Panel of Experts Say Investment Needed to Reduce Brexit Energy Risk
Hugo Chandler, Director of New Resource Partners, Paul Massara, Former Head of RWE npower and Joan McNaughton, World Energy Trilemma Executive Chair at World Energy Council, comment in advance of reports to be published by National Grid this week.
Commenting ahead of reports this week from National Grid, on UK electricity margins for this winter and on future energy scenarios, Hugo Chandler, Director at New Resource Partners, said that National Grid has the tools to address concerns over generation-related blackouts.
“There’s been a lot of crying wolf over blackouts given that the UK has only seen one in the past 10 years that was due to issues with generation. Just for comparison, transmission and distribution faults cause around a quarter of a million power cuts across Britain every year. And although people get quite excited over grid management measures such as NISMs, the reality is that they’re needed much less frequently than in the past,” he said.
“National Grid has the tools to tackle the tight margins this winter, but that doesn’t mean we should hold off investing in cheaper, smarter and cleaner ways of balancing the grid right now. The immediate opportunity lies in demand-side response, which the Government and big consumers want but which isn’t yet properly incentivized. Ultimately demand response means fewer new peaking plants, avoiding the price tag that comes with that and less of a burden on bills for consumers and businesses.”