The owners of Rugeley B announced today that they are to close the power station this summer.
Another 1000MW needs to be found from somewhere else. It’s making for a long list: Fiddler’s Ferry (reported here on February 4th) Longannet, Ferrybridge and Eggborough. 150 jobs are also at risk.
ENGIE Press release
ENGIE is today announcing that its 1,000 MW Rugeley Power Station in Staffordshire is expected to cease market operations in early summer 2016 due to the deterioration in market conditions for UK coal-fired power generation.
This closure will potentially lead to the loss of 150 jobs, subject to the outcome of an employee consultation exercise, and any further discussions with government bodies. During the consultation period, ENGIE will seek to identify redeployment opportunities elsewhere across the business, in line with the Group’s ongoing commitment to employees. A number of ongoing roles are expected to be required to support decommissioning and redevelopment of the site.
Unfortunately market conditions for UK coal plant have deteriorated rapidly in recent years, as a result of a continued fall in power prices on the back of commodity market decline, and increases in carbon costs. Under such conditions, there is no prospect of the power station recovering its future operating costs.
ENGIE remains one of the UK’s largest independent power producers and will continue to invest in its energy and services capabilities as a long-term committed partner for the UK.
David Alcock, CEO of ENGIE’s Energy Infrastructure division in the UK, said: “It is with deep regret that we have had to make this decision at Rugeley. Our priority now is to support the employees and help them through this period. We implemented a number of changes at Rugeley a year ago in order to help maintain operations at the site but a combination of falling prices and the impact of various market changes has now made this unviable.
“We will of course keep all options for the power station under review, and will maintain dialogue with all stakeholders as we proceed with the employee consultation process. I would personally like to thank everyone at Rugeley for their contribution to our business and for their loyal service to the Power Station.”
Rugeley Power Station is jointly owned by ENGIE (75%) and Mitsui & Co. Ltd. (25%). It can provide enough electricity to power 1 million homes and is one of the most flexible and efficient coal-fired stations in the UK.
The Station is also known as Rugeley “B” and has been in operation since 1970. Rugeley “A” station, built on the same site back in the 1950s, was decommissioned in 1996.
Still waiting for a response from DECC.