Advertisement
UK markets open in 47 minutes
  • NIKKEI 225

    37,582.14
    +143.53 (+0.38%)
     
  • HANG SENG

    16,789.89
    +278.20 (+1.68%)
     
  • CRUDE OIL

    83.02
    +0.17 (+0.21%)
     
  • GOLD FUTURES

    2,323.30
    -23.10 (-0.98%)
     
  • DOW

    38,239.98
    +253.58 (+0.67%)
     
  • Bitcoin GBP

    53,988.97
    +261.84 (+0.49%)
     
  • CMC Crypto 200

    1,401.81
    -12.95 (-0.92%)
     
  • NASDAQ Composite

    15,451.31
    +169.30 (+1.11%)
     
  • UK FTSE All Share

    4,362.60
    +66.19 (+1.54%)
     

Coal-Fired Power Stations To Close By 2025

The country's dirtiest coal-fired power stations are to be closed by 2025 under Government plans to ensure the UK's energy security through a commitment to gas.

The Department of Energy and Climate Change confirmed the shift following a report by Sky News on Tuesday night that contained details of a key speech by the Secretary of State, Amber Rudd.

Under the proposals, all unabated coal power stations - those which have no carbon capture facilities - will shut by 2025, with their use restricted by 2023.

The move means the UK will be the first major economy to eliminate use of the fossil fuel for electricity generation.

ADVERTISEMENT

The burning of coal - at 15 operational plants - last year was responsible for 30% of the country's total power.

The decision to replace them largely through new gas-fired power stations is ambitious given just one is currently under construction.

The development also reignites the debate on whether the UK will have enough spare capacity in the electricity network to keep the lights on - just two weeks after National Grid (LSE: NG.L - news) used emergency measures for the first time in three years to maintain its power buffer.

Ms Rudd said: "Energy security comes first and I am determined to ensure that the UK has secure, affordable, and clean energy supplies that hardworking families and businesses can rely on now and in the future.

"We are tackling a legacy of underinvestment and ageing power stations which we need to replace with alternatives that are reliable, good value for money, and help to reduce our emissions.

"It (Other OTC: ITGL - news) cannot be satisfactory for an advanced economy like the UK to be relying on polluting, carbon intensive 50-year-old coal-fired power stations."

She (Munich: SOQ.MU - news) added: "Our determination to cut carbon emissions as cost effectively as possible is crystal clear and this step will make us one of the first developed countries to commit to taking coal off our system."

The Government made the announcement ahead of a major United Nations conference on climate change, which starts at the end of the month.

However, it was accused last month of running a "wrecking ball" through the drive for clean energy following the collapse of two companies in the sector - blamed on the withdrawal of Government for renewable energy.

At the time, Ms Rudd cited estimates showing that its support for renewables was set to top £9bn by 2021, adding £18 to an annual energy bill.

Former US vice president Al Gore - now a leading campaigner on tackling climate change - described the decision to axe coal as an "excellent and inspiring precedent" heading into the UN talks.

But he said he was "confused" by the Government's cuts to clean technology support - with the TUC also declaring them counterproductive.

Ms Rudd also defended the planned expansion of nuclear power in her speech, just weeks after ministers signed a multi-billion pound deal with China's president to build a new nuclear plant at Hinkley Point.

That is not expected to start generating electricity until the mid 2020s at the earliest - the time when coal is on course to be axed.