Foreword

The International Energy Agency (IEA) has conducted in-depth peer reviews of its member countries’ energy policies since 1976. This process not only supports energy policy development but also encourages the exchange of and learning from international best practices and experiences. In short, by seeing what has worked – or not – in the “real world”, these reviews help to identify policies that achieve objectives and bring concrete results. Recently, the IEA has moved to modernise the reviews by focusing on some of the key energy challenges in today’s rapidly changing energy markets.

The United Kingdom is a global leader in decarbonising energy supply. The UK five-year carbon budget approach, with the fifth period covering 2028-32, has served as a model for the Paris Agreement, and the United Kingdom leads in terms of actual emission reductions. The UK Clean Growth Strategy puts energy technology development and innovation at the centre of its decarbonisation policy.

I am very pleased that the United Kingdom is a strong partner for the IEA and its member and association countries in energy technology collaboration, notably in Mission Innovation. I recall with pleasure our International CCUS Summit in Edinburgh in November 2018, which Minister Claire Perry and I co-chaired and where we launched a new era for CCUS, a technology that is critical to meeting climate goals and can also strengthen energy security and boost economic growth.

IEA member and partner countries are keen to learn from the UK experience to manage power markets in transition. UK energy-related CO2 emissions have decreased to the lowest levels since 1888. Within only five years, the UK carbon price floor supported a significant coal-to-gas switching and - combined with a record investment in offshore wind and solar PV -, led to the transformation of the power sector. By 2030, the share of variable renewables is expected to reach more than 50%, which will require a more pronounced focus on system integration. The UK already pilots some of the most interesting regulatory solutions for flexibility markets. Amid the retirement of the existing coal and nuclear fleet in the coming years and the weak investment outlook for new nuclear, I am convinced that open trade will remain a top priority for the government going forward. Energy markets are strongly integrated with Europe, which contributes significantly to the security of supply.

There is another success to highlight: despite the long term decline, the United Kingdom has been quite successful in boosting the production from the North Sea offshore oil and gas fields and has become a leader in offshore wind power. The UK offshore expertise is a strong basis for the country to scale up innovative technologies, such as CCUS, hydrogen, along with improving energy efficiency of the existing infrastructure and gaining experience with the eventual decommission of offshore installations.

It is my hope that this review will further guide the United Kingdom in its energy transition and help it achieve the energy policy goals of providing affordable, secure and clean energy to its population, while adapting to a fast-changing, international energy landscape.

Dr. Fatih Birol

Executive Director

International Energy Agency

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FOREWORD

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