Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

UK grid requests backup capacity to fill potential winter supply gap

Published 02/09/2014, 10:30
Updated 02/09/2014, 10:40
UK grid requests backup capacity to fill potential winter supply gap

LONDON (Reuters) - Britain's electricity network operator National Grid (L:NG) has brought forward by a year a scheme to tap additional power capacity over the winter following a number of unexpected plant outages.

National Grid launched a tender for its Supplemental Balancing Reserve (SBR) on Tuesday, asking power generators how much spare capacity they could provide this winter to fill a potential supply gap.

The network operator decided to take SBR forward after a series of unplanned shutdowns at large power plants worsened the supply outlook for this winter since its last capacity assessment in June, it said.

Britain is already facing a power capacity crunch as ageing and polluting stations are shutting down, while new plants are slow to start operating because of a government overhaul of energy policy.

"At this stage we don't know if these reserve services will be needed, but they could provide an additional safeguard," said Cordi O'Hara, National Grid's Director of UK Market Operations.

Fires at E.ON's (DE:EONGn) Ironbridge and SSE's (L:SSE) Ferrybridge power plants have reduced output, while the Barking power plant has closed and there have been production problems at EDF Energy's (PA:EDF) Heysham and Hartlepool nuclear power stations.

If the network operator decides SBR is necessary this winter, it will launch a competitive tender for a specific amount of spare capacity.

Power generators would have to be available to provide additional electricity between 07:00 a.m. - 21:00 p.m. BST from November to February, the months with the highest demand.

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

The new back-up capacity mechanism is running in parallel with a programme that allows National Grid to ask contracted users, mostly factories, to reduce their electricity demand when the system is strained.

(Reporting by Karolin Schaps; Editing by Michael Urquhart)

Latest comments

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.