Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

Britain could keep coal-fired power plants open this winter

Published 30/05/2022, 11:35
© Reuters. FILE PHOTO: A view of the Shard and the London Eye with the city's skyline in London, Britain April 25, 2021. REUTERS/Yann Tessier/File Photo

By Susanna Twidale

LONDON (Reuters) -Some of the British coal-fired power plants slated for closure this year might need to stay open to ensure electricity supply this winter, the government said on Monday.

Countries across Europe are drawing up contingency plans against potential disruption to flows of Russian gas because of the war in Ukraine. Russia typically supplies about 40% of Europe's gas.

"In light of Russia’s illegal invasion of Ukraine, it is only right that we explore a wide range of options to further bolster our energy security and domestic supply," a government spokesperson said via email on Monday.

Britain can generate about 50% of its electricity from gas. Although Russia only meets about 4% of Britain's gas needs, a significant disruption in supply would affect prices in Europe and make it harder for Britain to secure gas from others.

"While there is no shortage of supply, we may need to make our remaining coal-fired power stations available to provide additional back up electricity this coming winter if needed," the spokesperson said.

The government is planning for a range of scenarios Prime Minister Boris Johnson's spokesman said on Monday, expressing confidence that Britain will have sufficient energy supplies.

"We don't expect power cuts this winter and we do not expect energy rationing this winter, given the fact that we have our own access to North Sea gas reserves and other reliable partners to import energy from," the spokesman said.

The government has asked the National Grid (LON:NG) Electricity System Operator (ESO) to devise a framework to encourage plant operators to keep the power stations running, according to a letter seen by Reuters from energy minister Kwasi Kwarteng to National Grid ESO.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Operators of the coal plants, such as Drax and EDF (EPA:EDF), have been running down coal stocks and preparing for closures.

“To be in a position to deliver on this government request, we will need to reach an agreement with (National) Grid ESO urgently to allow for essential maintenance and the purchase of new coal supplies,” An EDF spokesperson said via email.

The government said it remains committed to a longer-term plan to close all of the country’s coal-fired power plants by October 2024 to help it to hit climate targets.

Latest comments

Once again the government has to resort to desperate measures because of incompetence.
how about being able to store gas? Something the UK dearly lacks
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.