Stand-by UK power plants key to keeping lights on

• 14 years ago (2011-11-09)
• David Flin

Europe 1168 Renewables 822

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In a joint energy market report on the UK released by RWE npower and the London School of Economics, around 20 GW of stand-by British power capacity could generate as much as £1.5 billion in annual returns for producers by 2020 as they fill gaps caused by the retirement of old plants.

The report said that between now and 2025, the amount of reserve capacity needed in the UK is forecast to more than double to 8 GW from the current level of 3.5 GW, and could rise to as high as 16 GW if intermittent wind farms generate at a load factor of 100 percent.

National Grid, Britain’s grid operator, estimated that the amount plants are paid to keep reserve capacity available will more than triple to £945 million a year by 2020.

RWE npower said that consumers could help stem rising energy costs by controlling consumption patterns and even relying on their own stand-by generation. Britain’s big six utilities – RWE npower, Centrica, SSE, Scottish Power, EDF Energy, and E.ON – have been criticised for rising energy bills, pushing consumer price inflation higher.