This closure was preceded in 2008 by the Climate Change Act and in 2015, Amber Rudd, the UK’s Energy and Climate Change Secretary, announced the UK would close all coal-fired power stations by 2025. Therefore, the transition away from coal was well signalled and, in the main, well prepared for, with interconnectors, wind, solar and biomass more than making up for the lost generation.
However, this managed transition appears to be a rarity. In recent months we have seen a remarkable number of deindustrialisation stories linked to poorly managed transitions. For instance, the last Port Talbot steel blast furnace shut down on October 1st, with hopes that a new electric arc furnace will be operational by at least 2027. Similarly, in Scunthorpe, the blast furnaces are planned to be shut down this year, with new electric arc furnaces installed by 2025, but it is now reported that the required power connection will not be ready until 2032.
A risk too far
In our own industry we are facing similar issues. Petroineos has announced the closure of the Grangemouth refinery and plans to convert it into an import terminal, which raises questions about whether the capacity of the existing plant will be matched by the new terminal. Additionally, the train-fed Dalston oil terminal in Cumbria will likely close at the end of this year, posing further challenges.
Closing any terminal will be problematic, but doing so with limited notice in the middle of the busiest time of the year is, at best, a risk too far. While many of these decisions are made for commercial reasons, this current situation further highlights the need for thorough transition planning. The effective closure of Dalston at short notice, without a plan to mitigate the consequences, is putting the regional supply of liquid fuel at risk.
We live in a time of extreme global insecurity, but our industry has demonstrated that it is adept at managing this on behalf of our customers. Nevertheless, our customers will be affected when decisions are made that hinder our ability to operate at short notice, especially during our busiest time of the year. We are working closely with impacted distributors and the Government in an endeavour to find a solution to any likely change at Dalston.
Sadly, the lack of transition planning is not confined to the UK. A recent survey by The Alliance for Zero Carbon Heating (TAZCH) revealed a widespread reluctance among the Irish public to install a heat pump in their homes – putting the Government’s decarbonisation targets in severe doubt.
The nationally representative survey found that 69% of Irish households have no plans to install a heat pump, rising to 75% for households in rural areas. Of the households that do plan to install a heat pump, just 10% are considering doing so in the next year and only 14% in the next five years. High costs were cited as the main barrier to heat pump adoption, cited by 61% of respondents, rising to 73% in rural areas.
The survey highlighted the need for a broader range of policy solutions to decarbonise residential heating across Ireland and promote sustainable renewable energy in the home heating sector. It revealed strong support for blended fuels, with 70% of respondents supportive of the increased use of advanced, synthetic and biofuels to reduce emissions without switching to heat pumps.
As in the UK, the majority of people living in Ireland are conscious of the urgent need to decarbonise home energy emissions to achieve our GHG goals. However, this survey shows that current government policy is leaving them behind.
Winter Wise
Now that the clocks have changed, and winter has arrived, UKIFDA and OFTEC have launched the annual Winter Wise consumer campaign. The campaign provides easy steps for consumers to follow to mitigate any unforeseen issues during this winter, including getting appliances serviced, purchasing heating oil in good time and seeking out help.
We know that many of the most vulnerable customers are the ones who are least likely to come forward and seek help, so at this time of year, I ask everyone to be extra vigilant in identifying those in most need.
Image provided by UKIFDA
