The Energy Challenge ENERGY REVIEW A Report JULY 2006 The Energy Challenge Energy Review Report 2006 Department of Trade and Industry Presented to Parliament by the Secretary of State for Trade and Industry By Command of Her Majesty July 2006 Cm 6887 £22.00 © Crown copyright 2006 The text in this document (excluding the Royal Arms and departmental logos) may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown copyright and the title of the document specified. Any enquiries relating to the copyright in this document should be addressed to The Licensing Division, HMSO, St Clements House, 2-16 Colegate, Norwich, NR3 1BQ. Fax: 01603 723000 or e-mail:
[email protected] Contents Foreword by the Rt Hon. Tony Blair MP 4 Preface by the Rt Hon. Alistair Darling MP 8 Introduction 10 Executive Summary 12 Chapter 1: Valuing Carbon 27 Chapter 2: Saving Energy 36 Chapter 3: Distributed Energy 61 Chapter 4: Oil, Gas and Coal 77 • International Energy Security 78 • Oil and Gas 83 • Coal 84 • Energy Imports 86 Chapter 5: Electricity Generation 92 • Renewables 98 • Cleaner Coal and Carbon Capture and Storage 107 • Nuclear 113 Chapter 6: Transport 126 Chapter 7: Planning for Large-scale Energy Infrastructure 134 Chapter 8: Meeting Our Goals 149 Chapter 9: Implementation 156 Annexes 161 3 Foreword by the Rt Hon. Tony Blair MP A clean, secure and sufficient supply of energy is simply essential for the future of our country.