Eggborough is the latest of three coal fired power stations to announce plans to close, DECC insists they have a plan.
Not long ago the UK had ten coal fired power stations, now we are soon to have just seven. (EPL) Eggborough Power Limited has announced its closure date, March 2016, with the loss of 240 jobs. Eggborough producing 2GW follows Ferrybridge 1GW & Longannet 2.4 GW.
This reduces the UK’s dispatchable capacity to 53GW below peak demand of 56GW.
EPL would have required 200 million pounds to continue to operate for the next three years, requests for subsidy was refused. In a press release EPL listed the reasons for its closure:
A continued fall in power prices driven by the decline in commodity prices, combined with continued high carbon tax, means that Eggborough is unable to cover its future operating costs. This fall in power prices has continued in spite of a number of plant closures and tightening capacity margins.
Recent changes to the bidding rules for the government’s Supplemental Balancing Reserve (SBR) which meant that this was no longer a viable option for Eggborough to recover some of its operational costs.
Recent changes to Capacity Market rules which mean that this no longer represents a viable option to support life extension investment.
Recent changes to the renewable subsidies available for biomass conversion which mean that this is no longer a viable option for Eggborough.
Uncertainty regarding Eggborough’s environmental permits from 1st January 2016 which could place greater constraint on emissions, impact operational flexibility and reduce profitability.
EPL had applied for funding to convert to biomass, however it was judged to be too expensive.
A Department of Energy & Climate Change (DECC) spokesman ” The Government takes security of supply very seriously & has worked with the National Grid to put in place an effective plan which is flexible enough to adapt to individual plant closures”
Nothing to worry about then.