SSE announced today that it was taking up an exemption from the IED for the two plants. Under the Limited Life Derogation (LLD), SSE can run the plants without fitting further abatement technology for a total of 17,500 hours or to the end of December 2023, whichever is the earlier.
However, SSE still has the option to change its mind. Although the deadline for choosing the LLD is January 1 2014, the government has given generators leeway to rescind their decisions at a later date and enter into the UK’s Transitional National Plan (TNP) or fully comply with the Directive.
The IED is due to come into effect from January 1 2016 and imposes emission limits of SO2, NOx and particulates on all UK generation plant.
Under the TNP, generators have between January 1 2016 and the end of June 2020 to move towards full compliance with the IED. After 2020 the plant must fully comply with the directive, close, or limit generation to 1500hrs per year.
All of SSE’s other qualifying UK thermal generation plant, including coal-fired Fiddlers Ferry and its gas plant, will remain in the draft TNP.
SSE says that selecting some plant for the LLD, while maintaining other similar plant within the TNP, keeps its options open.
In addition, SSE has decided to progress with up to £15m of investment at its Peterhead power station to extend the life of the plant.
Paul Smith, SSE’s managing director of generation, said: “SSE’s primary objective for its Generation business is to maintain a diverse portfolio of assets that help keep the lights on.
“There are many uncertainties surrounding the future operation of generation assets in the UK and these make it hard to take balanced decisions that minimise risk and ensure the delivery of the best value energy for customers.”