This written evidence submitted by Dr Colin J. Axon from Brunel University, Professor Richard C. Darton from University of Oxford and Dr Simon H. Roberts, from Brunel University, underscores the vital role of understanding risks in the energy supply, challenging the prevailing lack of attention to risk in energy strategies. It advocates for a reconsideration of policies, emphasising the importance of addressing diverse risks and fostering a more robust approach to decision-making in the energy sector.
Key recommendations:
- Recognise and understand risks in the supply chain for energy systems, treating barriers as risks.
- Categorise risks into economic, environmental, innovation, manufacturing, political, skills and technical factors.
- Examine claims made by technology champions rigorously to avoid optimism bias and unrealistic expectations.
- Ensure future energy system projections use transparent methods and real-word data for informed debate and innovation stimulation.
- Re-evaluate policies, particularly towards Demand Reduction, to enhance the resilience of UK supply chains for energy security.
- It is imperative to conduct realistic assessments of technology development to prevent over-selling and fatigue in public and investor expectations.
- Increase access to capital by reintroducing capital allowances and addressing disincentives to fixed investments.
This evidence was submitted in response to Securing the domestic supply chain - Committees – UK Parliament