Supply & Demand

UK power plants mothballed on higher gas prices

Low profit margins for gas-fired power generation in the UK has resulted in 2 GW of plant mothballing this year, UK utility Drax said on Tuesday.
By Andreas Walstad 2 August 2011 0 527

Low profit margins for gas-fired power generation in the UK has resulted in 2 GW of plant mothballing this year, UK utility Drax said on Tuesday.

Drax, the largest coal-fired power generator in the UK, said the estimated average load factor for January to May 2011, based on settlement data, was 47% for combined cycle gas turbine (CCGT) plants compared with 74% for nuclear.

The relatively low utilisation of gas-fired power plants was due to the low green spark spreads – the profit of generating power after...