EDF and Drax have categorically ruled out extending the life of coal units which were kept on standby as part of this year’s winter contingency plans.
Both operators ruled out the possibility of their units being used again next winter, just hours after National Grid Electricity System Operator (ESO) outlined its intention to begin negotiations for contract extensions.
The ESO revealed that it was to begin negotiations with operators this morning (15 March) after being instructed to do so by the Department for Energy Security and Net Zero (DESNZ).
A DESNZ spokesperson confirmed that it has specifically asked the ESO to look into an extension to the current winter contingency contracts with EDF and Drax to ensure energy security next winter.
However, both operators have told Utility Week that doing so would be impossible and that they intend to begin decommissioning their respective coal units at the end of the month as previously agreed.
Uniper, the third operator with a contract for 2022/23, intends to operate commercially for winter 2023/24 and therefore would also not be in place to extend its contract.
An EDF spokesperson said: “The two remaining units at West Burton A coal fired power station in Nottinghamshire will close as planned on 31 March 2023, in line with the agreement signed last year. The station and its workforce have fulfilled the request to have 400MW available through Winter ‘22/23 as an emergency standby option.”
The spokesperson added: “There are a number of workforce and operational reasons that mean extending the life of West Burton A again is very challenging.
“For example, retaining suitably qualified and local personnel to ensure safe operation was a major challenge last year and, looking forward, becomes untenable as many of the workforce have stayed on well beyond planned retirement dates already. Approximately half the staff are retiring by Q2 this year. Notices have already been given for around half of these and they leave early April. This includes a large part of the station leadership team.”
A Drax spokesperson added: “Our coal units will close in March 2023 when this agreement comes to an end.
“The extension was a complex staffing, logistical and engineering project after a significant reorganisation of the power station was already completed to bring almost 50 years of coal-fired generation to an end. With two major maintenance outages planned on our biomass units this summer, and a number of certifications expiring on the coal-fired units, the units would not be able to operate compliantly for winter 2023.”
The two 400MW units at EDF’s West Burton A site in Nottinghamshire were put into action earlier this month for the first time as part of the winter contingency plans.
Despite the ESO issuing warnings on several previous occasions, the coal contingency plants had never been required before, with the notices being recalled following an improvement in supply margins.
A government spokesperson said: “Our energy supplies are safe and secure, but like last year we are exploring options to keep remaining coal-fired power stations available to provide additional back-up electricity if needed this coming winter as a contingency measure.
“Going above and beyond to ensure there are no issues next winter, we’ve written to ESO to request that they start the negotiations.
“Ultimately, the decision will be a commercial one for the coal generators and ESO will update the market in due course.”
The use of back-up coal plants rather than demand response was criticised by Octopus Energy.
Alex Schoch, the retailer’s head of flexibility, said: “The grid has shown incredible initiative by moving on demand flexibility so quickly. But its commitment to keeping one foot in the past and sticking with the same polluting coal power plants that we have had for decades is sending mixed signals.
“National Grid’s new demand flexibility service is already offering a cheaper, more practical and sustainable solution to peaks in energy demand, while putting millions of pounds back into people’s pockets that would otherwise be paid to fossil fuel companies. Even during this cold snap, households can deliver the flexibility that’s needed, get paid for it and reduce costs for everyone.”
The UK has set targets to close all coal-fired power plants by October 2024.