Gas Generation Strategy

Inquiry now closed

Gas-fired power stations currently provide a significant proportion of the UK’s electricity generation. The Government expects that gas will continue to play a major role in the UK’s electricity mix over the coming decades, alongside low-carbon technologies as the UK decarbonises its electricity system.

The Government, however, believes that support for other forms of generation could undermine certainty for gas investors. In December 2012, the Government published its Gas Generation Strategy with the objective of reducing uncertainty around gas generation for investors.

The Strategy has been criticised by some as opening the door to a new ‘dash for gas’ which, these critics believe, has the potential to undermine investment in low-carbon and renewable energy technologies, and would not be compatible with meeting legislated carbon budgets.

Among other things, the Committee is interested in the extent to which the Strategy will meet its objective of reducing uncertainty for investors, whether it could create a new ‘dash for gas’, and whether it might make legislated carbon budgets harder to achieve.