Pipelines, Storage & Power

SSE gambles on UK gas-to-power

SSE’s decision to build a gas-fired power plant without subsidies may indicate more such plants will be needed once the UK phases out coal, but significant risks remain SSE’s decision to build a gas-fired power plant without subsidies may indicate more such plants will be needed once the UK phases out coal, but significant risks remain.
By Silvia Favasuli 4 June 2018 0 31132
The Brigg gas-fired power plant in the UK A gas-fired power plant in the UK. (Centrica)

The decision of Scottish energy company SSE to greenlight the construction of an 840 MW combined-cycle gas turbine (CCGT) power plant raises hope for the UK’s gas-to-power sector, but analysts are sceptical the plant can survive in the mid-to-long term without subsidies.

A spokesperson from SSE told Interfax Natural Gas Daily that the company would begin preparatory work on the £350 million ($468 million) Keadby 2 project in North Lincolnshire in the coming weeks. Construction will start soon afterwards, commencing...