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This publication is available for download at www.gov.uk/government/collections/uk- energy-in-brief#2018. 1 UK ENERGY IN BRIEF 2018 This booklet summarises the latest statistics on energy production, consumption, prices and climate change in the United Kingdom. Figures are primarily taken from the 2018 edition of the “Digest of UK Energy Statistics”, published on 26 July 2018. Details of the Digest and other Department for Business, Energy and Industrial Strategy (BEIS) statistical publications on energy and climate change can be found on pages 46 and 47 of this booklet and are available at: www.gov.uk/government/organisations/department-for-business-energy- and-industrial-strategy/about/statistics CONTENTS 2 INTRODUCTION TO THE CHARTS AND TABLES 4 ENERGY IN THE ECONOMY The energy industries’ contribution to the UK economy 5 Contribution to GDP 5 Trends in employment 6 Investment 7 OVERALL ENERGY Production of primary fuels 8 Inland energy consumption 9 Final energy consumption 10 Import dependency 11 Key sources of imports 12 Proportion of UK energy supplied from low carbon sources 13 Energy and carbon ratios 14 CLIMATE CHANGE Greenhouse gas emissions by gas 15 Greenhouse gas emissions by National Communication sector 16 SECURITY OF SUPPLY Reliability 17 COAL Production and imports 18 Consumption 19 PETROLEUM Foreign trade in crude oil and petroleum products 20 Demand by product 21 Demand for road fuels 22 OIL AND GAS PRODUCTION UK Continental Shelf production 23 Oil and gas production and reserves 24 NATURAL GAS Demand 25 Trade 26 ELECTRICITY Generated 27 Supplied 28 Capacity 29 FEED IN TARIFFS 30 CONTENTS 3 RENEWABLES Energy sources 31 Electricity generation from renewable sources 32 UK onshore and offshore wind capacity map 33 Progress against EU Renewable Energy Directive 34 COMBINED HEAT AND POWER 35 ENERGY EFFICIENCY Energy intensity 36 Number of homes with energy efficiency measures 37 FUEL POVERTY Households in fuel poverty 38 Proportion of households in fuel poverty by FPEER band 39 PRICES Fuel price indices for the industrial sector 40 Fuel price indices for the domestic sector 41 Petrol and diesel prices 42 EXPENDITURE Fuel expenditure of households 43 CONTACTS 44 CONVERSION FACTORS AND DEFINITIONS 45 REFERENCES 46 INTRODUCTION TO THE CHARTS AND TABLES 4 UK Energy in Brief aims to provide a summary of some of the key developments in the UK energy system: how energy is produced and used and the way in which energy use influences greenhouse gas emissions. It takes data from the main Department for Business, Energy and Industrial Strategy (BEIS) energy and climate change statistical publications, the Digest of UK Energy Statistics, Energy Trends, Energy Prices, Energy Consumption in the UK, the annual Fuel Poverty statistics report and statistical releases on emissions, and combines these with data produced by the Office for National Statistics and other Government Departments. The booklet contains separate sections on the economics of the energy industry, overall energy production and consumption and trends in production and consumption of the major fuel sources, climate change and fuel poverty. Also discussed are developments in combined heat and power, renewable energy and feed in tariffs. Information is also given on energy efficiency, energy prices and energy expenditure. The detailed background data on energy production and consumption can be found in the Digest of UK Energy Statistics 2018 available at: www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes Other statistical outputs produced by BEIS and drawn on in this publication are listed on pages 46 and 47. ENERGY IN THE ECONOMY 5 Contribution to GDP by the energy industries, 1980 to 2017 Source: Office for National Statistics The contribution to the UK economy by the energy industries peaked in 1982 at 10.4%. Despite its significant fall in 1986, oil and gas extraction has been the major energy contributor to the UK economy (with its value dependent both on production and the price of oil and gas). However, in 2015 and 2016 though oil production increased, the large fall in oil prices led to the contribution from the oil and gas sector falling below that of the electricity sector. However, in 2017 oil production fell and though oil prices increased, the oil and gas sector remained the second largest energy contributor. For 2017, the contribution by the energy industries to the UK economy was 2.9% of GDP (0.1 percentage points higher than in the previous year). Of the energy total in 2017 oil and gas extraction accounted for 29% (up 3.4 percentage point on the previous year), electricity (including renewables) accounted for 42% (down 2.9 percentage points) and gas accounted for 17% (down 0.7 percentage points). THE ENERGY INDUSTRIES’ CONTRIBUTION TO THE UK ECONOMY IN 2017 ? 2.9% of GDP. ? 9.8% of total investment. ? 33.6% of industrial investment. ? 1.9% of annual business expenditure on research and development in 2016. ? 181,000 people directly employed (6.3% of industrial employment) and more indirectly (e.g. an estimated 142,000 in support of UK Continental Shelf production). ENERGY IN THE ECONOMY 6 Trends in employment in the energy industries, 1980 to 2017 0 100 200 300 400 500 600 700 1980 1985 1990 1995 2000 2005 2010 2017p Thousands of people Gas Electricity Nuclear fuel processing Refining Oil and gas extraction Solid fuels productionSource: Office for National Statistics (Data from 1996 onwards based on SIC 2007 classifications) Employment in the energy production and supply industries fell rapidly throughout the 1980s and mid-1990s largely as a result of closures of coal mines. Between 1995 and mid-2000s employment declined more slowly but since 2006 it has increased gradually, driven by growth in the electricity and gas sectors. In 2017 employment in the energy industries rose by 2.8% to 181,000 (66% above the 2005 level) and accounted for 6.3% of all industrial employment. ENERGY IN THE ECONOMY 7 Investment in the energy industries, 2004 to 2017 Source: Office for National Statistics Since 2004 there has been increased investment in the energy industries, more specifically in the electricity sector, despite falls in recent years to below the 2014 level. In 2017 at ￡18.7 billion (at current prices) investment was 0.6% higher on the previous year and of that total 30% was in oil and gas extraction, 60% in electricity, 7.5% in gas, with the remaining in coal extraction, and coke the UK is now a net importer of all main fuel types although remains a net exporter of some products such as petrol and fuel oil. In 2017, 36% of energy used in the UK was imported, down sharply from the 2014 level due to increases in indigenous oil and gas output and, more recently, renewables. Latest comparable data from Eurostat, for 2016, show that the UK had the seventh lowest level of import dependency in the EU. All EU countries are now net importers of energy. OVERALL ENERGY 12 Key sources of imports, 1998 to 2017 Since 1999, when UK energy production peaked, there has been a sharp rise in imports. Over this period imports doubled, although they have fallen back since 2013. In 2010 imports exceeded UK production, but because the UK still exports large volumes net imports still remain below production levels. By fuel type the largest growth in the past 10 years has come from gas imports, though there have been increases from most fuels. In 2017 imports rose by 1%, with falls in imports of petroleum products and in gas, more than offset by the rise in imports of primary oil which were up by 9% to meet UK refinery demand, as OPEC production cuts made it cheaper for Asian refineries to use UK crude oil resulting in an increase of exports by 10%. Imports are sourced from a wide variety of countries. Crude oil: The key source of imports has historically been Norway – while Norway remained the primary source of crude in 2017, its share of UK imports fell from 62 to 48 per cent. Imports from OPEC countries increased by more than a quarter to contribute to the increase in total imports in 2017. Petroleum products: The UK imports a wide variety of petroleum products, while remaining a net exporter of certain fuels including petrol. Traditionally the Netherlands, which acts as a major trading hub, has been the largest source of imports. As such, the Netherlands is the largest supplier of transport fuels. Aviation turbine fuel is generally sourced from the Middle East. Gas: Norway accounted for 75% of UK gas imports in 2017, with pipelines from Netherlands and Belgium supplying 6% and 4% respectively. The remaining 15% arrived as Liquefied Natural Gas (LNG), of which 84% was from Qatar. OVERALL ENERGY 13 Proportion of UK energy supplied from low carbon sources, 2000 to 2017 Percentage 2000 2010 2014 2015 2016 2017 Nuclear 8.4% 6.3% 7.1% 7.9% 7.9% 7.9% Wind 0.0% 0.4% 1.4% 1.8% 1.6% 2.2% Solar 0.0% 0.0% 0.2% 0.4% 0.5% 0.5% Hydro 0.2% 0.1% 0.3% 0.3% 0.2% 0.3% Bioenergy 0.9% 2.7% 4.6% 5.5% 6.0% 6.4% Transport fuels 0.0% 0.6% 0.6% 0.5% 0.5% 0.5% Other 0.0% 0.0% 0.1% 0.5% 0.5% 0.5% Total 9.4% 10.2% 14.3% 16.8% 17.4% 18.4% In 2017 the UK obtained 18% of its primary energy from low carbon sources, with 43% of this from nuclear power. The second largest component of low carbon was bioenergy, accounting for 35% of the total low carbon energy sources. Energy supply from biofuels increased by 5%; with more use of anaerobic digestion, wood pellets and energy from waste. Solar was up by 10% reflecting increased capacity. The supply of nuclear fell by 2% due to outages, but with its share remaining broadly similar to 2016. Energy supply from wind increased by 34% in 2017, with capacity up by 23% and wind speeds 0.4 knots higher than in 2016.