The Government Policy Statement on security of electricity supply was published on 30 November. The Policy Statement builds on policies set out in the National Development Plan and the Climate Action Plan 2021, which target the development of circa 2,000 MW of flexible gas-fired generation capacity.
The new Policy Statement also sets out that existing conventional electricity generation capacity should be retained until the new conventional capacity is developed ; during this transitional period renewable energy and efficient gas-fired power stations will be dispatched in the market first. The new plant will replace existing power stations that use coal and heavy fuel oil. This will minimise the impact on greenhouse gas emissions, while ensuring security of electricity supply. The plants are not expected to run at full capacity.
Climate Action Plan 2021 contains a provisional sectoral range to reduce emissions in the electricity sector to between two and four MtCO2eq. by 2030, while increasing the share of electricity demand generated from renewable sources to up-to 80%. These ranges will be finalised in Climate Action Plan 2022, following the legal adoption of carbon budgets and sectoral emissions ceilings in accordance with the Climate Action and Low-Carbon Development (Amendment) Act 2021.