Gas Fired Power Stations: Construction

Department for Energy and Climate Change written question – answered on 21st January 2016.

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Photo of Teresa Pearce Teresa Pearce Shadow Minister (Housing)

To ask the Secretary of State for Energy and Climate Change, what steps the Government is taking to ensure that new gas-fired power stations are built in the UK.

Photo of Andrea Leadsom Andrea Leadsom The Minister of State, Department of Energy and Climate Change

Gas generation currently forms an integral part of the UK’s electricity mix and it will continue to do so over the coming decades as we decarbonise our electricity system; it is the cleanest fossil fuel and is one of the most flexible and reliable sources of electricity. We have said that we will consult on regulating the closure of all coal power stations by 2025. This gives an important investment signal to new gas developers.

The Capacity Market is in place to drive investment in new capacity such as building new gas-fired power stations when they are required. We have just run the second capacity auction which was successful in securing the capacity we needed at good value for consumers. We are currently reviewing whether the current framework maintains the confidence of gas investors, and will make any adjustments necessary to build on the success of the first two auctions.

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