Utility Week

UTILITY WEEK | 19TH - 25TH JANUARY 2018 | 15 Policy & Regulation Missed opportunity For some, the rapid dwindling of coal's con- tribution to the energy mix means the gov- ernment could have been even bolder about phasing it out. Marshall argues it is a missed opportunity to bring forward the end of coal. He says the green light for coal to compete in capacity market auctions until 2025 means companies will have fewer incentives to bring forward gas capacity. This is because, he suggests, the coal plants will create a bigger buffer in the wholesale market, thus minimising price spikes, which is when the operators of spare capacity make the juicy returns that justify their investment. Marshall says: "If those hours are less expensive, the finances behind building plants are less attractive." "It would have been easy to knock it for- wards by a couple of years," Marshall sug- gests, "or to phase the last tiny bits of coal out of the capacity market." Countdown to closure 02/03/15 An alliance of UK non-profit groups call on the three major political parties to set out how they plan to phase out unabated coal-fired generation in their election manifestos. 18/11/15 Former energy secretary Amber Rudd promises to cut unabated coal-fired power from the UK generation mix by 2025 as part of an energy policy "reset". 20/04/16 Drax Group chief executive Dorothy Thompson says its Yorkshire plant can phase out coal in just three years if the government offers up more subsidies. 03/06/16 The Independent reports that coal-fired power plants could be allowed to run beyond 2025 if they make at least partial use of carbon capture and storage. 07/06/16 A report from Conservative think-tank Bright Blue calls for the coal phase-out to be brought forward to 2023 – two years ahead of the current schedule. 09/11/16 The government reaffirms in a consultation docu- ment its commitment to phase out all unabated coal generation by 2025, and replace it with lower- carbon alternatives. 21/04/17 The UK experiences its first day since the industrial revolution during which no coal is burnt to generate electricity. 18/09/17 Prime minister Theresa May reiterates the UK's commitment to phase out unabated coal by 2025. Green campaigners welcome the move and call for an action plan for delivery. 17/11/17 The UK and Canada team up to launch the Powering Past Coal Alliance at the United Nations climate change talks COP23. 05/01/18 The government publishes a document setting out how it plans to implement its pledge that unabated coal plants will be phased out from 2025. ELECTRICITY SUPPLIED BY FUEL TYPE, 1990-2016 FUEL USED FOR ELECTRICITY GENERATION 25 20 15 10 5 0 400 350 300 250 200 150 100 50 0 Mtoe TWh 2014 2015 2016 2017 Q 1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1990 1995 2000 2005 2010 2016 Coal Nuclear Other renewables Oil Hydro (natural flow) Other fuels Gas Wind and solar Net imports Nuclear Oil and other Net imports Renewables Gas Coal Source: BEIS Source: BEIS

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