Energy prices to rise with a lack of backup options this winter

18th Jul 2023 | Mollie Pinnington | 3 minute read

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The UK's renewable electricity generation is growing rapidly, with wind and solar energy providing more than half of the nation's clean power for the first time in 2020. However, this increase in renewable energy production has not been matched in terms of backup options. With increasing demand for electricity, especially during winter months when solar output is lower, the need for reliable and cost-effective backup options is becoming increasingly important.

The UK usually relies on backup power stations which can provide electricity when demand is high, and renewable sources are at their lowest output. However, the current situation is different, with energy generators confirming that they will not be able to keep power plants on for another winter. This lack of reserve capacity could cause energy prices to increase due to the higher costs associated with a lack of supply.

With the lack of backup options this winter, the Electricity System Operator (ESO) will need to look into alternatives to ensure energy prices do not rise. The ESO has already held talks with major energy suppliers such as Drax and EDF, but both companies have started decommissioning their sites and can no longer provide backup energy.

The ESO is now looking into alternatives such as Demand Side Response (DSR) and battery storage, which could help to reduce the risk of blackouts during periods of peak demand this winter. DSR involves consumers being paid to reduce their electricity consumption when demand is high, while battery storage can store energy when renewable sources are producing at full capacity and release it when demand is higher.

The ESO is also in talks with the UK government to provide additional funding for renewable energy initiatives, such as developing more efficient turbines and solar panels. This could help reduce the cost of electricity production and ultimately result in lower energy prices in the future.

While there are no easy solutions to the problem of rising energy prices this winter, the ESO is doing its best to ensure that energy prices remain stable and that the UK public has access to secure and cost-effective sources of electricity.

The situation demonstrates the importance of implementing more efficient and sustainable energy solutions in order to prevent potential blackouts and rising electricity prices in the future. It also highlights the need for governments around the world to invest more in renewable energy sources to ensure a reliable and sustainable supply of electricity for the foreseeable future.

The ESO is currently exploring all options available to them and will continue to work with the UK government, major energy suppliers, and consumers in order to keep energy prices stable this winter.


What does this mean for your energy bills?

The lack of coal fired power plants as a backup option during winter months could have serious consequences for electricity prices and reliability of supply. This is because when demand is high, there are fewer options available to meet that increased demand. With less reliable sources of energy such as renewable sources not being able to compensate at peak times, the only alternative is to increase the cost of electricity.

It's important to keep an eye on your energy bills in the coming months and be prepared for potential increases in prices as a result of these supply issues. Additionally, you should consider switching to a more competitive tariff if possible, as this could help offset some of the additional costs associated with higher electricity prices.

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