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UK Government Launches Consultation On New Gas Generation Strategy
The government of the United Kingdom has launched a ‘call for evidence’ in order to inform its gas generation strategy, which was announced as part of the country’s national budget earlier this year.
The strategy is part of the UK coalition government’s objective to deliver a secure and affordable route to a low carbon economy. Through the gas generation strategy, the government is aiming to establish a clear role for gas in the electricity market while simultaneously ensuring security of supply and meeting the UK’s carbon reduction targets.
In addition, it is hoped that the strategy will provide a plan on attracting new investment in gas generation as well as ensuring all of the UK’s natural resources, including its considerable reserves of shale gas, are used to their full potential.
In order to help contributors frame their responses to the ‘call for evidence’, a set of questions has been provided. According to the UK’s Department of Energy and Climate Change, the questions will also be used in discussions with industry and other stakeholders in advance of the publication of the strategy in the autumn. The call for evidence will remain open until the 28th June 2012.
The questions being posed are the following:
1) What are the main strengths and weaknesses of gas generation in helping deliver a secure, affordable route to decarbonisation through to 2020 and then by 2050
2) What role can gas fired generation play in the future and what level of gas generation capacity is desirable
3) What are the key factors driving the economics of investing in new gas-fired power generation and how are these factors likely to change?
4) What barriers do investors face in building new gas generation plants in the UK? What are the key regulatory uncertainties that may prevent debt and equity investors making a final investment decision in gas generation and supply infrastructure?
5) Are there any other policy issues that need to be addressed beyond the Government’s proposals for the capacity mechanism and the EPS?
6) Given a continuing role for gas and the potential for increased volatility in gas demand, to what extent is gas supply and related infrastructure a barrier to investment in gas fired generation?
7) What impact will unconventional gas have on the case for investing in gas generation and the supporting infrastructure?
Stakeholders in the energy and gas sectors can submit evidence by emailing: email@example.com.
For further information on the ‘Call for evidence’, please click here