3.59 The Government's vision is a secure, low carbon and affordable energy system. This vision will have to be realised in the face of increasing world demand for fossil fuels, the urgent need to mobilise international action on climate change, changes in the way the economy uses energy, declining UK fossil fuel reserves and a need to renew a large proportion of the UK's electricity generation capacity.
3.60 The Climate Change Act 2008 sets a target to reduce greenhouse gas emissions in the UK by at least 80 per cent from 1990 levels by 2050. To achieve this, there will need to be an increase in energy generation from renewable sources, a new generation of nuclear power stations, the development of newer and sometimes smaller scale generation techniques such as anaerobic digestion and the replacement of existing coal-fired power stations with cleaner alternatives, including the commercial deployment of carbon capture and storage technology. Households and businesses will play an active role in improving efficiency in energy use with the help of energy saving measures, smart meters and, eventually, a smart grid for electricity. Decarbonising heat supply to buildings and industry will also be crucial, through moving to low carbon sources such as electric heat pumps or bioenergy and alternative infrastructure such as heat networks (district heating).
3.61 As investment is made in the UK energy system to achieve this vision, the cost must not place an undue burden on households. Vulnerable people in particular need to be protected from excessive increases in bills and fuel poverty needs to be addressed. At the same time, energy prices for businesses located in the UK must remain competitive with trading competitors across the OECD and emerging markets.