Saxo Bank: UK to scramble for gas when wind won’t blow | Daily News Byte

[ad_1]

A leading energy expert has warned that the UK will be scrambling to import hugely expensive gas to meet its energy needs this winter to prevent blackouts whenever the wind doesn’t blow.

said Ole Hansen, head of commodity strategy at Saxo Bank City AM That the intermittent performance of domestic renewable power is proving costly for the West.

He argued that the country lacks a reliable alternative base load of power other than the very expensive natural gas.

He said: “Europe and the UK have low base-load supply which can reduce price spikes on days when the wind is not blowing. At least not in the UK, where power generation from renewables is so volatile that a change from high output to low is equivalent to turning on and off 15 nuclear power plants, each producing 1GW.

“Going forward, it highlights the risk of very expensive power days when the wind doesn’t blow and where nuclear input is lower than usual and gas has to be supplied.”

Wind power continues to make up a significant minority of the UK’s energy mix, and currently generates 45 percent of the UK’s power.

However, in recent weeks, it fell to below eight percent when National Grid called on three of the UK’s standby coal power units to warm up earlier this month, before ending the request when demand eases.

The UK relies on large flows of liquefied natural gas from foreign sellers such as the US and Qatar to meet both its energy needs and demand on the continent.

Gas is not the only problem with tight supply

Even National Grid He came close last month to announcing emergency measures such as organizing volunteer households to turn off power at peak times to prevent supply shortages on the grid..

The organization’s electrical system operator predicted a rolling blackout in January only as its worst-case scenario Winter forecast.

It is expected to prevent supply shortages courtesy of supplies from overseas, including power transmitted to the continent via the UK’s interconnector.

However, challenges are mounting in meeting demand with transfers from the continent, as the latest raft of nuclear power station closures in France reflects the current energy market’s volatility.

France’s nuclear output has already fallen severely this year due to plant outages due to corrosion and scheduled maintenance.

Hansen argued that the underperformance of France’s aging nuclear fleet was already being reflected in “extreme volatility” in power prices across Europe in recent weeks.

Power prices have hit near-record highs this year and French state operator EDF is predicting that annual output at its nuclear power plants will remain below normal historical levels until 2024, as it struggles to maintain its fleet.

By CityAM

More top reads from Oilprice.com:

[ad_2]

Source link