The war in Ukraine has highlighted the issue of energy security. It also highlights the reliance on the long-time scales and funding vulnerability of major projects in the climate of rising interest rates. Sizewell C is expected to generate up to 7% of the UK’s total electricity needs, but assuming it receives the extensive funding it requires, it will not be operational until 2030 at the earliest.
Large nuclear such as Sizewell, once committed is almost too large to fail. There will be considerable cost overruns, due to various factors including the complexity and one-off nature of its design. Such major projects also tend to rely on Government support and are susceptible to Government spending cuts.
Smaller, distributed energy projects are far cheaper and faster to deliver. They use standard, factory manufactured systems that are produced in volume at cheaper cost. They aren’t subject to the same scale of variations and can deliver more direct benefits to the business implementing them. It also avoids the massive cost of upgrading the grid as well and can deliver local business efficiency.
Should the government instead be supporting micro-grids and local generation, or are there too many vested interests in maintaining a central grid and large flagship projects?
If you would like to discuss how to implement energy efficiency measures, onsite generation or develop and roll-out a carbon reduction plan for your business, please contact David Kipling, CEO – On-Site Energy Ltd on 0151 271 0037 or email david@on-site.energy. You can also contact our Strategic Account Manager, David Jamieson, on 07990787876 or dj@on-site.energy.
