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The Markets
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The Markets
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Power & Utilities

UK mulls coal U-turn on concerns over Russian gas supplies - report

"We are exploring a wide range of options for further bolstering our energy security," a Whitehall source told The Times newspaper

The UK government may seek to delay the closure this year of old coal-fired power stations on concerns about energy supplies following Russia’s invasion of Ukraine.

Officials have approached EDF to find out if its West Burton A plant in Nottinghamshire could continue generating beyond its planned September closure date, according to media reports.

The early-stage talks are aimed at preventing Britain from becoming even more reliant on burning gas for electricity, as prices hit record highs and the government seeks to end gas imports from Russia.

The UK has committed to stop burning coal for power by October 2024 as part of its climate strategy and any decision to postpone the closure of thermal coal power stations will likely be controversial.

A Downing Street spokesperson said on Monday that the government still plans to phase out coal by the 2024 deadline, but confirmed reports that Prime Minister Boris Johnson has met the bosses of offshore oil and gas companies to discuss the possibility of increasing investment in the North Sea, in order to help ease the reliance on imported gas and boost the supply of domestic gas.

There has been a rush to the exit for many of the world’s largest listed mining companies when it comes to thermal coal amid pressure from their western investors. Thermal coal generates about 40% of the world’s electricity, boosted by strong demand from India and China, but is very carbon dioxide intensive.

China was reported today to be planning a major increase in coal mining to reduce its reliance on imports, with Beijing aiming to increase production from the polluting fuel by around 300mln tons per year.

In the UK, gas-fired plants are the biggest source of electricity, generating about 37% of supplies last year versus 2% from coal, the Times noted.

Only three power plants still burn coal in the UK. West Burton A and the coal-fired units at Drax in Yorkshire are due to shut in September, while Uniper is due to shut part of its Ratcliffe-on-Soar plant in Nottinghamshire this year, with the rest operating until 2024.

“We are exploring a wide range of options for further bolstering our energy security, including the potential to extend the operation of certain coal-fired power stations which are due to close in September ahead of the end of coal power in 2024,” the paper reported, citing a “Whitehall source”.

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