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Tackling the energy trilemma

What is the energy trilemma?

The “energy trilemma” is a framework of three objectives that energy policymakers need to balance, and which is often used as a guide in designing energy policy. The trilemma comprises:

• Sustainability: decarbonising energy
• Security: ensuring the security and reliability of energy supplies
• Affordability: minimising the cost of energy to consumers

Successive UK Governments have used the trilemma as a basis for policy. This is not unique to the UK; countries around the world use it in the same way.

The World Energy Council, a UN partner organisation acting as a forum for the global energy transition, publishes an annual World Energy Trilemma index which assesses how well countries around the world are meeting the energy trilemma. In 2022 it ranked the UK in joint fourth place globally, giving it an AAA score across the three points of the trilemma.

Section 2 of the Library Briefing Energy policy: an overview provides general background to the energy trilemma and its application in the UK.

The following Library briefings, select committee reports and government webpages provide further information relevant to the trilemma, grouped under the following headings:

• Policy to deliver the trilemma
• Sustainability
• Security
• Affordability
• Press and parliamentary material

Policy to deliver the trilemma

• The Energy White Paper (December 2022) set out plans to transition to a clean, secure and affordable energy system. The British Energy Security Strategy (BESS, April 2022) expanded on the White Paper’s ambition, proposing new policies to deliver “secure, clean and affordable British energy for the long term”, following Russia’s invasion of Ukraine. The Library’s debate pack on the British Energy Security Strategy (July 2022) and Insight Where will Britain’s future energy supply come from? (May 2022) summarise key announcements in the BESS.
• The Energy Bill [HL] 2022-23 aims to deliver a “a cleaner, more affordable and more secure energy system for the long term”, supporting many of the policies outlined in the White Paper and the BESS. The Library landing page on the Bill provides background information and links to sources of further information; we will provide a full briefing ahead of the Bill’s second reading in the Commons.
• The above energy policies have been developed in the context of the Government’s Net Zero Strategy (October 2021), which sets out plans to reduce carbon emissions to ‘net zero’ by 2050. The Climate Change Committee (CCC) published an independent assessment of the Net Zero Strategy in October 2021. In August 2022 Business Green (accessed via Library subscription) reported the High Court had found the Net Zero Strategy to be "unlawful" and "inadequate" with a view to meeting the UK's 2050 net zero ambitions, and ordered the Government to refine and reissue it by the end of March 2023. The revised Net Zero Strategy has not yet been published.

Sustainability

Tackling climate change involves two strands of action: mitigating the extent and adapting to the impacts. Mitigation means efforts to reduce or prevent the emissions of greenhouse gases that cause climate change through a process called decarbonisation. The UK has already reduced domestic emissions by 47% relative to 1990 levels and has a statutory target of net zero by 2050.  Efforts to mitigate climate change focus on transitioning from unabated fossil fuels to low carbon energy technologies.

All sectors of the economy contribute to UK emissions, and the Government has introduced policies aimed at decarbonising all sectors of the economy. While emissions have fallen in some sectors there has been little change in others.    

Low carbon energy technologies

• Government support for marine renewables (December 2022)
• Sustainability of burning trees for energy generation in the UK (December 2022)
• Energy efficiency of homes in the north of England (July 2022): this includes a summary of Government energy efficiency policy
• Help with energy efficiency, heating and renewable energy in homes (July 2022)
• The future hydrogen economy (June 2022)
• The future of low-carbon off-gas grid home and business heating (June 2022)
• Large solar farms (March 2022)
• Geothermal energy (September 2021)
• New Nuclear Power (February 2021)
• Housing and net zero (August 2020)
• Mitigating climate change: Electricity and beyond (June 2020)
• Support for low carbon power (April 2020)
• Carbon Capture Usage and Storage – CCUS (March 2020)

Decarbonising the economy (including energy)

• Independent Review of Net Zero (February 2023)
• What was agreed at COP27? (January 2023)
• COP27: The 2022 United Nations Climate Change Conference (research briefing, November 2022)
• Estimates Day debate: The Spending of the Department of Business, Energy and Industrial Strategy on action on climate change and decarbonisation (July 2022)
• UK’s Climate Progress: the Committee on Climate Change’s 2021 Progress Report, (October 2021)

In addition, the Intergovernmental Panel on Climate Change (IPCC) published its sixth assessment report (AR6) synthesis report (including a summary for policy makers [PDF]) on 20 March 2023. The report draws together the scientific evidence on the global impacts of climate change, and the solutions that could be implemented to reduce greenhouse gas emissions and increase resilience to unavoidable impacts. It said "there is a rapidly closing window of opportunity to secure a liveable and sustainable future for all." The BBC summarised the IPCC’s findings.

Security

Energy security concerns have risen over the last year. This was brought about by high international gas and electricity prices, and the possibility of gas shortages during winter 2022-23, driven largely as a consequence of Russia’s war in Ukraine.

• Energy Security (POSTnote, August 2022)
• EU energy security: Implications for the UK (May 2022)
• Electricity grids (January 2019)

In addition, the energy regulator Ofgem and the Department for Energy Security and Net Zero (DESNZ) produce an annual Statutory Security of Supply report to Parliament.

Affordability

Energy prices rose substantially in 2022, driven largely by energy security concerns arising from the Russian invasion of Ukraine. In response, the Government introduced a series of policies to support consumers with rising energy prices, as well as separate policies to target the rise in energy prices directly.

Wholesale gas and electricity prices on the spot market fell over the winter. If these lower prices continue they will cut the cost of the Government's energy bills support schemes, but are not expected to feed through to lower consumer bills until late 2023.

Rising energy prices and their impact on consumers

• Gas and electricity prices under the Energy Price Guarantee and beyond (March 2023)
• Domestic energy prices (January 2023)
• Oil prices (November 2022)
• Petrol and diesel prices (October 2022)
• Fuel Poverty in the UK(May 2022)

Recent policies to support consumers with rising energy prices

• Constituency casework: Government support for energy bills (March 2023): this provides information on the new universal support schemes introduced in 2022 and 2023 to help household and business customers with energy bills.  The Energy Prices Act 2022 created powers to set up, or deliver aspects of, all these schemes. For more information see the Library research briefing on the Energy Prices Bill 2022-23 (October 2022).
• The Government announced increased support for Energy Intensive Industries in April 2022, with further proposals in August. The debate pack on Energy intensive industries (November 2021) has background information.

 Recent policies targeting the rise in energy prices

• Taxation of North Sea oil and gas (November 2022): This includes information on the Energy Profits Levy.
• Taxation of road fuels (June 2022): This includes information on the temporary cut in the rate of fuel duty.

In addition, the Review of Electricity Market Arrangements (REMA) was a Government consultation on reforming the electricity market, held from July to October 2022. It included proposals to decouple of the price of electricity from the price of gas. The Government published its response to the consultation on 7 March 2023.

The Electricity Generator Levy is a new tax on exceptional generation receipts from low-carbon electricity generation.

Press and parliamentary material

Press

Energy Industry Review

2 March 2023

Trilemma and Transition: Energy Industry Insights 2023

Times

31 January 2023

Dame Andrea Leadsom MP: Done right, Britain’s booming net zero sector could soon eclipse financial services

Prospect

23 January 2023

Ed Miliband: Britain was once a climate leader. It can be again

Spectator

17 September 2022

The mistakes that led to the UK’s energy crisis

Energy Voice

11 June 2022

The energy trilemma – the role of CCS and hydrogen

PQs

Cleaner Energy Technologies

Asked by: Baroness Foster of Aghadrumsee

My Lords, given the energy trilemma of the cost, the mix and security of supply, and given the year that we have had, should security of supply not be given more prominence in energy policy?

Answered by: Lord Callanan

The noble Baroness makes a very good point. Security of supply is vital, and it is one reason why we want to continue to roll out the deployment of renewables in the UK—because, of course, if it is generated in the UK, it is secure. Part of the problem that we have seen over the past year has been our exposure to the vagaries of international markets. Sadly, we get only 40% of our gas supplies now from our own resources in the North Sea, and the rest we have to import, either by LNG or by pipeline. So we want more secure, reliable power generated here in the UK, because of course that is the most secure.

HL Deb 14 March 2023 | Vol 828 c1189

Electricity Generation: Carbon Emissions

Asked by: Jupp, Simon

To ask the Secretary of State for Energy Security and Net Zero, whether his Department has made an assessment of the potential impact of a zero-carbon electricity by 2030 target on (c) consumer bills, (b) energy security and (c) temporary interruptions in electricity supply.

Answering member: Graham Stuart | Department: Department for Energy Security and Net Zero

It is the Government's ambition to achieve fully decarbonised electricity by 2035, subject to security of supply. The Government is focused on delivering the policies and programmes which support this goal, while maintaining a secure, reliable and low cost energy system.

HC Deb 03 March 2023 | PQ 151437

Select committees

• The BEIS Committee is currently conducting an inquiry on Decarbonisation of the power sector.
• Environmental Audit Committee, Accelerating the transition from fossil fuels and securing energy supplies, Fourth Report of Session 2022–23, January 2023
• Business, Energy and Industrial Strategy (BEIS) Committee, Energy pricing and the future of the energy market, Third Report of Session 2022–23, July 2022
• BEIS Committee, Energy pricing and the future of the energy market: Government response, Second Special Report of Session 2022–23, October 2022
• House of Lords Economic Affairs Committee, Investing in energy: price, security, and the transition to net zero [PDF], First Report of Session 2022-23, July 2022. The Government response [PDF] was published in October 2022.