With coal-fired power stations closing and new gas-fired power stations yet to materialise, Britain’s energy users are concerned to know whether supplies will be adequate to meet demand. Electricity demand has in fact been falling due to energy efficiency improvements, industrial closures and consumers cutting consumption after years of price rises. There has also been unprecedented investment in renewables, raising total generating capacity to a historic high. But there remains a risk that dispatchable power will be inadequate to meet demand when wind and solar output is low.
There is no single solution – we need new gas power stations and greater access to imported power, and in the long term, new nuclear, to provide flexibility and maintain baseload. But demand response matters too, which is why the Energy Intensive Users Group is supporting the Major Energy Users’ Council’s spring roadshow events this month in Manchester and London, bringing industrial and commercial users together to explore what can be done.
Demand response is not a substitute for new power stations, but it helps to reduce National Grid’s reliance on back-up generation to balance the system. It provides a commercial opportunity for companies to capitalise on flexibility in their electricity demand, keeping bills down and ensuring security of supply. It can also be deployed quickly – and with supply margins tightening rapidly, that could make all the difference.
Jeremy Nicholson, director, Energy Intensive Users Group