E.ON calls for fossil fuel to back up renewables revolution

Energy giant E.ON has launched its new energy manifesto, warning that if the UK is to meet its target of generating 20 per cent of its energy from renewable sources by 2020, it will still need to develop a new generation of fossil fuel-fired power plants.

The company said the UK would require 50GW of renewable energy to meet the EU target, but that would require up to 45GW of backup capacity from coal and gas-fired plants that could be used to ensure energy supply when renewable energy supplies are not available.

Paul Golby, E.ON UK's chief executive, said a "balanced and honest debate" was required as to how this new infrastructure could be built and funded.

"If we are to meet the European target, we need to back that up with fossil fuel generation that can be turned on quickly when the wind does not blow," explained a spokesman for the company. "But the issue is who pays for that. If we spend half a billion pounds on a gas-fired power station that is not turned on very often, we need to look seriously at how that investment is rewarded."

The new infrastructure would also require a major overhaul of grid technologies to control the switching between intermittent renewable energy systems and new fossil fuel plants.

Golby said E.ON is investing heavily in a wide range of next-generation technologies, including the controversial planned Kingsnorth coal fired power station as well as many renewable energy projects. The company has also indicated its interest in plans for a new generation of nuclear power stations.

He added that environmentalists needed to appreciate that a mix of different energy sources would be required to reduce the UK's carbon footprint. "It is easy to say no to coal, easy to say no to nuclear," he said. "I'm quite inte rested in what they are going to say yes to."

His comments came on the same day that the British Wind Energy Association (BWEA) called for a major overhaul to the UK grid to prepare it for an increase in offshore wind energy capacity.

BWEA chief executive Maria McCaffery said that for the UK to meet its EU renewables targets the capacity of the national grid would have to increase from about 80GW now to 120GW by 2020. She added that 60 per cent of the existing grid will need upgrading within the next five to 10 years so it made sense for the National Grid to begin installing systems to support increased input from renewable sources as it undertakes that upgrade programme.