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Bloomberg
The UK plans to bulk up the amount of power capacity it has ready for next winter, beyond the amount recommended by network operator National Grid Plc.
The government set the target for the 2022-23 power capacity auction 14% higher than National Grid’s recommendation, according to a letter from Business Secretary Kwasi Kwarteng. Under the system, Britain pays power stations to guarantee they will be available if needed to meet demand.
“This target reflects the broader uncertainties within the power sector,†Kwarteng wrote.
The nation is dealing with a confluence of energy-related issues — including aging power stations, soaring natural gas prices and utilities that have gone bust — with consumers facing ever-higher prices.
Power plants aren’t being replaced, partly due to a government push into renewables, particularly offshore wind, and partly because capacity auction prices haven’t been high enough to make it worthwhile building new stations. The stakes are high — when it’s not windy, the UK relies heavily on gas, the price of which has risen almost 300% in the past year.