Thread by @BDavisBriz

Looking forward to what should be an interesting discussion on the #EnergySecurityStrategy and whether it will deliver clean, affordable energy for British consumers #BeesleyLectures

Chair @UKERCHQ’s opens the lecture by noting that #EnergySecurity has gone up the political agenda not just in 🇬🇧 but across Europe, noting in particular political developments in 🇩🇪 over coal & LNG vs nuclear power #BeesleyLecture

Returning to the 🇬🇧, Maclean ponders the fate of the #EnergySecurityBill, and whether BEIS Minister Schapps will continue Rees-Moggs planned review of the Bill #BeesleyLecture

.@YourSSE’s Alistair Phillips-Davies notes the topicality of tonight’s lecture, observing that, at the time of the lecture, the new Energy Minister had yet to be formally appointed #BeesleyLectures

Looking back to #COP26, Phillip-Davies notes the spirit of optimism that followed the Conference, in particular businesses open to investing in decarbonisation, with 🇬🇧 “taking centre stage”, combined with low commodity prices & a post-💉 “bounce” #BeesleyLectures

However, Phillips-Davies notes that 2022 will by contrast be remembered for the energy crisis, with volatility of supply and European energy prices rising to record highs. Claims that the 2022 “dwarfing” the 1970s oil crisis in terms of impact #BeesleyLectures

This, Phillip-Davies argues, has led to short-term measures that have “rightly” focused on supporting consumers. While he says there will be “cliff edges” in April when support schemes end, he is confident that “cheaper energy is coming” as renewables come online #BeesleyLecture

Looking at 🇪🇺’s response, Phillips-Davies says that they are right to focus on demand reduction, and contrasts this with the 🇬🇧, which has not focused on energy efficiency “for quite some time” #BeesleyLecture

Looking at the solution to the #EnergyCrisis, Phillips-Davies says that we will need to build our way out of the crisis, likening the scale of investment to the Industrial Revolution to help “repower and rewire” the European continent #BeesleyLecture

Phillips-Davies also believe that this investment in energy infrastructure will also coincide with a period of deglobalisation of the energy sector. Says 🇬🇧 could learn from 💉 rollout to get investment & putting systems in place #BeesleyLecture

Phillips-Davies believes 🇬🇧 has the infrastructure in place to achieve the full decarbonised power system by the 2035 deadline. In particular, Phillips-Davies believes there is great untapped potential in solar, offshore wind and nuclear #BeesleyLecture

However, Phillips-Davies says that industrialising processes is key. He uses the example of #OffshoreWind, where innovations have led to larger turbines generating greater energy generation delivered at a cheaper price per megawatt hour #BeesleyLecture

Turning to policy frameworks, Phillips-Davies have said that electricity market reforms, decarbonisation plans & the overarching #NetZero strategy has helped “to a point”, bring certainty for investments & clear targets to achieve #BeesleyLecture

Turning to REMA, Phillips-Davies says we need to be “thoughtful” on the proposed reforms, allowing investors to get a clearer picture of what future markets will look like #BeesleyLecture

Turning to mistakes, Phillips-Davies more progress should have been made on offshore wind subsidies, the rollout of smart meters, shortcomings of the Green New Deal and NIMBY attitudes to onshore wind & solar #BeesleyLecture

Phillips-Davies also warns governments against “ill thought through” price caps and “surprise taxes” which may disincentivise investment #BeesleyLecture

Phillips-Davies notes that companies are standing ready to deliver. However, he reminds Govt that energy is a global market, so they need to provide “consistent policies & low-capital costs” to attract investment & talent to the 🇬🇧 #BeesleyLecture

Phillips-Davies says the political discourse isn’t always conducive to creating confidence to invest in 🇬🇧. Gives example of debates on price caps, discussions on nationalisation & confusion from the sector on Labour plans for a publicly-owned green energy company #BeesleyLecture

Phillips-Davies then moves on to his 3️⃣ principles for energy security. Firstly, he says REMA & other short-term interventions should ensure impact of cost on capital is “king” for the “build phase” of new energy structures #BeesleyLecture

However, Phillips-Davies also says that solutions need to be “practical” and “realistic” #BeesleyLecture

He pushes back on the idea locational marginal pricing, saying it doesn’t reflect realities of geography - arguing it would be undesirable & impractical to “fill Thames with wind turbines rather than offshore in North 🏴󠁧󠁢󠁳󠁣󠁴󠁿 #BeesleyLecture

Moving on to his second principle, Phillips-Davies says regulation needs to move away from “just in time” supply chains towards “just in case”. While this is moving on the right direction, Phillips-Davies says it needs to move at a faster pace #BeesleyLecture

The third principle Phillips-Davies argues the energy sector needs “flexibility at all levels of the system”, with a blend of renewables & nuclear able to adapt to fluctuating levels of consumer demand #BeesleyLecture

Phillips-Davies also notes that there needs to be a greater emphasis on energy storage to help bake resilience in to the energy system. Says this will be a “key job” of REMA in terms of promoting investment opportunities of storage #BeesleyLecture

Phillips-Davies concludes saying that Britain “needs to play its best hand in the New Energy World”. Argues that #Coronavirus and #Brexit have had a negative impact on the economy, so 🇬🇧 needs to learn to play to its strengths on energy #BeesleyLecture

In particularly, notes that the 🇬🇧 has a competitive advantage in offshore wind, noting both Boris Johnson & Alex Salmond referred to the UK as “the 🇸🇦 of offshore wind” #BeesleyLecture

Phillips-Davies says he believes we have an opportunity to “generate energy the British way”, playing to our material strengths & ultimately coming an energy exporter #BeessleyLecture

Next speaker Dr @janrosenow responds to Phillips-Davies’ lecture. He repeats that we are facing the “perfect storm” of the climate crisis, high energy costs & security of supply when it comes addressing our energy security #BeesleyLecture

However, Roesnow says that energy security is the key to addressing all three of these challenges. In particular, investment in renewables. He notes that the 🇬🇧 has been “particularly impressive” in its transition away from coal to renewables #BeesleyLecture

Rosenow also notes that, globally, around 80% of all new global capacity additions are from renewables, mainly solar and wind #BeesleyLecture

Rosenow also says that #NetZero has been key at driving decarbonisation efforts. However he notes only 17% of energy use comes from electrify, compared to Heating & Cooling (51%) and Transport (33%) #BeesleyLecture

However, Rosenow is positive about the fact that we have decarbonised energy will help us decarbonise other sectors, particularly as electrification of industries & transport will drive up need to produce energy from low-carbon sources #BeesleyLecture

Turning to barriers, Rosenow says that levies on electricity have historically disincentivised electrification. When energy generation was carbon-heavy, he says these levies made sense, but the new decarbonised energy sector means levies may no longer be desirable #BeesleyLecture

Rosenow also notes that we have Europe’s lowest #HeatPumps installation rate, arguing that levies & the UK markets linking of electricity & gas prices preventing take up of these newer, cleaner technologies #BeesleyLecture

Rosenow also says that current policies do not sufficiently incentivise energy efficiency, and lower rates of insulation & retrofit also mean we have higher levels of temperature loss in buildings #BeesleyLecture

Turning to the grid, Rosenow highlights the need for investment in the grid and other related infrastructure to meet increased demand on the grid & this needs to be framed as an opportunity, not a challenge #BeesleyLecture

On flexibility, Rosenow says that technologies can help consumers to be more flexible, accessing energy when cheaper renewables are available compared to “peak rates” of mostly fossil generation #BeesleyLecture

Rosenow concludes saying there is a “strong momentum” towards decarbonising the energy sector. He is confident that “we will reach the top of the mountain”, even if the path ahead is still unclear #BeesleyLecture

The speakers are now taking questions from the audience #BeesleyLecture

On the interconnectivity of world energy markets, Phillips-Davies pushes back on “energy nationalism” & repeats his view that UK has potential to eventually move from an energy importer to an energy exporter #BeesleyLecture

On hidden costs in consumer bills from energy efficiency, Rosenow acknowledges that “so-called hassle costs” do exist, which is why it is crucial that we need the right policies & frameworks put in place to drive investment & change consumer behaviour #BeesleyLecture

Phillips-Davies agrees, particularly around building legislation and the need to build more energy efficient new buildings #BeesleyLecture

On the need for consumer engagement, Rosenow agrees of the “critical” need for consumer engagement and pushes against the Truss govt’s argument that energy use is a “personal matter” #BeesleyLecture

Rosenow says that energy efficiency campaigns need not be prescriptive & “telling them what to do”, rather empower consumers to make informed choices on how they wish to use energy #BeesleyLecture

Was great to be back to in-person lectures, especially in the auspicious surroundings of the @The_IoD building! #BeesleyLecture

Really interesting debate on the potential challenges and opportunities UK businesses & policy makers face in building UK energy security. Thanks Alistair Phillips-Davies & @janrosenow for your insights, to Dr Keith Maclean for chairing & @Econolex_ for hosting! #BeesleyLecture

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