UK electricity: jolt needed
Electricity generators try to find a way to keep the lights on
The Lex column in today’s FT lays bare the problems facing both the established electricity generators and the regulators as they try to find a way to keep the lights on.
The monolithic generators quoted in this article, Eon and RWE are becoming more vocal about the disruption the increase in renewable energy generation is causing their business.
Rather than bleating about the unfairness of it all, we think that the big generators might be better served by embracing the change and installing commercial scale PV themselves and selling that electricity to their customers. Once installed, the unit costs of electricity generated by PV will never go up so their customers wouldn’t be hostage to the volatility in the global hydrocarbons market. Coupled with some hefty R&D resources into energy storage and they may find a more sustainable business model.