The Department of Energy and Climate Change (DECC) has launched a consultation on how to use regulation to boost innovation in the energy sector through new technologies and business models.
It invites stakeholders to offer their views on how effective the current regulatory framework is in enabling innovation. These responses will then feed in to DECC’s upcoming Innovation Plan, which it is required to publish by spring 2016. The purpose of the plan, which is required from all government departments, is to set out how departments and regulators are working to promote innovation through legislation.
The new consultation, which is open until 11 February, will be used to develop this plan. The department is seeking views on how legislation and enforcement frameworks can help support new technologies and business models to encourage growth.
It is also asking how technology is likely to shape the energy sector and how regulators can better utilise new technologies to generate efficiency savings and reduce burdens on business.
Lord Bourne, parliamentary under secretary of state for climate change, said: “Innovation has the power to transform the energy sector and the way we live every day. We are committed to cutting red tape and creating industry environments that foster new ideas and give technologies a commercial edge.
“Collaboration is key and I look forward to hearing the ideas from industry so we can ensure an innovative energy sector that works for hardworking families and businesses.”
DECC’s Innovation Plan will address its own activities, as well as those of the Coal Authority, Oil and Gas Authority (OGA), Environment Agency and Office for Nuclear Regulation (ONR). Other energy sector regulators such as Ofgem are expected to undertake parallel engagement exercises.
Innovation funding formed part of DECC’s settlement in November’s Comprehensive Spending Review, with £500 million earmarked for this purpose. However, £250 million is to be used to develop small modular nuclear reactors, while the department’s other ongoing research of nuclear technologies is likely to use up a significant proportion of the remaining funds.
Speaking to Clean Energy News earlier this month, Richard Howard, head of environment and energy at the Policy Exchange think-tank, said: “They’ve made a very explicit commitment to small modular reactors; I imagine out of the other £250m that’s left, a good chunk of that will be also be on nuclear because there’s an ongoing stream of research.”
