Energy firm closes CCGT facility
24 Jan 2014
E.ON has announced it will close its combined cycle gas turbine (CCGT) facility in Stoke, and cut capacity at three others.
The company claims the closure, which will mean the loss of 56MW of UK generating capacity, is due to the lack of viable commercial options for the plant.
Meanwhile, E.ON also announced that operations structures at its Sandbach, Castleford and Thornhill CCGT facilities, which have a combined generating capacity of 162MW, would also be altered to cut operational costs.
There is no doubt that the operational environment remains very challenging
Richard Pennells
The energy firm has cited the current economic climate a major factor in its decision to cut the operational generating capacity of its CCGT sites.
E.ON’s UK country director of steam & CCGT Richard Pennells said: “Over the last five years E.ON has invested over £6bn in the UK’s energy infrastructure but there is no doubt that the operational environment remains very challenging, particularly for CCGT power stations which in many areas are continuing to fight for survival in the current market, providing increasing uncertainty around future generating capacity planning.”
The news comes amid fears of power shortages as Britain’s electricity generating capacity decreases due to the closure of older coal and nuclear facilities.
To tackle this issue, major energy users, such as those in the process sectors, may be asked to reduce their power usage at times of peak demand to help avoid blackouts.
Demand side response schemes, such as National Grid’s Demand Side Balancing Reserve (DSBR) would see users of the scheme turn down their power usage to limit the strain on the grid at peak times.
This, alongside Process Engineering’s exclusive story that revealed National Grid is considering paying process plants to use electricity at off-peak times, may help manage the UK’s energy generation issues.