It is now recognised that the days of cheap energy are over. But most future forms of energy will be even more costly, because of greatly increased capital costs and steady exhaustion. This article argues that given Britain's relative lack of capital, its energy policies need radical reconsideration. Such a programme would include a comparison of capital costs for a range of fuels, and a far‐reaching study of energy conservation, some requiring a revolution in thinking, research and planning. The main areas requiring study are identified, and include energy use in agriculture, waste at point of production and point of use, and recycling.