WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Alt Text

Can Trump End The War On Coal?

President-elect Trump has often mentioned…

Alt Text

Can Trump Really Revive The U.S. Coal Industry?

Although it’s likely that Trump’s…

MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

The Brexit Gives A Lifeline To British Coal

British Coal

Britain’s recent decision to leave the European Union may hinder its 15-year plan to shut down coal-fired power stations and decommission all but one of its ageing nuclear plants.

The nation, which would lose 23 gigawatts (GW) of power-generating capacity with such measures, would then have to rely more than ever on imports of natural gas and electricity… or not.

According to Alex Harrison, counsel at Hogan Lovells in London, who specializes in electricity markets and utilities, coal-fired generation may remain a key part of Britain's energy supply for longer than planned.

Speaking to Bloomberg, Harrison said Britain’s planned exit from the EU will make access to cleaner sources of fuel challenging, which in turn may mean the country will have to keep coal-fired generation past its self-imposed 2025 deadline.

With this, the nation would also fail to meet its obligation under the 2008 Climate Change Act to reduce greenhouse gases to 80 percent below their 1990 level by 2050.

Former Energy Secretary Amber Rudd had said that if coal power plants were able to install carbon capture and storage (CCS) before 2025, they would not have to close.

That approach has led to a boom of investments in heavily subsidized low carbon technologies in recent months, but as Jonathan Ford wrote for Financial Times (subs. required), “it has not added a single megawatt to Britain’s overall capacity.” On the contrary, it has actually been shrinking:

The UK’s main transmission company, National Grid, has just warned that the nation’s margin of supply might shrink to 0.1 percent this winter — down from 17 percent five years ago. Related: Can Fire Ice Replace Both Oil And Renewables?

If there is little danger of the lights going off, that is mainly because the grid has kept open some dirty old coal-fired stations that would otherwise have shut by striking temporary supply contracts with them. When these are taken into account, the margin creeps up to a more respectable 5 percent.

Last year, Britain shut down it last underground coal mine, putting one of the last nails in the coffin of the 300-year industry that once employed over a million workers.

Yet, the fuel still accounts for about 25 percent of the UK's power supply.

By Cecilia Jamasmie via Mining.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News