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It looks ahead to investment challenges in all

the main energy sectors but in a Foreword

by the Energy Minister spells out the stark

realities faced in 2010 to stop the lights

going out. A fifth of existing power stations

were scheduled to close by 2020, and there

were the challenges of a climate change target to

cut carbon emissions by 80% by

2050, gas imports rising, North Sea production falling.

It was a scenario that led to the biggest

change to the UK's electricity market since

privatisation in 1990 and implementation of a

new support mechanism for energy generation - called Electricity Market

Reform (EMR)

- with low carbon generation, and eventual

low cost, at its heart. And where both

investors and UK suppliers benefit.

EMR gives funding clarity to investors and

developers via new Contracts for Difference

(CfDs) because CfD projects have price certainty for 15 years. This guaranteed

income

stream gives developers confidence to make

the massive investments needed.

UK suppliers benefit because one of the conditions of awarding

major CfDs is there must be

a plan in place to involve UK-based suppliers.

To back this monetary and UK content

approach - the first of its kind in the world -

there are a range of initiatives to ensure the

UK has the manufacturing, products and

skills base to fill the supply chain needs.

Among organisations playing a big part in

this is the UK's Technology Strategy Board,

which is the UK's leading body in helping

industry innovate for success.

The Energy sector - taking funding commitment as the criteria

- is the number one priority in the Board's

2014-15 delivery plan

with 12 major funding programmes worth

£83 million planned for the 12 months.

Among these is up to £10 million to develop

a programme to demonstrate energy supply

chain innovation and a feasibility study which

aims to pull the latest manufacturing,

advanced materials, sensors, digital, communications and electronics

technologies

into the energy sector.

REAL OPPORTUNITIES

The TSB says there are "real opportunities

for UK business to develop innovative new

products and services" for energy and its

focus in 2014-15 is to:

• Grow and support the SME supply

chain - both by supporting those already

in the sector and by "joining up parallel

sectors" to attract new companies.

• Launch an Energy Systems Innovation

Platform - to speed up projects and

demonstration trials across industry, academia and the public sector.

• Increase international activity - to help

UK companies develop partnerships in

Europe and beyond.

• Launch an Energy Cataylst - to stimulate

SMEs to develop innovative products

and services with up to £35 million of upport.

The TSB has also earmarked £10 million to

its Offshore Renewable Energy Catapult in

Glasgow (now including the National

Renewable Energy Centre) which is a worldleading centre

of innovation. Catapults bring

business, scientists and engineers together

to develop and exploit innovative products

and technologies. They provide access to

cutting-edge equipment and specialist facilities to

test ideas in reality.

All this underlines the unique position UK

energy finds itself - and in many areas it is

already leading the world (see panel).

"The challenge now," says GTMA CEO Julia

Moore, "is to make sure our engineering

resource is equipped to benefit from this

exciting sector and at GTMA we are looking

forward to playing our part."

www.gov.uk/government/uploads/system/uploads/attachment_data/file/33107

1/DECC_Energy_Investment_report.pdf

Technology Strategy Board:

www.innovateuk.org/energy

ENERGYOVERVIEW

7

Offshore Wind: Britain leads the world.

Estimated to be worth £100 billion over

next 20 years.

Onshore Wind: One of the largest markets

in Europe, second only to Germany.

Wave and Tidal: World leader in development. Potential

£6 billion a year market.

Nuclear: New era of investment worth

about £60 billion.

Oil & Gas: Potential £200 billion from North

Sea in next 20 years.

CCS (Carbon Capture & Storage): Could

be worth £42 billion a year to UK by 2050.

Shale: Possible £33 billion investment.

Solar: Supplies 8% of daytime electricity

now; set to rise significantly.

Bioenergy: £44 billion value to UK by 2050.

SECTORS AT A GLANCE

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