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TsNeal
Joined: 03 Sep 2022 Posts: 6 Location: Yeovil
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Posted: Sun Sep 04, 22 10:07 am Post subject: UK Electrical Energy Consumption & Generation |
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References:
https://grid.iamkate.com/
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1094628/DUKES_2022_Chapter_5.pdf
The UK Grid had an installed generating capacity of 76.6 GW in 2021: Over the past 10 years:
+ UK average energy consumption has dropped by 20% from 36.1GW to 28.8GW. (must be all those LED light bulbs!)
+ Fossil Fuel use (Coal and Gas) has dropped from 25.09GW (69.5% of supply) to 13.19GW (45.8% of supply)
+ But, we are still heavily reliant on Gas (42.4% of supply in the last year) which appears to have replaced the old coal-fired power stations as the main source of supply.
As the UK Electricity (OFGEM?) is based on the last (highest priced) MW of power to set the price, all suppliers are paid the same price as the highest cost (Gas?!) and Consumers have to pay this highest price for ALL the electricity they use!
Of course, microgeneration schemes (home solar panels, small water wheels, small prop generators) are not given the high rates; current feed in rates from electricity companies are about 10% of the rate Consumers are to be charged from October.
I feel that the OFGEM pricing system is broken and, further, major investment is needed in non-fossil fuel generation and power storage (Wind, Tidal Barrage, dare I say "small" Nuclear as per Rolls-Royce scheme).
Further, microgenerators should be paid at a % of the price it is sold at to encourage more households to become microgenerators.
Talking to our Councillor, I have discovered the local council has invested in three 1GW batteries to store /sell electricity at a profit. This seems like another opportunity for use of house batteries.
Any thoughts? Time to lobby our Councillors? MP's?
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For us, the house (excluding gas/solar hot water and gas heating) uses 4.7 kWh per day, and we import less than 50% from the grid (2.3 kWh) the balance coming from Solar panels.
We are investing in a LiFePo house battery to further reduce our use of grid electricity, which is 42% Fossil fuel based. What we are unable to avoid is the 50p per day standing charges!
Any other creative thoughts? Yes, we have a Battery Electric Vehicle... |
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dpack
Joined: 02 Jul 2005 Posts: 46052 Location: yes
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Slim
Joined: 05 Mar 2006 Posts: 6594 Location: New England (In the US of A)
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Posted: Sun Sep 04, 22 10:32 am Post subject: Re: UK Electrical Energy Consumption & Generation |
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TsNeal wrote: |
As the UK Electricity (OFGEM?) is based on the last (highest priced) MW of power to set the price, all suppliers are paid the same price as the highest cost (Gas?!) and Consumers have to pay this highest price for ALL the electricity they use! |
Just out of curiosity (not my grid to begin with), while this isn't good for consumers, particularly right now as you're all facing price increases, doesn't this system incentivize the development of cheap renewable generation (power producer is pocketing the difference between their cheaper supply cost and the higher set cost, right?)
It would seem to me that this system would be one you'd be in favor of, so long as there's a mechanism to periodically remove the most expensive suppliers from the overall pool. I suppose that mechanism may not exist... Maybe that's where to focus on making change? No one wants to reduce supply right now, is my guess, but perhaps it could be something like 'every 3 MW of supply to enter the pool of generation capacity allows for 1 MW of generation capacity to be banked until there are enough credits to remove the next in line of most expensive generators"
Last edited by Slim on Sun Sep 04, 22 12:07 pm; edited 2 times in total |
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TsNeal
Joined: 03 Sep 2022 Posts: 6 Location: Yeovil
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Nicky cigreen
Joined: 25 Jun 2007 Posts: 9782 Location: Devon, uk
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Slim
Joined: 05 Mar 2006 Posts: 6594 Location: New England (In the US of A)
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dpack
Joined: 02 Jul 2005 Posts: 46052 Location: yes
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Nicky cigreen
Joined: 25 Jun 2007 Posts: 9782 Location: Devon, uk
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Slim
Joined: 05 Mar 2006 Posts: 6594 Location: New England (In the US of A)
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TsNeal
Joined: 03 Sep 2022 Posts: 6 Location: Yeovil
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Posted: Sun Sep 04, 22 4:39 pm Post subject: Re: UK Electrical Energy Consumption & Generation |
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Slim wrote: |
Just out of curiosity (not my grid to begin with), while this isn't good for consumers, particularly right now as you're all facing price increases, doesn't this system incentive the development of cheap renewable generation (power producer is pickering the difference between their cheaper supply cost and the higher set cost, right?)
It would seem to me that this system would be one you'd be in favor of, so long as there's a mechanism to periodically remove the most expensive suppliers from the overall pool. I suppose that mechanism may not exist... Maybe that's where to focus on making change? No one wants to reduce supply right now, is my guess, but perhaps it could be something like 'everything 3 MW of supply to enter the pool of generation capacity allows for 1 MW of generation capacity to be banked until there are enough credits to remove the next in line for most expensive generators" |
The market driving investment is one to favour. I feel that there are several factors that inhibit investment.
1. The current UK grid generating capacity is currently over subscribed with 76GW of generating capacity and a demand of approx 30GW. There is already spare capacity available that is not being mobilised; is it coal? Even more expensive than gas? or are the generators choosing to use gas fired stations to maximise return on investment in other areas?
2. the incentive to invest in new additional capacity will rely on a medium / long term business case, based on the current very high electricity prices (i.e. uncertainty about future prices to support investment)
3. I agree that electricity price does favour investment (which takes years to come online) and the new Nuclear stations at Hinkley point (and possibly Sizewell) are cases in point. But the costs for these are enormous, with lead times in decades rather than years. An innovative, inexpensive, quick solution is needed.
4. With the current pricing strategy, there is an opportunity to misuse the system, using high-priced generators to bid up the overall price and increase the profits for more efficient, lower cost capacity. |
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tahir
Joined: 28 Oct 2004 Posts: 45612 Location: Essex
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Mistress Rose
Joined: 21 Jul 2011 Posts: 15834
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dpack
Joined: 02 Jul 2005 Posts: 46052 Location: yes
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Nicky cigreen
Joined: 25 Jun 2007 Posts: 9782 Location: Devon, uk
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Nicky cigreen
Joined: 25 Jun 2007 Posts: 9782 Location: Devon, uk
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