The spring freeze has been a timely reminder of the need to secure Britain's energy needs |
Just before midnight
last night, the world’s biggest gas tanker was due to dock at the Welsh port of
Milford Haven. The Zarga, from Qatar, is more than a fifth of a mile long and
carries up to 266,000 cubic metres of liquefied natural gas. Earlier in the
day, on the other side of Britain, another Qatari tanker carrying natural gas,
the Mekaines, docked at Thamesport on the Isle of Grain. Both come bearing
energy supplies that Britain badly needs as winter is forecast to continue well
into Easter.
Five hundred miles
north, the arrival of another, rather smaller, ship was greeted even more
warmly. The MV Hebridean Isles, just 85m long and usually used as a passenger
ferry, docked at Campbeltown on the Kintyre Peninsula on Saturday. It carried a
cargo of emergency power generators to residents suffering a power cut that has
now lasted four days.
Though their size and
purpose differed greatly, all three vessels were responding to aspects of the
same problem: a vicious blast of winter that has revealed the fragility of
Britain’s energy supplies. The Met Office predicted yesterday that we will
suffer the coldest March since 1983, with average temperatures of 2.9C. This
weather left a combination of snow and ice on power lines that brought down two
steel pylons on Kintyre on Friday, blacking out thousands of homes and the
entire Isle of Arran.
The weather has also
increased demand for gas, while domestic supplies from the North Sea have
continued to dwindle. The latest delivery from Qatar will top up reserves,
which currently last only a few days. A further supply from the Gulf state will
arrive on Friday, while a tanker from Trinidad is due next week. This ought to
allay immediate fears of a crisis, but energy experts predict that our reliance
on imports will only increase over the next few years as domestic production
falls further. This dependence could see price rises and, as we rely more on
bargaining with unstable countries, it could increase the risk of supplies
being cut off entirely.
On Arran, residents
who never previously thought their supplies were vulnerable are now coping with
a blackout. At 20 miles long by 10 miles wide, the mountainous isle in the
Firth of Clyde prides itself on being one of the country’s milder island
destinations. Yet today huge snowdrifts almost engulf some homes in the hills.
All 3,800 island properties lost power, and around 1,500 were still without
electricity yesterday afternoon. While parts of the east coast are snow‑free at
low level, snowdrifts up to 12ft are blocking roads on the west coast.
Strong winds over the
weekend blew the snow off the rugged, high ground in the middle of the island and
dumped it on roads and power lines. Arran’s eight schools closed, one elderly
resident had to be airlifted to hospital suffering from hypothermia and farmers
were forced to dig their sheep out of the snow. The island’s palm trees are
looking sorry for themselves.
The blackout prompted a sizeable
relief operation. An extra 400 Scottish and Southern Energy engineers are
working in Kintyre and Arran and by yesterday afternoon they had restored power
to around 15,000 of the 20,000 homes that were left without electricity at the
weekend. A convoy of fuel lorries and food vans, escorted by emergency
vehicles, took essential supplies to Campbeltown, while portable burger stalls
were set up to provide free fast food.
As well as visiting halls and
hotels on Arran for a hot drink, islanders have been using them to charge
mobile phones to keep in touch with friends and relations. Barbara Crawford,
whose family has owned the Kinloch Hotel in Blackwaterfoot for nearly 60 years,
says it has been acting as a hub for islanders because it is the only place on
the west coast with its own generator.
“We were completely shut off, but
we got a helicopter delivery of blankets, flasks and torches to the hotel,” she
says. “We’ve opened our shower facilities for people in the local community to
use and the mountain rescue team have been coordinating from here.
“We’ve also had a team of doctors
and care workers here and people have been coming to the hotel to see them. We
now have around 30 or 40 people in the hotel who are all keeping warm. My
husband and I have never seen anything like this.”
Of course, power cuts will happen
occasionally in bad weather, regardless of how much energy Britain imports. But
Peter Hughes, a former vice president of BP who now runs his own energy
consultancy, argues that the fate of the islanders, who live just a 55-minute
ferry crossing from the mainland, should alert the public to the wider
fragility of our supplies.
“Until now it hadn’t dawned on
people that the cuts of 1974 could happen today,” Hughes says. “Most people
don’t think of the state of our energy infrastructure until shortages affect
them in a very personal and direct manner.”
That infrastructure is less
resilient than it once was. Until a decade ago, Britain was almost entirely
self-sufficient in producing gas, which accounts for around a third of our
energy consumption. But as North Sea reserves have dwindled, we now import
around half of our gas. Our storage facilities, however, have failed to expand,
making our imports more vulnerable to short-term price increases.
“There is a fairly stark contrast
between us and other European countries, which have much more storage,” Hughes
explains. “If we don’t have enough storage to fill our stocks at times of weak
demand, we are forced into competing with the likes of Japan and China for
cargoes of liquid natural gas, and the price goes through the roof.”
Supplies are also vulnerable to
political volatility, he argues. “Should Putin decide to flex his muscles, or
if the strait of Hormuz were to go down and we lost our energy from Qatar, that
would be a problem.”
These potential headaches could
be averted by building new gas storage facilities. But Ann Robinson, director
of consumer policy at uSwitch, says we will have to cope with more bad winters
before they can be used. “Even if the Government decided to incentivise storage
now, it would take some time before these new reserves are built,” she says.
“We might well face another winter on the edge of our seats because there is
often planning permission required and Ofgem [the energy regulator] has various
conditions, too.”
Even though the Government
approved a new nuclear power station at Hinkley Point in Somerset last week, it
too will take at least a decade to build.
In the meantime, we have become
increasingly reliant on coal. The Confederation of UK Coal Producers pointed
out yesterday that its power stations had responded to booming demand and
dwindling gas stocks this winter by providing nearly half of the country’s
daily demand for electricity.
But David Brewer, its director
general, does not expect coal-fired power stations to take up any slack in the
future. Far from increasing supply, he predicts that coal will make up less
than a tenth of our energy consumption by the 2020s as power stations are made
uneconomic by the Government’s new carbon tax and an EU emissions directive
that will cost at least £200 million for each plant to implement.
“In a cold winter with no wind in
2023, you would have no power coming from wind, very little coal and perhaps 20
per cent of energy supply from nuclear,” says Brewer. “That means at least 70
per cent will have to be gas.”
This increasing demand for gas
would send prices still higher and run the risk of further outages like those
in Arran, until government policy focuses on increasing domestic storage,
according to Peter Hughes. “At the moment, we are in a holding pattern waiting
for these decisions to be made,” he says. “The longer that goes on, the greater
the chances the lights will go out.”
If he is right, more Britons may
soon face an anxious wait for the next ship from Qatar.
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