Providing for the UK’s Energy Needs

Electricity Generation

While oil is of central importance in the transport sector, in the power generation sector DTI’s own figures show its use is insignificant and falling. However, the use of gas for electricity generation is projected to increase dramatically, from 37% in 2005 to 60% in 2020 in the ‘favourable to gas’ case and to 54% in the ‘favourable to coal’ case.

Meanwhile the share of coal falls in both scenarios from 34% in 2005 to 21% in the 2020 favourable to coal case and only 15% in the favourable to gas. Given that the contribution of nuclear is assumed to be immune to relative coal and gas prices, its share falls from 21% to 7% in both scenarios.

Figure 14: UK Electricity Generation 2000-2020