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Released September 09, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)-- - The specter of power blackouts in the U.K. was raised again this week when it emerged that the 2,000-megawatt (MW), coal-fired Eggborough power station in North Yorkshire is facing early closure next year.
The Czech owners of the power plant, Energetický a Průmyslový Holding (EPH) (Prague) confirmed that Eggborough will cease generating power at the end of March 2016, with the potential loss of about 240 jobs. The plant, which supplies 4% of the country's power, generates enough electricity for approximately two million homes.
The demise of Eggborough comes just months after the U.K.'s electricity grid operator, National Grid, warned that spare capacity this winter will stand at just 1.2%, the lowest in 10 years. For additional information, see July 23, 2015, article - U.K. Risks Winter Blackouts as Power Stations Close.
Eggborough Power Limited, the U.K. company running the plant, said it needs £200 million ($305 million) during the next three years to continue generating power, which it said is "financially unsustainable for the 53-year old plant.".
Neil O'Hara, chief executive of Eggborough Power, commented: "We are deeply saddened at the prospect of potentially ceasing generation at Eggborough Power Station and believe that Eggborough Power could have a significant part to play in ensuring security of supply in the U.K. electricity market, particularly while there remains great uncertainty around new-build gas-fired generation. We intend to conduct a thorough consultation process with our employees and their representatives while we continue to consider all options available to us, including seeking to engage with government bodies. Our priority is to support our staff during this difficult time."
The plant owners cited a number of key reasons for the planned closure, including a continued fall in power prices, high carbon tax, changes to the bidding rules for the government's Supplemental Balancing Reserve (SBR) and changes to the Capacity Market rules. It also highlighted recent cuts to the renewable subsidies available for biomass conversion that will rule Eggborough out as a viable option.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The Czech owners of the power plant, Energetický a Průmyslový Holding (EPH) (Prague) confirmed that Eggborough will cease generating power at the end of March 2016, with the potential loss of about 240 jobs. The plant, which supplies 4% of the country's power, generates enough electricity for approximately two million homes.
The demise of Eggborough comes just months after the U.K.'s electricity grid operator, National Grid, warned that spare capacity this winter will stand at just 1.2%, the lowest in 10 years. For additional information, see July 23, 2015, article - U.K. Risks Winter Blackouts as Power Stations Close.
Eggborough Power Limited, the U.K. company running the plant, said it needs £200 million ($305 million) during the next three years to continue generating power, which it said is "financially unsustainable for the 53-year old plant.".
Neil O'Hara, chief executive of Eggborough Power, commented: "We are deeply saddened at the prospect of potentially ceasing generation at Eggborough Power Station and believe that Eggborough Power could have a significant part to play in ensuring security of supply in the U.K. electricity market, particularly while there remains great uncertainty around new-build gas-fired generation. We intend to conduct a thorough consultation process with our employees and their representatives while we continue to consider all options available to us, including seeking to engage with government bodies. Our priority is to support our staff during this difficult time."
The plant owners cited a number of key reasons for the planned closure, including a continued fall in power prices, high carbon tax, changes to the bidding rules for the government's Supplemental Balancing Reserve (SBR) and changes to the Capacity Market rules. It also highlighted recent cuts to the renewable subsidies available for biomass conversion that will rule Eggborough out as a viable option.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
