Flexibility key to unlocking clean power by 2030

Finlay McCutcheon, managing director of SSE Thermal, looks at what’s needed to realise our clean power targets.

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The UK Government wasted little time in setting a clear goal to deliver a clean power system by 2030. That is an ambitious and extremely stretching target but it’s evident that there is genuine commitment to the urgency of action required from Government, developers and the supply chain to deliver on it.

We’ve already seen actions taken to accelerate planning timelines, a record-breaking number of projects supported through the AR6 renewables auction, a business model brought forward for Long Duration Electricity Storage (LDES), a £21bn commitment to CCS, the launch of Great British Energy – and the publication of the Clean Power Action Plan at the end of last year.

That plan is clear on the urgent need to scale-up deployment of a wide range of energy technologies, supported by a transformed grid. Crucially, there is genuine recognition of the enduring criticality of the flexible power generation which will be essential to backing-up a renewables-led power system.

The Action Plan estimates by 2030 we will need between 2GW and 7GW of low-carbon flexible generation, with technologies like carbon capture and hydrogen playing a key role, in addition to the existing 30-35GW of existing flexible gas generation capacity.

Here at SSE Thermal we are determined that our Peterhead site will continue to make a mission critical contribution to that flexible generation, through both the existing gas-fired power station and through a new power station utilising carbon capture and storage technology.

Low-carbon power stations have vital role

© Supplied by SSE Thermal

It’s evident that new low-carbon power stations, located in our industrial heartlands (including the north-east Scotland and the Humber), will be vital if we’re to achieve clean power while supporting security of supply in periods of high demand and low renewable output. And while 2030 may still be half a decade away, the success of clean power will be determined in months, not years.

The Government’s impending Comprehensive Spending Review will be pivotal in determining what progress will be made on the rollout of vital energy infrastructure – and when.

For Scotland, it is a crunch point. There is a real opportunity for Government to use the spending review to back the Scottish Cluster (which is ready to deliver an enduring carbon capture and storage system for Scotland) which will in turn help to deliver clean power by 2030, support a low-carbon future for the north-east and Grangemouth, and enable a just transition for workers across Scotland.

That is why it’s so important that Government advances the Track 2 cluster sequencing process, enabling crucial decarbonisation projects in Scotland (as well as the Humber) to be deployed at the earliest opportunity.

That includes projects like Peterhead Carbon Capture, which we’re developing with Equinor and which could be operational from the start of the next decade. Our existing Peterhead Power Station has provided reliable electricity generation to the system for more than 40 years, and the new power station, on the same site, would continue that role. In doing so, it could support 1,000 jobs during construction and 240 jobs during operations.

As part of an anchor phase of the Scottish Cluster, the new low-carbon power station at Peterhead would plug into the Acorn CO2 transport and storage network, delivering much-needed flexible generation while contributing to 2030 clean power targets.

Challenging times ahead

It is worth noting that for all the focus on 2030, the start of the next decade is just one milestone in the broader energy transition – indeed, the 2030s will be much more challenging than the prior period. Given the clear need for low-carbon thermal to be scaled up significantly as the decade progresses, delivering as much as possible before 2030 is a no regrets approach.

That is why we also hope to see the spending review recognise the role hydrogen-to-power can play from 2030. In the Humber, we are working with Equinor to deliver Aldbrough Hydrogen Pathfinder, a first-of-a-kind project which unites hydrogen production, storage and power generation in one location. This is the only realistic opportunity to have a 100% hydrogen-fired power station on the system by 2030. With the potential to be operational from 2029, it could provide up to 50MW of hydrogen-fired power, again contributing to clean power goals.

To realise that potential, Government must urgently progress the Hydrogen Allocation Round 2, enabling key projects to move forward and underpin investment in a wider hydrogen economy.

As one of the country’s largest electricity generators, SSE has a commitment to supporting the Government’s missions to kickstart economic growth and become a clean energy superpower. We’ve backed words with action, investing £20bn across the five years to 2027.

Now, we need Government to seize the moment and ensure the spending review supports delivery of a low-carbon future in Scotland and the rest of the UK. Real momentum has been built in the energy sector in the past few months, and now is the time to accelerate deployment of low-carbon flexible power alongside renewables and networks.

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For more insights on Peterhead 2 and other SSE Thermal projects, listen to the EVOL x SSE Thermal podcast. You can also find out more at the SSE Thermal website.