Sunday, May 3, 2009

Energy Advancements Must be Sustainable

By Tal Potishman

During the past several years, great strides have been made in improving the UKs energy efficiency ratings. This is only the beginning of a long-term commitment for achieving a low carbon economy. The nations gas and energy sectors are obligated to advance their efforts in the area of reducing greenhouse gas emissions while, at the same time, limiting the burdens placed on consumers.

Gas and electricity projects related to energy conservation and lower greenhouse gas emissions must meet Government requirements year after year. Power stations combined with industries and residences contribute 66% of the UKs carbon dioxide emissions. Programs piloted by the gas and electricity sectors in 2006 and 2007 resulted in an emissions decrease of 4%. These programs concentrated on coal to gas conversion and renewable energy projects.

Total energy consumption in the UK has decreased each year since 2005, with a 3% reduction in 2007. A 3% drop in electricity usage and 4% drop in gas usage were reported. In order to meet Government guidelines, the gas and electricity sectors must continue to accomplish improved energy efficiency each year.

One of the most difficult challenges for the fuel markets is to balance the move toward greener energy with the financial burdens placed on customers. Fuel prices have reached some of their highest levels in recent years, and some consumers have struggled to keep up with the escalating costs. This comes in the midst of one of the shakiest economic periods in recent history. Statistics reveal that in 2006, 3.5 million UK households were in fuel poverty, and 2.75 million of these were classified as vulnerable households. Fuel poverty households spend greater than 10% of their total income on fuel to keep their homes warm. Final reports of fuel poverty households for 2007 and 2008 have not been finalised, but estimates are that the increases in fuel poverty households were .7 million in 2007 and .5 million in 2008.

Ofgem (the Office of Gas and Electricity Markets) organizes efforts between the Government and energy sectors for sustainable development programs. Energy efficiency goals as well as consumer protection are managed by the agency. Fuel poverty is a great concern for Ofgem, and they have set 2018 as the year that this overwhelming social issue is eliminated. Ofgem is a dependable resource for the development, initiation, execution of green energy programs.

The energy sectors can be applauded for their impressive efforts directed at reducing energy usage and costs and greenhouse gas emissions. The gas and energy markets have performed an incredible amount of work, and some of their positive results can be attributed to their guidance from Ofgem. Maintained and increased efforts are necessary to reach the required sustainable development.

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