UK loses top ten place in global energy table

In the 2016 World Energy Trillema Index the UK fell to 11 ^th in the table, as the WEC claims it faces ‘significant challenges’ when securing energy supply following a steady decline of domestically produced fossil fuels.

Questions were raised about the UK’s plans to close their remaining coal plants, as the World Energy Council believed that the Brexit vote could significantly increase the cost of its energy imports.

The government pledged to phase out coal power by 2025 last year, as leaving the single market as part of a hard Brexit could result in an increase in the cost of energy imports. Last year, 6% of the UK’s electricity supply came via interconnectors to the continent.

Other issues included the uncertainty surrounding the ownership of Hinkley Point, with concerns over the changes to the regulation of foreign ownership of critical infrastructure. 

Also the sharp decrease in Feed-In Tariffs (FITs) for wind and solar power, could potentially hinder investment and impact on the UK’s goal to further diversify its energy supply and improve environmental sustainability.

However, the WEC, formed in 1923, was encouraged by the establishment of the Department for Business, Energy and Industrial Strategy, which has replaced the Department of Energy and Climate Change. This change is believed to provide more clarity for future energy investments.

The UK has been added to a watch list, which includes the US, Germany and Japan, all of whom are expected to experience negative changes immediately.

European countries made up nine of the top 10 on the Index, with Denmark, Sweden and Switzerland taking the top three positions.

Image Credit: Philippe Put   Richard Baker