Energy UK (the new trade body for the electricity industry, amalgamating the Association of Electricity Producers, the Energy Retail Association, and the UK Business Council for Sustainable Energy) has just released a very brief preview of a forthcoming Ernst & Young study of investment patterns in the UK energy sector: Powering the UK
Naturally, Energy UK feel obliged to offer an upbeat interpretation, but even a superficial reading shows that the news is in fact mixed.
Ernst & Young estimate that over the next fifteen years the UK needs to invest around £250 billion on capital plant (power stations, grid lines, compressors, gas pipelines, etc.) for the electricity and gas sectors. That's £16 billion a year. However, Ernst & Young's chart shows that in 2011 the industry invested only around £11 billion a year, with about £8 billion of that being spent on power stations and about £3 billion on grid and pipelines for the transmission and distribution.