UK’s shift to low-carbon energy faces key challenges

In an article published by OilPrice.com, UK's transition to a low-carbon energy system is set to face significant challenges.

Britain’s transition to a low-carbon energy system is fraught with significant hurdles, according to a new report from the state-owned National Energy System Operator (NESO). The report highlights the need for massive investments in transmission infrastructure and shifts in demand patterns. It also notes that even after the country meets its transition targets, natural gas-fired power plants will still need to be maintained as backup reserves.

The NESO also stressed that the pace of expanding alternative generation capacity must accelerate substantially to meet the government’s goals. Specifically, in the next two annual renewable energy auctions, the UK will need to approve more offshore wind capacity than it has in the last six auctions combined, aiming to add between 28 and 35 GW of new capacity by 2030.

Onshore wind power capacity, the report says, must double to 27 GW by 2030, while solar power capacity must triple, reaching 47 GW, up from the current 15 GW. To meet these targets, the report estimates that Britain will need to invest around £40 billion ($52 billion) annually, with a portion of that funding directed toward the construction of nearly 2,700 miles of offshore cables and 620 miles of onshore cables. 

As wind and solar energy capacity expands, Britain will still need to rely on gas-fired power plants as a backup for times when renewable sources fail to meet demand. Currently, gas-fired capacity makes up about a third of the country’s total, but according to transition plans, this share is expected to drop to 5 per cent by 2030.

However, no existing gas-fired plants will be closed and will remain on standby for emergencies. Interestingly, the National Energy System Operator (NESO) concludes in its report that despite the need for increased investments in the transition and the continued operation of gas plants, maintaining the UK’s energy system in 2030 will not cost any more than it does today.

By Naila Huseynova