Miliband to unleash new gas plants to back up patchy wind and solar
He has told the National Energy System Operator (Neso) – the UK's grid operator – that by the end of the decade it must keep 40 gigawatts (GW) of spare generating capacity on standby for days when wind and solar cannot keep the nation's lights on.
The request is part of a system known as the capacity market, where companies are paid to keep generating capacity on standby for days when renewables output plummets or demand surges.
The capacity market already costs British consumers about £1.3bn a year – but this will surge to £4bn by 2030 as reliance on renewables increases, the Office for Budget Responsibility (OBR) has said.
Mr Miliband's letter to Neso has told it to ensure it has 40GW-worth of back-up generating capacity on the system, roughly equating to the output of 35-40 large gas-fired power stations. About two thirds is expected to come from gas and the rest from batteries, interconnectors and other sources.
The riches available to power companies via the capacity market has caused a mini-boom in construction of gas fired power plants. Neso's list of projects seeking grid connections has more than 100 new gas-fired power stations planned around the UK.
Most are smaller than the large power plants built in the past but designed to be more flexible, meaning they can ramp their output up and down according to demand and the price of power.
They make their profits partly from being paid to be on standby and partly from operating only when power prices surge to unusually high levels – as often happens when low winds reduce windfarm output.
Driving up costs
Adam Bell of Stonehaven, an energy consultancy, said the system drove up costs for consumers.
'The capacity market is driving a boom in construction of gas fired power stations but these plants push up prices for everyone in the wholesale market. That's why subsidy costs are rising.
'We know that they are able to make excessive returns and they are also given 15 year capacity market agreements which locks in these effects for too long.'
John Constable, director of the Renewable Energy Foundation, said that the mix of subsidies supporting renewables were collectively costing the UK £25.8bn a year.
'Renewables are intrinsically unreliable,' he said. 'Under the capacity market consumers are forced to provide an indirect subsidy to wind and solar to pay for a shadow fleet of gas turbines and batteries to guarantee security of supply. This results in two parallel electricity systems and so reduces grid productivity and increases costs.'
The move coincides with a separate announcement from Mr Miliband regarding contracts for difference (CfDs) – a different subsidy mechanism. These support construction of renewables such as wind and solar farms by guaranteeing a minimum price for the power they generate.
Mr Miliband said that future projects would now be able to apply for CfDs before even getting planning consent – and could then claim subsidies for 20 years instead of the previous 15 years.
He said such changes would help deliver more clean power and support thousands of jobs.
However, CfDs added £1.8bn to bills last year – equating to about £100 on the average household bill according to parliamentary reports. This too is set to surge, in line with the planned increase in wind and solar farms.
Energy UK, trade body for power suppliers, has backed the changes to the CfD scheme.
A Department for Energy Security and Net Zero spokesperson confirmed the capacity market system would add £21 to the average household bill this year and said future power plants would be built so that they could eventually be converted to run on green hydrogen or fitted with carbon capture technology.
'The Capacity Market mechanism ensures our electricity supply is secure and meets demand. From this auction onwards, unabated gas plants must have a credible plan to decarbonise to be eligible.'
Doug Parr, policy director at Greenpeace UK, said the Capacity Market was a 'rip-off' for consumers and urgently needed reform. He said: 'Our energy market is rigged in favour of gas. It sets the price of electricity 98pc of the time, while only providing around 30pc of our electricity. It's a complete rip off for consumers.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
16 minutes ago
- The Independent
How social media is helping the far-right spread fear and hate
At around 5.30pm on 7 July, Essex Police officers were called to the High Street in Epping after receiving reports that a man was behaving inappropriately towards a teenage girl. Hadush Kebatu, 38, an asylum seeker from Ethiopia, allegedly tried to kiss a schoolgirl as she ate pizza and he has since been charged with three counts of sexual assault. But news that he had only arrived in the UK eight days earlier via a small boat quickly took hold on social media, sparking a series of protests that turned violent and thrusting the historic Essex town into the heart of an anti-immigration row. What started as a group of locals voicing their grievances outside the Bell Hotel, which is believed to house asylum seekers, has now escalated into what has been described as a 'powder keg situation', with fears it could prompt a wave of riots across the country, similar to those seen last summer. In the past two weeks, prominent leaders in neo-Nazi groups and far-right organisations have been accused of exploiting the situation by pivoting demonstrations towards violence, with some demanding a 'national call for action'. Their weapon of choice? Social media, which the far-right have long been known to harness as a tool to spread fear and hate. Several right-wing activists have rebranded themselves as citizen journalists or political commentators, helping them accrue millions of followers in the UK and across the globe. Joe Mulhall, of the charity Hope Not Hate, said that is dangerous at a time when misinformation online spreads quickly and can whip up tensions. 'It's deeply concerning that a rumour or allegation can spread so quickly and take hold. Last year in Southport, misinformation from influencers like Andrew Tate spread like wildfire about the ethnicity and nationality of the perpetrator of the awful murders. 'When misinformation spreads, it can legitimise existing biases and as a rumour or allegation takes hold, things can quickly move offline.' Among those who have set up the private Facebook page Epping Says No, which advertises the protests, are three members of the group Homeland. Founded in 2023 after splitting from neo-Nazi group Patriotic Alternative, it has been described as the largest fascist group in the UK. This week, one of its prominent members has shared several videos of the protests on social media, and has called for future action, urging: 'If you live in an area that has a hotel occupied by asylum seekers, start organising.' Members of other groups, including former neo-Nazi terror group Combat 18, the British National Party and the Patriots of Britain, have also been spotted at the demonstrations. Mr Mullhall warned that with over-worked and over-stretched police forces, racist and anti-immigration rhetoric online can often fall under the radar. He said the UK 'needs to be ahead of the curve' to clamp down on this activity. 'Tracking these comments and the individuals responsible is tricky,' he said. 'The far-right are no longer divided into neat groupings but are instead thousands of people posting videos outside migrant accommodation, posting rumours and making comments online. 'Gone are the days when the police or social media companies can simply deplatform a particular group to resolve this issue.' Since Elon Musk 's takeover of X, formerly known as Twitter, the platform has changed significantly, with the Tesla founder reportedly tweaking its algorithms and removing its fact-checking mechanisms. This included turning the platform into a pro-Maga Trump echo chamber in the run-up to last year's US presidential elections, and reinstating previously banned figures such as Tommy Robinson and Katie Hopkinson. For Hope Not Hate, it has become a visible and concerning trend to see US figures commenting on UK politics and societal issues, boosting far-right voices, such as those of anti-Islam activist Robinson, who has hinted he will be in attendance at an Epping protest on Sunday. Mr Mullhall said: "The far right has changed dramatically and ironically, knows no borders. What we're seeing now is key figures emerging online. We're no longer looking at organisations but key people who emerge during a time of crisis. 'The far right is international, they move around and they move in pacts and trying to find any weakness. They have no formal leader; there's no single leader, it's like they're a group of fish that move around the internet exploiting situations. 'It is no surprise that we've seen a rise in far-right activity in the UK, US and Europe – these groups and ideas are interconnected.' Dr Karen Middleton, from the University of Portsmouth, who has been an expert witness in the UK government's inquiry into social media, misinformation, and harmful algorithms, said the recent protests in Epping were 'in many ways, a continuation of the riots from last year'. She said: 'Sensationalist and polarising content gathers more clicks, gathers more engagement, so there is a systemic incentive for spreading misinformation online.' She urged large social media platforms to go much further in addressing the spread of misinformation, but warned this was not about limiting free speech. 'This is about taking responsibility for published information that is online that goes to a large number of people, and is very often spread by people with high profiles,' she said. A spokesperson for the National Police Chiefs Council (NPSCC) said communities had a part to play in halting the spread of misinformation and urged people to 'carefully consider' what they read, share, and trust online to avoid stoking tensions. 'We would encourage the public to access formal authorities for accurate information. The spread of disinformation and misinformation by individuals or groups can significantly contribute to community tensions and has real-world implications. We all have a responsibility in this respect, and relevant criminal law applies to online actions,' they added. They also called on social media companies to be vigilant to the spread of false information and to 'ensure harmful content is detected, challenged and removed in a timely manner'.
The Independent
16 minutes ago
- The Independent
Jeremy Corbyn ‘getting 500 people a minute' wanting to join his new political party
Jeremy Corbyn said he is 'getting 500 people a minute' wanting to join his new political party. The former Labour leader launched a new outfit with Zarah Sultana that does not yet have a name, on Thursday (24 July), calling for a 'mass redistribution of wealth and power'. Asked what the new name of his party would be, Mr Corbyn said: 'We're going to decide when we've had all the responses, and so far the response rate has been massive. 'They've been coming in at 500 a minute wanting to support and join the new party.' He also said that he and Coventry South MP Ms Sultana are 'working very well together'.
The Independent
16 minutes ago
- The Independent
FA issue England manager warning ahead of Euros final
The Football Association (FA) is determined to retain Sarina Wiegman as England manager, with chief executive Mark Bullingham stating she is "not for sale" at any price. Wiegman has reached five consecutive major tournament finals, including the last three with the Lionesses, and will lead them in the Euro 2025 final against world champions Spain. Her current contract with the FA extends until the end of the 2027 Women's World Cup, and Bullingham expressed confidence in keeping her in charge. Bullingham praised Wiegman as a "special coach" for her exceptional tournament record, work with players, and ability to maintain a cool head in critical moments. He dismissed suggestions that Wiegman should be considered for the England men's job, asserting it is disrespectful to view the men's role as more senior.
