Solar increases UK market share as coal power falls

• 7 years ago (2016-07-12)
• David Flin

Europe 1061 Nuclear 640 Renewables 752

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A report from the energy analyst EnAppSys has indicated that the market share of coal-fired electricity generation fell sharply, to 0.89 TWh during May 2016, compared to 1.38 TWh produced by solar PV. During the period April to June, levels of coal-fired power generation fell by 70 per cent compared to the previous quarter, and by 76 per cent in comparison to the same quarter in 2015.

EnAppSys said that the fast decline in coal-fired generation was a result of recent closures of many coal-fired power plants as a result of poor market conditions attributed to the UK’s carbon price floor and a reduction in the price of gas.

Meanwhile, during the second quarter of 2016, solar PV sites generated 23 per cent more electricity than the previous quarter, and 174 per cent more than the same quarter in 2015. The increase in solar PV reflects a drive from solar firms over the past year to obtain Renewables Obligation Certificates (ROCs) for solar farms before a 31 March, 2016 deadline. However, now that the deadline has passed, the current estimated UK solar capacity is expected to grow much more slowly over the next few years.

The market analysis also suggests renewables as a whole continue to play an increasingly important role in the UK’s power mix, with the industry’s share of overall electricity generation rising to 23 per cent in the second quarter of 2016, up from 22 per cent the previous quarter. Nuclear generation rose over the same period from 19.1 per cent to 21.4 per cent, and gas increased its share from 35.5 per cent to 42.1 per cent. Coal’s share plummeted from 16.2 per cent to 5.6 per cent.