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Sector Research – Gas Engine Peakers


Today we release the latest in our line of short introductions to 350 PPM relevant sectors of the economy, this time focusing on gas engine peakers, a flexible type of electricity generation plant. The report can be downloaded at the following link:

Sector Research: Gas Engine Peakers

Introduction

This report provides a brief introduction to gas engine peakers, a flexible type of electricity generation plant, including the critical role they could play in the fight against climate change.

This might, at first sight, seem like a somewhat dubious thing to suggest. How can burning gas possibly help fight climate change? Well, as we argue here, in the transition to a future dominated by intermittent renewables, burning gas – the cleanest fossil fuel – is, and will remain, essential in providing the flexibility needed to keep the lights on.

Small, distributed gas engine peakers can potentially provide this flexibility more cleanly and economically than traditional gas plants. As a result, they are attracting considerable investment, especially in the UK, which has led Europe in peaker deployment. This is due to a particularly strong need for flexibility here, and a policy environment that is relatively favourable in defining clear sources of stackable revenue.

Looking ahead, the UK peaker market is expected to experience strong growth – expanding over five times in capacity terms from 2016-2021, and, by some forecasts, further tripling by 2030.

Worldwide, peaker capacity is forecast to overtake traditional gas plant capacity by ~2040.

More immediately, local peakers may benefit from the effects of Brexit on the Pound and electricity trading arrangements with Europe.

To carry on reading, please download the report using the link further up the page.


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