Power struggle

Despite the government’s decision last week to lift its ban on gas-fired power plants, few more stations along the lines of Powergen’s Rye House plant (pictured) are likely to be built when new electricity trading arrangements come into force in October. New plants will have to compete with coal-fired capacity for short-term contracts and, according […]

Despite the government’s decision last week to lift its ban on gas-fired power plants, few more stations along the lines of Powergen’s Rye House plant (pictured) are likely to be built when new electricity trading arrangements come into force in October. New plants will have to compete with coal-fired capacity for short-term contracts and, according to energy consultancy Caminus, only a collapse in gas prices would enable a new gas-powered plant to undercut the coal-fired plant at Drax, owned by US-based AES. Since late 1998, 15 gas projects have been blocked, but more than 1.5GW of gas-fired combined heat and power schemes have been approved.