coal, and use our energy more efficiently.

In the US, although there is no national standard, many states – including all the states we work in – have set targets for reducing carbon emissions and increasing the use of renewable energy sources. For instance, in 2010 New York announced a plan which includes a ‘45 by 15’ clean-energy goal committing to generate 30% of electricity from renewable sources, and to reduce the amount of energy used by 15%, by 2015.

Securing energy supplies

A lot of the energy we use to drive our cars and heat our homes travels thousands of miles and crosses national borders to reach us.

The US depends heavily on imported petroleum, with 85% of the energy used in the US coming from fossil fuels. In the UK we can no longer provide all the natural gas we use. In 2001, we imported only 1% of our gas. Today we import 50% and, by 2020, that will rise to around 70%. So to secure energy supplies now, and into the future, we need to work effectively in an international market.

Affordable energy

From families to governments, everyone is concerned about rising energy prices. Fuel bills are a major part of household spending. Access to cheap energy is essential for modern economies, and rising energy prices have a knock-on effect on inflation and our GDP (Gross Domestic Product – the total value of all the goods and services produced and used within the country).

Meanwhile, significant investment is needed to modernise the energy system to handle the anticipated growth in demand and to develop alternative and cleaner sources of energy. This new infrastructure needs to be provided
as efficiently and cost-effectively as possible. We need to shift to low-carbon energy, and secure reliable supplies, in ways that customers and society can afford.

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Having affordable and low-carbon energy supplies in the future will also create opportunities for economic growth.

New jobs

The shift to low-carbon energy is creating the opportunity for new jobs, new businesses, and even new industries, to emerge. Businesses and governments are investing in new technologies and different ways of working to help reduce our dependency on fossil fuels and use alternative sources of energy.

Competitive business

Energy costs have become a priority for businesses, large and small. Providing the infrastructure to allow businesses to manage their energy more efficiently directly supports their ability to compete and to grow.

Modern economies

In today’s global marketplace, the prosperity of national economies and local communities depends on having
infrastructure that is fit for the changing demands of the 21st century, including having reliable, modern and smart energy systems.

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The scale of the engineering challenge facing the energy industry matches the scale of the transformation that needs to be made to how we all use energy.

Changing the mix of power generated in the UK

• Manage the huge shift away from using coal to generate electricity (from around one third of all energy generated today, to just 3% in the future).
• Deliver a large increase in wind power – to up to about a third of all energy generated, which is around the same as coal today. This brings with it the challenge that wind power is only available when and where the wind blows.
• Maintain the level of energy generated by nuclear power at around the same level as it is today (about 10%). However, there will still be significant change as all but one of the nuclear power plants in the UK are due to close, with newer and larger plants being built on the same sites.
• Introduce other renewable fuels, such as biogas and solar power, which together are likely to amount to about 12% of the total energy generated. Plus develop new technologies such as ‘Carbon Capture and Storage’, which will account for around 10% of the mix.
• Maintain the supply of gas, which is currently used to generate a third of the country’s electricity and is expected to continue to provide more than a quarter into the future (but most of the gas will be imported).

Shutting down generation capacity

A lot of the facilities that generate electricity in the UK are ageing and need to be replaced. By 2023, a quarter of the current facilities will be lost as old coal and nuclear power stations are shut down. By 2030, around half of today’s generators of energy will have closed.

Meeting growing demand for energy

At the same time as the major shift in how energy is generated, and the closure of power plants is under way, demand is set to soar. By 2050, demand is expected to be up by 50%, as people use more electricity to power their cars and heat their homes.

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