UK 'energy crunch' means biomass work at Drax must continue, report argues

It has outlined four proposals for continuing this support until the early 2030s.

A new report by Public First has warned that by 2028 a combination of the retirement of existing assets and delays to the delivery of the Hinkley Point C project is due to lead to demand for energy at peak times outstripping supply at peak times such as winter evenings.

The report is supported by Drax but Public First said it had editorial control over its research and findings.

It concluded that biomass will have an important role to play

"There is a significant energy crunch coming in the next four years,” the report states.

"Our findings suggest 2028 will be the key year for energy security. The next government will need to take action early to address this shortfall and keep the lights on in 2028. There are limited options available.

"The two most viable are to extend the life of existing assets, for example, nuclear or biomass, and simultaneously to manage energy demand.”

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The report said “clarity” is needed on what Government support will be provided to the biomass industry in advance of 2030, when it is hoped carbon capture schemes will be up and running at sites like Drax.

Responding to the research, Richard Gwilliam, Drax Group’s UK BECCS Programme Director, said: “Delivering energy security is a critical and longstanding challenge for all governments. The need to maintain it while tackling climate change and rapidly decarbonising economies makes the issue all the more acute.

“This research demonstrates the UK is facing a power generation crunch point, with demand set to outstrip the supply of secure dispatchable and baseload capacity – leaving the UK reliant on intermittent forms of generation.

"To keep the lights on, part of the solution will be extending the lives of existing generation assets. Drax Power Station and our pumped storage and hydro power sites already provide secure, renewable electricity for millions of homes and businesses – but there’s more we can do.

“Drax plans to massively expand the generation capacity of Cruachan pumped storage power station in Scotland, some of which could be available to help bridge the power gap.

"Additionally, providing we secure the appropriate transitional support, our project to deliver two units of BECCS at our Selby site would also support energy security and decarbonisation through the crunch and well into the future.”

It comes after ministers approved Drax’s development bid to install carbon capture technology at its site, which provides a significant chunk of Britain’s electricity.

A host of MPs and activists have spoken out against the recent developments as claims that biomass is a clean energy source continue to be contested by many, including scientists.

In theory, burning wood pellets should create carbon-neutral energy because the trees and other plants burnt first absorb carbon, then are burnt and release the same carbon back into the atmosphere.

Critics say this assumes that the companies only use sustainable wood in their boilers. Investigations by the BBC and others alleged that Drax has used wood from environmentally important forests.

Daisy Powell-Chandler, Head of Energy and Environment at Public First, said: “Setbacks in bringing new nuclear and offshore wind online, the retirement of generation assets and increasing power demand will create an energy crunch point in 2028.

"But the challenge of keeping the lights on is not set in stone: policymakers have a suite of levers they can pull to ensure that we have a more secure, diverse, and sustainable energy system in the future.”

As part of the research, Public First polled UK residents to better understand public perceptions of energy security following the Russian invasion of Ukraine.

The polling found 46 per cent felt that there was a medium-high risk of energy shortages this coming winter.