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Released December 17, 2012 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Gas-fired power plants will play a crucial role in the U.K.'s transition to low carbon electricity generation.
The government has revealed a number of initiatives to spur investment in the gas-fired electricity sector claiming that new plants will be needed over the next two decades to replace retiring coal, older gas and nuclear power stations.
Up to 26,000-megawatts (MW) of new gas generating capacity could be required by 2030, according to the government. Although the role of renewables in growing in the U.K. electricity mix, gas accounted for 40% of all generation in 2011.
"We have always said that gas will have a significant role in our electricity mix over the next two decades -- this is not new," explained Secretary of State, Ed Davey. "Gas will provide a cleaner source of energy than coal, and will ensure we can keep the lights on as increasing amounts of wind and nuclear come online through the 2020s. The strategy we set out today follows extensive consultation and is consistent with meeting our legislated carbon budgets and with significant decarbonisation of the power sector".
The government said there is a "significant volume" of new gas capacity is in the planning pipeline. Excluding plants which have started construction, more than 14,000 MW of capacity has been consented and a further 2,000 MW is under consideration.
Measures announced to provide market certainty for gas investors and to ensure fair competition include:
In October, the company behind the proposed Carrington gas-fired plant outside Manchester, England, announced it had raised the money needed to build the 880-MW plant. Owned by Ireland's state-owned Electricity Supply Board (ESB) (Dublin), the Engineering, Procurement and Construction (EPC) contract has been awarded to an Alstom-led consortium, called Alstom Duro Felguera, in a deal worth 640 million ($827 million). For additional information, see October 4, 2012, article - Manchester Gas-Fired Plant Moves Forward.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The government has revealed a number of initiatives to spur investment in the gas-fired electricity sector claiming that new plants will be needed over the next two decades to replace retiring coal, older gas and nuclear power stations.
Up to 26,000-megawatts (MW) of new gas generating capacity could be required by 2030, according to the government. Although the role of renewables in growing in the U.K. electricity mix, gas accounted for 40% of all generation in 2011.
"We have always said that gas will have a significant role in our electricity mix over the next two decades -- this is not new," explained Secretary of State, Ed Davey. "Gas will provide a cleaner source of energy than coal, and will ensure we can keep the lights on as increasing amounts of wind and nuclear come online through the 2020s. The strategy we set out today follows extensive consultation and is consistent with meeting our legislated carbon budgets and with significant decarbonisation of the power sector".
The government said there is a "significant volume" of new gas capacity is in the planning pipeline. Excluding plants which have started construction, more than 14,000 MW of capacity has been consented and a further 2,000 MW is under consideration.
Measures announced to provide market certainty for gas investors and to ensure fair competition include:
- Powers in the Energy Bill to introduce a Capacity Market, allowing for capacity auctions from 2014 for delivery of capacity in the winter of 2018/19, if needed, to help ensure the lights stay on even at times of peak demand.
- Bringing forward proposals to improve the planning regime in each part of Great Britain, by introducing greater flexibility and clarity for existing consents, and by looking at reducing the amount of pre-planning work required.
- Backstop powers are being taken under the Energy Bill to allow Government to step in if necessary to improve liquidity and competition in the market.
Government will support Ofgem's work with industry to look at the case for interventions to enhance gas supply security in the market.
- Government will look at further measures to encourage gas storage, and will publish findings on this in Spring 2013.
- DECC will establish an Office for Unconventional Gas and Oil, which will join up responsibilities across Government and provide a single point of contact for investors and streamline the regulatory process.
- The Government has signalled that shale gas is potentially an exciting new prospect for diversifying our energy supplies. Any development will have to meet high standards of safety and environmental protection.
- The Gas Generation Strategy also confirms the Government's commitment to supporting the development and commercialisation of Carbon Capture and Storage (CCS) technology, which will help to decarbonise gas, as well as coal, in future.
In October, the company behind the proposed Carrington gas-fired plant outside Manchester, England, announced it had raised the money needed to build the 880-MW plant. Owned by Ireland's state-owned Electricity Supply Board (ESB) (Dublin), the Engineering, Procurement and Construction (EPC) contract has been awarded to an Alstom-led consortium, called Alstom Duro Felguera, in a deal worth 640 million ($827 million). For additional information, see October 4, 2012, article - Manchester Gas-Fired Plant Moves Forward.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
