Open Consultation on Coal generation: actions to regulate the closure of unabated coal in the years leading up to 2025.
The Department for Business, Energy and Industrial Strategy has published on 9 November 2016 an Open Consultation – Coal generation in Great Britain: The pathway to a low-carbon future. This consultation seeks views on approaches to put into effect the closure of unabated coal power stations by 2025.
This consultation presents how to take action to regulate the closure of unabated coal to provide greater market certainty for investors in the generation capacity that is to replace coal stations as they close, such as new gas generators. It also tests proposals for a constraint on coal generation in the years ahead of that, in order to manage closures in an orderly way.
The Coal fired power generation is overvalued relative to other forms of power generation: (i) the externality arising from emissions of carbon dioxide and other harmful pollutants; and (ii) imperfect information leading to investor uncertainty for new build plant.
The policy objectives are to:
(i) reduce emissions of carbon dioxide and other harmful pollutants from the UK power sector;
(ii) increase revenue certainty for investment in new lower carbon plant, such as gas;
(iii) maintain security of electricity supply.
The policy intends to lead to the retirement of unabated coal-fired power plants by the end of 2025, to be replaced by less emission-intensive forms of generation such as gas without risking security of electricity supply.
The analytical evidence supporting the conclusions in this consultation is set out in the Impact Assessment published alongside the Consultation Document. The Government welcomes views on this Impact Assessment as part of this consultation.
Subject to stakeholders’ views and any evidence received as part of this consultation, the Government anticipates bringing forward any required legislative changes as soon as the legislative timetable allows.
For more details on the proposed policies refer to the consultation documents.
This consultation closes at 1 February 2017 5:00pm.