It would be easy to become cynical, but I firmly believe that every change brings a new opportunity.
Pragmatism and listening are good things
In recent months, we have heard increasing debate about the electricity grid and whether it can realistically cope with the additional demands that electrification of transport and heating will place upon it.
I am not here to criticise anyone. Ensuring that energy is available in the right place, at the right time, and in sufficient quantities is an immensely challenging task. Our industry understands that better than most.
We have also heard about pragmatism, ensuring that the cost of living is the number one priority, and listening to communities that have been ignored.
Those are principles we can all support. Indeed, they are principles that are urgently needed.
Regular readers will know this is an argument I have made before.
Today, the UK consumes around 2.3 billion litres of heating oil across domestic and non-domestic premises. Converting that demand to heat pumps, using industry-standard rates, results in 7 billion kWh, or c.7% of current domestic electricity consumption. This would be a substantial increase, particularly as much of the demand would come from some of the most remote parts of the country. It would also add to the additional electricity required to support the transition to electric vehicles.
A pragmatic approach must therefore include increasing electricity generation, strengthening grid capacity and, where possible, reducing demand on the grid itself.
Removing a significant proportion of this liquid fuel demand through renewable liquid fuels would be a practical and cost-effective step in that direction. It would also demonstrate that rural communities are being listened to rather than simply being expected to adapt.
Unwelcome anniversaries
On 21st August 2021, the Irish Government launched its consultation on introducing a Renewable Heat Obligation. The proposal received support from our industry.
In its response, the Alliance for Zero Carbon Heating stated:
“It is of paramount importance that this becomes part of the policy landscape within the fuel sector at the earliest possible time.”
Five years on, we are still waiting.
Five years of potential carbon savings have been lost. Ireland is forecast to miss its 2030 carbon budgets by a considerable margin, while its electricity grid faces many of the same challenges evident in the UK.
Once again, pragmatism is needed.
The title of this column: “Dae Ye Ken?”
I must confess, I couldn’t resist it.
The phrase has many different meanings.
For those unfamiliar with Scotland, “ken” is a word used liberally across parts of the country, particularly in Fife, where I found myself living some 30 years ago. Everywhere I went I seemed to hear my own name.
“A ken” (I know).
“Ah dinnae ken” (I don’t know).
“Dae ye ken whit a mean?” (Do you know what I mean?)
It was, at times, one of the more confusing periods of my life.
As many of you will know, around a year ago I informed UKIFDA that, after six years as CEO, I intended to step down from the role. Following productive discussions, we agreed that while I would relinquish the CEO position, I would continue working on the political and policy issues affecting our industry across the UK and Ireland.
I am delighted to say that UKIFDA has now appointed a new CEO, and I will formally step down later this year. What amused me greatly was discovering that his name is also Ken.
I am sure many of you will have the opportunity to meet him over the coming months, and I look forward to working with him and, indeed, for him.
You have my assurance my message to every politician I meet will remain the same:
“Dae ye ken?” (Do you understand?)
Image credit: UKIFDA
