Coal news and updates

Government denies blackout risk as Rugeley coal plant unveils closure plan

The government has issued a fresh denial that the UK is at risk of blackouts after one of the country’s biggest coal power stations announced plans to close.

The French company Engie said it would shut its Rugeley power station in the summer, putting 150 jobs in doubt and affecting 190 contractors.

The Staffordshire coal power plant is the latest to pull down the shutters due to low power prices and higher carbon costs, as the energy secretary, Amber Rudd, moves to phase out coal by 2025.

The closure will fuel fears of a supply crunch because it removes a gigawatt (GW) of energy from the National Grid – enough to power 500,000 homes.

The National Grid bought 2.4GW of extra capacity for this winter as part of a scheme under which it pays companies to reduce energy usage or provide more power at short notice. The scheme added an extra 50p to the average household bill this year, while the grid has also bought 3.6GW for next year, adding a further £1.50.

New coal plant closures raise the prospect that the Grid will have to buy even more capacity for the 2016-17 winter to keep the lights on. But the Department of Energy and Climate Change said Britain was not at risk of blackouts.

“We are clear that providing a secure supply of affordable energy for our families and businesses is non-negotiable. There will be no impact on this winter and action has already been taken to secure extra capacity for next winter,” a spokesman said. “We will continue to work alongside National Grid and Ofgem to take whatever additional steps are necessary to protect our energy supply.”