Would UK’s Natural Gas be the Next Victim of Carbon Tax?


Natural gas is a major energy source of UK, which covered 40% of UK energy generation in 2016.It mainly used for generating power, providing heat or feedstock. With the emerging of various new energy such as solar and wind power, how about the future of natural gas?

3.8 - Would UK’s Natural Gas be the Next Victim of Carbon Tax?

While UK has promised to eliminate coal power by 2025, natural gas has been regarding as a vital substitute. However, UK imposed a carbon tax in 2017, which gave rise to the higher cost of burning coal and fossil-fuel power generation and burdened fossil-fuel companies with financial pressure. What’s more, gas power generation is also affected by the coal tax. According to the related news, “the UK energy ministry now expects only 6 GW of new gas-fired power plants to come online by 2035, compared with a previous projection of 14 GW.” So the gas usage for power generation may decline in the future.

In addition to the coal tax policy, the renewable energy may become another “competitor” of natural gas. Solar and wind power is increasingly popular these years, and the cost of renewable energy is cheaper than that of natural gas. The UK Department of Business, Energy, and Industrial Strategy predicted renewable energy to pass gas’s share of power generation by 2020.

Moreover, as for the aspect of environmental protection, natural gas is not such clean and sustainable energy which is able to create a low carbon system. Some report points out that natural gas is not better than the coal to generate power and lower carbon emission. Therefore, renewable energy may become a “powerful competitor” of natural gas.

However, the future of natural gas in the UK is affected by various factors like market, policy shifts, technology innovation, etc. Welcome to make a comment to give your opinion to us.



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