Download ENA Press Briefing for Gas Future Scenarios report

Gas Future Scenarios Project – Redpoint/ENA.
Context
Meeting the UK’s energy and climate change targets is a huge challenge.
•
By 2020 one third of existing electricity generation will have to be replaced
and based on current projections, 80% of UK gas will need to be imported
•
Government targets require 15% renewable energy by 2020 – translating to
around 30% of electricity from renewable sources – and an 80% reduction in
carbon dioxide emissions by 2050 is now mandatory
•
The UK energy sector needs around £200bn of investment over the next
decade
The solution - The vital role for gas
ENA believes in an all-encompassing energy solution - not just an electricity or gas
solution.
•
Gas is key to the UK economy and has an ongoing role in the energy
mix. It is the cleanest fossil fuel and could be further enhanced by carbon
capture and storage (CCS) and bio-methane injection into the grid
•
Gas is tried and tested - an important element in the fuel mix and a key
transitional fuel - providing security and diversity of supply
•
The UK can achieve its environmental targets and stay competitive by
keeping gas in the energy mix
•
Full electrification is expensive – maintaining and developing existing gas
networks provides a low-cost affordable solution
Gas – UK asset and fuel of choice
The gas network is a vital asset to the UK economy, central to securing affordable
and low-carbon energy supplies now and in the future.
Gas is a major part of our energy mix: the fuel of choice for most of the UK, delivered
to nearly 60 million people. In 2008 gas provided over 50% of UK energy demand
(excluding transport) and the gas transmission system transported nearly three times
as much energy as the electricity transmission system
Energy Networks Association Limited is a company registered in England and Wales (No. 04832301)
Registered office: 6th Floor, Dean Bradley House, 52 Horseferry Road, London SW1P 2AF
The gas network continues to grow. The companies connect up to 100,000 new gas
consumers a year and in particular is used to address domestic fuel poverty.
Replacement expenditure on the distribution network alone runs at £800m a year.
The gas network companies are replacing up to 4,000km of mains per year. Gas
employs more than 10,000 highly trained, experienced front line engineers and back
office workers.
The Future
The government is reviewing the future of energy and new technologies. ENA has a
major role in these discussions and commissioned an in-depth, independent analysis
into the future role of gas in a low-carbon economy, by the respected energy
consultants Redpoint.
The report finds that gas (including biogas) can continue to play a major role in our
energy mix and can provide a low-cost, sustainable, secure and flexible solution to
our energy and climate change needs. There could be savings of up to £700bn
between 2010 and 2050 – around £20,000 per household or £10,000 per person –
relative to scenarios where gas is phased out of the energy mix by 2050. All potential
pathways to a low-carbon future will involve huge investment in new technology, with
its associated risks and uncertainty, so there is significant value in retaining the
option for a ‘high gas’ future.
Gas is the cleanest fossil fuel and new supplies being discovered could also be
relatively plentiful and low-cost. Gas can enhance diversity of energy supply and
provide additional flexibility with respect to energy balancing particularly at times of
low renewable output. Maintaining existing gas networks is cheaper than other
options for meeting the UK’s energy needs.
Report Methodology
In order to assess the future role of gas in a low-carbon economy, Redpoint
developed a comprehensive, fully-costed, supply-demand balance model of the
energy sector out to 2050, incorporating assumptions for all major technologies and
end-use sectors. The model assumptions were based on recent published studies
such as the Department for Energy and Climate Change 2050 Pathways analysis
and research commissioned by the Committee on Climate Change (CCC). The
model was used to analyse four different scenarios with different levels of future gas
utilisation on the gas transmission and gas distribution networks respectively.
About ENA
Energy Networks Association is the industry body of the UK electricity and gas
transmission and distribution network operators – the ‘wires and pipes’. Networks
hold the key to getting the best out of some of the leading energy technologies.
These include clean coal-fired and gas generators, locally connected renewable plant
and renewable gas, electric vehicles, heat pumps and household-scale electricity
generation.
ENA has a comprehensive programme of work to address future challenges, through
its Energy Networks Futures Project. As part of this we are working with Imperial
College and others to look at how a smart grid future will work; and looking at the
vital role our gas network infrastructure can play in future low-carbon energy security.