Ed Miliband, the UK Minister for Energy and Climate Change has just announced proposals for a revolution in how we use and generate energy. The aim is for the amount of energy that comes from the renewable sector to increase five-fold by 2020.

The plan includes boosting small-scale local generation through a feed-in tariff or minimum price. There will be funding as well to develop offshore wind and marine energy such as wave power. There are already innovative companies working in the field in Edinburgh and Leith who will benefit from this.

I have been urging investment in new high-speed rail links to offer a fast, cheap alternative to flying so I am pleased to see that the Government has also set out plans for the rapid electrification of the railways. There will substantial funding for research to develop electric cars as well. Both should benefit the environment as long as the electricity is generated in the right way.

At the same time, we need to update the way it is distributed and the Government has committed itself to new investment in the grid. It has to be ‘smarter’ so that it can respond more flexibly to changes in supply and demand.

One challenge will be the roll out of new ‘smart meters’ which will  help us to cut bills by enabling us to budget more effectively. The grid must also be able to respond to the way weather can affect supply from renewable sources like wind turbines. Small-scale generators will want to feed their electricity into the grid whilst electric cars will need to tap into it.

If the changes in prospect seem dramatic, it is worth remembering that there are precedents.

Electric cars, for instance, existed in the early twentieth century but they lost out to the internal combustion engine powered with petrol because of the size and the limitations of the batteries used. Research is now being conducted to meet this problem by, for instance, adapting the kind of lithium batteries used in mobiles and laptops.

Municipal gas and electricity companies were also once commonplace which suggests that local schemes such as the North Edinburgh Energy Cooperative which I chair could have a viable future, especially now a feed-in tariff will offer more security on the initial investment.

I have been pointing to new scientific research which suggests that global warming is occurring much more rapidly than was previously thought. The UK Government has provided a strong lead now in supporting the switch to renewables. It means a sharp change in direction but the past offers pointers along the way.