The White Paper on energy: will it really meet the United Kingdom's energy challenge?

Abstract

Purpose

The purpose of this commentary is to review the recently published White Paper on energy that outlines the policies the government intends to take to meet the energy challenges.

Design/methodology/approach

The commentary presents a critical review and analysis of the report that rely on the author's understanding and experience.

Findings

The review highlights that, despite considering a wide range of policy options, the country is unlikely to meet the target on carbon emission reduction set by the government by 2020 and, unless the nuclear option is exercised, the possibility of missing the carbon emission reduction target of 60 per cent in 2050 remains high. The note also questions the logic of focusing on the domestic actions alone when cheaper options exist through participation in other Kyoto Protocol instruments. Moreover, the idea of promoting competitive energy markets does not appear to be compatible with the desired low carbon path. The effectiveness of a top‐down approach (as opposed to a more bottom‐up approach) to a transition to low‐carbon energy economy policies is also doubted. While the report acknowledges the important role of fossil fuels over the coming decades, it fails to provide adequate measures to ensure supply security. The preparation against supply disruption remains poorly addressed. The faith placed in markets in meeting the investment needs for the electricity sector is going to be a major test of the government policies and the supply security will be greatly compromised unless adequate investments in desired capacity mixes take place.

Originality/value

The value of this commentary lies in its comprehensive synthesis of the White Paper and the critical review of the salient features of the policy.

Citation

Bhattacharyya, S.C. (2007), "The White Paper on energy: will it really meet the United Kingdom's energy challenge?", International Journal of Energy Sector Management, Vol. 1 No. 4, pp. 413-424. https://doi.org/10.1108/17506220710836101