Department of Energy and Climate Change
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Evidence wanted for new gas generation strategy
The Government has launched a call for evidence to inform a gas generation strategy to deliver a secure and affordable route to a low carbon economy.
The strategy, announced on 17 March and confirmed in the Budget, aims to:
- set out the role of gas in the electricity market
- attract investment in gas generation
- ensure energy security
- meet the UK’s carbon reduction targets
- make the best use of the nation’s natural resources.
The call for evidence provides a set of questions to help contributors frame responses.
These questions will also be used in discussions with industry and other stakeholders in advance of the publication of the strategy in the autumn. The call for evidence is open until the 28th June.
Call for Evidence questions:
What are the main strengths and weaknesses of gas generation in helping deliver a secure, affordable route to decarbonisation through to 2020 and then by 2050?
What role can gas fired generation play in the future and what level of gas generation capacity is desirable?
What are the key factors driving the economics of investing in new gas-fired power generation and how are these factors likely to change?
What barriers do investors face in building new gas generation plants in the UK? What are the key regulatory uncertainties that may prevent debt and equity investors making a final investment decision in gas generation and supply infrastructure?
Are there any other policy issues that need to be addressed beyond the Government’s proposals for the capacity mechanism and the EPS?
Given a continuing role for gas and the potential for increased volatility in gas demand, to what extent is gas supply and related infrastructure a barrier to investment in gas fired generation? What impact will unconventional gas have on the case for investing in gas generation and the supporting infrastructure?