Kwarteng calls on UK system operator to ensure coal plant winter availability

The UK Secretary of State for Business Kwasi Kwarteng has called on the National Grid Electricity System Operator to work with coal plant operators and ensure non-gas-fired thermal generation is available next winter.

Coal units at Drax and West Burton are due to close at the end of their Capacity Market contracts in September.

Kwarteng said he had written to "certain coal plants ... to encourage them to engage with you", the minister said in a letter to National Grid ESO Executive Director Fintan Slye published by the Department for Business, Energy and Industrial Strategy May 27.

"I would encourage that any frameworks are put in place swiftly -- to enable operators to make time critical decisions -- and in a manner that minimises any wider impacts on our electricity markets as far as is practicable," Kwarteng said.

On April 27, generator Drax said the government has asked it to consider a limited extension of its coal-fired operations beyond September.

Either Drax or West Burton could defer closure until at least the end of Winter 2022 "in response to positive Clean Dark Spreads and, potentially, at the encouragement of the UK government to mitigate security of supply concerns related to gas supply," S&P Global Commodity Insights analysts said in a May European Electricity Monthly Outlook.

Platts assessed the UK season-ahead clean-dark spread at GBP57.84/MWh ($72.92/MWh) on May 26, according to S&P Global. The spread reflects the economic benefit from coal generation after accounting for fuel and carbon costs.