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Closing power stations directly correlated to hiking energy prices

20th February, 2013

Ofgem chief executive Alistair Buchanan has made a stark warning to consumers that the closing of old power stations will reduce the UK’s power generation capacity and result in rising energy prices.

Renewable energy is still in its relative infancy and as such there is not yet enough of it to bridge the gap between the loss of power station capacity and the energy being used. This is going to result in Gas being imported and the bill will inevitably fall to consumers.

Mr Bunchanan stated: “We may be able to rely on renewables, clean coal and nuclear, but the government wants to ensure we can get to this vision in an orderly way.”

It is abundantly clear that there needs to be a focus on renewable energy, amongst other things, to provide a cost effective solution to the increase in energy demands.  This is echoed aptly by David Cameron’s recent comments regarding green energy, “To those who say we just can’t afford to prioritise green energy right now, my view is we can’t afford not to.”

This is inevitably going to lead to a positive step in the right direction and as the Deputy Chief Executive of Renewable UK states, “The EEF points out that the UK’s offshore wind manufacturing sector alone could generate £35 billion for the country between now and 2050. That’s why they’re joining the wind industry in calling for the Government to set a date for 2030 decarbonisation target.”

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