UK's National Grid instructs coal units to warm up on cold, still outlook

UK electricity system operator National Grid has instructed three "winter contingency" coal-fired generation units to warm up ahead of a cold, still Jan. 23 with forecast demand of 45 GW, system data showed Jan. 22.

Hourly UK power prices for Jan. 23 peaked at GBP291.19/MWh ($360.75/MWh) on Nord Pool's N2EX platform, while Platts, part of S&P Global Commodity Insights, assessed the price of UK day-ahead peak evening power at GBP203.50/MWh Jan. 20, up 6% day on day.

"We've issued a notification to warm three winter contingency coal units. This measure should give the public confidence in Monday's energy supply," National Grid said in a tweet.

Notification did not mean the units would be used, just that they would be available, it added.

The three units under instruction were Drax 5 (645 MW), Drax 6 (645 MW) and West Burton A 1 (400 MW).

Start-up costs for the Drax units were put at GBP60,933. For West Burton, the cost was GBP106,666.

System data showed demand peaking at 45 GW in the evening of Jan. 23 -- well below the 47 GW seen on Dec. 15 during the previous cold snap.

Wind generation, however, is forecast to be low Jan. 23, dipping below 4 GW during the evening peak, having averaged over 10 GW for the previous week.

A yellow warning of freezing fog was issued by the Met Office for Jan. 23, with sub zero temperatures threatening disruption to bus and train services, as well as delays to flights.

Prompted by fears of supply shortages this winter, National Grid contracted 2.4 GW of coal capacity at Drax, West Burton A and Radcliffe as "last resort" generators between October 2022 and March 2023.

For the whole period, National Grid estimated the contracts would cost GBP367 million.