Increasingly, and especially with Dogger Bank well into commissioning, we are reducing imports from Norway / Denmark / Netherlands etc. In fact right now we are exporting to them. We are also generating more Solar power than France is! It’s interesting to see how solar is being used in the south to reduce French imports, whilst wind in the north and east is used to reduce Scandinavian imports.
Solar and battery storage is going to be where the bulk of investment occurs in the next decade. There is an enormous pipeline of both; even if only half of it is built the south of the country will be nearly entirely solar powered in summer.
For sure solar and wind will displace more and more gas but not eliminate it for several decades as storage, especially long run, is way off being able to cope with a
dunkelflaute in mid winter. UK uses nearly c1TWh/day in mid winter so a 3 day lull is c3TWh. The tree burners flat out can deliver 75GWh/day and nuclear pre Hinkley another 28GWh/day post AGR closures in 2028 and for sure there would be some wind. Batt storage is increasing at pace but is only 10GWh currently and will be no more than 100GWh by end of decade. So this scenario can only be met, without blackouts, by having sufficient alternative dispatchable generation ie not renewables.
The problem UK has is its dispatchable CCGT generation is getting long in the tooth, much of it being over 30yrs old, and nothing new is in the pipeline. It was expected that the Capacity Market would incentivise new build but £75/kw hasn't moved the dial for years. Thus the DENZ have launched a consultation to amend the Capacity Market and introduce a new tier at a rate above £75/kW in an attempt to get more dispatchable generation built. There requirements is these units will need be carbon neutral ie fitted with carbon capture technology or powered by hydrogen but they recognise the technology isn't mature yet so will allow unabated units to prequalify on the basis that they must be able to be retrofitted in the future within the plants lifetime. They are targeting this change to be include in next years T-4 (29/30) auction which is bid in Q1/26 so going to be interesting to see what is offered. Separately we have the Planning and Infrastructure Bill progressing which should hopefully allow us to get on with building long run storage like Cloire Gas and other schemes.
The other area that must be changed is electricity trading arrangements as with gas increasingly being marginalised yet still being needed the current marginal cost model is causing a lot of unnecessary cost. Zonal pricing was an alternative with its pros and cons but govt walked away and has gone back to the drawing board without a clear idea of what is wanted. Its clear though gas will become a standby generator and thus needs to operate under its own regime where it provides just that service at a fixed cost say, except fuel, otherwise all we will do is drive up costs for consumers further.