11 Dec 15

EDF Energy secures Capacity Market agreements

EDF Energy can confirm it has secured agreements in the second capacity auction run by National Grid.

The units which secured one year agreements from October 2019 are:

  • Nuclear power stations at: Dungeness B, Sizewell B, Hinkley Point B, Heysham 1, Heysham 2, Hartlepool, Torness, Hunterston B
  • West Burton B Combined Cycle Gas Turbine CCGT power station
  • Gas turbines at West Burton A coal power station.

 Two other power stations won three year agreements from October 2018 to September 2021 in last year’s auction. These are:

  • West Burton A coal power station (three out of four generating units)
  • Cottam coal power station (all four generating units)

The capacity market has been designed by Government to make sure that there is enough electricity generating capacity available to meet peak demand. It also ensures a reliable supply of electricity at times when there is less wind and little or no contribution from solar power.

Customers benefit from the best possible price for capacity by having a range of technologies competing in the auction. The capacity market supports EDF Energy’s investment in its nuclear, gas and coal generating plant. Investment of £600m a year in its low carbon nuclear power stations has helped the company improve their performance and to safely extend their operating lives. EDF Energy is also a leading and long term investor in new nuclear and renewable electricity generation. Investment in our existing nuclear stations is a cost effective way of maintaining secure energy supplies, while also supporting the country’s decarbonisation goals.

The capacity market also supports EDF Energy’s coal stations while they still play a key role in providing security of supply until they can hand over to new low carbon generation. EDF Energy has already made big investments to make its coal plants fully compliant with all current emissions and environmental regulations.

EDF Energy supports the capacity market and believes its rules must be fair in order to encourage needed investment. For example small diesel generators embedded in local distribution networks benefit from transmission arrangements which give them an unwarranted advantage in the capacity auction over cleaner new CCGT generation.  There is an opportunity to refine future auctions to support investment in reliable generating capacity, including new CCGTs alongside existing CCGT, coal and nuclear stations.

Continuing Government action to set the right price for carbon emissions will also encourage investment in the low carbon electricity the country needs for the future. It will progressively help to tip the balance away from coal generation towards nuclear, renewables and gas generation.


EDF Energy

EDF Energy is one of the UK’s largest energy companies and the largest producer of low-carbon electricity, producing around one-fifth of the nation's electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. The company supplies gas and electricity to 6 million business and residential customer accounts and is the biggest supplier of electricity by volume in Great Britain.

EDF Energy’s safe and secure operation of its eight existing nuclear power stations at sites across the country makes it the UK’s largest generator of low carbon electricity. EDF Energy is also leading the UK's nuclear renaissance and has published plans to build four new nuclear plants, subject to the right investment framework.

These new plants could generate enough low carbon electricity for about 40% of Britain’s homes. They would make an important contribution to the UK’s future needs for clean, secure and affordable energy. The project is already creating business and job opportunities for British companies and workers.

Through Our Better Energy Ambitions, EDF Energy has developed one of the biggest environmental and social programmes of any British energy company.

In 2014 EDF Energy received seven ‘Big Ticks’ in the Business in the Community (BITC) Responsible Business Awards. In 2013 EDF Energy received the Environmental Leadership for Behavioural Change Award in the national Environment and Energy Awards and was highly commended in the first ever pan European Corporate Social Responsibility Awards scheme for its Sustainable Schools programme – the Pod.

EDF Energy is part of EDF Group, one of Europe’s largest power companies. The company employs around 15,000 people at locations across the UK.

To find out more about the UK's energy challenges look at www.edfenergy.com/energyfuture/