The Department of Energy and Climate Change (DECC) has today (July 27) published the first Annual Energy Statement which outlines 32 actions to accelerate the transformation of the energy system to 2050, including plans to produce a renewable delivery plan and to exploit waste resources for energy generation.

The statement was presented to Parliament by energy secretary Chris Huhne, who also announced a raft of further energy measures, including the government's decision to ‘grandfather' support for biomass technologies under the Renewables Obligation (RO) and the publication of six pathways to 2050.

In the Annual Energy Statement, DECC confirms that it will "set out detailed proposals for taking forward the government's commitment to renewable heat through the Spending Review" - meaning those awaiting an announcement on the Renewable Heat Incentive (RHI) will have to wait until October.

It also states that the Department will launch ‘Community Energy Online' this autumn which will support local authorities who wish to develop local renewable energy schemes and claims a robust Delivery Plan for renewables will be drawn up with delivery partners over the summer before it is published for implementation.

In terms of energy from waste, the statement focuses on the need to exploit as much waste as is "economically possible" of the 100 million tonnes it says is generated each year and convert it to heat, power and transport fuel.

The document notes that DECC and the Department for Environment, Food and Rural Affairs (Defra) are leading a cross-government project on EfW, which it claims will report late in 2010 and will provide guidance on how and where energy from waste could best be used.

Launching the statement, Mr Huhne said: "The coalition brings resolve and stability to energy and climate change policy. Today's Annual Energy Statement sets out 32 important actions to introduce the transparency, certainty and long-termism needed to unlock investment.

"Our future energy system is too important to rely on crystal ball gazing. The 2050 Calculator provides the most comprehensive, long term analysis ever undertaken by government. The decision to publish this material is a watershed in government's honesty with the public about what's needed in the long term. It will guide the decisions we make during this Parliament about the energy system we want in 40 years' time."

Also announced as part of the annual statement was that a consultation on electricity market reform will be launched in the autumn, which will review all aspects of the electricity market in light of the challenges ahead for the energy sector and its need for "substantial" new investment.

DECC claims it will assess the role that a revised Renewables Obligation (RO), Feed-in Tariffs and capacity mechanisms could play in delivering a system that supports the delivery of secure, low carbon energy.

Complementing this, a call for evidence has been published today launching a review of Ofgem's role as the independent regulator of the energy markets. It will explore whether changes are needed to the regulatory framework so that the government can achieve its energy and climate change goals.

Responding to the launch of the review, which is due to report in Spring 2011, Ofgem's chief executive, Alistair Buchanan, said: "Ofgem very much welcomes this holistic review of energy policy which states that we are ‘a critical part of the energy landscape.'

"We are also very pleased to be named as one of the parties that will ‘be fully involved' in the government's Electricity Market Reform project. The Annual Energy Statement also recognises the central role Ofgem is playing in delivering smart meters and a new regime for transmission connections to offshore wind farms."
2050 Pathways

Further to these announcements, six illustrative 2050 pathways have been published today which show that an 80% cut in emissions is "ambitious but achievable" and compatible with maintaining security of energy supplies.

Commenting on these, Mr Huhne added: "The challenge is ambitious but achievable. We're already on track to cut the UK's emissions by 34% by 2020, and will do more if we can win the case for greater ambition across the whole EU. But our line of sight needs to extend much further, through to the middle of the century.

"The era of cheap, abundant energy is over. We must find smart ways of making energy go further, and value it for the costly resource it is, not take it for granted. And even as we reduce overall demand for energy, we may need to meet a near doubling in demand for electricity, as we shift industry, transport and heating onto the grid. There are big choices and big trade offs in how we do this. The six pathways described today are only illustrative, but they highlight the scale and urgency of the task."

Some of the common conclusions of the pathways include:

* A substantial level of electrification of heating, transport and industry is needed;
* Electricity supply may need to double, and will need to be decarbonised;
* A growing level of variable renewable generation increases the challenge of balancing the electricity grid;
* Sustainable bioenergy is a vital part of the low-carbon energy system, in sectors where electrification is unlikely to be practical, such as in long-haul freight transport and aviation and some industrial high-grade heating processes.

Commenting on the 2050 pathways, Friends of the Earth's (FoE) sustainable energy advisor, Alan Simpson, said: "This research shows that reducing the UK's carbon emissions will save us facing huge bills in the future - and improve energy security, create new jobs and protect us from unpredictable fossil fuel prices.

"But solving one environmental problem by creating another is not the answer - nuclear power will create a centuries-long legacy of toxic waste and divert funds from clean, safe technologies that could put us at the forefront of the green manufacturing revolution. Ministers should reverse green technology cuts and invest in building a safe and secure low-carbon economy through a Green Investment Bank - saying yes to renewable energy like wind, wave and solar but no to nuclear power."