Outcome of competitive capacity auction supports EDF Energy’s investment plans
EDF Energy has secured agreements for 28 out of its 29 existing generating units in the first capacity auction run by National Grid.1
The highly competitive nature of the auction has allowed customers to benefit from security of supply at the lowest possible cost. EDF Energy has supported the introduction of a capacity market within the wider Electricity Market Reforms. The outcome of the auction provides further evidence that these reforms are working to deliver investment in secure low carbon electricity for the UK.
Results for EDF Energy mean all but one generating unit has qualified:
One year agreements from October 2018 - September 2019:
- 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 power station
- Gas turbines at West Burton A coal power station
- West Burton A coal power station (three out of four generating units)
- Cottam coal power station (all four generating units)
Results from the auction give EDF Energy the confidence to continue to make cost-effective investments in its existing generation in a challenging energy market. The results also support the case for life extension at coal and nuclear sites.
The outcome of the auction means that EDF Energy will make the required investment to keep its stations at Cottam and West Burton in Nottinghamshire operating until at least 2021. These coal stations will play a key role in providing security of supply until they can hand over to new low carbon generation. EDF Energy has already made significant investments to make these coal plants fully compliant with all current emissions and environmental regulations.
Regarding nuclear, EDF Energy is investing £600m a year in its existing nuclear stations.2 In February 2014, EDF Energy announced that it expected to extend the life of Dungeness B by 10 years. The outcome of the capacity market auction contributes to the investment case. A formal decision on Dungeness B should be possible soon.
EDF Energy Chief Executive Vincent de Rivaz said: “The capacity auction is a key part of a thorough reform of the electricity market and it has worked well to give customers secure supply at the lowest possible price. As part of a package of reforms it gives generators like us the confidence to invest in a highly challenging market and gives customers stable prices as well as reliable supply.“
1 The final outcome of the auction is subject to confirmation by the Secretary of State for Energy and Climate Change.
2 This is made up of £400m of investment, including plant life extension, and the £200m cost of maintenance and overhaul outages
For more information contact:EDF Energy Media
Media Relations Team
Senior Media Manager (Corporate)
020 7752 2248
07875 114 307
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/