Uncertainty sees construction of half of new power plants delayed
The National Grid has said the 6GWs worth of new power plants it expected to connect by 2016, will now be closer to 2,5GW
The network operator has become the latest body to warn that an unpredictable future for Britain’s energy sector is scaring away investors.
As a result, more than 50% of the power plants expected to be running by March 2016 have been pushed back.
Danger of power shortages in 2015-16
Steve Holliday, chief executive at the National Grid, has called on ministers to reassure investors over the future of the sector and added that failure to do so could amplify the risk of power shortages and blackouts in 2015-16.
Speaking to the Telegraph, Holliday said: “In the last six to nine months they have asked for those connection dates to go back… much later.
“We need to convince them as a country that this is a good place to invest with real stability and real trust in the long term in the regulatory framework.”
He added that the delays would not heighten blackout risks for this winter but could well do so in 2015.
The new plants would have provided enough power to generate 10% of the UK’s electricity needs.
Increase in National Grid profits
Holliday made the comments as he announced a 7.7% rise in the National Grid’s operating profits for the first half of the year.
Several energy suppliers have partially blamed a rise in gas and electricity bills on increased distribution charges.