Sustainability. To most people that means windfarms and other renewable technologies. The more broad-minded may expand this out to sustainable water sources, and ensuring the environment has enough water to remain healthy and abundant.
These two strands of thought are reflected in the 2008 Climate Change Act – signed by then-energy secretary Ed Miliband – and the European Water Framework Directive. These have enshrined the UK’s commitments to a more sustainable energy supply and for more sustainable and protected water resources.
Resilience, which the Oxford dictionary defines as “the capacity to recover quickly from difficulties; toughness”, should walk side by side with sustainability policy development but has often lagged behind. Recently, though, it has assumed due prominence.
In the Water Act 2014, the government placed a duty on Ofwat to ensure water companies could secure the long-term resilience of water and sewerage services, and of water and waste water networks. The regulator has set up a working group to establish exactly what this means for the industry.
In the energy world, resilience is usually translated as security of supply. The winter of 2013/14, narrowing supply margins, the spectre of rising gas prices and the escalating Ukraine-Russia conflict, have made the government keenly aware of the need for resilient energy supplies.
The demand-side balancing reserve was a new tool created by National Grid after the government and Ofgem raised concerns about a potential peak winter shortfall.
How the new government decides to proceed with water and energy resilience – in a sustainable fashion – is key.
Investment decisions rest on what choices the incoming government makes. And resilience is now a key part of this decision-making process.
The next government will have to decide which projects to back and support to provide reliable low-carbon power, and work in tandem with Ofwat to ensure European regulations are met to ensure water security for the future.
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