2014 UK Future Energy Scenarios - Energy Supply

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Marcus Stewart, Energy Supply Manager, on our energy supply projections from the 2014 UK Future Energy Scenarios report.

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Twitter: #ukenergyemail: transmission.ukfes@nationalgrid.com

Energy SupplyMarcus Stewart : Energy Supply Manager

X

Generation position 2014 vs 2013

2

Net Position -0.9 GW

But 3GW of new projects cancelled...

Closures -3.7 GWReturns 2 GW

Openings 1.1 GW

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

2029

/30

2030

/31

2031

/32

2032

/33

2033

/34

2034

/35

2035

/36

0

5,000

10,000

15,000

20,000

25,000

GG14 SP14 NP14 LCL 14

In all scenarios IED opt out plantrun down by early 2020’s

3

Aggressive closure profile across all scenarios with GG and SP at lower end

Minimal amount of plant remaining is assumed to comply with IED or be converting to CCS

Early IED opt out

The increase in gas fired plant in order to compensate for coal closure profile

Coal

Security of supply outlook

4

LOLE*

Decreasing security of supply

Increasing security of supply

*Loss of Load Expectation (LoLE) is measurement of the risk to consumers’ power supplies, and the Reliability Standard set by government is the maximum acceptable value of LoLE.

Security of supply outlook

5

Mid decade products SBR and DSBR to address

EMR Capacity mechanism in place

LOLE

2020 Generation mix

% 339 TWh 338 TWh 345 TWh 353 TWh100908070605040302010

6

2035 Generation mix

% 424 TWh 331 TWh 339 TWh 406 TWh100908070605040302010

7

8

Key Messages

Aggressive coal closure assumptions

Gas most likely to fill gap, but market intervention needed

Beyond 2020 technology range broadens across the scenarios

Shale - Hero or Zero?

9

2035 Import dependency

10

SWING-O-METER

90%40% 50% 70%

Low Carbon Life

11

No Progression

12

13

Key Messages

Shale assumptions determine import dependency

Large variation across scenarios

Existing importation capacity can meet all scenarios

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