Security of Supply for Affordable Future Energy
Security of supply is a fundamental consideration in deciding our energy future and has a major bearing on the price we pay for electricity and on whether we have enough to meet growing demand.
Today, the majority of our electricity is produced by burning fossil fuels, in particular coal and gas. We’re already a net importer of these since we don’t have enough of our own, a trend that is increasing. It means we are more and more subject to the laws of supply and demand and, as global demand increases, together with pressure from emerging economies, so is the price. An inevitable consequence is higher electricity bills for the consumer.
As demand for electricity increases, currently between 1 and 1.5% per annum, the more coal and gas we need. By 2015 we will have to source three-quarters of our needs from abroad.
For example, gas fired power stations now account for the largest proportion of electricity generation in the UK and we already import 40% of the gas required. But with growing competition in the European market for limited Norwegian resources, it is not surprising that Norway has already indicated that future supplies will only be available on a strictly commercial basis. And since other major gas exporters are not always allies (Russia, Iran, Algeria) we cannot always rely on secure supplies.
This means we are less able to control the price of electricity in the UK and hostages to the future of oil and gas markets if we are unable to agree a price for the fuel we import.
Nuclear generated electricity by comparison isn’t subject to the same market forces. Uranium is in plentiful supply from friendly countries, eg Australia, Canada, and isn’t linked to market prices for oil and gas. Far smaller quantities of fuel are required per unit of electricity generated and the cost of the fuel is a far smaller proportion of the cost of the electricity produced. With the nuclear option therefore, we have far stronger control over the price we pay for our electricity and above all better security of supply to meet growing demand.