This time last year the world was a very different place. But as we look back over the past twelve months, we can see that the networks and the whole of the energy industry have performed incredibly well in the face of extraordinary circumstances.
What has also been remarkable is that the focus on decarbonisation remains undimmed. This year, over more than two months, none of the country’s power came from coal – the longest stretch of time since the industrial revolution. More green gas and renewable generation has been connected to the networks than ever before.
We must keep our focus on cutting carbon emissions into next year when the eyes of the world will be on us as Glasgow plays host to the 26th UN Climate Change Conference, COP26.
As we look ahead to 2021, we need decisions to be made now if we are to deliver the low-carbon, low-cost energy system that the public need and want according to the government’s own polling. Government must be ambitious and clear in its policy. The network operators also need Ofgem to respond and set a framework that will allow them to deliver the vital required investment.
Whichever pathways the government sets us on – providing the infrastructure for electric vehicles and low-carbon transport, making the best of a smarter and more digitalised energy system, or delivering the world’s first zero-carbon gas grid, the UK’s energy network operators will play a pivotal role in turning the government’s vision into a reality.
The long-awaited energy white paper has been delayed and delayed but is rumoured to be published very soon. The prime minister will also reportedly outline his 10-point plan for decarbonisation. The next few weeks promise to be particularly exciting as government sets out the pathways we will be taking towards decarbonisation. But, if we are to hit out legally binding target of achieving net-zero emissions by 2050 (and 2045 in Scotland), we need action and not delay.
As we look forward to next year, there are five key challenges. Firstly, decarbonising transport needs to go further and faster. If government is serious about decarbonising transport, then network operators will need to start investing now to deliver the infrastructure that customers will need. From electric vehicles to hydrogen-powered HGVs, both electricity and gas networks have a role to play by supporting consumer choice.
Secondly, we need to harness the power of data to make sure customers can get all the benefits from new products and services like how to manage their electric vehicles. Government can address this by building on, and going further than, the energy data taskforce’s previous recommendations and outline how to build common energy data infrastructure and standards while giving networks access to smart meter data to help them manage the whole system more efficiently.
Thirdly, we need to get hot on how we heat our homes, arguably one of the trickiest decarbonisation challenges we face. While it’s clear we need to take steps to prepare for greater electrification, we will also need a much greater focus on hydrogen and biomethane. The prime minister is rumoured to be including ambitious plans for hydrogen in his 10-point plan, a sign of progress which we wholeheartedly support. A quick win could include blending up to 20 per cent of hydrogen with natural gas and increasing amounts of biomethane into the gas grid. This could help the UK reduce emissions by six million tonnes of carbon dioxide emissions every year, the equivalent of taking 2.5 million cars off the road. Mandating hydrogen-ready boilers is an obvious next step too.
Fourthly, the ever-present challenge to decarbonise industry. Gas network operators have banded together under ENA’s Gas Goes Green programme, delivering ground-breaking progress in providing the evidence policy makers need. What we need is a new hydrogen strategy and more support for carbon capture, usage and storage. This will create new jobs, lay the foundations for a net-zero economy and put us at the forefront of the international hydrogen race.
Finally, we need to make sure that the public are at the heart of our decisions. In particular that applies to those who struggle to pay their energy bills as well as those who live in other vulnerable circumstances. It is vital that everyone can benefit from the journey to net zero emissions. We must leave nobody behind.
These are big issues but not insurmountable. If this year has taught us anything, it is that our industry is both resilient and adaptable. Looking at what we have achieved in a very difficult year has been inspiring. Working together with clear ambition from the government supported by Ofgem, in the year of COP26, I have no doubt we will make even greater strides along the pathways to net zero.