SSE statement on Capacity Market Auction provisional results – Peterhead Power Station
OREANDA-NEWS. December 14, 2015. Paul Smith, SSE’s Managing Director of Generation, said:
“The GB Capacity Market, now in its second year, is designed to keeps the lights on at the lowest cost to the customer whilst ensuring generators are fairly remunerated for the service they provide to help meet the peaks in customers’ requirement for electricity.
“Whilst Peterhead was unsuccessful in securing a capacity agreement this time round it doesn’t affect existing operations at the plant, as the Capacity Market Auction is just one of multiple options available to the station.
“In addition to its ability to operate in the market, Peterhead has secured a number of contracts to provide support services to National Grid. These include contracts to provide up to 750MW of capacity to National Grid’s Supplemental Balancing Reserve (SBR) service this winter and next; and a contract to provide voltage support to the electricity system in the north of Scotland between April 2016 and September 2017.
“Thermal generation is continuing to operate in very challenging market conditions. However, the UK government has said that gas-fired generation will be central to a secure energy future. Against this background, and following this year’s auction round, SSE will consider the options for the future of operation of all its power generating plant, including Peterhead.
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