Some New Nuclear Could be Under Threat

Will Changes to Transmission Charges Sink Wylfa B?

The whole debate over energy production and transmission is a complicated one and various lobbying groups on all sides cherry pick various statistics, in order to back their side of the argument. However, I came across an article in the Engineering press this week (diolch NCE), that really does cloud the waters in terms of how we pay for electricity.

Ofgem (the energy regulator) commissioned a study into national grid access charges. These charges effectively subsidise energy production closer to the SE of England and the charges increase as you move ouT from that region; the NW of Scotland having the most expensive charges. This model is more than likely based on the distance to the biggest point of demand and obviously, transmission losses. Yet, whatever the reason for it, a proposal to have a flat rate of charges would almost certianly make many of the new nuclear stations unaffordable, according to the study.

The report which is published by the consultant Redpoint next month has caused consternation within the energy industry as in theory, its findings and potential recommendations are essential if the UK and particularly Scotland, wants to make the most of its renewable energy recourses. There are questions of course about the investment required in the grid to make many of these renewable sources available, but it does put into question why Scotland's renewable industry should be held back, in order to suit the energy market for SE England.

Transmission charges and the layout of a grid designed for large coal fired stations and not remote renewable sources, is going to be a thorny subject for years to come. However, the predicted £200 billion required for upgrading the UK power grid cannot be put off forever and in itself, can contribute significantly in terms of energy efficiency. What people do need to wake up to, is the stark fact that no energy production and supply comes without environmental or subsidy issues and that putting off the necessary investment, is doing the environment no favours at all.