2016 Closure Likely For Longannet

Longannet power station is likely to close early next year after failing to secure a crucial contract with the National Grid, operator Scottish Power has confirmed. The troubled coal-fired plant in Fife was bidding for a short-term contract to help maintain voltage levels in the electricity supply from April 2016 to September 2017. MSPs heard earlier this month that the station would close by the end of March next year unless it was successful in its bid. National Grid has announced that SSE's gas-fired Peterhead power station has been chosen for the #15 million contract over Longannet and a third bidder. Neil Clitheroe, chief executive of Scottish Power retail and generation, said: We are extremely disappointed with National Grid's decision as Scottish Power submitted a competitive bid that reflected our commitment to protecting the immediate future of Longannet power station.As we have said previously, today's decision by National Grid means that, in all likelihood, we will be forced to announce the closure of Longannet by March 2016. Everyone will appreciate that it is a concerning time for all our people and we will do everything in our power to manage the outcome of this process as best we can.'' The plant has been under pressure from new European Union (EU) environmental legislation and carbon taxation combined with higher transmission charges to connect to the grid due to its location in Scotland. Mr Clitheroe said:The issue regarding punitive transmission charges has not changed and this still negatively impacts the future of the station. Beyond that, the current transmission charging regime is a major barrier to any future investment in flexible thermal power generation in Scotland.In any future scenario for Scotland, it is vital that the network here is supported by flexible generation to complement renewables.'' National Grid said the proposal from Peterhead was the most beneficial'' across a number of factors includingsystem stability and resilience'' and value for money. The contract is to ensure stability in the system until the completion of projects to improve the electricity transmission system including the Western Link, a £1 billion project to help carry renewable energy from Scotland to Wales and England. Mike Calviou, director of transmission network services at National Grid, said: We recognised a need for voltage support in Scotland due to a gap between the potential closure of thermal plant and the completion of upgrades to the high-voltage transmission network.We shortlisted potential providers for this service and selected the provider that was best able to meet our requirements.'' A Department of Energy and Climate Change (DECC) spokesman said: The awarded contract is good news for Peterhead, a plant that is developing CCS (carbon capture and storage) technology which will help towards our carbon emission objectives.This will also help maintain high levels of electricity security for Scotland.''