CPS head of economic research Daniel Mahoney wrote for City AM on Hinkley Point C and renewables, Monday 15 February 2016.
"The UK’s electricity margins have become very narrow in recent years. National Grid’s latest winter outlook report suggests they are currently at just 1.2 per cent, increasing to 5.1 per cent with the use of emergency measures.
These emergency measures, which include paying large businesses to stop using electricity, had to be used in November last year. National Grid has also admitted that they may have to be used even more during the coming winter.
This is a real failure in energy policy. Much of this is a result of legislation from the European Union (EU) and the UK Government.
EU emissions legislation and the unilateral Carbon Floor Price are leading to a large scale closure of baseload capacity, with the recent closure of Rugeley power station being the latest example. It is estimated that since 2010, over 15 GW of power has been lost from the system, leaving the UK’s electricity system dangerously vulnerable.
The new Conservative government has made some progress in energy policy. In particular, the government has removed many roadblocks to the development of shale gas.
However, this will not solve the immediate energy security crisis. Nor, incidentally, will the construction of the proposed Hinkley Point nuclear power plant, which is only due to come on stream in the mid to late 2020s."
Read the full article on City AM.