UK capacity too expensive, says bidder
PSEG Global has opted out of the second round of bidding to buy the coal-fired capacity being divested by UK generator PowerGen. Due diligence conducted by the US company have shown that improving the plants` emission targets could be too expensive.
PowerGen is selling its Fiddler`s Ferry and Ferrybridge plants to gain antitrust clearances from the UK regulator. It is expecting to receive $1.6bn (§1.44bn) for the plants. Although the two plants have not yet been issued with emission limits for the year, PSEG says that it would want to lower the current emission levels and that this would require a major investment.