Dash for gas would expose UK economy to greater risks

30th May 2013

Andrew Raingold, Executive Director of the Aldersgate Group, has said that UK businesses are concerned that a gas-heavy power system would increase exposure to price volatility and energy insecurity. 

Speaking at the Westminster Energy, Environment and Transport Forum on the role of gas in the UK's electricity market, he said: "it is impossible to accurately predict the price of future energy technologies as it depends on so many variable factors, such as the global supply and demand for gas, the costs of carbon capture technology at scale and learning rates for renewable technologies."

"The challenge for Government is to manage unavoidable uncertainties and hedge against the risk of policy failure. Analysis by E3G demonstrates that if CCS is more expensive than predicted, or we under-deliver on energy efficiency, we might be forced to choose between affordable or low carbon energy further down the line. The costs of a gas intensive power sector in these scenarios could be up to 98% higher."