UK at risk of power shortages, says report

Published: 25/11/2008

THE UK is at risk of power shortages in the “near future” as a result of attempts to shift to more environmentally-friendly electricity production, a report has warned.

The study by consultancy firm Capgemini warns that electricity generation has fallen to its lowest level in 10 years.

It claims the shortage has been caused by the increase in the level of demand for energy combined with a growing tendency to build wind turbines at the expense of other, more-reliable, electricity sources.

The “real margin”, based on total generation capacity adjusted to allow for maintenance and intermittent generation, has fallen to 2.2% down from 7.9% last year, the report says.

National Grid disputed Capgemini’s findings, saying its recent Winter Outlook report based on analysis from the industry had found demand for power should be met this winter, even in harsh weather.

Spokesman Stewart Larque said: “In the longer term, as long as everyone stays focused on what needs to be delivered, there shouldn’t be any cause for concern about supply.”

The Capgemini report estimates that around one quarter of the UK’s energy plant capacity will close by 2015 as the country struggles to balance its carbon emissions targets with production of new energy sources.

Supply issues are complicated by the UK moving from being self-sufficient in oil and gas as North Sea production declines, it says.

Alistair Green, senior energy consultant at Capgemini, said that unless new power stations were built “the lights will go out”.

A spokeswoman for the Department of Energy and Climate Change said: “We have had reliable energy supplies for decades.”