The electricity sector faces a level of investment in the coming two decades far higher than the past two decades. It needs to renew its ageing generation fleet, and shift towards capital-intensive low-carbon forms of generation. Over the past few years, various organisations and commentators have suggested that the sector may be unable to deliver, questioning whether there will be a sufficient flow of money into the sector to finance these investments.
This report examines the evidence for these claims, looking at three key issues: