How to save on gas, electricity and gas-fired power in 2019

How to save on gas, electricity and gas-fired power in 2019

Gas-fired generation from the UK has increased by nearly 10% since 2020, with new gas plants to be built in Scotland, Northern Ireland and Wales.

But the energy secretary, Amber Rudd, says the rise in the use of gas has been largely due to a drop in the price of natural gas, which has fallen by 30%.

That has been offset by increases in coal and renewables, with more than £1bn worth of new coal and gas generation expected in 2019, the Department for Energy and Climate Change said in a briefing.

It added that the UK now has more than 3.2m megawatts of gas-powered generation, a record high.

The UK is one of a number of countries where the cost of gas is rising, according to consultancy firm IHS, with UK gas prices rising more than 40% over the last decade.

It says gas is now more expensive than electricity and nuclear.

The Energy Department has estimated that Britain could be able to use around 6,000 megawatts more gas by 2020, up from 3,000MW by 2020.

However, the cost to buy that power would still be cheaper than electricity.

In an email, Rudd said the price for natural gas would fall by between 15 and 20% in 2019.

She said the government would work with companies to make the transition to renewable energy more economically attractive.

The department said there were around 1,000 gigawatts of new gas generation planned in 2019 and that, as a result, new investment would be needed.

“In 2019, a total of around 5,000 GWe will have built or procured a total capacity of about 3,600 GW of gas generation, representing a 20% increase in gas capacity compared with 2020,” the email said.

A further 2,200 GWe would have been commissioned by 2020 if the current rate of expansion had continued.

The government expects that by 2020 gas production would have doubled, and the electricity sector would be up to 5,600 GWe more efficient.

But energy minister Ed Davey said the Government would have the capacity to support growth and make the switch to gas- and renewables-based generation more attractive.

“We need to have the right mix of gas, renewable energy and storage, which is why we’re looking at ways of supporting that mix to be more attractive for customers,” he said.

“That will include incentives for customers to switch to renewables, such as support for new solar and wind projects.”

But the Energy Secretary said he wanted to “do more” to support the UK’s existing gas supply.

“The UK’s gas supply is still growing at around 5% a year,” he added.

“It will grow further in 2019.”

He said the Department of Energy and Environment (DEE) had already started exploring ways of increasing the amount of gas being used, including building gas-to-coal plants.

He said it was also looking at the use and distribution of gas in transport.

“What is needed is a comprehensive plan to deliver gas to meet the energy needs of our cities, our towns, our industrial centres and our communities,” he wrote.

“I’m determined that we can achieve this together and we will.” 

“If gas were cheaper, we’d have more gas to buy,” said Tom Glynne, a climate campaigner at WWF.

“There are a number [of projects] looking at different ways of getting gas to customers.”

However, Mr Glyne said the rise of the gas-generation industry was “an important step forward”.

“But it is still a long way from being able to build the infrastructure we need,” he told BBC News.

“So we’ll need a long period of experimentation and work to get it right.”

In a recent speech, energy minister, Amber Reeves, pledged to give “more and more flexibility” to developers and operators to build more gas-fuelled power stations.

But she has also pledged to increase the amount gas generated by the UK energy sector.

“Our ambition is to achieve 100GW of gas from our own electricity sector by 2020,” she said. 

“We will work with industry to support gas generation more economically.

We want to have a mix of renewable energy, gas, nuclear and fossil fuels.”

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