Betting on new gas today means shouldering consumers with higher prices tomorrow as well as missing the net zero pathway the UK government has committed to.
In Foot off the Gas, the Carbon Tracker Initiative analyse the financial viability of new gas-fired power plants in the United Kingdom. They compare the cost of gas-fired power plants with those of a clean energy portfolio (CEP) providing the same grid services – monthly energy, peak capacity, and flexibility. These CEPs combine clean energy technologies, including onshore wind, offshore wind, utility-scale solar photovoltaics (PV), battery storage, energy efficiency, and demand response elements to provide the same grid services as gas-fired power plants.
Foot off the Gas finds that a CEP is already more cost competitive than new combined-cycle gas turbines (CCGTs) and offers the same grid requirements as gas plants i.e., a CEP will “keep the lights on”. Consequently, they find that investment in new CCGTs would not only be bad for emission goals but also lead to comparatively higher electricity prices and would result in a £9 billion ($13 billion) stranded asset risk.