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Released July 23, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. is facing a greater risk of electricity blackouts this winter due to the ongoing closure of older power stations.
Spare capacity will stand at just 1.2% this winter, the lowest in 10 years, according to the latest figures from the country's electricity grid operator, National Grid. In its "Winter Review & Consultation 2015," National Grid said electricity margins are forecast to be tighter, but that gas supplies are "expected to be sufficient."
The company already has bought 2.56 gigawatts (GW) of additional balancing services for this winter, at a cost of £36 million ($56 million)--the second year in a row that it has resorted to adding extra capacity. The extra generation will boost available spare capacity to 5.1%. Last year's extra capacity investment was not needed, as 2014's mild winter led to lower electricity demand. In addition, windy conditions boosted windfarm generation, and high imports from interconnectors provided additional electricity supply.
"It's clear that electricity margins for that coldest, darkest half hour of winter are currently tighter than they have been, due to power stations closures," said Cordi O'Hara, National Grid's director of market operations. "As system operator, we feel we've taken a sensible precaution again this winter to buy some extra services. Together with the tools we already use to balance the network, these additional services will significantly increase the energy reserve available this winter."
Industrial Info has tracked the closure of numerous large fossil-fuel power stations in the U.K. over the past six months, which will have a severe impact on the U.K.'s future generation capacity. The loss has been exacerbated by unplanned outages at a number of the country's ageing nuclear power plants.
At the start of April, the oil-fired Littlebrook Power station in Kent, England, which has a generating capacity of 1,475 megawatts (MW), was taken offline by owner RWE nPower (Swindon, England) after 34 years of operation. For additional information, see April 9, 2015, article - RWE Shuts Littlebrook Power Station in U.K..
In May, Scottish utility SSE plc (Perth, Scotland) blamed rising costs, falling profits and stricter environmental rules for its decision to close the 2,000-MW, coal-fired power plant at Ferrybridge in West Yorkshire, England. Two of the four units, accounting for 1,000 MW of generation, already were offline and awaiting decommissioning at the time of the announcement. For additional information, see May 25, 2015, article - Rising Costs Force Closure of Ferrybridge Power Plant in England.
Earlier this month, E.ON (XETRA:EOAN) (Düsseldorf, Germany) announced the closure of its 900-MW Killingholme combined-cycle gas-turbine (CCGT) power station in the U.K., after it failed to win a power contract from the National Grid's Supplemental Balancing Reserve (SBR) service. For additional information, see July 9, 2015, article - E.ON Shuts Killingholme Gas-Fired Plant in U.K..
At the end of October 2014, the gas-fired Barking Power Station in Dagenham, with a capacity of 1,000 MW, was closed as high gas prices and low efficiency levels made it unprofitable to run. At the end of 2015, E.ON will shut the 335-MW coal-fired Ironbridge power station in Telford, England.
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.
Spare capacity will stand at just 1.2% this winter, the lowest in 10 years, according to the latest figures from the country's electricity grid operator, National Grid. In its "Winter Review & Consultation 2015," National Grid said electricity margins are forecast to be tighter, but that gas supplies are "expected to be sufficient."
The company already has bought 2.56 gigawatts (GW) of additional balancing services for this winter, at a cost of £36 million ($56 million)--the second year in a row that it has resorted to adding extra capacity. The extra generation will boost available spare capacity to 5.1%. Last year's extra capacity investment was not needed, as 2014's mild winter led to lower electricity demand. In addition, windy conditions boosted windfarm generation, and high imports from interconnectors provided additional electricity supply.
"It's clear that electricity margins for that coldest, darkest half hour of winter are currently tighter than they have been, due to power stations closures," said Cordi O'Hara, National Grid's director of market operations. "As system operator, we feel we've taken a sensible precaution again this winter to buy some extra services. Together with the tools we already use to balance the network, these additional services will significantly increase the energy reserve available this winter."
Industrial Info has tracked the closure of numerous large fossil-fuel power stations in the U.K. over the past six months, which will have a severe impact on the U.K.'s future generation capacity. The loss has been exacerbated by unplanned outages at a number of the country's ageing nuclear power plants.
At the start of April, the oil-fired Littlebrook Power station in Kent, England, which has a generating capacity of 1,475 megawatts (MW), was taken offline by owner RWE nPower (Swindon, England) after 34 years of operation. For additional information, see April 9, 2015, article - RWE Shuts Littlebrook Power Station in U.K..
In May, Scottish utility SSE plc (Perth, Scotland) blamed rising costs, falling profits and stricter environmental rules for its decision to close the 2,000-MW, coal-fired power plant at Ferrybridge in West Yorkshire, England. Two of the four units, accounting for 1,000 MW of generation, already were offline and awaiting decommissioning at the time of the announcement. For additional information, see May 25, 2015, article - Rising Costs Force Closure of Ferrybridge Power Plant in England.
Earlier this month, E.ON (XETRA:EOAN) (Düsseldorf, Germany) announced the closure of its 900-MW Killingholme combined-cycle gas-turbine (CCGT) power station in the U.K., after it failed to win a power contract from the National Grid's Supplemental Balancing Reserve (SBR) service. For additional information, see July 9, 2015, article - E.ON Shuts Killingholme Gas-Fired Plant in U.K..
At the end of October 2014, the gas-fired Barking Power Station in Dagenham, with a capacity of 1,000 MW, was closed as high gas prices and low efficiency levels made it unprofitable to run. At the end of 2015, E.ON will shut the 335-MW coal-fired Ironbridge power station in Telford, England.
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.
