British power generator Drax Group Plc is in talks with National Grid Plc to restart two coal-fired units to be used as emergency back up power supply for next winter.
National Grid was asked by the government earlier this year to explore extending a coal reserve that was used last winter as a safety buffer. Drax is in talks to re-open the units at its power station in north England, according to the grid operator’s early winter outlook published on Thursday.
The Drax units participated in the reserve last year and that contract finished at the end of March. The company, which is focused on expanding its biomass and carbon-capture plans in the UK and US, announced at the time “the official end of coal-fired generation at Drax Power Station”.
A Drax spokesman said the company has had “various discussions” with the government and grid operator since April, but is not currently in “negotiations” to extend the availability of its coal units. Drax has started the coal units’ decommissioning process, he said.
The UK plans to close all remaining coal-fired generation by the end of 2024 as part of its push to have a net zero grid by the middle of the next decade. It’s a tough target that will require an accelerated build-out of renewable energy capacity while maintaining reliability of supply.
Even in summer, the nation relies on coal when margins are tight. This week, coal was needed during a lull in wind generation ending a 40-day streak without the dirty fuel.
Despite European countries looking to coal last winter when gas supplies were scarce, generation declined as total power demand fell and new renewable capacity came online.
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The other units that were in the reserve last year won’t be needed next winter including Electricite de France SA’s West Burton coal plant, said Jake Rigg, a spokesman for the grid operator. Uniper SE’s Ratcliffe plant in Nottinghamshire is operating in the normal wholesale market.
Last winter’s coal contingency reserve cost British consumers almost £400 million ($508 million) through charges spread across energy bills. Some of that may be reclaimed in the sale of unused coal and the grid operator has “begun to secure the sale of coal” from units that won’t be available this winter, a grid spokesperson said.
