CCC says early decarbonisation of the power sector should be plan A – and the dash for gas Plan Z – 5 December 2012

The Government today launched its gas generation strategy.

Responding to this, David Kennedy, Chief Executive of the CCC, commented:

“The gas-generation strategy includes scenarios which model early power sector decarbonisation. These are economically sensible and compatible with meeting legislated carbon budgets.

It also includes a scenario which reflects a new dash for gas, with very limited investment in low-carbon technologies through the 2020s.

This would not be economically sensible, and would entail unnecessary costs and price increases. Neither would it be compatible with meeting carbon budgets and the 2050 target.

Early decarbonisation of the power sector should be plan A – and the dash for gas Plan Z.

Including these very different investment paths in the strategy exacerbates mixed signals already given by the Government and is damaging for the sector investment climate.

It will be essential going forward to ensure that the Electricity Market Reform is aimed at achieving a carbon intensity of 50 gCO2/kWh in 2030 through investment in a portfolio of low-carbon technologies, rather than a dash for gas which would raise long term costs and risks.”