UK sailing "close to the wind" on capacity margins

This year the National Grid has been forced to procure extra capacity at short notice to raise the margin from 4.1% to 6.1% to protect against shortages. However the procurement meant expensive purchases which in turn led to significant reliable on fossil fuel generation.

A report on the subject has warned that “taking steps at short notice, at considerable cost, and in a way which conflicts with the decarbonisation agenda is not acceptable given the UK’s economy being almost totally dependent on electricity”.

Lord Selborne, Committee Chair said:

"The encouraging finding from our investigation is that overall, the resilience of the electricity system is robust, and witnesses told us we have the most reliable transmission network in Europe. But our report found that the government sailed too close to the wind, allowing the capacity margin, its safety net, to be squeezed too tightly before taking last minute measures. Moreover these measures, which came at a cost to the taxpayer, were in conflict with the government's wider aims to decarbonise electricity generation."

"We are entering new and unchartered territory. New technologies mean that our electricity system is undergoing immense and radical change. The government must stay ahead of the game, with dedicated investment into research and development across a wide range of technologies, and constant alertness to cyber-threats. Only then can the government ensure that it can weather any storm, and continue to keep the lights on in the long-term."

A spokesman for the Department of Energy and Climate Change responded:

“The Government's electricity market reforms and investments in renewables and the Hinkley Point C nuclear plant would keep the lights on in the years to come. DECC is also working with the government's£860m National Cyber Security Programme to ensure risks to the energy sector from cyber attacks are understood.” "This Government has a plan to keep the lights on now and into the future," the spokesman added. "Action taken to tackle a legacy of underinvestment in our energy sector has attracted £45bn worth of investment and we are moving to a new, clean and home grown energy market which provides the best cost for bill payers."