Biogas industry responds to Ofgem Energy Report

Mon, 08-10-2012

According to the energy regulator Ofgem, Britain risks exhausting its energy-generating capacity by winter 2015 and that the amount of spare energy capacity could plummet from 14% to only 4% in three years.

Ofgem’s first annual Electricity Capacity Assessment concluded that Britain would have little choice but to rely on more expensive imported gas, which would lead to an inevitable rise in energy prices for the consumer.

Coal-fired power stations being closed sooner than expected and EU environmental legislation were two of the reasons quoted by Ofgem for the potential risk to Britain’s energy capacity.

Alistair Buchanan, Ofgem Chief Executive, commented “The unprecedented challenge facing Britain’s energy industry…is to attract the investment to deliver secure, sustainable and affordable energy supplies for consumers.

“Ofgem is working with government on its plans to reform the electricity market to tackle these issues.”

Ed Davey, Energy Secretary, said that the government would respond to the Ofgem report before the end of the year and that “…the government is reforming the electricity market to deliver secure, clean and affordable electricity.”

Thomas Minter, an expert in the anaerobic digestion (AD) and biogas industry, comments: “We at Malaby Biogas are leading the way as one of the few addressing the upcoming generation gap. We have already built and are now operating our first waste to energy AD plant in Wiltshire as part of an innovative integration of business development and power generation on the same site. Having taken a leadership position in addressing energy security and climate change we are very pleased to see reports such as these which highlight the need.”

Thomas continues: “Ofgem’s recent report on the energy capacity in the UK highlights the vital need to address the delivery of all types of energy generating capacity, as well as the need to reduce our consumption of power. In order to drive greatest efficiency it is essential that generating plants are distributed throughout the country to reduce transmission losses. This is where renewable power generation comes in to its own. That includes proven technologies such as solar, wind, biogas and biomass as well as newer technologies such as tidal, wave power, deep geothermal etc.

“Delivery of actual on-the ground capacity is the important bit and policy and regulation should be set to allow this to happen as rapidly as possible. With the looming energy generation gap and especially in a time of economic hardship renewables offer a unique opportunity for the UK to make a step change in energy generation and consumption that will allow jobs to be created and businesses to thrive.”