PGE/REWE 2015

Conflicting Messages? - Investigating the Impacts of Legislation on the Future UK Electricity Generation Mix (Room D201-D202, Elicium, Second Floor)

It is essential that the UK electricity market responds to the challenges it currently faces: ensuring continuity of supply despite the rapid closure of older, more polluting plant and meeting projected increases in electricity demand over the coming decades, whilst decarbonising to meet legally binding carbon emission / renewable energy targets and containing costs in order to meet consumer and political pressure. Under anticipated future generation deployment scenarios, the growing level of low carbon, renewable generation increases the challenges of balancing the electricity grid. This, coupled with the length of time required to bring on-line new UK nuclear, means there is likely to be a continued place for fossil fuels within the UK electricity generation mix, for both base load and balancing the electricity grid. Specifically for balancing the electricity grid, this will most likely comprise fast-response gas fired plant required to run as efficiently and reliably as possible. Regardless of future uncertainties, a consistent message, clear direction and early action is required, yet the precise role of this fast response plant remains subject to conflicting messages. In applying the interactions between different pieces of legislation, this Paper investigates impacts on fast response plant to determine whether developers are being unnecessarily restricted due to arbitrary limits meaning they are required to use and install less efficient older technology. Specifically, the use of Best Available Techniques (BAT), the obligation to be Carbon Capture Ready (CCR) and the implementation of the Emissions Performance Standard (EPS) are investigated with regard to implications on response times, efficiency, reliability, emissions and economics of fast response plant. The role and impact of the UK electricity market reform will also be evaluated.