In the last few months, the head of GDF Suez has been reported as saying that Europe could have energy shortages this winter because of “failed” European green energy policies.
As energy is part of the financial and commodity markets, prices are volatile and have been increasingly affected by political events such as the Ukraine crisis. If prices are to rise, then many more companies will invest in energy saving measures to spread the risk, whatever happens.
At last the European Commission has acknowledged that security of supply is the key challenge and questions are being asked about sustainability and cost-efficiency. It seems that at last some sort of realism is creeping into policy making.
But will we have blackouts this winter? Hopefully not. National Grid has announced that it has contracted 319MW of Demand Side Balancing Reserve (DSBR) across 431 individual sites for this winter. The companies will reduce their demand or switch to on-site generators at periods of peak demand if requested to do so by National Grid. And what’s in it for these companies? They will receive compensation from National Grid….