A recent report issued by the CBI shows how gas will continue to play a vital role in the UK’s future. Moreover, as the debate continues other whether renewable forms of energy or gas is the way forward, the CBI states that this is a “false choice”, and the UK cannot depend on one form of energy alone.
Gas and the UK Economy
Most people are probably completely unaware of just how important gas is to keeping the UK economy moving. Without it, many parts of the UK industry would not function.
In the report, the CBI has detailed just how important that this form of power generation is to industry and economy, from powering up industries to allowing the transportation of goods. It is also made clear that gas power generation has led to “significant investment” in the UK, which would not have been achievable without essential gas supplies.
The CBI also makes it clear just how crucial gas is to industry in the UK. Without it, the production of steel, ceramics, glass, and many other goods that are vital to the UK’s economy just wouldn’t be possible without gas.
The Future
While there are many calls to find alternative means of power generation, the CBI’s “Fuelling Growth” report shows that there will always be a need for gas supply – especially in industry – and has suggested several recommendations to help ensure that government policies will ”support the changing role of
gas in our evolving energy future”.
As explained in the report, the CBI believes that as the role of gas changes in the UK, there are three objectives that must be met: security of supply, affordability and decarbonisation. The CBI states that with the right framework in place for the future, it could lead to further investment into the UK, thus creating more jobs and a steadier economy.
Recommendations
There are several recommendations throughout the report, the key one being that the government should bring forward its implementation of its Capacity Market. The report also calls for the government to continue with its work to “encourage a market-based approach to gas storage” and ensure that there are the right incentives in place.
Commenting on the report, Nicola Walker, the CBI Director for Business Environment, said:
“Gas is a vital energy supply that enables us to keep the lights on, our homes warm and our industries running. And it doesn’t have to limit our climate ambitions.
“We must maximise the recovery of our domestic gas reserves to capture the economic value that oil and gas exploration creates. The North Sea has been a major contributor to the UK economy, supporting around 450,000 jobs while meeting over half of our gas demand.
“Shale gas now presents us with an opportunity to top up what we can get from the North Sea – and in the process enhance our energy security, create new jobs and drive growth.”