Posted on: 10/05/2016
The UK Government must recognise the importance of gas storage, according to a new report.
The Energy & Utilities Alliance (EUA) Gas Storage Operators Group (GSOG) highlighted the role gas could play to fill the gaps left by “intermittent” renewable generation once coal-fired power stations are closed.
Roddy Monroe, Chair of the EUA GSOG, said: “The UK currently stores significantly less gas than its European counterparts so it is important that the benefits of storage are recognised and rewarded to help protect against further reductions.
“Gas storage is strategically important, and unlike other types of energy infrastructure, once gas storage facilities have been decommissioned they are lost forever.”
Business rate reduction
The EUA pointed to declining gas extraction into the UK and the rising level of imports.
The trade body said storing gas would provide energy security and reduce household bills.
Monroe added: “This report urges the Government to recognise the benefits of gas storage and to look into ways to ensure its continuing viability; this could be achieved by direct subsidies to ‘top up’ revenues, or by reducing the cost burden borne by storage owners, such as a reduction in business rates.”