«Absent the option of burning fuel oil - the most cost-efficient power generation option right now - coal- is very much the best option out there, albeit the most polluting one, too.» However, with gas prices like these, relying on natural gas for power generation is a no-go zone for anyone who can switch between fuels. «Gas prices have increased rapidly since the invasion of Ukraine. The extra coal flowing to the UK is thermal coal which is burned to create steam used for electricity generation, as opposed to coking coal, used for making iron or steel. » Since the UK’s «dash for gas» in the 1990s, coal’s share of electricity generation has halved, and there are now only three coal-fired plants running.
Tony Lodge, political and energy analyst at the Centre for Policy Studies, said the UK’s reliance on gas made it vulnerable to shocks. Lodge said that the government should have a more balanced energy mix that would make the UK less vulnerable to shocks. The disruption in energy markets from the war in Ukraine has delayed the UK’s plan to end the use of coal power by 2024. In May, Kwasi Kwarteng, then business secretary, asked National Grid executives to work with the owners of Britain’s three remaining coal fire power plants to ensure energy security for the Winter.
Last month, Uniper SE, which owns the Ratcliffe-1 coal-fired power plant in Nottinghamshire, announced it was going to keep the plant open to secure winter energy, despite plans to shutter it this year.
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