26/01/2010
Emissions proposals could cause power shortages
26 January 2010
An environmental measure favoured by many MPs and backed by environmental groups, could hold back investment in new power stations and cause electricity shortages in the UK.
The Energy Bill, which is being scrutinised by Parliament, contains proposals to support ‘Carbon Capture and Storage’ (CCS). This emerging technology, when proven, would enable coal-fired power stations to continue to operate even in the low carbon world of the future. This is welcomed by many energy companies, because coal-fired power stations can respond easily to changes in electricity demand and they contribute to security of supply – coal is available from the UK and abroad and the fuel can be stock-piled.
But, amendments to the legislation must be properly considered, or we may damage vital investment in power stations, says David Porter, Chief Executive of the Association of Electricity Producers.
‘The problem’ says Porter ‘is that some MPs seem to be pre-judging the success of CCS. They want to include in the Energy Bill an “Emission Performance Standard” (EPS), setting a limit for the CO2 emissions of fossil-fuelled power stations, including the many gas-fired power stations that are being planned. With at least a quarter of our power stations facing closure and new nuclear power, large-scale renewables and clean coal still a long way off, new gas-fired stations are essential if we are to keep the lights on. They could also be important later, when we have large amounts of wind power on the system and the wind doesn’t blow. In the long run, gas-fired stations may have to fit CCS, but, whether this would ever be cost-effective is debatable. Gas-fired power stations emit much less CO2 than coal plant and in years to come, they may be used less frequently – perhaps as back-up for renewable energy that is dependent on the weather.’
‘An Emission Performance Standard is unnecessary, because the UK’s CO2 emissions already have to stay within the cap applied to meet EU-wide reductions. But, it is also worrying. If energy companies find that new gas-fired power stations are required to meet an emission standard that is either technically impossible or commercially uneconomic, investment will not go ahead. Even legislation which provides for an EPS to be introduced at a level to be decided later, could deter investment, because it increases political risk. Some MPs might suggest that the EPS could be set at a level which could be achieved easily by a modern gas-fired power station. But, no one will be building an inefficient gas-fired power station, so why have an EPS, unless there is an intention to make the limit tighter in future? The proposal may be well-intended, but, if it were implemented, there could be very unhappy consequences for the UK’ said Porter.
Contact:
Rachel Hunter
Communications Executive
Tel: 020 7930 9390
Direct: 020 7747 2922