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Natural Gas in the UK

The contribution of coal-fired power generation to the UK’s domestic electrical energy supply appears to have increased recently, according to the December 2012 “Energy Trends” released by the Department of Energy and Climate Change. This is most likely due to coal plants using up their remaining allotted operational hours until they need to retire.
It could also be due to a quirk of the international markets – coal availability has increased because of gas glut conditions in the USA leading to higher coal exports. Combatting the use of coal in power generation is a global struggle that still needs to be won, but in the UK, it is planned that low carbon generation will begin to gain ascendance.

The transition to lower carbon energy in Britain relies on getting the Natural Gas strategy right. With the imminent closure of coal-fired power plant, the probable decommissioning of several nuclear reactors, and the small tranche of overall supply coming from renewable resources, Natural Gas needs to be providing a greater overall percentage of electricity in the grid. But an increasing amount of this will be imported, since indigenous production is dropping, and this is putting the UK’s economy at risk of high prices and gas scarcity.

Demand for electricity for the most part changes by a few percentage points a year, but the overall trend is to creep upwards (see Chart 4, here). People have made changes to their lighting power consumption, but this has been compensated for by an increase in power used by “gadgets” (see Chart 4, here). There is not much that can be done to suppress power consumption. Since power generation must increasingly coming from renewable resources and Natural Gas combustion, this implies strong competition between the demand for gas for heating and the demand gas for electricity. Electricity generation is key to the economy, so the power sector will win any competition for gas supplies. If competition for Natural Gas is strong, and since we don’t have much national gas storage, we can expect higher seasonal imports and therefore, higher prices.

It is clear that improving building insulation across the board is critical in avoiding energy insecurity. I shall be checking the winter heat demand figures assiduously from now on, to determine if the Green Deal and related measures are working. If they don’t, the UK is in for heightened energy security risks, higher carbon emissions, and possibly much higher energy prices. The Green Deal simply has to work.

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