U.K. Green Lights 1,800-MW, Gas-Fired Power Plant

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. government has given the green light for the construction of an 1,800-megawatt (MW) power plant in Lincolnshire, in east England.

The news comes as the U.K. faces increasingly tight electricity capacity supplies for the coming winter, and older nuclear and coal-fired plants are slated to close in the next few years. In June, 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.

The Sutton Bridge B combined cycle gas turbine (CCGT) plant is being developed by EDF Energy, the U.K. arm of French energy company Electricite de France (EPA:EDF) (Paris), and will cost an estimated $2.3 billion. Work is expected to kick off in 2017, and the plant is scheduled for commissioning in the summer of 2019. When complete, the plant will operate for 35 years.

It will be located adjacent to the existing 790-MW Sutton Bridge A gas-fired plant, which has been operating since 1999. EDF sold the plant in 2012 to a group of investors led by Australian bank Macquarie Group (ASX:MQG) (Sydney, Australia) as part of its commitment to the European Commission after its takeover of British Energy in 2008.

U.K. Energy Minister Lord Bourne said: "We are working to deliver clean, affordable and secure energy supplies for hardworking families and businesses. Continued investment in this vital industry--such as this new power plant-- creates jobs but also helps keep the lights on as we move towards a cleaner energy future."

About 1,500 jobs will be created during construction and 50 permanent positions when the plant is finished.

In recent years, high gas prices have affected the growth of gas-fired generation in the U.K. and elsewhere in Europe, allowing coal to reverse its weakening position in the electricity mix. That started to change last year as wholesale gas prices fell. Gas-fired power has been making a comeback in the U.K., especially since the second half of 2014, accounting for 30.2% of electricity generation last year, an increase of 3.6% over 2013. At the same time, coal-fired power generated 29.1% of the U.K.'s electricity, a decrease of 7.4% from 2013. For additional information, see April 7, 2015, article - Renewable Energy Sets New U.K. Record.

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