Limits on operating hours for coal-fired plant under the European Union’s Large Combustion Plant Directive will begin to bite this winter with 4.5GW coming off the system by April 2013, according to National Grid’s latest forecast.
The system operator said it plans to contract more short-term operating reserve (STOR) – back-up generation from various sources – than last year to cover winter peak demand. Last year, it had 2.3GW STOR available whereas it plans to contract 3GW for 2012/13.
National Grid said energy prices would remain flat and high gas prices would favour coal plant .
This article first appeared in Utility Week’s print edition of 13 July 2012.
Get Utility Week’s expert news and comment – unique and indispensible – direct to your desk. Sign up for a trial subscription here: http://bit.ly/zzxQxx