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| Version 1 | Version 2 |
|---|---|
| Longannet power station to close next year | Longannet power station to close next year |
| (35 minutes later) | |
| Scottish Power has announced it is to close its huge coal-fired power station at Longannet in Fife early next year. | Scottish Power has announced it is to close its huge coal-fired power station at Longannet in Fife early next year. |
| The move comes after the energy firm failed to win a crucial contract from National Grid. | The move comes after the energy firm failed to win a crucial contract from National Grid. |
| Scottish Power said it was "extremely disappointed" at National Grid's decision. | Scottish Power said it was "extremely disappointed" at National Grid's decision. |
| It had previously indicated Longannet would have to shut if it lost out in a contest to help maintain voltage levels in the nation's electricity supply. | It had previously indicated Longannet would have to shut if it lost out in a contest to help maintain voltage levels in the nation's electricity supply. |
| The SSE-operated gas-fired power station at Peterhead won the contract at the expense of Scottish Power and a third bidder. | The SSE-operated gas-fired power station at Peterhead won the contract at the expense of Scottish Power and a third bidder. |
| MSPs heard earlier this month that Longannet would close unless Scottish Power secured the £15m contract, which will run from April 2016 to September 2017. | MSPs heard earlier this month that Longannet would close unless Scottish Power secured the £15m contract, which will run from April 2016 to September 2017. |
| About 270 people are currently employed at Longannet. | |
| 'Extremely disappointed' | 'Extremely disappointed' |
| Scottish Power retail and generation chef executive Neil Clitheroe said: "We are extremely disappointed with National Grid's decision as Scottish Power submitted a competitive bid that reflected our commitment to protecting the immediate future of Longannet Power Station. | |
| "As we have said previously, today's decision by National Grid means that, in all likelihood, we will be forced to announce the closure of Longannet by March 2016. | "As we have said previously, today's decision by National Grid means that, in all likelihood, we will be forced to announce the closure of Longannet by March 2016. |
| "Everyone will appreciate that it is a concerning time for all our people and we will do everything in our power to manage the outcome of this process as best we can. | "Everyone will appreciate that it is a concerning time for all our people and we will do everything in our power to manage the outcome of this process as best we can. |
| "The issue regarding punitive transmission charges has not changed, and this still negatively impacts the future of the station. | "The issue regarding punitive transmission charges has not changed, and this still negatively impacts the future of the station. |
| "Beyond that, the current transmission charging regime is a major barrier to any future investment in flexible thermal power generation in Scotland." | "Beyond that, the current transmission charging regime is a major barrier to any future investment in flexible thermal power generation in Scotland." |
| He added: "In any future scenario for Scotland, it is vital that the network here is supported by flexible generation to complement renewables." | He added: "In any future scenario for Scotland, it is vital that the network here is supported by flexible generation to complement renewables." |
| In a statement, National Grid said Peterhead had been selected because its proposal was "determined to be the most beneficial across a number of factors". | In a statement, National Grid said Peterhead had been selected because its proposal was "determined to be the most beneficial across a number of factors". |
| It added: "These include the ability to provide system stability and resilience, and value for money for GB consumers. | It added: "These include the ability to provide system stability and resilience, and value for money for GB consumers. |
| "The baseline value of the contract is £15m, and any utilisation fees will be reflective of market conditions at that time." | "The baseline value of the contract is £15m, and any utilisation fees will be reflective of market conditions at that time." |
| 'Positive news' | 'Positive news' |
| SSE said the National Grid announcement was "positive news" for Peterhead. | SSE said the National Grid announcement was "positive news" for Peterhead. |
| Jim Smith, managing director of Energy Portfolio Management for SSE said: "SSE has continually invested in the site since it opened in 1980 and we're pleased Peterhead will continue to play an important role in ensuring National Grid can provide system stability and resilience going forward." | Jim Smith, managing director of Energy Portfolio Management for SSE said: "SSE has continually invested in the site since it opened in 1980 and we're pleased Peterhead will continue to play an important role in ensuring National Grid can provide system stability and resilience going forward." |
| The contract allows National Grid to call upon 385MW of Peterhead's 1180MW capacity to provide voltage support. | The contract allows National Grid to call upon 385MW of Peterhead's 1180MW capacity to provide voltage support. |
| Gina Hanrahan, Climate and Energy Policy Officer at WWF Scotland, said National Grid's announcement was "another important step in Scotland's energy transition" | |
| 'Prudent steps' | |
| She added: "While Longannet has served Scotland well for over 40 years, it is Scotland's single biggest source of climate emissions and a combination of EU air pollution rules, carbon pricing and factors such as transmission charging have made the aging plant's closure inevitable. | |
| "However, National Grid have made clear that this does not pose problems for security of supply in Scotland and has taken very prudent steps to ensure grid stability with this short-term voltage control contract for Peterhead." | |
| Longannet is one of the biggest coal-fired power stations in Europe. | Longannet is one of the biggest coal-fired power stations in Europe. |
| It generates enough electricity each year to meet the needs of more than two million homes and it plays a vital role in keeping the power network stable and safe. | It generates enough electricity each year to meet the needs of more than two million homes and it plays a vital role in keeping the power network stable and safe. |
| The UK's transmission charging regime is designed to encourage the power companies to invest in generation capacity close to the largest centres of population in central and southern England. | The UK's transmission charging regime is designed to encourage the power companies to invest in generation capacity close to the largest centres of population in central and southern England. |
| At present, it costs about £40m a year to keep Longannet connected to the national grid, while an equivalent power station in the south of England would receive a payment of £4m. | At present, it costs about £40m a year to keep Longannet connected to the national grid, while an equivalent power station in the south of England would receive a payment of £4m. |