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UK’s Strategic Challenges in Terms of Energy Security:

A Trilemma?
UK’s Energy Security Strategy

Energy Leadership &


Mr. 4/16/23
Management
Contents
Abstract:.....................................................................................................................................................2
Identified Gap:...........................................................................................................................................2
1. Introduction.......................................................................................................................................3
2. Historical Background of UK’s Energy-related Challenges...........................................................4
3. British Energy Security Strategy and the Vulnerabilities..........................................................6

4. The British Energy Security Strategy Analysis Through the Lens of the WPR Approach..........9
5. PESTEL ANALYSIS.......................................................................................................................12
Political Factors.......................................................................................................................................12

Economic Factors:...................................................................................................................................15

Social Factors:..........................................................................................................................................18

Technological Factors:............................................................................................................................21

Environmental Factors:..........................................................................................................................22

Legal Factors:..........................................................................................................................................26

6. Trilemma and the Key Analysis: A Snapshot................................................................................27


7. Innovative Solutions to the Challenges of Electricity Generation................................................30
8. Conclusion........................................................................................................................................31
9. References:.......................................................................................................................................34

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Abstract:

This article considers, identifies, and evaluates the strategic challenges faced by the

British government in terms of energy, specifically electricity production. In addition, it provides

a scenario analysis regarding the security of the energy supply. It uses a dual-edged sword of the

WPR approach and PESTEL Analysis to provide a comprehensive and robust analysis. In

addition, it provides insight into realistic and less-discussed challenges. Furthermore, novel

approaches to addressing the energy crisis are also suggested.

Identified Gap:

This article identifies a topic that has not been discussed as frequently as it should have

been in both academic and government circles. The gap has been identified as the uncertainty

surrounding the future of oil and gas companies. As one of the largest sources of carbon emitters

and the material required to produce emissions, they are excluded from the mainstream

discourse. Additionally, COP 26, 27, and 28 will not be of much assistance in this regard.

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1. Introduction

Energy has become the most strategic asset in recent times as everything that we use in

the modern world is powered by some form of energy. The forms of energy can be different from

each other, but the presence of energy is a constant. With this much importance, people’s life

now depends upon energy; this very fact makes it a strategic asset. With this strategic

importance, come the challenges to secure energy for the present and the future.

Global economies rely on a variety of energy sources to power global operations. Oil,

natural gas, coal, hydrogen, uranium, and the sun are all forms of energy. These are primarily

used for transportation and power generation. Despite the fact that they serve the same purpose,

these are used to generate the majority of the world's electricity. The majority of the world's

energy is derived from oil and gas. Consequently, oil and gas are essentially strategic materials,

as they are essential to the global economy. In addition to other geopolitical difficulties, these

two create strategic and environmental difficulties.

The most significant of these challenges are supply security, price fluctuations,

competition for these two commodities, and environmental damage. Oil is the liquid gold of this

era, and it is even more valuable than gold because the demand for gold is much lower than that

for oil. Oil, not gold, drives the foundation of this civilization. Consequently, from a security,

cost, and strategic standpoint, oil is the ultima resource. The period following World War II has

been dominated by Petro-geopolitics, as petroleum was and remains the most valuable resource

for world economies and the United Kingdom (UK). In addition to other nations, the United

Kingdom has faced significant strategic challenges. Despite the fact that, unlike the United

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States, it has not recently fought wars for oil, its companies maintain a strong grip on the world's

oil resources. Despite the persistence of oil imperialism, few studies have focused on Britain and

oil imperialism (Tuchscherer, 2015).

With great power and control comes great responsibility, which results in a variety of

strategic challenges that will be discussed in detail in this article. In addition, this article would

address key issues, opportunities, scenario analyses, and opportunities for the United Kingdom.

2. Historical Background of UK’s Energy-related Challenges

Crises are never created overnight; rather, they develop over many years. The

same is true for the United Kingdom, where the energy crisis has developed gradually over the

course of several years. Before discussing contemporary events, it is necessary to shed light on

the events of the 1970s, as that is where the most valuable strategic lesson relating to Britain's

current challenges lies, and as time has shown, it was not effectively learned.

As the Arab-Israeli war ended in the 1970s, the large coalition of major oil-producing

nations sanctioned those who supported Israel during the conflict. The production and supply

were reduced, and the price skyrocketed. This was a major problem for the United States, the

United Kingdom, and most of the developed world, as they were becoming increasingly

dependent on oil for electricity production and transportation. The Western world was witnessing

an economic miracle of capitalism while its economy was being dealt a blow. There were

important lessons to be learned from this.

The first lesson to be learned was that reliance on foreign nations for strategic raw

materials is never a sound policy. There may be interdependence in other ways, such as the

exchange of weapons for oil. But as of now, nothing has quite supplanted the "Black Gold's"

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dominance. The United Kingdom and other Western nations did not fully grasp the lesson's letter

and spirit. Even though some measures were subsequently taken, the dependence exposed by the

Russia-Ukraine War paints a very different picture.

The second lesson to be learned for the United Kingdom and the Western world was that

reliance on materials that are scarce in one's own country and have a significant negative impact

on the environment must be eliminated. However, the United Kingdom continued to discover

additional oil and gas reserves in the North Sea and other locations. Initially, it appeared to be a

good policy, but as the population grew, urbanisation accelerated, and living standards rose, the

demand for oil, gas, and electricity rose. Due to the increased demand, the local production of

various energy sources was insufficient to meet the requirements. Thus, the United Kingdom

began to import more than it produced domestically; even electricity and oil and gas were

imported.

At that time, the United Kingdom had to switch from oil and gas to renewable energy

sources to generate electricity and power its transportation, etc. At that precise moment,

however, the policy lapsed and the United Kingdom began to import more energy. Although

offshore and onshore windmills were constructed, oil and natural gas remained the primary

sources of electricity and energy. This explains why things have deteriorated for the United

Kingdom, as it is more susceptible to global price fluctuations, geopolitical issues, climate

change, and supply chain disruptions. The United Kingdom failed to learn its lesson, and it is

now paying the price in the modern era (Deloitte, 2022).

It is now time to discuss the contemporary challenges facing the United Kingdom,

following a discussion of the two most significant historical turning points. The preceding

discussion was intended to provide a glimpse of the challenges related to those in 2023. These

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challenges are the result of past decisions, so they are highly relevant to the challenges the UK

government faces today.

3. British Energy Security Strategy and the Vulnerabilities

On the 7th of April, 2022, the British Government published its strategy for energy

security. It aimed to reduce its dependence on sources of energy which are not based inside

Britain. It aimed to be independent of foreign influence. Also, it included the use of more

sustainable and native ways to produce electricity. The sources that produce electricity that was

suggested are Offshore Wind, Nuclear Energy, Solar Energy, Hydrogen, and Oil & Gas. It is a

comprehensive document which included multiple sources to produce electricity and also asserts

to reduce the dependence on foreign (Deloitte United Kingdom, 2022).

Since the reliability of the supply chain is essential to the operation of any energy source,

it follows that it is also essential to the operation of an economy, given that economies are

dependent on the uninterrupted flow of oil, gas, and electricity. Because of its reliance on oil and

gas for the production of electricity, the United Kingdom is in a precarious position right now.

This weakness was exploited in the past, is still exploitable now, and will likely be

exploited again because disruptions in supply have the potential to wreck the economy of the

UK. Additionally, the United Kingdom imported around 38 per cent of its electricity from

countries in close proximity to it, which resulted in the creation of a dependency. Therefore, the

issue at hand is the state's ability to exercise complete control over its territory.

It is clear that the dependency has been felt in the halls of power in light of the recent

shocks, as former Prime Minister Boris Johnson stated in the prologue of the British Energy

Security Strategy (2022) that it required a supply of power that is made in Britain and for Britain.

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The previous Prime Minister was speaking about the generation and supply of reliable electricity.

However, because the United Kingdom must currently rely on imports to satisfy its energy

requirements, there are concerns regarding the safety of both the nation's electricity generation

and its supply (BEIS, 2022).

The security of energy needs to be viewed through new lenses in addition to the

generation and supply-demand side, as there are now new concepts of security that need to be

taken into consideration. Aside from issues pertaining to sovereignty, energy security faces a

variety of other challenges. The following discussion will focus on these dangers:

Due to the ever-increasing unpredictability of the world, the United Kingdom is required

to protect its energy sites from a variety of assaults. The first potential outcome involves a direct

missile strike on either the sight's electricity grid station or the oil-producing sight. This is highly

unlikely, but when things are going poorly, nothing is out of the question.

Second, as the conflict between Russia and the Western bloc intensifies, the United

Kingdom will become more susceptible to attacks of a different kind from Russia as well as

other adversaries. The energy security of the United Kingdom could be compromised by an

attack that involved agents working inside a grid station, an oil drilling site, or a nuclear power

plant to either deliberately cause a short circuit or start a fire. Although at first glance this

appears to be a conspiracy theory, there is a grain of truth to it because it is unlikely that a single

nation could be identified as the perpetrator of such an attack. As a result, it is a low-cost and

low-confrontation method, which can be extremely effective. In addition, it can be very

successful. People would act as though it was an accident, but in reality, it wouldn't be. Despite

this, the target would be accomplished. Any attack on a nuclear power plant, such as the ones

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that Russia launched against Ukraine's nuclear power plants, has the potential to eradicate an

entire city. It's possible that this will be another Chornobyl.

Thirdly, another way, which has not been discussed in its true spirit so far, is the

possibility of high-tech or cyber-attacks being launched against the energy infrastructure of the

UK. It is likely that Russia or other terrorist groups will launch cyberattacks against the United

Kingdom, which could leave the country powerless for days, weeks, or even months. This

presents a rather gloomy picture. An authority on the subject, Ted Koppel, highlights the

vulnerabilities of the nation's electrical infrastructure in his book "Lights Out (2015)." He claims

that Russia and China already have access to the national grids of the United States and are

simply waiting for the appropriate time to act on their knowledge. There are also important

takeaways for Britain from this, given that the country intends to power its economy with

uranium-based nuclear power.

Because our adversaries aim to destroy not only our sovereignty but also our vital

infrastructure, we need to take a broader view of what constitutes supply chain security.

Therefore, this issue pertaining to security needs to be tackled in an all-encompassing manner. A

transition to renewable energy sources, the installation of missile defence batteries around power

grids, and the use of sophisticated technology to combat cyberattacks are some of the ways this

can be accomplished.

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4. The British Energy Security Strategy Analysis Through the
Lens of the WPR Approach
The solutions which have been provided by the British Government in the British Energy

Security Strategy can be viewed through a theoretical lens provided by Bacchi, that’s is called

WPR (What’s Problem Represented to Be?) Approach (Bacchi, 2012). It is a very effective tool

to analyze any policy. It has been successfully used to analyze policies before. And, here it is

essential to use the WPR approach to understand the British Energy Security Strategy and what it

actually suggests.

The WPR approach states that a solution which has been suggested also provides deep

insights into the problem. So, the solutions or goals which have been provided by the

government also give us insights into what the British Government thinks problems are.

The WPR approach employs a combination of 6 questions as the basis to analyze any

policy (Bacchi, 2012). Those questions and their answers have been provided in the following

section:

1. What's the ‘problem’ represented to be in a specific policy or policy proposal?

If one analyzes the solutions provided by the British Government, it is clear that the

“Problem Represented” in the British Energy security strategy is an unhindered flow of

energy and sustainable generation of energy which also reduces the emission of

Greenhouse Gases (GHG). Another problem which has been represented is the challenge

of climate change, and this points towards the British “Net Zero by 2050” strategy as well

(Question 1).

2. How has this representation of the ‘problem’ come about?

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The representation of the problem has come about via different assertions and events

such as the Ukraine-Russia War, and the vulnerability of Britain in terms of foreign

dependence. The challenge of energy security and climate change has shaken the basis of

the government. So, through these threats, the representation of the problem has come

about.

3. What presuppositions or assumptions underpin this representation of the

‘problem’?

There are a few presuppositions as well, such as: 1) Britain is Insecure about its

Electricity Generation 2) the British energy sector is not sustainable 3) Britain is

extremely Dependent upon foreign sources

4. What is left unproblematic in this problem representation? Where are the silences?

Can the ‘problem’ be thought about differently?

There are various factors which have been left unproblematic and there are silences about

those factors as well. For example, the factor that the people in the country would not be

able to pay the higher bills if the country moves towards renewable sources. Green

technology is expensive, and most people would not be able to pay for it. There is also

silence about the fact that the British government has opted to extract more gas from the

sources available in the North Sea. Another aspect which has been left unproblematic is

the fact that the government need huge sums of money to produce energy. Also, there is

silence about waste management.

5. What effects are produced by this representation of the ‘problem’?

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The representation of the problem has generated a few effects as many organizations

have pledged to reduce emissions, and the officials have started to take steps to achieve

the goals of sustainability, and security of energy supply.

6. How/where has this representation of the ‘problem’ been produced, disseminated

and defended? How has it been (or could it be) questioned, disrupted and replaced?

The problem has been produced in various places and thinks tanks of the government. It

has been disseminated across media, research papers, organizations, corporations, and

policy reports.

The problem and the strategy have been challenged by various groups. Even the leader of

Wales opposes it with complete zest and zeal. It has been questioned and disrupted by the

legal authorities and the international authorities, as the actions of the British

Government are different from its stated policy of a Net Zero Strategy by 2030. It lags

behind in terms of achievement of the stated goals.

Snapshot:

By looking at the above analysis it can be asserted that the problems and the challenge that the

UK’s government face at the moment are: Security of supply, rising cost, climate change, high

cost of green energy, higher amount of money need to invest geopolitical shocks and disposal of

waste. So, this approach has been proven to be useful to pinpoint the problems and in the

provision of robust analysis.

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Now that one lens has been used to analyze the British Energy Security Strategy and the

challenges that UK’s government faces, it is imperative to use another tool to provide a more

comprehensive robust analysis. The PESTEL analysis would be used in the following section

and these two tools would work as a dual-edged sword to provide a better analysis.

5. PESTEL ANALYSIS

The PESTEL analysis is a useful tool to analyze the external impact on an organization or on

a country. This study, would be used to determine the challenges faced by the British

Government in terms of energy security and electricity generation.

There are 6 factors which are analyzed in the PESTEL Analysis:

1. Political Factors

2. Economic Factors

3. Social Factors

4. Technological Factors

5. Environmental Factors

6. Legal Factors

Political Factors

There has been a lot of political instability in the UK’s government which is a breeding

ground for uncertainty and discontinuation of a policy. There is a schism in the soul of Britain at

the moment. The recently elected Scottish leader-Hamza Yousaf-is a strong advocate of the

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independence of Scotland from the United Kingdom (MacAskill & Smout, 2023). While the

English government has stated in the policy that it plans to increase the number of nuclear power

plants, the Scottish government has been closing down its power plants (Carrell & Ambrose,

2020). This explains that the UK is currently much divided in terms of a single course of action.

It faces extreme instability and the divide within.

There are only internal challenges but there are various external political challenges as well.

Due to the fact that the United Kingdom imports significant quantities of oil and gas, it is

susceptible to whatever occurs on the international stage. As a result of increased globalisation,

countries all over the world are being impacted by a wide range of issues, including disruptions

in supply chains, wars, production cuts, and rising costs. This presents yet another challenge for

the government of the United Kingdom.

During COVID-19, as the global economy went into a tailspin, prices fell as a direct result of

the resulting drop in demand. However, as soon as the recovery began, there was an increase in

the demand for electricity and other forms of energy, which meant that production needed to be

increased. The price went up as a direct result of the increased demand, and this increase needed

to be made up for in some way. As a result, the recovery from COVID-19 has made it

challenging for the government of the United Kingdom to generate more electricity.

Second, as a direct result of Russia's invasion of Ukraine, gas prices have skyrocketed to an

all-time high, and supplies have been disrupted. Despite the fact that only 5% of the UK's total

imports came from Russia, the UK is just as susceptible to price increases as any other country.

The Russian invasion of Ukraine has jolted every corner of the globe to its very foundation. Even

before this war, there was a gap between the supply and the demand for the commodity in

question. Both nations are extremely significant contributors to the world's energy supply, but

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Russia's importance to the European Union (EU) market cannot be overstated. Germany is still

heavily reliant on Russia for the majority of its imports of fossil fuels (Tim G. Benton et.al,

2022).

This invasion is going to have significant repercussions not only for the United Kingdom but

also for the rest of the world. The perception is that an increase in the cost of energy poses a risk

to human security. According to Iana Liadze and colleagues (2022), the war would cause a

decrease of approximately one trillion dollars in the economy of the world. This would also have

an impact on the United Kingdom and the amount of electricity it can generate.

Due to the fact that Russia and OPEC are working together to reduce output, the United

Kingdom is in a particularly precarious position. Even after Joe Biden's trip to Saudi Arabia,

production has not increased, and prices have not decreased; this is because they are being kept

artificially high. Because most of the supplies are going to Asia, the level of competition has

increased, which means that the United Kingdom receives less oil and gas to use in the

production of electricity. Because of this, there will be an increased demand for the exploration

of other resources, which will ultimately result in an increase in the risks faced by the nation.

One more thing that needs to be taken into account is how the United Kingdom plans to stay

relevant while the European Union moves forward with some kind of anti-Russia policy. After

Brexit, it seems as though Britain has and will become more isolated and will play a supporting

role. It has been secluded in terms of having any influence on the decision-making process.

France has been very vocal, and chances are Emmanuel Macron would lead the EU. The United

Kingdom needs to collaborate with the European Union and take the initiative in order to ensure

both its own energy safety and the well-being of the Western bloc as a whole. According to

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Robert Shrimsley (2022), the decision to leave the European Union has not proven to be a

successful one given the current state of affairs.

It is preferable for the United Kingdom to integrate itself with global energy giants like

OPEC, at least for the time being, in order to better deal with the mood swings of the geopolitical

arena. At the same time, the United Kingdom should continue to tap its own potential for

producing electricity through wind, solar, hydro, and other environmentally friendly sources. The

United Kingdom (UK) ought to have discovered a valuable lesson when the OPEC countries

blocked the Oil supplies; however, the energy mix that it chose in the years that followed was not

adequate.

Economic Factors:

As a result of the conflict between Russia and Ukraine, the price of fuel has increased to

levels that are unsustainable for the majority of the world. Inflation has been constantly on the

rise and is ripping through the tiny pockets of the public. Those nations that are forced to import

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fossil fuels are currently struggling to pay the high prices associated with those imports. Because

of the rising costs, it has become difficult for governments to produce electricity at a price that is

more affordable.

The graph above shows the trend of inflation. It depicts that inflation has been constantly on

the rise. Inflation in Britain stands at 10.4%, which is higher than in other comparable economies

(UK Parliament, 2023). The Graph below also shows that inflation has remained above 10%.

(Bank of England, 2023).

The United Kingdom gets the majority of its electricity from outside sources and generates

its own electricity by burning fossil fuels purchased from other nations. The majority of the

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nation's electricity is generated through the combustion of natural gas, and as a result of the

volatility of natural gas prices on the international market, the government of the United

Kingdom is faced with a "Trilemma" that includes increasing costs, increasing emissions, and

maintaining a stable supply.

Even if the rising cost of electricity is kept in check by cash handouts and a price cap, it will

still cause more inflation. This is because the cash handouts and price caps will not be able to

withstand the inflationary pressures caused by the fluctuating prices of oil and gas on a global

scale.

In addition, as the electricity is generated, it must also be transmitted to the residents. This

necessitates the construction of additional high-voltage towers, which, due to the growing

demand for power, must be constructed at increasingly greater heights. This results in an increase

in the cost of the electricity that is provided to the citizens, and because of this, the challenge

posed by the cost is never going to go away for the government of the United Kingdom.

Furthermore, the majority of the energy that is required is for the purpose of heating, and as a

result of the severe winters, households require a greater amount of gas and electricity. A prompt

decision to move toward energy efficiency, self-sufficiency in electricity production, and

reducing the demand for energy could potentially save the United Kingdom. It was too little, and

it was already a little bit too late. In this regard, it was necessary to take preventative action and

make appropriate preparations.

In a similar instance, the cost of wind energy is comparable whether it is generated on land or

at sea. Additionally, there is a requirement for investments in this industry. Green finance is

required if we are going to have more and more clean energy. At this very moment, there is a

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requirement for a capital investment amounting to 222 billion pounds. This indicates that there

will be no reduction in price, of any kind, in the not-too-distant future.

In addition to this, the proposal to construct additional nuclear power plants is not helping in

terms of the overall cost. Despite the fact that it may appear to be a viable option, and despite the

fact that politicians may boast of its benefits, it is the most expensive form of energy. The

construction of a nuclear power plant is one of the most expensive types of power plants to build

because it requires the most advanced technology, the most expensive materials, and highly

skilled labour. This, in turn, means that the government needs more cash, which means that the

cash would come out of the pockets of taxpayers, or the rising cost would be passed on to the

customers. In essence, it indicates that the residents of England will not receive any relief, as the

price is going to continue to rise on a daily basis.

It is imperative that the United Kingdom transition to renewable forms of energy if it is to

achieve sustainability, achieve self-sufficiency, and protect itself from the impact of fluctuations

in the price of oil and gas on the global market. Only by switching to clean electricity will they

be able to bring their import bills down, lower costs for their customers, bring inflation down in

the country, and take the lead on the international stage. In this way, it is possible to power its

homes, use electricity rather than gas for cooking, and put any excess energy to use powering the

transportation system.

Social Factors:

Over the time span of almost 20 million, UK’s population is expected to increase by 8

million. The birthrate would increase, and poverty is predicted to increase (The Kings Fund,

2023). More than 13.4 million people are living in poverty and it is expected to rise. The

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situation is worsening (Joseph Rowntree Foundation, 2023). The energy bills have increased

significantly and people are unable to pay those bills. With the rising poverty, people are facing

uncertainty about their futures and how they are going to afford to heat. Electricity also affects

the education and mental growth of the children as it gives them an opportunity to learn more. If

they are unable to pay their energy bills, the marginalized kids would be further marginalized

along with their parents. The chart below shows the estimated energy bills for an average

household.

UK’s demography is unique, half of its population is rich, and half of it is poor or near poverty.

They live paycheck to paycheck and there is no sign of relief for them. There has been enhanced

migration in the UK too, which means the population has increased as well as the demand for

electricity. It is imperative for the British Government to be extremely apprehensive of the needs

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of ethnic minorities, impoverished people, and immigrants. The government has to keep

demographics in mind.

Furthermore, the people are facing food shortages as well, which indicated a more precarious

situation. With Ukraine and Russia, which are one of the biggest suppliers of food items,

indulged in war, food insecurity is on the rise as well. This is also related to electricity because if

electricity becomes expensive, then the immigrants and those who work at factories would be in

danger as they might be laid off. The chart below depicts the percentage of people who had

experienced food shortages.

(Mcrae & Westwater, 2023)

If the government moves towards green energy, it would require higher investments. The cost of

green projects is far more than other projects and it would eventually cost the consumers more.

On the other hand, there are climate change activists who are advocating for greener ways to

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produce electricity. On the other hand, the major population uses gas for heating purposes, and

they would be traumatized if it is discontinued. But if it is not, the climate change commitments

would not be honoured. The UK’s government is, indeed, facing the “Trilemmas”.

Technological Factors:

The UK lags behind in the sophisticated technological infrastructure to produce, store, and

supply electricity. There is a need to invest in Research and Development (R&D) as well as in

developing the necessary infrastructure for production, storage, and supplying electricity. In

order to achieve NetZero targets, the government must use the current of ocean waves to

generate electricity. There are other innovative concepts as well such as electrolyzes and a

concept developed by Ian Mabbet, in which he uses solar cells to produce electricity. The solar

cells are installed on buildings, those cells power homes, and the excess energy can be used to

power electric vehicles. This way the homes and the transportation, both, become self-

sustainable. Professor Ian Mabbet aims to break through into the industry, where cars will

produce and power homes. Smart cars would sell and purchase energy on their own. This is the

vision (Charles et.al, 2019). There is a need for the UK to adopt Block-Chain and Artificial

technology into its energy sector.

Another problem that the government of the United Kingdom has to deal with is a lack of

storage space, in addition to problems with its suppliers. To begin, Great Britain has the least

amount of space available for the storage of energy when compared to the other states in Europe

(Laurie Macfarlane, 2021). Because of its inadequate storage capacity, the United Kingdom is

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susceptible to fluctuations in international prices and other types of crises. This is because more

than a third of the country's electricity is produced using gas.

Second, following the privatisation of energy distribution, there has been the formation of a

monopoly among the companies that are in charge of energy distribution. These businesses are

generating enormous amounts of profit. According to the research of Morgan Wild (2017),

consumers are paying approximately one billion dollars more than they should for goods and

services. The customers are unable to escape from this location. According to the findings of yet

another study by the Energy Climate Intelligent Unit (2017), significant profits are being made.

Ofgem, the primary price regulator, has failed to control these prices.

There are six major companies that dominate this industry, and any semblance of competition

is merely a pipe dream. Because the government has established a price cap, which is the

maximum amount that can be charged to a customer, the smaller companies are in danger of

being driven out of business as a result. They would not be able to pass the increased costs on to

their customers, so the cost of doing business would continue to rise. On the other hand, larger

corporations would be able to handle the situation more effectively due to easier access to funds,

hedging, and other financial strategies.

Increasing our storage capacity, shifting our reliance toward renewable energy sources, and

optimising our energy use are the three paths that will lead us out of this mess. It is possible to

put an end to the monopoly by establishing a state-owned business that will fill the gap and assist

the locals. They would be freed from the grip of the monopolies, and the prices would drop to

more reasonable levels as a result. If energy prices were to fall, the pressure for inflation would

fall as a direct result of this development.

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Environmental Factors:

The British government is currently confronted with a number of challenges, one of which is

the threat posed by climate change and the commitment of the UK to reduce emissions as part of

its Net Zero Strategy (2021). As a result of the conflict between Russia and Ukraine, the

commitments made to reduce emissions face a significant level of risk. The commitment that

was made to COP 26 is also in jeopardy, and there are strong indications that the progress that

was made in terms of moving to reduce emissions has been rolled back as a result of the United

Kingdom's decision to produce energy through coal rather than another alternative.

It appears that the United Kingdom's commitments made at COP 27 will remain merely on

paper, as the nation has also decided to increase the amount of oil and gas extracted from

offshore wells and sites. In order to satisfy the demand for energy, additional oil will be extracted

from the North Sea; however, it is of the utmost importance that the United Kingdom maintains

its focus on its climate change objectives. When there is a greater demand for oil and gas to be

extracted, there will be a corresponding increase in both the costs and the risks to the

environment. Because of the skyrocketing prices, the production of electricity from gas is not

going to bode well for the environment. Additionally, it is not going to be helpful for the

marginalised communities in the UK because of how high the prices are going to be.

The 27th Conference of the Parties (COP 27) focused on more environmentally friendly

resources for energy production and reducing emissions, but the commitments made at the

conference cannot be fulfilled. In spite of the fact that the British Energy Security Strategy

(2022) claims that the United Kingdom will transition toward onshore, offshore, and floating

windmills for the production of energy, this is not going to be believable. Because the licencing

process can take anywhere from three to ten years, and because it is impossible to meet global
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targets for reduced emissions, clean energy, and the planet cooling down to 1.5 degrees Celsius

while the process is underway, even if the United Kingdom were to begin immediately, it would

still take a significant amount of time to fulfil the first commitment by the year 2035. Because of

this, the government of the United Kingdom faces a unique set of challenges due to the fact that

it does not currently possess the necessary infrastructure to build upon the green electricity

pyramid. There is a requirement for more investment capital than the gross domestic product of

many of the world's least developed nations. In order to generate electricity, we are stuck in a

never-ending cycle of burning oil, gas, coal, and uranium.

There is very little to no hope that the United Kingdom or its climate change goals will

benefit in any way from COP 28, which is right around the corner. A result of the fact that it is

being hosted and sponsored by the United Arab Emirates (UAE), which is home to one of the

world's most extensive oil and gas reserves. Even at COP 27, there were a lot of people

presenting anti-climate change agendas. Every nation contributed a statement regarding their

plans to reduce greenhouse gas emissions, checking that item off the list. Box checked: The

leaders of the world have called for strong measures and a strengthening of the resolve to fight

climate change. As a result of the private companies' and multinational corporations'

commitments to cut emissions, another box was checked. Countries made commitments to

transition to environmentally friendly forms of energy, checking off another box on the list. In

this regard, each and every requirement was met; however, when it came to actually taking

action, there were very few people who qualified as champions. Even the United Kingdom made

a commitment, but when its leaders returned home, they made the decision to increase their

extraction of oil, gas, and coal.

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Therefore, in light of all of these circumstances, the generation of electricity is going to be a

tough nut for the British government to crack, as it is about to embark on a journey that is fraught

with difficulties. According to Frantz and Mayer's (2009) research, psychological factors play a

significant part in determining the success or failure of efforts to combat climate change. It is

possible to exert influence over people's psychological states, and if governments are able to shift

the responsibility for climate change onto another party, they will not be held accountable. As a

result, many nations do not possess the determination necessary to combat climate change.

In the case of the United Kingdom, the government has taken some actions, but it remains to

be seen how successful those actions will be. In order for the measures to be successful, the

cooperation of oil and gas companies is required. Given that BP reported a profit of 23 billion

pounds, this is going to be an extremely challenging task (Nick Edser et.al, 2023). According to

the Corporate Climate Responsibility Monitor (2022), the largest companies lie about their

environmental accomplishments, and their commitments are typically only on paper. Another

obstacle that the government of the UK must overcome in order to generate enough electricity is

modern capitalism.

Nobody is happier than these businesses, which have achieved record levels of profitability

as a direct result of skyrocketing prices. No one else is even close. This is the most significant

obstacle that the British government needs to overcome right now. These oil companies would

be the biggest losers if we switched to renewable energy for every aspect of our lives, including

transportation, heating, cooking, and lighting. This would bring an end to their business. This

helps to explain why the government is reluctant to do so, as it would be detrimental to the

economy if not only new green jobs were not created, but also if existing businesses were not

brought into the green pyramid.

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As the United Kingdom (UK) shifts its focus toward low-carbon energy sources like

uranium, it must also contend with the challenge of properly disposing of the waste that is

generated during the process of generating electricity. Dealing with nuclear waste is an

extremely difficult and dangerous endeavour. As of right now, there is no extraordinary method

that has been discovered to deal with nuclear waste. Although there may be long-term benefits to

using electricity generated from uranium, there is no clear solution to the problem of where to

dispose of the waste produced by this process.

Another challenge that the government of the UK must overcome is this one. When you

consider that terrorist organisations could potentially use nuclear waste to manufacture poison,

gases, or even weapons, the situation becomes more strategic. USCUSA (2008) mentioned the

possibility of this happening in their study. The greater the quantity of nuclear waste that is

available, the greater the possibility that terrorists will obtain it.

In addition, windmills are among the most significant and environmentally friendly sources

of energy supply for the entire world; however, there is a strategic challenge attached to it as well

as a waste challenge. The destruction of the windmills and the infrastructure not only by the

adversary but also by storms, floods, and other forms of severe weather presents the first

strategic obstacle.

Second, getting rid of windmills can be a very challenging endeavour. They are among the

products that are enormous, making it extremely difficult to dispose of them, and they are among

those products. This issue has not been discussed just yet because there are more pressing

matters that require attention right now. In spite of this, there is going to be a problem with

waste. Therefore, it is also a challenge for the government of the United Kingdom. Despite the

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fact that it does not present as significant of a challenge as the others do, it is nonetheless

essential.

Legal Factors:

The UK is legally bound to cut down its emissions but the course of action which it has

adopted is completely different from what the law states. Although the targets of the NetZero

Policy have been stated they are far from being achieved. The British Energy Security Strategy

has an inherent contradiction, and it contradicts the national regulatory framework as well. With

the use of coal, gas, and uranium, the goals of achieving zero carbon emission seem to be a far

cry. The legal framework to make renewables 15% looks like a dream. This is another way to

say you can generate 85% of energy by using non-renewables (International Comparative Legal

Guides (ICLG), 2022).

The RED II is a new framework which is based on both EU and UK regulations. UK is

bound by its commitments to reduce its GHG emission by 75%, and 0% emissions by 2050. But

the UK lags behind on these targets, as the government has announced the plan to tap more into

coal reserves, and gas reserves in the North Sea (Harvey, 2022). It is, hereby, defying NetZero

laws and targets.

6. Trilemma and the Key Analysis: A Snapshot

The "Trilemma" that the government of the United Kingdom is currently confronted with is

not going to go away any time soon. There is no one solution to the energy crisis; rather, there

are many different ways to address this one crisis. In order for the government of the UK to

effectively address this crisis, a comprehensive strategy will be required.

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The policy analysis through the WPR approach and the PESTEL analysis has revealed a lot

of shocking details and has provided insight into the multifaceted challenges for the British

Government. The challenges were found to be almost similar in both of the analyses except for a

few. The PESTEL analysis provides a comprehensive analysis and WPR depicts the problem.

WPR also informs us of what has been left unproblematic, and where the government is silent at

the moment.

The country faces political instability which has resulted in delays in the achievement of the

NetZero by 2050 policy goal. It has also been influenced by external forces as well. To begin

with, the nation would need to ensure the security of its supply in order to protect its sovereignty

and endure the tremors of geopolitics. This is something that can only be done if the source is

located within the nation itself. There is no way around the requirement that the system must be

reliable in order to generate electricity. After that, the logical and physical protection of supply

lines and grid stations is of the utmost significance. It has been suggested that the existing safety

precautions need to be increased in order to accomplish this goal.

Secondly, there is a need for a shift in the energy mix in the UK. It must rely on non-

renewable resources a lot less than it does on renewable resources. According to Tim Green, a

professor at Imperial College London, although there are many potential solutions to a problem

in the United Kingdom, there is a lack of consensus regarding which one should be implemented.

The United Kingdom is aware that it needs to reduce its carbon footprint, but the question now

is: how? This brings about unpredictability for us (Anna Ploszajski, n.d).

The commitment that the British government has made to reach net zero emissions by the

year 2050 presents a strategic challenge for the country. It is necessary to reduce carbon

emissions, and reaching Net Zero means that Britain must put an end to all of its emissions. The

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goal of reaching net zero emissions is difficult to achieve at this time because it appears to be

very ambitious. The goal of achieving net zero emissions is not the only challenge that Britain

must overcome; there are many.

There is also the issue of rising costs, which raises the question of how the company

plans to deal with them. Many people struggle to fall asleep because they are preoccupied with

the questions. The level of investment that is required right now presents the government with a

strategic challenge. In the event that investment is not made, the nation's sovereignty is at risk.

That money has to come from somewhere if they are going to make that investment. This

essentially indicates that the government will need to reduce spending in another area in order to

redirect those funds toward environmentally friendly initiatives. Despite the fact that this

investment would be beneficial to everyone to an unprecedented degree, the government faces a

challenging choice. In most cases, the safety net provided by social security will suffer as a result

of such a decision.

In addition, there is a gap not only in the existing body of literature but also in all of the

documents published by the various governments. It has been brought to everyone's attention

that the policies do not address the oil and gas corporations in any way. Their future is uncertain

as a result of Britain's movement toward net zero, and they stand to lose on all fronts. They are

achieving unprecedented levels of profitability, the foundation of which is oil and gas. In a

similar vein, they are also contributors to the economy of the United Kingdom. As of right now,

there is no plan in place for them. It is also unknown how they would react to the goal of

reaching net zero by the year 2050. Second, British oil and gas companies are also active in the

extraction of oil and gas in other parts of the world. Is the United Kingdom prepared to give up

its involvement in the extraction of oil and gas from Africa and other regions of the world? Will

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there eventually be an end to oil imperialism? It remains to be seen whether Great Britain will

merely green its own operations or halt the operations of its companies located in other countries.

The British government faces and will continue to face a significant strategic challenge in this

regard. And the answer to this problem is both simple and extremely challenging to implement.

As a result of the fact that these businesses are the primary suppliers of oil and gas used in the

production of electricity, it is challenging to eliminate them from the system. The task that the

government needs to complete is going to be difficult.

7. Innovative Solutions to the Challenges of Electricity

Generation

As was just discussed, the energy crisis in Britain does not have a simple answer. There

are multiple potential solutions. But there are responses that the United Kingdom can take to this

crisis. To begin, the government of the United Kingdom has investigated various methods for the

generation of electricity. It is essential that this fact be recognised. As it has diagnosed the ways,

it is proceeding in the right direction, but there are still some ways that it needs to take into

consideration.

To begin, wind power is a fantastic source of energy, despite the fact that it is unreliable.

If there is a stronger wind, the load can be controlled; however, if there is a weaker wind, there

will undoubtedly be shortages. There are a few different approaches that could be taken to solve

this issue; however, we should first go over our options. Tidal power, which is the utilisation of

ocean currents for the purpose of producing electricity, is the most expedient solution to this

problem. It is as green as it gets.

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Second, there is a problem with the amount of storage space available in the UK. It is

necessary for it to find a solution that is both environmentally friendly and low in carbon

emissions. The use of lithium-ion batteries is one solution to this problem. Dr Billy Wu has

provided a solution to this problem that has been suggested. He proposes that the capacity for

storing energy ought to be split up among three distinct components. The use of consumer

electronics, electric vehicles, and large-scale energy storage on the grid are all part of the plan to

implement this. The proposal suggests the construction of batteries that are comparable in size to

containers. However, both the heat and the longevity of the batteries need to be taken into

consideration and managed (Anna Ploszajski, n.d).

According to Wu, the automobile presents an opportunity to serve as a medium for the

storage of energy. The vehicles of the future will have the capability to sell any excess amount of

energy during times of high demand and to buy energy during times when prices are low. This

would result in a reduction in costs, the generation of revenue, and the provision of energy in

situations in which the load exceeds the supply that is available to meet the requirements.

Utilizing the heat produced by factories and nuclear power plants and converting that

heat into electricity is an additional method for dealing with the energy crisis. This method can

help balance the load during times when there is less energy generated by other sources.

The capture of carbon emissions and subsequent use of that carbon in the generation of

electricity is an additional useful strategy for addressing the crisis. This strategy has the potential

to be of tremendous assistance. It would also provide essential energy while simultaneously

cleaning up the environment.

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Perhaps the most innovative solution is the use of solar panels to power homes and

electric vehicles, which has been developed by Ian Mabbett, a professor at Swansea University.

His vision is to provide a solution where the electric vehicle would buy energy when it is cheap

and provide the house and would sell energy when it is costly. Thus, it will provide a steady

stream of income as well as clean energy for houses and transportation. This would require the

use of Artificial Intelligence (AI) which must be utilized by the British Government.

8. Conclusion

To conclude this discussion, it is sufficient to say that the government of the United Kingdom

faces a great number of strategic challenges in terms of the generation of energy and electricity.

The WPR approach and PESTEL analysis have revealed the challenges for the government.

There are tremors in geopolitics, and Britain is having its own problems with Brexit. In addition,

the United Kingdom faces challenges regarding the safety, expense, storage, geopolitical climate,

and disposal of the materials that are used for the generation of electricity.

These problems can be solved, but to do so requires a firm resolve and the determination

to put up a fight. The combination of different types of renewable energy is the most effective

way to solve Britain's energy problem. In order to achieve a healthy equilibrium between supply

and demand and to successfully simulate a variety of projects, it is essential to make use of

cutting-edge computers and chips. Making citizens financially independent while also integrating

the various systems is one way to keep costs in check. In order to find a solution to the energy

crisis, each component needs to be interpreted as a different piece of a jigsaw puzzle, and each

piece needs to be placed in the correct slot.

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Because global rivalries can be exploited by a large number of parties, and because grid

stations are particularly susceptible to cyberattacks, the first strategic challenge was ensuring the

safety of supply lines. Nuclear plants are also susceptible to attack, and because attacks on these

sites have the potential to completely erase cities from maps, the risk must be managed.

In a similar vein, the problem that is associated with nuclear power plants is nuclear

waste, which is a significant issue. It poses a threat to both the environment and to people's

safety at the same time. Terrorists could potentially use nuclear waste in the production of

nuclear weapons. Nuclear waste can be used in conjunction with more traditional types of

ammunition to create a potentially extremely lethal weapon. Therefore, nuclear energy is

remarkable, but it comes with a number of difficulties attached to it.

A further obstacle is the number of investments required to generate environmentally

friendly electricity, as well as the decision made by the British government to extract more gas

from the North Sea. To begin, the total amount of investment is quite substantial. Second, the

decision made by the government has the effect of further delaying the achievement of the

climate goals. In addition to this, it is required by law to achieve the net zero goals. As a result,

the decision is an outlier at the present time. However, this can be understood given that the

lessons from the Arab-Israeli war were not internalised, which resulted in an increased level of

dependency. This decision makes political and economic sense, but it does not make

environmental sense in the midst of the geopolitical quagmire.

An issue that has not been resolved and is expected to continue for a significant amount

of time is going to be Britain's goal of reaching Net Zero by 2050. This seems like a pipe dream

given that Britain's oil and gas companies will be out of business as soon as they stop exploring

for and extracting oil both inside and outside of the country. There is hardly any policy in place

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that addresses this issue. It is clear that BP has put its climate goals on hold while it has achieved

record profits. At this point, the government has control of the situation

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