London
CNN Business
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The British government could award oil and gas companies more than 100 new licenses for drill in the North Seabecause he is looking for ways to strengthen energy security amid a global supply shortage.
Launched on Friday, the license cycle would not lead to new UK production for several years. And when drilling begins, Britain will still be dependent on energy imports, the government says, leaving it vulnerable to soaring prices and supply disruptions of the kind that threaten blackouts this winter.
UK utility company National Grid
(NGG) warned on Thursday that households and businesses could be without power for up to three hours at a stretch in the worst-case scenario of very cold weather, low wind levels, gas shortages and an inability to import electricity from Europe. It said it would take steps to mitigate the risk, including bringing old coal-fired power plants back into service if necessary.
From November 1, National Grid will also offer financial incentives to customers to reduce their energy consumption during peak hours.
Kathryn Porter, energy consultant at Watt-Logic, told CNN Business that National Grid still underestimated supply risks, but power outages for households were unlikely as it could disconnect large consumers from power. energy at peak times if necessary.
The latest license cycle will not improve the immediate offer image and could face a legal challenge from environmental activists. Greenpeace said the new oil and gas licenses were “potentially illegal” and it would seek ways to act.
“The new oil and gas licenses will not reduce energy bills for struggling families this winter or any future winter, nor will they provide medium-term energy security,” said Philip Evans, energy transition campaigner for Greenpeace. UK, in a statement.
“New licenses – and especially more fossil fuels – do not solve any of these problems, but will make the climate crisis worse,” he added.
Analysis by the North Sea Transition Authority (NSTA), the licensing regulator, shows the average time between discovery of oil and gas deposits and the first production is close to five years, although this lag “falls”.
In a statement on Friday, the NSTA said it would prioritize areas in the southern North Sea that can be developed quickly and where gas has already been discovered. Businesses have until January 12 to apply for licenses, with permits to be issued from the second quarter of 2023.
The NSTA said the licensing round had undergone a ‘climate compatibility check’ to ensure it aligns with the UK government’s commitment to net zero carbon emissions by by 2050. He added that producing gas domestically has a much smaller carbon footprint than importing it. abroad.
The International Energy Agency said last year that investment in new fossil fuel supply projects, including oil and gas drilling, should stop immediately if the world wants to limit global warming to 1.5 degrees Celsius above pre-industrial levels.
The UK government presented plans earlier this year to generate 95% of UK electricity from low-carbon sources by 2030. The plan, which allows oil and gas drilling, will also increase l nuclear energy and wind energy.