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Digest of UK Energy Statistics 2008

Digest of UK Energy Statistics 2008

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/154) issued by The Government News Network on 31 July 2008

STATISTICAL PRESS RELEASE

The Digest of United Kingdom Energy Statistics 2008 is published today (Thursday 31 July) by the Department for Business, Enterprise and Regulatory Reform. With many detailed tables, supported by charts and commentary, the Digest provides comprehensive data for 2007 and an account of trends in energy supply and demand in the United Kingdom. The Digest is available both in hard copy from The Stationery Office and free on the Internet at: http://www.berr.gov.uk/energy/statistics/publications/dukes/page45537.html. Included with the Digest this year is the popular booklet "UK Energy in Brief" (which summarizes the latest energy statistics in 29 Charts), and the "Energy Flow Chart" (which shows the UK energy flows for 2007).

Data for 2007 in Energy Consumption in the United Kingdom are also released on 31 July, on the Internet by the Department for Business, Enterprise and Regulatory Reform. This publication brings together statistics from a variety of sources, providing a comprehensive review of energy consumption in the UK since the 1970s. It is available on the Internet at http://www.berr.gov.uk/energy/statistics/publications/ecuk/page17658.html where detailed tables can also be found.

In addition, UK Energy Sector Indicators are also released on 31 July, by the Department for Business, Enterprise and Regulatory Reform. This publication is designed to show in headline form the progress that has been made in implementing the four key energy policy goals as set out in the 2003 Energy White Paper, and reiterated in the 2007 Energy White Paper. It is available on the Internet at http://www.berr.gov.uk/energy/statistics/publications/indicators/page46000.html. where supporting data can also be found.

DIGEST OF UK ENERGY STATISTICS 2008

Main trends in energy in 2007:

* Overall there was a decrease in indigenous energy production of 51/2 per cent and a decrease in primary energy consumption of 31/2 per cent in the UK compared with 2006.

* Overall primary fuel consumption was not met by indigenous production; this continues the trend from 2004 when the UK became a net importer of fuel. The UK imported more coal, manufactured fuels, crude oil, electricity and gas than it exported; however the UK remained a net exporter of petroleum products.

* The reduced demand for fossil fuels, and switching from coal to gas for electricity generation, provisionally reduced the emissions of carbon dioxide by 2 per cent in 2007.

* A higher coal-gas price differential increased the commercial attractiveness of gas for electricity generation, and decreased the amount of electricity generated from coal. Gas accounted for 43 per cent of electricity supplied, up from 36 per cent in 2006.

* Refinery production decreased by 2 per cent and petroleum product exports increased by 2 per cent.

* In 2007 Combined Heat and Power (CHP) capacity stood at 5,474 MWe a small (-0.2 per cent) decrease on 2006.

* Electricity generated from renewable sources in the UK in 2007 represented 5.0 per cent of total UK electricity generation, up from 4.6 per cent in 2006 and for the first time generation from wind exceeded generation from hydro and became the largest renewables technology in terms of electricity generated.

* In 2007 the energy industries' accounted for 4.8 per cent of GDP and 8.6 per cent of total investment, similar to the shares in 2006.

Main energy production and trade statistics:

* Primary energy production in the United Kingdom in 2007, at 185.9 million tonnes of oil equivalent, was 51/2 per cent lower than in 2006.

* Natural gas production fell 10 per cent in 2007, the seventh consecutive year that natural gas production has fallen since its peak in 2000. The UK imported more gas than it exported, continuing a trend which began in 2004.

* Crude oil production in 2007 was virtually unchanged on 2006 at 77 million tonnes, and now accounts for 45 per cent of indigenous energy production. The 2007 total was boosted by output from new fields, including the very large Buzzard field. Without these new fields production in 2007 would have been 12 per cent lower.

* Coal production was down 6 per cent in 2007 compared to 2006. Imports of coal fell by 13 per cent from last year's record high, reflecting reduced demand from electricity generators.

* Electricity supplied from nuclear sources has continued to decline in 2007, accounting for 57.2 TWh out of the total electricity supply of 378.5 TWh (15 per cent). This is its lowest proportion since 1987.

Main energy consumption statistics:

* UK energy consumption in 2007 decreased by 31/2 per cent.

* Overall gas demand rose by 1 per cent. Gas demand for electricity generation rose by 13.9 per cent and gas' share of the UK's supply of electricity was 43 per cent.

* Total oil consumption in the UK was down 4 per cent in 2007 at 79.1 million tonnes of oil equivalent. The majority of this, 75 per cent, was consumed in the transport sector.

* Consumption of Derv fuel exceeded the consumption of motor spirit in 2007 in both mass and volume terms, by 3 million tonnes and 359 million litres respectively.

* Coal consumption fell by just under 7 per cent in 2007. There was an 81/2 per cent decrease in consumption by major power producers (consumers of 81 per cent of total coal demand). 34 per cent of the electricity supplied in the UK came from coal in 2007, down from 37 per cent in 2006. The domestic sector accounted for only 1 per cent of total coal consumption.

* Energy consumption by final users (i.e. after conversion to secondary fuels, such as electricity or road transport fuels) at 164.6 million tonnes of oil equivalent fell by 3 per cent in 2007. Consumption increased marginally in the transport, sector, while it decreased in the industry, domestic, and service sectors and amongst non-energy uses.

Main electricity generation and supply statistics:

* There was a 1.1 per cent decrease in the total supply of electricity in the UK in 2007 to 402 TWh. There was also a marginal reduction in 2006, but these are the first year on year falls since 1997. Indigenous electricity supply fell by 0.6 per cent but net imports of electricity fell by 31 per cent to 5 TWh caused by both lower imports (-16 per cent) and higher exports (+23 per cent).

* Energy industries' use of electricity fell by 2.6 per cent in 2007 to 32 TWh, and final consumption of electricity fell by 0.8 per cent to 342 TWh.

* The industrial sector was the largest electricity consumer in 2007 (118 TWh), although the domestic sector was not far behind (115 TWh). Consumption in the industrial sector fell by 0.5 per cent and in the domestic sector consumption fell by 1.2 per cent in 2007.

* Total electrical capacity of good quality combined heat and power (CHP) plants in the UK in 2007 was 5,474 MWe, a decrease of 10 MWe from 2006. Since the start of 2006 87 new schemes have come into operation, but during the same period 37 schemes have ceased to operate. Electrical output from CHP was also down (by 0.8 per cent) from 2006's record level at 28,700 GWh.

* In 2007 the proportion of UK electricity generated from renewables was 5.0 per cent. On the basis of the policy measurement of the contribution of renewables eligible under the Renewables Obligation to UK electricity sales, 2007 showed continued growth with the percentage increasing from 4.0 per cent in 2005 and 4.5 per cent in 2006 to 4.9 per cent in 2007. Installed electrical generating capacity of renewable sources rose by 13 per cent in 2007, mainly as a result of a 27 per cent increase in wind capacity and an 8.5 per cent increase in the capacity of sites fuelled by biomass and wastes.

ENERGY CONSUMPTION IN THE UNITED KINGDOM

* The overall increase in energy consumption between 1990 and 2007 was 7.6 million tonnes of oil equivalent - an increase of 5 per cent. The changes in the main sectors, between 1990 and 2007 were:

Industry: - 18 per cent

Domestic: + 8 per cent

Transport: +23 per cent

Services and agriculture: + 1 per cent.

* Growth in energy consumption in the transport sector is slowing. By 2007, transport energy consumption had more than doubled since 1970, but two thirds of this increase had occurred by 1990. Since 1990 transport consumption has risen by 23 per cent. The largest increase between 1990 and 2007 occurred in the air transport sector, where consumption rose by 91 per cent. Over the same period the rail sectors consumption of electricity rose by 56 per cent, whilst passenger road fuel use was essentially unchanged.

* Domestic energy consumption increased by 8 per cent between 1990 and 2007. However during the past three years, domestic consumption has fallen - in 2004 consumption was 19 per cent higher than in 1990. Since 1990 the number of households increased by 15 per cent, the population by 7 per cent and total household disposable income by 52 per cent in real terms. Space heating accounted for three-fifths of all energy consumed in the domestic sector and it is estimated that over the last thirty years, if savings from insulation and heating efficiency improvements had not been made, then energy consumption for space heating would be twice current levels.

* In 2007, the largest single sub-sector in the industrial sector was chemicals, which accounted for 18 per cent of all industrial energy consumption. In 2007 energy consumption in the chemical sector was 5 per cent lower than the previous year; the iron and steel sector showed the largest year on year percentage decrease, with a fall of 9 per cent. Energy consumption per unit output fell by 38 per cent in the chemicals sector between 1990 and 2007, whilst there was a fall of 15 per cent in the same measure for the iron and steel sector; for all industries there was a fall of one quarter.

* In the service sector, energy consumption in the private sector increased by 14 per cent between 1990 and 2007, but fell by 12 per cent in the public sector. At the same time, output, measured as the contribution made to the UK economy nearly doubled in the private sector and increased by 30 per cent in the public sector, in real terms. Space heating accounts for 48 per cent of energy consumption in the services sector, with lighting accounting for a further 18 per cent. The retail sub-sector accounts for just under one quarter of energy use by service sector organisations.

* Reduced energy consumption between 2006 and 2007 has helped lower emissions of carbon dioxide by 2 per cent, with the reduction since 1990 being 8 per cent.

Notes to Editors

1. The Digest of United Kingdom Energy Statistics 2008, compiled by the Department for Business, Enterprise and Regulatory Reform, contains tables and extensive commentary, charts and technical notes. As well as giving new data for 2007 it also presents some revised data for earlier years.

2. The Digest provides a comprehensive account of energy supply and demand in the United Kingdom, with the majority of the tables covering the last five years. The first chapter covers aggregated overall energy statistics, energy balances and the estimated value of fuel purchases. This chapter gives details of the conversion of fuels by the energy supply industries and figures for consumption by final users, with an analysis of consumption by main industrial groups. It also contains a table covering fuel used for electricity generation by industries whose main activity is not the generation of electricity (i.e. autogenerators). Other chapters cover the individual fuels and particular topics such as combined heat and power and renewable sources of energy. The Digest also contains annexes on key events in the energy industries in recent years and a glossary of terms.

3. The Digest of United Kingdom Energy Statistics 2008 is available from the Stationery Office at a cost of £47 (ISBN 9780115155222) and on the Internet at http://www.berr.gov.uk/energy/statistics/publications/dukes/page45537.html. UK Energy in Brief included with this year's Digest, is a booklet summarising the main figures in the publication. UK Energy in Brief is also available on the Internet at: http://www.berr.gov.uk/energy/statistics/publications/in-brief/page17222.html The 2007 Energy Flow Chart included with this year's Digest, is a chart showing the UK energy flows of primary fuels from home production and imports to their eventual final uses. The 2007 Energy Flow Chart is also available on the internet at: http://www.berr.gov.uk/energy/statistics/publications/flowchart/page37716.html UK Energy in Brief and the 2007 Energy Flowchart are available on request from BERR, 020 7215 2698.

4. Energy Consumption in the United Kingdom brings together statistics from a number of sources to produce a comprehensive review of energy consumption in the UK since the 1970s, with a particular focus on changes since 1990. It includes an analysis of the factors driving changes in energy consumption, the impact of increasing activity, increased efficiency, and structural change in the economy. The updated information is released in tables on the Internet only at http://www.berr.gov.uk/energy/statistics/publications/ecuk/page17658.html

5. UK Energy Sector Indicators 2008 is an annual publication designed to show in headline form the progress that has been made in implementing the four key energy policy goals as set out in the 2003 Energy White Paper, and reiterated in the 2007 Energy White Paper. The 4 key indicators and 28 further supporting indicators are available on request from BERR, 020 7215 2698, and on the internet at http://www.berr.gov.uk/energy/statistics/publications/indicators/page46000.html. A further set of background indicators (charts and tables) will be made available on the BERR website (address as above) in October 2008.

6. Energy Trends is a quarterly publication that contains tables, charts and commentary covering all major aspects of energy. It provides a comprehensive picture of energy production and use over recent months and enables readers to monitor trends during the year and complements the annual publications. The latest edition was published on 26 June 2008. It is available on subscription (with Quarterly Energy Prices, see below) through Amey plc - contact Nicola Mullen, tel: 01633 224755. Single copies are available from the BERR Publications Orderline priced £6. It is also available at; http://www.berr.gov.uk/energy/statistics/publications/trends/index.html

7. The Quarterly Energy Prices publication issued with Energy Trends by BERR presents information on energy prices. It contains analyses of petroleum product prices, industrial energy prices, domestic electricity and gas prices, and international comparisons of energy prices. It contains the information on energy prices that until 2001 was published in the Digest of United Kingdom Energy Statistics. The latest edition was published on 26 June 2008. It is available on subscription (with Energy Trends, see above) through Amey plc - contact Nicola Mullen, tel: 01633 224755. Single copies are available from the BERR Publications Orderline priced £8. It is also available at: http://www.berr.gov.uk/energy/statistics/publications/prices/index.html

8. In addition to the above statistical publications on the internet, the BERR's web site also contains key energy data in downloadable spreadsheet format. The spreadsheet format includes data on energy production, consumption, trade and prices and is available in monthly, quarterly and annual time-series format. These data are available at: http://www.berr.gov.uk/energy/statistics/source/index.html

9. The Department for Business Enterprise and Regulatory Reform helps UK business succeed in an increasingly competitive world. It promotes business growth and a strong enterprise economy, leads the better regulation agenda and champions free and fair markets. It is the shareholder in a number of Government-owned assets and it works to secure, clean and competitively priced energy supplies

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