By: Clive Moffatt

Clive Moffatt — Mon, 29 Oct 2018 10:06:32 +0000

The situation in March would have been much worse had the cold weather lasted a couple more days and there had been no wind or coal power on the system.
A year ago, following the publication of a strategy assessment by Cambridge Economic Policy Associates (CEPA), the Government concluded that the UK gas supply system was “robust” and could cope with bad weather and high energy demand.
But GSG consider that this analysis is fundamentally flawed because
(a) as the UK Energy Research Council (UKERC) pointed out only a few weeks ago it focuses on potential supply diversity and import capacity – the fact that we have the capacity to buy in LNG and pipeline supplies does not mean that the gas will be there when we need it and
(b) the official definition of gas security takes no account of the impact of shortages on energy prices – price security is as important as physical security. The IEA defines energy security as “the uninterrupted availability of energy resources at an affordable price”. The GSG believes that the UK should adopt a similar definition.
A higher level of UK gas storage will reduce the threat of gas supply disruptions and mitigate the associated impact on energy price volatility for the benefit of all consumers

By: Alastair Martin

Alastair Martin — Fri, 26 Oct 2018 08:27:46 +0000

Excellent points, well made. I believe Government’s main task now is to show that it believes in its own strategy. We have a new emphasis on energy efficiency, and the smart, flexible energy system project is moving from consultation towards real policies. The new energy system is shovel-ready; we just need to dig in the right place.

Comments on: Should we underwrite new gas storage? Think about the ‘smart, flexible’ system plan first

By: Clive Moffatt

By: Alastair Martin