UK will Invest £110bn to Transform Energy Infrastructures and Markets
The United Kingdom is on the right path to pass a radical transformation of the energy system, said Edward Davey, Secretary of State for Energy and Climate Change.
"This summit is taking place at a crucial moment because the Government has embarked on the most radical overhaul of the United Kingdom’s energy infrastructure and markets since the 1980s and privatisation," said Davey to the Economist UK Energy Conference on Thursday, adding that the major problems have been tackled in the Energy Bill currently going through the Parliament.
Decarbonisation and security of energy supply at affordable prices are the top priorities of the UK politicians, said Davey, adding that there is a wide consensus on the reform.
"The Bill passed its third reading with the largest majority enjoyed by any Bill introduced by this coalition Government – 396 for with just 8 votes against," said Davey in the speech given at Marriott Hotel, London on Thursday.
Davey explained that global energy demand is already twice as high as it was 30 years ago and will grow by over a third by 2035. This can put pressure on prices.
"By increasing indigenous, home-grown, energy production through renewables, new nuclear and lower carbon fossil fuels such as shale gas, we are seeking to cushion the country as far as possible from volatile global fossil fuel prices," added Davey.
Davey claimed that the change is not optional, but necessary. The global energy balance is changing and the UK needs to invest in infrastructures to cope with the shift.
"As the oil and gas reserves of the North Sea are declining, the UK is increasingly dependent on imports, and more at the mercy of those volatile markets. And at the same time, here in the UK, we face a decade or more of structural transition as 20% of our old or polluting power stations go off line. This is a significant infrastructure investment challenge in itself requiring around £110bn of capital investment this decade alone," said Davey.