With the World Cup kicking off this week, energy
demand is at its greatest, and it’s worth reflecting on the fact that the
UK’s energy security doesn’t happen by
accident.
The
planning is meticulous, because our modern lives revolve around the use of
energy.
Since the 1970s we have grown used to uninterrupted
supplies of power and we haven’t had a supply shortage for decades. The
UK is rated among the most energy secure countries in the world and according
to the US Chambers of Commerce, Britain is more energy secure than any other EU
country – and more secure than the US, China, Japan, Australia, Canada,
Russia.
But
over the next decade the context for energy security is likely to deteriorate
with global demand going up, and the UK’s North Sea reserves declining.
At the same time historic under-investment in the UK’s electricity market
means that, without intervention, the risk of disruption will
grow.
With investment in renewables at record levels, and
£45bn attracted into the electricity system since 2010, the long term
picture is looking positive.
But
offshore wind farms and nuclear reactors take a while to build. So National
Grid has been working with Ofgem to put in place new balancing measures that
will ensure the lights stay on in the short-term. These focus on increasing
supply and reducing demand if and when needed during peak
periods.
Supply side measures include putting in place reserves
from power-stations that would otherwise be closed or
mothballed.
On
the demand side National Grid will extend existing demand measures to reward
more large energy users who have the flexibility to reduce their use of
National Grid power at peak times.
Participation is entirely voluntary - no company will
ever be asked or required to take part. Companies that do will get a payment
for participating as well as benefiting from a reduction in their energy costs
as well as carbon emissions - with no impact on their productivity or the need
for new investment. It could mean changing a shift pattern or switching to
on-site generation rather than relying on the Grid.
With these and our other measures in place, both Ofgem
and National Grid are confident that the risk of supply disruption will remain
at very low. The high levels of reliability that we have enjoy over the last
few decades will not make us complacent.
Energy and Climate Change Secretary Ed Davey
said:
“Thanks to the Government’s actions,
we’re preventing the predicted energy crunch this winter by turning round
a legacy of underinvestment and neglect.
“We’ve seen record investment in
Britain’s electricity sector since 2010, with £45 billion invested
already and more coming on line in the next few years.
“But as a sensible additional precaution, National
Grid is implementing plans to bring mothballed power plant back on line and
extend the lives of existing older power plants.
“Coupled with more companies being rewarded if
they volunteer to shift their main electricity demand away from the peak if
needed, Britain will retain its top position as the most secure country in the
European Union for energy and the 4th best in the
world.”