Coal plants have high fixed costs but are running less, he noted. Already a subscriber? Sign in. Thanks for reading Scientific American. Create your free account or Sign in to continue. See Subscription Options. Go Paperless with Digital. America is continuing its exodus from coal.
Get smart. Sign up for our email newsletter. Aberthaw B, for instance, has been running close to capacity. The plants that have shutdown or will operate reduced hours are slightly older than those still expecting to stay open.
However, all but two of the remaining stations are more than 40 years old. The cost of maintaining ageing equipment was cited by SSE in explaining its now reversed decision to consider closing Fiddlers Ferry. From this year, plants face tightening air pollution rules under the EU Industrial Emissions Directive IED , though various exemptions and transitional arrangements are in play. Given unfavourable market conditions, the decision over whether to keep coal plants running at a loss is complicated by two separate policies designed to keep the lights on.
It pays a fixed price for each kilowatt of capacity, up to the level of expected peak demand. That decision looked to have dealt a blow to the credibility of the capacity market. It added to pressure for reforms and a sense that the scheme is actively undermining security of supply.
A second scheme known as the National Grid Supplemental Balancing Reserve SBR is designed to secure supplies in the years before the capacity market kicks in. It is paying a small amount of reserve capacity to remain on standby, operating only when supplies are tight. However, current rules limit the size of the SBR to 3. Some analysts believe there is no need to expand the SBR. Aberthaw, Cottam and West Burton were all seen as at risk of closure due to unfavourable market conditions, according to a February Reuters article.
Indeed, Cottam and West Burton, both owned by French utility EDF, have defaulted on three-year capacity market contracts they held, having decided not to carry out upgrades. The plants could still bid for further one-year contracts. The government wants new gas capacity to fill the gap, though there is disagreement over the scale of the requirement and the impact on UK climate goals.
Investors are also not currently attracted to building new gas plants in part because the capacity market price is not high enough. Kilroot and Eggborough coal-fired power stations have announced plans to close in May and September , leaving seven coal plants remaining in the UK. Drax will convert a fourth unit to burn biomass.
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