Reports related to this article:
Plant(s): View 1 related plant in PECWeb
Released February 15, 2016 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K.'s looming power shortage is back in the spotlight after French energy firm ENGIE (EPA:ENGI) (Paris, France) announced the summer closure of the 1,050-megawatt (MW) Rugeley coal-fired power plant in Staffordshire, England.
The company blamed low power prices and higher carbon costs for its decision, which will result in the loss of 150 jobs. The plant is capable of supplying around one million homes with electricity, and its closure fuels growing fears that the U.K. is facing its worst ever energy shortage in the coming decade, as most of its old nuclear plants will be shut along with a growing number of unprofitable coal and gas-fired plants. ENGIE, formerly known as GDF Suez, claimed that "there is no prospect of the power station recovering its future operating costs" as the "market conditions for U.K. coal plant[s] have deteriorated rapidly in recent years".
David Alcock, chief executive officer of ENGIE's Energy Infrastructure division in the U.K., explained: "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."
ENGIE employs 20,000 people in the U.K's power sector.
The U.K. government denied that the closure will impact the security of the country's power capacity. "We are clear that providing a secure supply of affordable energy for our families and businesses is non-negotiable," a spokesperson told The Guardian newspaper. "There will be no impact on this winter and action has already been taken to secure extra capacity for next winter. We will continue to work alongside National Grid and Ofgem to take whatever additional steps are necessary to protect our energy supply."
The future for coal-fired power in the U.K. is increasingly bleak. Last November, Industrial Info reported that the government planned to close all unabated coal-fired power plants by 2025, and impose restricted usage from 2023. For additional information, see November 23, 2015, article - U.K. Calls Time on Coal-Fired Power.
A few weeks later, the government pulled a sudden U-turn on proposed funding for carbon capture and storage projects (CCS), throwing into doubt the future of its two leading CCS projects at the Drax coal-fired plant in Selby, England and the gas-fired Peterhead plant in Scotland. For additional information, see December 2, 2015, article - U.K. Cancels Funding for Carbon Capture Projects.
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. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Plant(s) 1043042
The company blamed low power prices and higher carbon costs for its decision, which will result in the loss of 150 jobs. The plant is capable of supplying around one million homes with electricity, and its closure fuels growing fears that the U.K. is facing its worst ever energy shortage in the coming decade, as most of its old nuclear plants will be shut along with a growing number of unprofitable coal and gas-fired plants. ENGIE, formerly known as GDF Suez, claimed that "there is no prospect of the power station recovering its future operating costs" as the "market conditions for U.K. coal plant[s] have deteriorated rapidly in recent years".
David Alcock, chief executive officer of ENGIE's Energy Infrastructure division in the U.K., explained: "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."
ENGIE employs 20,000 people in the U.K's power sector.
The U.K. government denied that the closure will impact the security of the country's power capacity. "We are clear that providing a secure supply of affordable energy for our families and businesses is non-negotiable," a spokesperson told The Guardian newspaper. "There will be no impact on this winter and action has already been taken to secure extra capacity for next winter. We will continue to work alongside National Grid and Ofgem to take whatever additional steps are necessary to protect our energy supply."
The future for coal-fired power in the U.K. is increasingly bleak. Last November, Industrial Info reported that the government planned to close all unabated coal-fired power plants by 2025, and impose restricted usage from 2023. For additional information, see November 23, 2015, article - U.K. Calls Time on Coal-Fired Power.
A few weeks later, the government pulled a sudden U-turn on proposed funding for carbon capture and storage projects (CCS), throwing into doubt the future of its two leading CCS projects at the Drax coal-fired plant in Selby, England and the gas-fired Peterhead plant in Scotland. For additional information, see December 2, 2015, article - U.K. Cancels Funding for Carbon Capture Projects.
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. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Plant(s) 1043042
