Chancellor announces need for 30 gas power plants

Industry leaders have warned that government plans for the construction of up to 30 new gas fired power plants, under its new gas strategy, threaten its carbon and energy targets.

Chancellor George Osborne unveiled the government鈥檚 gas strategy alongside today鈥檚 autumn statement.

He said he wanted the UK to make 鈥渂est use of lower cost gas power鈥.

鈥淲e don鈥檛 want British families and businesses to be left behind as gas prices tumble on the other side of the Atlantic,鈥 he added.

The government estimates there will be a need for 26GW of extra gas generating capacity by 2030 - the equivalent of 30 new plants.

Some of the 30 new plants will be created by modernising existing power stations.

Osborne also announced new tax breaks for gas developers and that the government was establishing of an Office for Unconventional Gas and Oil to encourage the development of shale gas.

Energy secretary Ed Davey said the government鈥檚 support for gas plants was 鈥渘ot new鈥 and was 鈥渃onsistent with meeting our legislated carbon budgets and with significant decarbonisation of the power sector鈥.

He added: 鈥淕as will provide a cleaner source of energy than coal, and will ensure we can keep the lights on as increasing amounts of wind and nuclear come online through the 2020s.鈥

But Paul King, chief executive of the UK Green 好色先生TV Council, said: 鈥淕eorge Osborne鈥檚 obsession with gas not only makes a mockery of our legally binding carbon targets, it makes for a stark comparison with his stubborn refusal to exploit the potential for energy savings in our homes and buildings.鈥

Alistair Smith, chair of the Institution of Mechanical Engineers鈥 power division, said the support for gas was a 鈥渟ensible鈥 medium term option.

But he added: 鈥淚t is important to acknowledge that climate change is still an issue and that gas is a fossil fuel.

鈥淭his announcement reinforces the need for more investment, research and development into Carbon Capture and Storage 鈥 a technology which could, in future, be retrofitted onto gas plants to prevent emissions entering the atmosphere.鈥

Mike Pigott, UK power sector director at consultant Turner & Townsend, said gas power stations could only ever be a 鈥渟topgap鈥 measure but would provide a 鈥渨elcome boost鈥 to the economy.

He added: 鈥淚t will be a vital part of Britain鈥檚 future energy mix, but alone it will never be enough to ensure the lights stay on.鈥

Thomas Heldgaard, Managing Director, Rockwool UK, said the government should focus more on energy efficiency while the UK had one of the 鈥渕ost inefficient housing stocks in Europe鈥.

He added: 鈥淲e would have liked to see a greater focus on making Green Deal home makeovers more attractive to consumers, rather than just a dash for new gas capacity.鈥