Pre-brexit report stressed need for a resilient energy system
A REPORT was produced for the Government Strategy for Energy.
The Security of Supply Report 2017 was a very confident report, written before Boris Johnson’s hard Brexit.
It said: ”The Government recognises the importance to business and households of access to affordable, secure and sustainable supply of energy.
“Retaining a well functioning and competitive and resilient energy system after leaving the EU is a priority.
“The UK is seeking a deep and special future partnership with the EU in energy. The UK will work to ensure that our future partnership is successful at ensuring efficiency to trade.”
The ERG forced Johnson into a hard Brexit and the EU is now regarded as enemies.
On electricity, the report says: “Item 12; The capacity market secures electricity capacity through competitive auctions. Auctions are held four years ahead of requirements. The last auction was 2018.”
That would guarantee supply until 2022 at fixed price.
How are electricity prices soaring? Charts in the document show the increase in electricity generation from gas in 2015 at 29 per cent to 42 per cent in 2016.
“40 per cent of UK electricity supply comes from the EU. France has 58 nuclear power plants providing 75 per cent of its electricity.”
GAS: “The UK continental shelf gas supply is still a major source of supply with supplies coming from international partners via pipelines and liquid natural gas cargoes.
”These are not bought at auction but on the Spot market.“
Seven EU states have reserve storage of gas from 100 to 150 days. The UK until 2016 had eight days reserve. The Rough storage near Hornsea, the largest storage cannot now be used.
Centrica announced in 2017 that “it cannot safely return Rough longterm storage facility to injection and storage operations, and furthermore that it would be uneconomic to do so”.
Now it is proposed to use this storage for hydrogen subject to government aid for a £1.6bn cost. Very expensive for an eight-day reserve.
OIL: ”From its peak in 2000 of
137 million tonnes from the UK continental shelf, oil has dropped to 48 million tonnes.
“The UK is now dependent on imported crude oil from Norway, 62 per cent, Opec 28 per cent, with Nigeria and Algeria being the most notable. UK has become a net importer of petroleum products since 1984.
“Russia and the EU export large volumes of diesel to the UK, but the United Arab Emirates, Saudi Arabia and Kuwait major suppliers of Jet fuel.”
Two weeks ago, on the Andrew Marr show, Stephen Fitzpatrick the owner of the second largest gas supplier, with 4.5 million customers, said: “The Government does not have a Ministry for Energy to deal with long-term supply.”
The UK is 18th out of 24 in producing no-carbon electricity. Ireland, Netherlands, Luxembourg, Greece, Poland and the USA are below the UK. Iceland. Switzerland, Norway and Sweden produce 100 per cent or 95 per cent by geothermal or hydro electric. France produced 95 per cent of its electricity non-carbon.
The UK is way behind in non-carbon electricity production. If electric vehicles become the most numerous it is doubtful if there is sufficient electricy generation to cope with this.
Governments, particularly Tory ones, have two ways of dealing with crises. If it looks that a crisis is coming, it’s too far away to do anything. If a crisis has happened, to late to do anything about it as the Select Committee on Covid demonstrated.
John O’mullane, Hull.