Act of Parliament | |
Long title | An Act to make provision about energy production and security and the regulation of the energy market, including provision about the licensing of carbon dioxide transport and storage; about commercial arrangements for carbon capture and storage and for hydrogen production and transportation; about new technology, including low-carbon heat schemes and hydrogen grid trials; about the Independent System Operator and Planner; about gas and electricity industry codes; about financial support for persons carrying on energy-intensive activities; about heat networks; about energy smart appliances and load control; about the energy performance of premises; about energy savings opportunity schemes; about the resilience of the core fuel sector; about offshore energy production, including environmental protection, licensing and decommissioning; about the civil nuclear sector, including the Civil Nuclear Constabulary and pensions; and for connected purposes. |
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Citation | 2023 c. 52 |
Introduced by | Grant Shapps, Secretary of State for Energy Security and Net Zero (Commons) The Lord Callanan, Parliamentary Under-Secretary of State for Energy Efficiency and Green Finance (Lords) |
Territorial extent |
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Dates | |
Royal assent | 26 October 2023 |
Commencement | On royal assent and by regulations |
Other legislation | |
Amends | |
Status: Current legislation | |
History of passage through Parliament | |
Text of statute as originally enacted | |
Text of the Energy Act 2023 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk. |
The Energy Act 2023 [1] (c. 52) is an act of the Parliament of the United Kingdom.
The act's aim is for the security and independence of energy supply in the United Kingdom using different methods, including nuclear, oil, gas, hydro and wind. In turn, it is hoped that people's energy bills will decrease after this.
The act received royal assent on 26 October 2023. [2]
The Energy Act 2023 contains 14 main parts.
The bill for the act was introduced in the House of Lords on 6 July 2022 by Lord Callanan, piloted through the House of Commons by Grant Shapps, and had its third reading in the House of Commons on 5 September 2023. [3] The act was considerably amended through both Houses of Parliament, and is one of the largest pieces of energy legislation to ever be created. [4]
The name of the Independent System Operator and Planner was later announced to be the National Energy System Operator (Neso), to be operational on the 1 October 2024.
A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the generation of electric power. Power stations are generally connected to an electrical grid.
Alternative fuels, also known as non-conventional and advanced fuels, are fuels derived from sources other than petroleum. Alternative fuels include gaseous fossil fuels like propane, natural gas, methane, and ammonia; biofuels like biodiesel, bioalcohol, and refuse-derived fuel; and other renewable fuels like hydrogen and electricity.
Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Definitions of sustainable energy usually look at its effects on the environment, the economy, and society. These impacts range from greenhouse gas emissions and air pollution to energy poverty and toxic waste. Renewable energy sources such as wind, hydro, solar, and geothermal energy can cause environmental damage but are generally far more sustainable than fossil fuel sources.
Energy policies are the government's strategies and decisions regarding the production, distribution, and consumption of energy within a specific jurisdiction. Energy is essential for the functioning of modern economies because they require energy for many sectors, such as industry, transport, agriculture, housing. The main components of energy policy include legislation, international treaties, energy subsidies and other public policy techniques.
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution. Modern society consumes large amounts of fuel, and the energy industry is a crucial part of the infrastructure and maintenance of society in almost all countries.
Carbon capture and storage (CCS) is a process by which carbon dioxide (CO2) from industrial installations is separated before it is released into the atmosphere, then transported to a long-term storage location. With CCS, the CO2 is captured from a large point source, such as a natural gas processing plant and typically is stored in a deep geological formation. Around 80% of the CO2 captured annually is used for enhanced oil recovery (EOR), a process by which CO2 is injected into partially-depleted oil reservoirs in order to extract more oil and then is largely left underground. Since EOR utilizes the CO2 in addition to storing it, CCS is also known as carbon capture, utilization, and storage (CCUS).
The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via legislation, regulation, court decisions, public participation, and other techniques.
Energy in the United Kingdom came mostly from fossil fuels in 2021. Total energy consumption in the United Kingdom was 142.0 million tonnes of oil equivalent in 2019. In 2014, the UK had an energy consumption per capita of 2.78 tonnes of oil equivalent compared to a world average of 1.92 tonnes of oil equivalent. Demand for electricity in 2023 was 29.6 GW on average, supplied through 235 TWh of UK-based generation and 24 TWh of energy imports.
The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.
The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states. An increasingly important part of it is climate policy. A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%. After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal. After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.
The energy policy of India is to increase the locally produced energy in India and reduce energy poverty, with more focus on developing alternative sources of energy, particularly nuclear, solar and wind energy. Net energy import dependency was 40.9% in 2021-22. The primary energy consumption in India grew by 13.3% in FY2022-23 and is the third biggest with 6% global share after China and USA. The total primary energy consumption from coal, crude oil, natural gas, nuclear energy, hydroelectricity and renewable power is 809.2 Mtoe in the calendar year 2018. In 2018, India's net imports are nearly 205.3 million tons of crude oil and its products, 26.3 Mtoe of LNG and 141.7 Mtoe coal totaling to 373.3 Mtoe of primary energy which is equal to 46.13% of total primary energy consumption. India is largely dependent on fossil fuel imports to meet its energy demands – by 2030, India's dependence on energy imports is expected to exceed 53% of the country's total energy consumption.
Energy in Finland describes energy and electricity production, consumption and import in Finland. Energy policy of Finland describes the politics of Finland related to energy. Electricity sector in Finland is the main article regarding electricity in Finland.
Energy in Switzerland is transitioning towards sustainability, targeting net zero emissions by 2050 and a 50% reduction in greenhouse gas emissions by 2030.
In 2021, net greenhouse gas (GHG) emissions in the United Kingdom (UK) were 427 million tonnes (Mt) carbon dioxide equivalent, 80% of which was carbon dioxide itself. Emissions increased by 5% in 2021 with the easing of COVID-19 restrictions, primarily due to the extra road transport. The UK has over time emitted about 3% of the world total human caused CO2, with a current rate under 1%, although the population is less than 1%.
The electricity sector in Switzerland relies mainly on hydroelectricity, since the Alps cover almost two-thirds of the country's land mass, providing many large mountain lakes and artificial reservoirs suited for hydro power. In addition, the water masses drained from the Swiss Alps are intensively used by run-of-the-river hydroelectricity (ROR). With 9,052 kWh per person in 2008, the country's electricity consumption is relatively high and was 22% above the European Union's average.
Energy in Sweden is characterized by relatively high per capita production and consumption, and a reliance on imports for fossil fuel supplies.
Electrofuels, also known as e-fuels, are a class of synthetic fuels which function as drop-in replacement fuels for internal combustion engines. They are manufactured using captured carbon dioxide or carbon monoxide, together with hydrogen obtained from water split. Electrolysis is possible with both traditional fossil fuel energy sources, as well as low-carbon electricity sources such as wind, solar and nuclear power.
Carbon-neutral fuel is fuel which produces no net-greenhouse gas emissions or carbon footprint. In practice, this usually means fuels that are made using carbon dioxide (CO2) as a feedstock. Proposed carbon-neutral fuels can broadly be grouped into synthetic fuels, which are made by chemically hydrogenating carbon dioxide, and biofuels, which are produced using natural CO2-consuming processes like photosynthesis.
The Energiewende is the ongoing energy transition by Germany. The new system intends to rely heavily on renewable energy, energy efficiency, and energy demand management.
An energy transition is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. Most of the sustainable energy is renewable energy. Therefore, another term for energy transition is renewable energy transition. The current transition aims to reduce greenhouse gas emissions from energy quickly and sustainably, mostly by phasing-down fossil fuels and changing as many processes as possible to operate on low carbon electricity. A previous energy transition perhaps took place during the Industrial Revolution from 1760 onwards, from wood and other biomass to coal, followed by oil and later natural gas.