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Policy & Regulation

Capacity payments may do little to prevent UK coal exit

RWE is shutting the last of its coal-fired power plants in the UK, with closures at other plants looking likely ahead of the country’s 2025 deadline for phasing out coal RWE is shutting the last of its coal-fired power plants in the UK, with closures at other plants looking likely ahead of the country’s 2025 deadline for phasing out coal.
By Andreas Walstad 2 August 2019 Europe & Russia / Policy & Regulation 0 34456
The Drax power station in the UK. (Drax)

RWE’s decision to close its last coal-fired power plant in the UK signals that other coal plants may be shut before the country’s 2025 cut-off date for ending coal-fired power despite the use of capacity payments.

RWE’s 1.6 GW Aberthaw coal-fired power plant in South Wales will close next March because of poor profitability, the company announced on Thursday. The plant had secured capacity payments – a fixed revenue stream for generators – until 2021, but a combination of rising...