Policy Paper: Time to Pivot for Domestic Energy

We are grateful to our friends at The Bruges Group for their permission to republish an Executive Summary of their latest report…

Executive Summary

Background

  • The government claims to be pursuing a “Net Zero” CO2 policy;
  • The UK produces just over half of its own energy, importing the reminder, which merely displaces where CO2 is produced and in fact increases it through importation.

Current policy

  • The UK government is facing a crisis of confidence in its reputation for sound economic management;
  • Inflation, rising interest rates and increased taxation are all resulting in higher costs of living, reducing net disposable income for discretionary spending;
  • Phasing out established, relatively low cost technology such as gas boilers and petrol and diesel aspirated internal combustion engines in cars and other road vehicles in the UK, whilst “green” alternatives such as air source and ground source heat pumps, electric cars and hydrogen fuel cell battery power (under development) are all prohibitively expensive for most outside of the Metropolitan elite, who dream up such ideas;
  • UK consumers are currently unduly exposed to fluctuations in wholesale energy prices, which are spiking, leading to increased fuel poverty;
  • The energy price cap, a socialist construct, is unnecessary state intervention and has led to many small operators ceasing to trade and discourages new market entrants from challenging the “big 6” energy providers, re-establishing an energy oligopoly;
  • Lack of investment in new nuclear technology means even if 8 new small plants on the UK coastline were to be commissioned now, it would be at least 2035 before nuclear would be a significant contributor to the UK’s overall energy mix.
  • China, India, Russia, Germany and the developing world including the African continent will all burn large volumes of fossil fuels for the next 15 to 20 years if not more, way above the UK’s ability to offset through Net Zero. The UK is effectively making itself poorer for no benefit beyond virtue signalling;

Our proposed strategy

  • The UK must return to self reliance for energy production;
  • We propose pivoting energy policy towards retaining fossil fuels as an energy source at an appropriate level whilst the capacity for cleaner energy sources to replace them is created;
  • By 2040, it should be feasible to have a predominantly green energy mix of nuclear, solar, wind and wave power, augmented by contingent gas, oil and coal to cope with spikes in demand and peaks in population growth;
  • By 2040, Hydrogen powered “green” internal combustion engine technology should be the norm for motor vehicles of all sizes and by that time, sales of new petrol and diesel aspirated internal combustion engines could cease.

Read the more here.