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UK Energy Security Crunch Point Predicted for 2028 

A 2028 UK energy security crunch point predicted due to energy demand rises, power plant closures and construction delays.

Written By Toni

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March 1, 2024

Electricity is the lifeblood of all business – it simply cannot run without it. Imagine how drastic it would be if sometime in the future our demand for electricity outstripped our capacity to generate it and we faced an ‘energy security crunch point’?

A new report conducted by Drax Group and Public First suggests we could see a UK energy shortfall sooner than we think!

So, what could cause the ‘energy security crunch point’?

The UK’s 2028 peak-time electricity demand is predicted to overtake availability by as much as 7.5 gigawatts!

The power deficit is calculated considering the following factors –  

  • a rise in demand for energy. 
  • the decommissioning of energy assets such as fossil-fuel power plants and the recent closure of the Hinkley Point B nuclear power station in 2022. 
  • delays in projects currently in construction to replace this energy infrastructure shortfall – such as Hinkley Point C – currently being built next to the former site of Hinkley Point B. 

If not promptly addressed, all these elements could lead to an overreliance on intermittent domestic and international power sources – resulting in power cuts that will negatively affect businesses and households all over the UK. 

What is the T-4 Capacity Market Contract?

Although expected to be felt most sharply in 2028, the report highlights that there will be a narrow margin between total electricity generation capacity and peak demand over the next five years.

It is already likely to influence the next T-4 Capacity Market Auction – a significant event in the UK’s energy calendar which aims to secure sufficient electricity for 2027-28. The auction considers the extra power needed to cope in times of high demand and awards contracts to power companies so that this can be provided.

The margin is said to be the tightest felt since the auctions began 10 years ago. The electricity supply shortfall is expected to be three times greater than the forecasted 2.5GW of derated power said to be supplied by the fully completed Sizewell C nuclear power plant in Suffolk. Further concerns over the uncertainty of biomass generator contribution that accounts for over 3GWs of the UK’s power has compounded the shortfall risk by 50%.

Is there a solution to the ‘energy security crunch point’?

To avoid this impending crisis, the report suggests:

  • extending the use of nuclear plants scheduled for decommissioning. 
  • agreeing on transitional periods for biomass operators who plan to install bioenergy with carbon capture and storage (BECCS) Technology.
  • introducing flexible measures that could curb peak demand. 
  • encouraging the uptake of domestic improvements – such as upgrading home insulation. 

Help yourself & generate your own power!

When considering all these worrying factors, could it be time to consider generating electricity through your own solar energy system? Here at IEG, we can supply renewable energy packages that will keep your business generating – regardless of falling power margins and intermittent energy supplies from the national grid. 

Get ready for 2028 and power-proof your company against the UK ‘Energy Security Crunch Point’. Give us a call and see how we can help! 

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2 Comments

  1. Fay Escobar

    I’ve been browsing online more than 3 hours today, yet I never found any interesting article like yours.

    It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made
    good content as you did, the internet will be a lot more useful than ever before.

    Reply
    • Toni

      Thank you so much Fay! I really appreciate that! 🙂 Toni

      Reply

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