Amidst the sweeping budget cuts outlined in the UK’s Comprehensive Spending Review, David Cameron’s coalition government has announced it will seek to replace 25% of existing electricity capacity without incurring further debt. In today’s GR Insight, Ben Finney of Imperial College’s Centre for Environmental Policy analyzes the coalition’s energy goals, focusing in on whether the deficit conscious country can ensure long-term energy security, attract private investment in the face of its controversial carbon tax proposal and live up to its own billing as the “greenest government ever”.

David Cameron’s coalition government’s Comprehensive Spending Review (CSR), announced by the chancellor last week, offered the first chance to assess how fossil, nuclear and renewable energy providers are likely to fare under the new coalition government during their fixed five-year term, as the government balances the needs to replace a quarter of the energy supply, reduce emissions, and save money all at the same time.  The attempt to quietly introduce what amounts to a new carbon tax on business users has been the most controversial in a range of new measures affecting energy and environment stakeholders.  Other important announcements include those made by Chris Huhne, the Liberal Democrat MP now in charge of the Department of Energy and Climate Change (DECC), regarding new nuclear and tidal power projects.  By the government’s own admission, at least a quarter of UK electricity generating capacity must be replaced by 2020 – a difficult lift in light of the parallel effort to increase the country’s share of renewably-sourced energy to 15% by the same date.  Today’s GR Energy and Climate Brief looks at developments in three key energy industries - nuclear, carbon capture storage, and renewables - and two policy tools influential in their development, the Green Investment Bank and a new carbon tax. 

A New Energy Chief

The appointment of the Liberal Democrat Chris Huhne as Secretary of State for Energy and Climate Change was welcomed by those who approved of his party’s tough stance on environmental issues related to nuclear power (which it opposed) and renewable energy (which it promised to push harder than any other party).

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