By Dieter Helm / Policy Exchange Published: 26/06/2008

Downloand Report - Credible Energy Policy

British energy policy is no longer fit-for-purpose. It was designed for the 1980s and 1990s - years of excess supply, North Sea oil and gas, low prices and no serious climate change constraints. Circumstances have changed: the challenge now is predominantly to maintain security of supply while at the same time decarbonising our economy.
Britain's commitment to meet the 2020 EU renewables target requires a transformation to low carbon energy supply in just 11 years. The EU Large Combustion Plant Directive will mean closure for much of the existing coal generation capacity and this will happen at the same time as the current nuclear power stations are being closed. If nothing is done, this will result in a rapidly
expanding energy gap.