Energy Transition Report 2018

Energy Transition – the story so far Climate Change targets have led to significant changes in the energy mix, particularly in the UK. Meanwhile, energy efficiency improvements and the spread of renewables have reduced UK oil and gas demand. However, UK oil and gas production levels are now well below what the UK consumes, underlining the importance of Maximising Economic Recovery (MER UK) and Vision 2035. Background to the Energy Transition The roots of the Energy Transition can be traced back to the 1997 Kyoto Protocol which was the first international treaty relating to the need to address climate change. The treaty built on the 1992 UN Framework Convention on Climate Change (UNFCCC), and entered into force in 2005. These agreements formed the basis for the first set of commitments made by signatory countries and associated climate policy initiatives. These included the 2020 targets agreed at the 2007 European Council which led to the EU Emission Trading Scheme (EU ETS) and Renewables Directives as well as the 2008 UK Climate Change Act. These policies have affected both the way the UK economy uses energy and the energy sources used.

Hywind Hywind Scotland is the world’s first floating offshore wind farm, and has been developed by Norwegian energy company Equinor. The30-MWwindprojectrepresentsa £152 million investment that will see over 20,000 homes in Scotland powered with renewable energy. By 2030, Equinor intends to reach a levelised cost of energy of 40 to 60 euros per MWh for future floating wind projects. By 2023, the company also intends to achieve a 50% reduction in capital expenditure for such developments worldwide.

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