Sharp increases in power costs if decarbonisation “gas heavy”

Depending solely on carbon prices to drive low-carbon investment could underestimate cost and policy risks, an E3G-commissioned analysis published on Tuesday 16 October found. The research, undertaken by Redpoint Energy/ Baringa Partners, argued the approach would lead to a "gas heavy" decarbonisation pathway that could fail to meet emissions reduction targets if carbon capture and storage technology failed to materialise. This over-dependence on gas, the study concluded, could cause power sector costs to increase by up to 98% by 2030. The report recommended an increased focus on electrical efficiency and maintaining "ambitious" deployment rates for renewables.
E3G