Ofgem reviews Britain’s energy supply risks

Ofgem, the UK energy regulator, has highlighted the challenges to Britain’s gas and electricity supplies. Chief among these challenges are a growing exposure to a volatile global gas market and power stations nearing the end of their life.

Ofgem has drawn up four energy scenarios to assess the energy security risks over the next 10-15 years. They reveal a range of potential risks to supplies when exposed to shocks. Further, Ofgem identifies the need for investment of up to £200 billion in power plant and other infrastructure over the next ten years to secure both energy supplies and climate change targets. The need for this investment arises at a time of volatile world energy prices and Britain’s increasing dependence on gas imports.

Ofgem chief executive Alistair Buchanan said: “Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets. However, there is still time to act. Ofgem will be putting forward proposals in the New Year based on today’s consultation to ensure that Britain’s energy industry can meet the challenges ahead.”

The study, termed ‘Project Discovery’, has been published for public consultation: click here for more details.

•Date: 14th Oct 2009• Region: UK •Type: Article •Topic: Power management
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