UK needs to invest £215bn in energy by 2030, say analysts

Posted: August 23, 2016 by oldbrew in Analysis, Energy
Tags: ,

Credit: telegraph.co.uk

Credit: telegraph.co.uk


Note: for ‘energy’ read ‘electricity supply’ in this report from Utility Week on the UK’s crumbling National Grid.

The UK will need to invest an “eye-watering” £215 billion in its energy system by 2030 in order to replace ageing assets and decarbonise, analysis by Barclays Research has found.

As the country undergoes an “energy revolution” nearly half – £95 billion – will need to be spent on disruptive technologies such as renewables, battery storage and distributed generation.

“With electricity security of supply already on a knife edge, the UK faces the obsolescence of approximately 40 per cent of its current aged [combined cycle gas turbine] fleet by around 2020 and approximately 70 per cent of all reliable generation capacity by 2030,” the report said.

In addition to losing 15GW of unabated coal capacity by 2025 due to pledged phase out, the report said by 2030 the UK is also expected to lose: 7.7GW of the current 8.9GW of operational nuclear capacity; 22GW of gas generation capacity, 13GW of it by 2020; and 2.3GW of biomass conversion capacity due to the ending of government subsidies in 2027.

“Shoring up the UK’s current tenuous electricity security of supply in the face of this mass obsolescence of baseload generation capacity, combined with government policy to achieve a 57 per cent reduction in greenhouse gas emissions by 2032, will require an eye-watering level of investment over coming years,” it said.

Full report: Utility Week – UK needs to invest £215bn in energy by 2030: Barclays

Comments
  1. oldbrew says:

    ‘nearly half – £95 billion – will need to be spent on disruptive technologies such as renewables, battery storage and distributed generation.’

    Here we go…

    National Grid to award battery storage contract
    http://www.powerengineeringint.com/articles/2016/08/national-grid-to-award-battery-storage-contract.html

  2. ivan says:

    The first thing that is needed to be done is to remove the subsidies from wind and solar and/or make sure that they supply a set amount of electricity 24/7/365 at the standard rate for a gas fired generator. If wind and solar are so good then they don’t need subsidies or inflated prices for what they generate. They should also be seen to supply power reliably.

    Next thing is to dump the stupid idea of ‘smart’ meters that are so insecure that almost anyone can hack them. I can foresee the script kiddies trying to play one up by switching city lights to make rude words.

    Third thing, remove all the green taxes from the cost of electricity so that it becomes affordable both to the general public and also industry.

    Lant but not least, repeal the climate change act and return the nation to a sensible energy policy.

  3. E.M.Smith says:

    Assuming they mean the US style 1000 million for billion, and not the traditional British million million… that’s still about £3400 PER PERSON or £13,600 for a family of 4.

    I don’t know what they are smoking, but the country will be bankrupt and abandoned before they can collect that money from a country who’s industry has fled…

  4. Graeme No.3 says:

    Take emergency action – announce that it will be necessary to burn obsolete Energy Ministers and surplus bureaucrats from the Stop All Activity Department. It will only be necessary to have one bonfire before there is an abrupt reappraisal of policy, especially in the PM suggests to recalcitrant MP that they could be the next Energy Minister.

  5. oldbrew says:

    Due to lose ’22GW of gas generation capacity, 13GW of it by 2020.’

    To be replaced by what – part-time unreliables? Any fool can see that won’t work.

  6. The word that underpin this financial disaster is “decarbonise,”
    Why any sane person would engage in such idiocy is the key question for society.

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