Unravelling the supply options
The key elements of current and future technologies in the electricity sector are outlined below, in the context of the four energy policy objectives.
In summary, the UK's future energy needs will be determined by many, often conflicting, considerations. No single technology can provide the perfect solution, and in practice a balanced combination of the following options will be required.
Managing demand
Reductions in the demand for energy would reduce emissions. The actual reductions achievable will depend on practical limits to efficiency improvements and by the extent to which consumer behaviour can be altered.
Coal
Coal is indigenous to the UK and therefore contributes to the security of our electricity supplies. However, coal generation emits large quantities of carbon dioxide.
Gas
Gas is currently the cheapest form of generation, but also emits carbon dioxide. As the demand for gas grows, the UK will become more reliant on imported gas from Russia and the Middle East, increasing the vulnerability of both our security of supply and our economy.
Nuclear
Nuclear generation is essentially emissions free. It also contributes to the UK’s security of supply, since uranium used in nuclear fuel is readily available from politically stable countries such as Canada and Australia. Fuel costs make up a small proportion of total operating costs (unlike gas genaration), so any fluctuations in uranium prices would have little impact on the price of electricity.
There are three further considerations in the debate on the role of nuclear power: nuclear waste, economics, and public perception.
Nuclear waste
The nuclear waste produced at our sites is managed safety and securely, pending a final disposal solution. The Government initiated a review of the long-term options by the Committee for Radioactive Waste Management (CORWM), which reported their final recommendations on 31 July 2006. You can find more information on nuclear waste in our fact sheet.
Economics
Recent studies, including one by the Royal Academy of Engineering, have showed that the cost of nuclear power can be competitive in the baseload sector. It would be more favourable if the full cost of fossil fuel carbon emissions were taken into account.
Public perception
Opinion polls show the public has mixed views towards nuclear power, with some having very negative perceptions. It remains a challenge for the nuclear industry to work with other stakeholders to encourage an informed debate about nuclear issues. Public acceptance will be critical in developing a final waste disposal solution, and in any decision to build new nuclear power stations.
Renewables
The key advantage of renewables is that they offer an indigenous source of electricity without emitting carbon dioxide.
However, renewables can be expensive and the intermittency of wind poses a challenge since standby plant is necessary to guarantee supplies. Furthermore, large-scale renewable projects can require significant grid infrastructure development and can also face strong local opposition.
Carbon Capture and Storage (CCS)
Carbon Capture and Storage (CCS) offers the potential for emissions-free fossil fuel generation. It could also support the UK’s security of supply objectives by enabling the continued use of indigenous coal. However, it would be costly and there are significant technological, environmental and political barriers to overcome. You can read more about carbon capture and storage in our fact sheet.
Hydrogen
Many people believe that hydrogen is the next logical energy carrier. If hydrogen is to be used without contributing to climate change, it must be produced by the electrolysis of water – using electricity generated by renewables, nuclear or with CCS. However, electrolysis is currently very expensive.
