Monday, August 20, 2012

Keeping the lights on: Could the UK be plunged into darkness?

Will the lights go out? The very question gives politicians sleepless nights, alarms business and bewilders the householder. Could Britain, one of the wealthiest nations in the world, really be plunged into darkness?

The good news it that experts believe it’s unlikely. But the question dogs the Government all the same - because its policy to ensure the lights stay on seems to be in such disarray.

The Government is attempting to achieve “the biggest overhaul of our energy infrastructure for decades”, as Energy Secretary Ed Davey told investors earlier this month.

A combination of “legally binding climate targets, ageing infrastructure, and rising demand” means an unprecedented £110bn of investment in new power plants is needed this decade alone.

But plans for a new generation of nuclear plants are hanging by a thread, the Government is riven with infighting over the price worth paying for wind farms, and there is controversy over a new dash for gas.

Policies to encourage the £110bn investment have been derided as “unworkable” and pressure is mounting on ministers. So where is it all going wrong? The problem is the scale of the ambition.

Ministers are attempting to juggle the competing demands of energy security, ambitious green goals and affordability for customers - what the industry calls the "energy trilemma".

It is yet to prove that all three can be reconciled. Britain certainly isn’t teetering on the brink of blackouts today.

telegraph.co.uk

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