The decision to re-open a gas-fired power plant mothballed for over two years is another indication of the British government’s determination to champion gas over coal.
That’s the view of Paul Verrill from energy data analysts EnAppSys who told Power Engineering International the re-opening of Keadby gas-fired power plant would present a more complex challenge than first glance.
“SSE’s announcement of the closure of Ferrybridge C earlier this year, followed by this announcement, demonstrates that the shift from coal to gas, which has arguably been a policy driver in the UK for some time, is well underway.”
“This sets up an interesting capacity market auction, and raises the question of whether any of the remaining coal stations that have opted in to 2018+ operation will decide that this is the time to exit, bringing forward a series of new-generation plant construction.”
Verrill says the decision to reopen Keadby provides further evidence in the government’s belief that this Winter will see a tighter margin translate into higher wholesale prices, justifying the station being restarted.
He also predicted that the return of 700+MW to the grid will impose further pressure on more marginal power stations.
“(These plants) will be displaced and consequently see lower running hours and revenue this Winter, putting their continued operation under threat.”
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