In addition, gas power stations running on imported fuel will offer short-term method of bridging this impending power capacity gap until a new generation of wind farms, nuclear plants and clean coal power stations are brought online.
The report ‘The UK Power Generation Expenditure Forecast 2010-2030’ covered coal, gas, nuclear, offshore and onshore wind, wave and tidal, hydro, biomass, and solar photovoltaics sectors.
The report highlights that current UK power generation capacity is approximately 85GW, but that taking into account the potential for increasing demand, and intermittency of renewable sources such as wind, it will need to grow to 112GW by 2030. This means the equivalent of 95% of existing UK capacity will need to be built over the next 20 years – corresponding to a required capital investment that could be as high as GBP162 billion over the same period.
John Westwood, chairman of Douglas-Westwood, said: “The rising amounts of required energy capacity will place considerable pressure on the UK economy, the entire energy supply chain and it is the consumer who will ultimately have to pay the price of indecision.
“Considering successive governments have had 30 years notice of the present serious decline of UK oil & gas supplies and full knowledge of generation plant lifetimes there is no excuse for allowing the development of the pending problem. A balance will need to be struck quickly between energy security, the intermittent nature of renewable energy generation, climate change mitigation targets and potentially volatile public opinion.”
Douglas-Westwood is a provider of business research and analysis, strategy, and commercial due diligence on the global energy services sectors.
