New figures released by the Department of Energy and Climate Change (DECC) show that 2015 was a good year for renewable energy and carbon dioxide emissions – a counterpoint to the continuous changes to the UK energy policy seen over the same period.

Renewable electricity generation was up nearly 29 per cent on 2014, largely off the back of supportive government policies. There remains 9GW of renewable energy projects tied up in the UK planning system, which means it will be interesting to see how much of that capacity comes to fruition in the coming years.

Meanwhile, carbon dioxide emissions fell to their lowest levels for 65 years, largely due to the closure of a number of coal-fired power stations. While this is welcome news, coal has been a significant source of dependable power so this raises the question: could the lights go out?

Electricity production from coal decreased by 24 per cent in 2015 but, overall, UK generation only dropped by less than 0.5 per cent, meaning that there is currently a sufficient amount of other capacity to make up the shortfall. This was largely met by an increased contribution from renewables, up 28.9 per cent and nuclear, which went up 10 per cent.

Taking a longer-term view, Savills is working extensively with clients looking at a range of measures that will help bridge the gap in any shortfall, including energy optimisation, energy storage, renewable energy and infrastructure development including European interconnectors. These measures form part of the UK Government’s 'Capacity Market' which has twin goals of delivering a “supply of secure, sustainable and affordable electricity” from new generation projects and innovative technologies, and to get the best out of existing assets to ensure adequate capacity to meet demand.

The Government has the tools at its disposal to ensure that demand does not exceed supply, but until such time as significant new capacity comes on stream and the margin between supply and demand increases, the question of whether we face blackouts will continue to be asked each winter.

Other key points from DECC’s latest statistical release include:

•CO2 emissions reduced by 4.1 per cent between 2014 and 2015

•Renewable energy generation increased by 28.9 per cent to 64.6 TWh, solar saw the largest increase at 87 per cent

•Scotland generated the equivalent of 57 per cent of its electricity demand from renewable sources in 2015 compared to 24.7 per cent across the whole of the UK

•Overall UK generation fell by 0.4 per cent

Further information

Contact Savills Energy Utilities & Infrastructure