We all have witnessed the tremendous volatility of global energy market the past couple of months. Prices rose, after which they tumbled and are now at lowest since 2010.
But let’s take a look at a scenario where market conditions change and prices rise above current levels. For most national energy markets which are dependent on global movements, this will make prices increase. However, if we look at UK’s generation mix, wind energy is surely something that can protect us from external shocks.
Keeping in mind that wind power remains a crucial element of UK’s generation mix, with UK’s wind power generation rising by 15% in 2014 and wind contributing 14% of UK power in a record-breaking December, it is fairly reasonable to reconsider the increased role of the wind power in UK’s supply mix.
Not only would global instability on the energy market not have a huge impact on the UK’s energy, but UK’s future energy supply would be more resilient to the fluctuating price of fossil fuels, which in return would make energy prices more predictable.
“In these uncertain times, we need to recognise the wider benefits of wind,” said Renewable UK chief executive Maria McCaffery. “The costs for the entire life of a wind farm are known very early on, whereas the volatile price of fossil fuels can never be accurately predicted. Wind power is already helping us manage future price instability, and the industry is confident that by 2020 onshore wind will be the cheapest form of new generation of any form of energy.”