SSE has agreed with RWE to transfer the capacity market contracts for the Aberthaw B coal-fired power station to its Peterhead combined-cycle gas turbine plant in Aberdeenshire.
The contracts for around 1GW of de-rated capacity cover the delivery years 2019/20 and 2020/21. The deal follows RWE’s recent decision to close the Aberthaw B power station in 2020 due to “challenging” market conditions.
SSE managing director of thermal energy Stephen Wheeler said: “We’re delighted to have reached this agreement with RWE for the transfer of capacity market contracts to Peterhead.
“This agreement means the station will be contracted through to September 2022, helping to safeguard customers’ power supplies by offering flexible and reliable generation capacity.”
The transfer of the capacity obligations for 2019/20 has already been confirmed by National Grid. The contracts for 2020/21 will be transferred once the window for that year opens.
Peterhead power station already holds capacity market contracts for 2018/19 and 2021/22.